Corning Incorporated To Sell Control of Corning Consumer Products Company to AEA Investors Inc.

CORNING, N.Y.--(BUSINESS WIRE)--Aug. 20, 1997--Corning Incorporated (NYSE:GLW) today announced that its Board of Directors has approved a definitive agreement for a recapitalization of its consumer housewares business and the sale of a controlling interest in the business to a company formed by AEA Investors Inc.

The planned transaction involves a recapitalization of Corning Consumer Products Company that will result in cash proceeds to Corning of approximately $ 975 million. Corning will retain an 11 percent interest in the equity of Corning Consumer Products Company. Corning expects to recognize an after-tax gain in excess of $ 250 million upon the closing of the transaction, which is expected to occur in the fourth quarter of 1997.

Corning had announced it was exploring the divestiture of its consumer housewares business in May of this year. Corning said it intends to use the proceeds from a completed transaction to invest for future growth in its communications, environmental and advanced materials businesses, and to improve its balance sheet.

In making the announcement Corning's Chairman and Chief Executive Officer Roger G. Ackerman said, "We believe this transaction is good for both Corning Incorporated and the Corning Consumer Products Company. It will enhance our ability to concentrate on high-growth, technology driven businesses going forward, and it will permit the management of Corning Consumer Products Company to pursue its strategies as a stand-alone entity."

Peter F. Campanella will remain president and chief executive officer of Corning Consumer Products Company, and the business will continue to be headquartered in the Corning/Elmira, N.Y., area. "We believe this transaction is an opportunity for our worldwide business to continue its strong performance of the past several years," said Mr. Campanella. "Our people, products and processes make us one of the world's finest housewares companies. We look forward to building on our success together with AEA."

AEA Investors Inc. was founded in 1969 by leading industrial families and CEOs of major corporations from the United States and Europe. AEA is an investment firm that makes controlling investments in market-leading companies on behalf of its investors.

Corning entered the consumer housewares business in 1915 with its invention of Pyrex bakeware and today the business is renowned for its leading brand-name products -- Corelle, Corning Ware, Pyrex, Revere Ware and Visions. The worldwide business today employs approximately 3,500 people at some 20 manufacturing, distribution and administrative facilities in Asia, Australia, Canada, Latin America and the United States.

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest growing segments of the world's economy. For communications and communications-related industries, Corning manufactures optical fiber, cable and photonics components, high- performance glass and components for televisions and other electronic displays and equipment; advanced materials for scientific and environmental markets. Corning's total revenues from continuing operations in 1996 were $ 3.7 billion.

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