Corning Incorporated Reports Second Quarter Results.

CORNING, N.Y.--(BUSINESS WIRE)--June 27, 1995--Corning Incorporated (NYSE:GLW) said today that its 1995 second quarter net income before special charges totaled $108.8 million, or $0.48 per share. As previously announced, Corning discontinued recognition of equity earnings from Dow Corning Corporation beginning in the second quarter of 1995. In the second quarter of 1994, Corning reported net income of $111.4 million, or $0.54 per share, which included $22.6 million, or $0.11 per share, of equity earnings from Dow Corning. Adjusting for the elimination of Dow Corning's earnings and before special charges, Corning's 1995 second quarter earnings per share increased 12 percent from an adjusted $0.43 per share in 1994.

As previously announced, second quarter results include special charges: $365.5 million after tax, or $1.62 per share, to fully reserve Corning's investment in Dow Corning Corporation; and a restructuring provision of $67 million ($40.5 million after tax), or $0.18 per share. Including these charges, Corning reported a second quarter net loss of $297.2 million, or $1.32 per share.

Sales increased 18 percent to $1.3 billion from 1994's second quarter sales of $1.1 billion. Approximately one-third of the sales increase resulted from acquisitions completed in 1994 in both the opto-electronics and life sciences businesses.

Board Chairman James R. Houghton said, "Our performance in the quarter was mixed. On the plus side, we continued to see solid growth and strong profit improvement in most of our core businesses, including opto-electronics, pharmaceutical testing services, environmental products and video displays. On the other hand, our results in clinical testing services and consumer products were disappointing.

"In clinical testing," Houghton added, "margins improved modestly over the first quarter but were well behind both last year and our expectations, reflecting continued delays in cost-reduction programs. In consumer products, the combination of a difficult retail environment and several scheduled glass-furnace repairs reduced margins significantly in the quarter."

For the second quarter 1995, equity earnings, excluding Dow Corning, were up significantly, primarily due to strong performance in the optical fiber equity companies.

Houghton concluded, "As we complete a successful first half, we are on track to meet our financial objectives for the year."

Corning Incorporated is a Fortune 500 company which reports its financial results in four segments: specialty materials, communications, laboratory services and consumer products. For 1994 revenues totaled $4.8 billion. Dow Corning Corporation is a 50-percent owned equity investment with The Dow Chemical Company. -0-

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

                     Twenty-Four Weeks Ended          Twelve Weeks Ended
                  June 18, 1995   June 19, 1994  June 18, 1995   June 19, 1994
                           (Unaudited)                    (Unaudited)
Revenues
  Net sales          $2,413.9       $2,054.6          $1,297.8      $1,105.7
  Royalty, interest and
   dividend income       15.6           11.2               8.7           3.5
                      2,429.5        2,065.8           1,306.5       1,109.2

Deductions
Cost of sales         1,530.1        1,318.2             816.5         696.1
 Selling, general and
  administrative
  expenses              464.7          388.0             243.2         202.3
 Research and
  development expenses   79.8           79.3              41.2          41.1
 Provision for
  restructuring and
  other special charges  67.0                             67.0
 Interest expense        54.5           51.7              28.5          25.9
 Other, net              23.5            8.8               8.1           3.0

Income before taxes
 on income              209.9          219.8             102.0         140.8
Taxes on income          73.2           83.0              33.3          53.4

Income before
 minority interest
 and equity earnings    136.7          136.8              68.7          87.4
Minority interest in
 earnings of
 subsidiaries           (29.5)         (17.9)            (18.2)        (10.0)
Dividends on
 convertible preferred
 securities of
 subsidiary              (6.3)                            (3.1)
Equity in earnings (losses)
 of associated companies:
 Other than Dow Corning
 Corporation             29.3           15.6              20.9          11.4
 Dow Corning
  Corporation          (348.0)          34.9            (365.5)         22.6

Net Income (Loss)   $  (217.8)       $ 169.4         $  (297.2)      $ 111.4

Earnings Per Common Share:
Net Income (Loss)      $(0.97)         $0.82            $(1.32)        $0.54

Weighted Average
 Shares Outstanding     225.9          204.3             226.3         206.3

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

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

                                        June 18, 1995    Jan. 1, 1995
                                          (Unaudited)

                 Assets

Current Assets
      Cash and short-term investments   $    194.5       $   161.3
          Receivables, net                   999.2           947.1
          Inventories                        503.6           416.7
          Deferred taxes on income and
             other current assets            230.7           201.2
      Total current assets                 1,928.0         1,726.3
Investments
          Other than Dow Corning
           Corporation                       377.2           352.0
          Dow Corning Corporation                            341.8

Plant and Equipment,  Net                  1,931.3         1,890.6

Goodwill and Other Intangible Assets, Net  1,435.6         1,408.0

Other Assets                                 318.1           304.0
                                          $5,990.2        $6,022.7

       Liabilities and Stockholders' Equity

Current Liabilities
          Loans payable                  $   134.5     $      67.6
          Accounts payable                   174.5           258.3
          Other accrued liabilities          802.2           748.3
          Total current liabilities        1,111.2         1,074.2

Other Liabilities                            663.1           643.6
Loans Payable Beyond One Year              1,520.3         1,405.6
Minority Interest in Subsidiary Companies    275.1           247.0
Convertible Preferred Securities
 of Subsidiary                               364.6           364.4
Convertible Preferred Stock                   24.3            24.9
Common Stockholders' Equity                2,031.6         2,263.0
                                          $5,990.2        $6,022.7

The accompanying notes are an integral part of these statements. Corning
Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 2, 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 second quarter were 226.3
       million and 206.3 million for 1995 and 1994, respectively, and for the
       first half were 225.9 million and 204.3 million for 1995 and 1994,
       respectively.  Preferred dividends of $0.5 million and $1.0 million
       were declared in the second quarter and first half, respectively, in
       both 1995 and 1994.

(2)    Depreciation and amortization charged to operations during the first
       half of 1995 and 1994 totaled $181.1 million and $154.9 million,
       respectively.

(3)    On March 28, 1995, Corning issued $125 million of 30-year debentures
       with an interest rate of 8.3 percent due April 4, 2025.  The proceeds
       from these borrowings will be used for general corporate purposes,
       including capital spending.

(4)    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 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 from Dow Corning totaling $12.3 millon, or $0.06 per
       share, and $34.9 million, or $0.17 per share, in the first quarter and
       first half of 1994, respectively, and $17.5 million, or $0.08 per
       share, in the first quarter of 1995.

(5)    During the second quarter 1995, Corning recognized a restructuring
       charge totaling $67 million ($40.5 million after tax) or $0.18 per
       share.

CONTACT: Corning Inc., Corning

Kathryn C. Littleton, 607/974-8206

John H. Abrams, 607/974-8832

Investor Relations Contact:

Richard B. Klein, 607/974-8313

Katherine M. Dietz [phone]