Corning Incorporated Reports Fourth Quarter and Year-End Results.

CORNING, N.Y.--(BUSINESS WIRE)--Jan. 22, 1996-- Corning Incorporated (NYSE:GLW) said today that net income for its fourth quarter ended Dec. 31 totaled $83.5 million, or $0.37 per share. In 1994, fourth quarter net income was $35 million, or $0.14 per share. Adjusting for the impact of Dow Corning Corporation, which was fully reserved in the second quarter of 1995, fourth quarter 1994 net income was $96.1 million, or $0.43 per share.

For the full year, Corning incurred a net loss of $50.8 million, or $0.23 per share, compared with net income of $281.3 million, or $1.32 per share, in 1994. Both years include net losses from Dow Corning and restructuring charges. Excluding restructuring charges and the losses from Dow Corning, 1995 net income was $337.7 million, or $1.49 per share, compared with $339.5 million, or $1.59 per share, in 1994.

For the fourth quarter 1995, Corning's sales increased 4 percent to $1.3 billion. For 1995, sales were $5.3 billion, an increase of 11 percent. The sales increases were due to strong performance in several growth businesses: optical fiber and optical cable; information display products; pharmaceutical services; and environmental products. Approximately 20 percent of the annual sales increase was the result of acquisitions completed in 1994.

Equity company results, excluding Dow Corning Corporation, increased slightly in the fourth quarter and 29 percent for the full year. The increase was due primarily to strong performance from the international optical fiber equity companies.

Corning Board Chairman James R. Houghton said, "The fourth quarter results were at the low end of our expectations and reflect some slippage of December sales into 1996. Over the course of the year, the significant profit gains achieved by the Communications and Specialty Materials segments and the Corning Pharmaceutical Services business were offset by previously indicated poor performance in the Consumer segment and at Corning Clinical Labs."

Houghton added, "As we look forward, we expect the positive trends in the growth businesses to continue. However, we face difficult earnings comparisons in the first half as we pursue solutions to the profitability issues in the Consumer segment and at Corning Clinical Labs."

Corning Incorporated is a Fortune 500 company whose businesses are at the leading edge of the technologies that comprise three of the fastest growing segments of the global economy -- Communications, Environment and Life Sciences. Its 1995 sales totaled $5.3 billion. -0-

Corning Incorporated and Subsidiary Companies
Consolidated Statements of Income
(In millions, except per-share amounts)

                          Year Ended              Twelve Weeks Ended
                Dec. 31, 1995  Jan. 1, 1995   Dec. 31 ,1995   Jan. 1, 1995
                                                      (Unaudited)
Revenues
Net sales          $5,313.1      $4,770.5        $1,330.4       $1,273.5
Royalty, interest
 and dividend
 income                33.0          28.7             8.3            7.2
                    5,346.1       4,799.2         1,338.7        1,280.7

Deductions
 Cost of sales      3,386.0       3,060.9           867.4          824.8
 Selling, general
  and administrative
  expenses          1,093.5         871.7           271.5          238.5
 Research and
  development
 expenses             179.7         176.9            46.2           44.1

Provision for
 restructuring and
 other special
 charges               67.0         82.3               --            --
Interest expense      117.8        110.4             27.4           24.8
Other, net             36.2         37.5              4.6            1.2

Income before
 taxes on income      465.9        459.5            121.6          147.3
Income tax expense    154.7        170.1             39.3           53.0
Income before minority
 interest and equity
 earnings             311.2        289.4             82.3           94.3
Minority interest in
 earnings of
 subsidiaries         (66.8)       (50.7)           (13.5)         (11.7)
Dividends on convertible
 preferred securities of
 subsidiary           (13.7)        (6.1)            (3.2)         (3.4)
Equity in earnings
 (losses) of associated
 companies:
Excluding Dow Corning
 Corporation           66.5         51.5             17.9          16.9

Dow Corning
 Corporation         (348.0)        (2.8)                         (61.1)

Net Income (Loss) $   (50.8)     $ 281.3           $ 83.5       $  35.0

Earnings Per Common Share:
Net Income (Loss)    $(0.23)       $1.32            $0.37         $0.14

Dividends Declared    $0.72        $0.69            $0.18         $0.18

Weighted Average Shares
 Outstanding          226.6        211.8            226.7         224.9

The accompanying notes are an integral part of these statements.
-0-

Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(In millions)

                                 Dec. 31, 1995         Jan. 1, 1995

         Assets

Current Assets
 Cash and short-term investments    $  214.9            $    161.3
 Receivables, net                      932.4                 947.1
 Inventories                           467.8                 416.7
 Deferred taxes on income and
  other current assets                 219.2                 201.2
 Total current assets                1,834.3               1,726.3

Investments
 Other than Dow Corning Corporation    376.1                 352.0
 Dow Corning Corporation                --                   341.8

Plant and Equipment, Net             2,031.6               1,890.6

Goodwill and Other
 Intangible Assets, Net              1,416.1               1,408.0

Other Assets                           329.0                 304.0
                                    $5,987.1              $6,022.7

         Liabilities and Stockholders' Equity

Current Liabilities
 Loans payable                    $    146.0          $      67.6
 Accounts payable                      255.2                258.3
 Other accrued liabilities             763.9                748.3
 Total current liabilities           1,165.1              1,074.2

Other Liabilities                      664.9                643.6
Loans Payable Beyond One Year        1,393.0              1,405.6
Minority Interest in
 Subsidiary Companies                  272.5                247.0
Convertible Preferred Securities
 of Subsidiary                         364.7                364.4
Convertible Preferred Stock             23.9                 24.9
Common Stockholders' Equity          2,103.0              2,263.0
                                    $5,987.1             $6,022.7

The accompanying notes are an integral part of these statements.

Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 4, 1995

(1) Earnings per common share are computed by dividing net income
less dividends on Series B convertible preferred stock by the
weighted average number of common shares outstanding during the
period.  The weighted average shares outstanding for the fourth
quarter were 226.7 million and 224.9 million for 1995 and 1994,
respectively, and 226.6 million and 211.8 million in fiscal years
1995 and 1994, respectively.  Preferred dividends of $0.5 million and
$0.6 million were declared in the fourth quarter of 1995 and 1994,
respectively, and $2.0 million and $2.1 million in fiscal years 1995
and 1994.

(2) Depreciation and amortization charged to operations for fiscal
years 1995 and 1994 totaled $377.4 million and $338.4 million,
respectively.

(3) On May 15, 1995, Dow Corning Corporation, a 50-percent owned
equity company, voluntarily filed for protection under Chapter 11 of
the United States Bankruptcy Code.  As a result of this action,
Corning recorded an after-tax charge of $365.5 million, or $1.62 per
share, in the second quarter of 1995 to fully reserve its investment
in Dow Corning.  In addition, Corning discontinued recognition of
equity earnings from Dow Corning beginning in the second quarter of
1995.  Corning recognized equity earnings of $17.5 million, or $0.08
per share, in the first quarter of 1995.  Corning recognized equity
losses from Dow Corning totaling $61.1 million, or $0.29 per share,
and $2.8 million, or $0.01 per share, in the fourth quarter and
fiscal year 1994, respectively.  The 1994 amounts include an
after-tax reduction in equity earnings of $75.9 million, or $0.36 per
share, as a result of charges taken by Dow Corning related to
breast-implant litigation.

(4) Corning's effective tax rate, excluding unusual items was 32%
and 36% for the fourth quarter of 1995 and 1994, respectively, and
34% and 36% for fiscal years 1995 and 1994, respectively.  The
decrease in the effective tax rate was primarily due to an increase
in the percentage of Corning's earnings from consolidated entities
with lower effective tax rates.

(5) During fiscal year 1995, Corning recorded a restructuring charge
totaling $67 million ($40.5 million after tax), or $0.18 per share.

(6) During fiscal year 1994, Corning recorded a charge totaling
$82.3 million ($55.4 million after tax), or $0.26 per share, which
included integration costs, transaction expenses, and certain other
reserves, primarily related to the acquisition of Nichols Institute,
Maryland Medical Laboratory and Bioran Medical Laboratory.

Subsequent Event

(7) On January 16, 1996, Corning and International Technology
Corporation signed an agreement whereby Corning will increase its
ownership in Quanterra Incorporated from 50% to 81% in exchange for
an investment of approximately $20 million.  As a result of this
transaction, Corning will consolidate Quanterra's results beginning
in the first quarter of 1996.  Quanterra provides environmental
testing and related services.

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