Corning Incorporated To Spin-off Clinical Laboratory And Pharmaceutical Services Businesses;Corning to Focus on Core Communications and Technologies Business Sectors; Clinical Laboratories to be Positioned As A Leader in Clinical Testing Industry; Pharmaceutical Services To Be Positioned As A Leader in Contract Research For Drug and Biotechnology Companies.

CORNING, N.Y.--(BUSINESS WIRE)--May 14, 1996--Corning Incorporated (NYSE:GLW) today announced that its Board of Directors has approved a plan to pursue the simultaneous spin-offs to its shareholders of its clinical laboratories and pharmaceutical services businesses, creating two new, independent, publicly traded companies. The proposed transactions are expected to be tax-free to Corning and its shareholders, and are subject to receipt of a favorable ruling by the Internal Revenue Service on the tax-free nature of the spin-offs, as well as other customary regulatory review and final approval by the Board of Directors.

Chairman of the Board and Chief Executive Officer Roger G. Ackerman said, "We believe that the proposed transaction will allow the two new independent companies and a more focused Corning Incorporated to pursue their individual strategies more effectively. "Corning Incorporated has extraordinary growth prospects in its core communications and technologies businesses," continued Mr. Ackerman, "and with the completion of these spin-offs, Corning's focus will be even stronger on the growth potential in these markets. "Further, each new independent clinical testing and pharmaceutical services business will have the flexibility to be even more responsive to their customers," said Mr. Ackerman. "They will also be poised to move quickly to evolving marketplace conditions and to decisively manage the risks in their respective industries.

"Moreover," continued Mr. Ackerman, "financing activities will be tailored to the capital demands of the individual growth strategies. Also, employee compensation programs -- including employee stock ownership plans -- will be designed to more directly support individual business characteristics.

"We believe the financial markets will be able to assign more accurate valuations for the three companies,"said Mr. Ackerman. "The combination of all these factors should achieve maximum shareholder value which remains one of our primary objectives.

"We are fortunate to have outstanding executives and strong management teams in place at both of the newly independent companies," said Mr. Ackerman.

"Continuing as Chief Executive Officer of Corning Clinical Laboratories and Corning Nichols Institute will be Kenneth W. Freeman, 45; and continuing as Chief Executive Officer of Corning Pharmaceutical Services will be Christopher A. Kuebler, 42. The two new companies will also have their own separate Boards of Directors." Corning anticipates that the related transactions will be completed by year-end 1996, and that the two companies will apply for listing on the New York Stock Exchange. Additional financial details on the transactions will be released in conjunction with Corning's release of second quarter results in mid-July; other information will be released as it becomes available. The names of the two new independent companies, currently known as Corning Clinical Laboratories and Corning Pharmaceutical Services, will be announced at a later date. Overall employment levels are not expected to change as a result of these transactions.

Corning Incorporated first entered the clinical laboratory business 14 years ago (through the acquisition of MetPath), and has grown the revenues of Corning Clinical Laboratories from $100 million to $1.6 billion through internal and external development. Today, Corning Clinical Laboratories is one of the nation's leading routine and esoteric laboratories, providing physicians and health care facilities with fast, accurate, affordable clinical testing services, from blood screening to the latest in chromosome mapping.

Since 1987 when Corning became involved with the pharmaceutical services industry, it has rapidly developed one of the world's largest and most comprehensive contract research organizations. It offers medical-product development services to pharmaceutical and biotechnology companies. The business today generates for Corning annual revenues in excess of $400 million. Because of its interlinked capabilities it can significantly shorten the time involved in developing and seeking approval of new drugs and to meet the changing demands of pharmaceutical companies today.

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest growing segments of the world's economy. They currently include optical fiber, cable and components, and high- performance glass for televisions and other electronic displays for the communications and related industries; advanced materials for scientific, environmental and consumer markets; and life sciences. Total revenues for Corning in 1995 were $5.3 billion.

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