Coreco Announces Third Quarter Results.

MONTREAL--(BUSINESS WIRE)--Oct. 28, 1996--CORECO INC. (ME, TSE CRC. ) Revenue for the third quarter ended September 30, 1996 was $2.7 million compared to $2.6 million for same period last year, an increase of 4 percent.

Earnings before taxes were $757,000 compared to $580,000 from the corresponding period last year, an increase of 31 percent. Net income was $469,000 or $0.06 per share, compared to $455,000 or $0.08 per share last year.

Gross profit was 55.4 percent compared to 54.1 percent for the third quarter in 1995. This increase is primarily due to a lower cost of materials which represents an important portion of the cost of products.

Revenue for the nine month period amounted to $8.4 million, compared to $8.1 million last year. Earnings before taxes were $2 million compared to $2 million last year. Net income amounted to $1.2 million or $0.20 per share, compared to $1.6 million, or $0.29 per share for the nine months last year. The variation in the net earnings per share can be explained in part by the increase in the weighted average number of common shares outstanding following the initial public offering last June 7.

Growth was not as high as anticipated due to delays in product introduction with the company's OEM customer base, explained Mr. Keith A. Reuben, Coreco's President and Chief Executive Officer.

"The migration to the PCI (Peripheral Component Interface) bus architecture, an improved, higher speed method of transferring digital information, also involved changes in the operating systems' software, which further contributed to these delays. However, these projects are progressing well and we expect that revenues should return to normal growth levels," said Mr. Reuben.

"We believe this is only a temporary delay in meeting our targets. OEM customers continue designing our products into new systems which will put us back on track in meeting our long term objectives."

Coreco designs, develops and markets leading edge hardware and related products for the high-end computer vision industry. Coreco's principal products are image processing boards which, when inserted into a computer, allow the computer to see. Coreco's products are integrated by its customers into their own products, for use in a wide variety of high end imaging applications. Coreco's common shares are listed on the Montreal Stock Exchange and Toronto Stock Exchange. There are 7,577,868 common shares currently outstanding.

SELECTED FINANCIAL INFORMATION:
_______________________________


                 Three Months ended      Nine Months ended
                    September 30            September 30
                 1996         1995        1996        1995
                     (unaudited)            (unaudited)
                   __________________    __________________

Revenue       $2,691,808  $2,579,988   $8,392,200  $8,109,865
Earnings before
 income taxes    756,806     580,286    1,991,046   2,016,663
Net income      $468,606    $455,286   $1,233,846  $1,583,660


Earnings per share  0.06        0.08         0.20        0.29
Weighted average
 number of common
 shares        7,584,868   6,325,812     6,826,812  5,377,381

CONTACT: Coreco Inc.

Keith A. Reuben, 514/ 333-1301

514/ 333-1867 (FAX)