Corning Reports Third Quarter Earnings.

CORNING, N.Y.--(BUSINESS WIRE)--Oct. 19, 1998--Corning Incorporated (NYSE:GLW) reported that its 1998 third quarter net income totaled $104.4 million, or $0.44 per share, compared with net income from the same operations in the third quarter of last year of $106.8 million, or $0.45 per share. This 2 percent decline in earnings represents a significant improvement over the 25 percent decline reported by the company in the first half of the year.

Sales for the third quarter were $906.5 million, up slightly compared with 1997 third-quarter sales of $891.9 million.

The improved comparisons for the quarter reflect exceptionally strong volume growth in North America for the company's optical fiber, cable and components businesses, including the shipment of significant quantities of Corning's new LEAF brand optical fiber for high-data- rate applications. However, the company said that the prices of optical fiber and cable continued to decline.

Performance in other businesses was mixed, with improvements in information display and environmental products offset by significant declines in advanced materials, where severe cutbacks in semiconductor manufacturing equipment have impacted demand for the company's stepper lenses.

Equity earnings declined 50 percent due to weaker volume and significant price declines at Samsung Corning, a Korean manufacturer of glass panels and funnels for television and display monitors, and at the company's international optical fiber ventures.

Corning Chairman and Chief Executive Officer Roger G. Ackerman said, "We are encouraged that our third-quarter performance showed such substantial improvement compared to our first half. The upswing in demand was largely due to investments by new telecommunications network providers. The purchase of our products for these networks is further evidence that our new product development strategy is working."

Ackerman added: "Our fourth-quarter comparisons may not be as strong as the third quarter due to potential variability in fiber demand for new networks as well as possible impact from global economic events. However, we do expect to see profit growth resume in 1999."

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing segments of the world's economy. Corning manufactures optical fiber, cable and components, high- performance glass and components for television, and other electronic displays for communications and communications related-industries. Corning also manufactures advanced materials for scientific and environmental markets. Corning's total revenues in 1997 were $3.5 billion. More information on the company is available at the company's web site: http://www.corning.com.

Forward-Looking and Cautionary Statements

Except for historical information and discussions contained herein, statements included in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filing with the Securities and Exchange Commission. -0-

Corning Incorporated and Subsidiary Companies
Consolidated Statements of Income
(Unaudited; in millions, except per share amounts)


                          Nine Months Ended        Three Months Ended
                              Sept. 30,                Sept. 30,
                            1998      1997            1998     1997

Revenues
     Net sales         $ 2,557.2   $ 2,614.5      $  906.5  $  891.9
     Royalty, interest
      and dividend
      income                32.9        28.4          11.8       9.4
     Non-operating gain     20.5
                         2,610.6     2,642.9         918.3     901.3

Deductions
     Cost of sales       1,595.2     1,515.9         550.1     524.9
     Selling, general
      and administrative
      expenses             352.1       401.7         112.6     134.0
     Provision for
      restructuring         84.6
     Research and
      development
      expenses             213.8       175.1         71.6      70.7
     Interest expense       43.8        56.9         11.3      16.2
     Other, net             40.4        10.4         10.7       5.4

Income from continuing
 operations before taxes
 on income                 280.7       482.9        162.0     150.1
Taxes on income from
 continuing operations      84.1       161.2         49.2      48.0

Income from continuing
 operations before
 minority interest and
 equity earnings           196.6       321.7        112.8    102.1
Minority interest in
 earnings of subsidiaries  (38.6)      (56.2)       (20.3)   (22.9)
Dividends on convertible
 preferred securities of
 subsidiary                (10.3)      (10.3)        (3.4)    (3.4)
Equity in earnings of
 associated companies       75.5        62.0         15.3     31.0

Income from continuing
 operations                223.2       317.2        104.4    106.8
Income from discontinued
 operations, net of
 income taxes               66.5        14.1                   5.5

Net Income              $  289.7    $  331.3     $  104.4  $ 112.3

Basic Earnings Per
 Share
     Continuing
       operations       $   0.97    $   1.39     $   0.45 $  0.47
     Discontinued
       operations           0.29        0.06                 0.02
Net Income              $   1.26    $   1.45     $   0.45 $  0.49

Diluted Earnings Per
 Share
     Continuing
      operations        $  0.95     $   1.34     $   0.44 $  0.45
     Discontinued
       operations          0.28         0.05                 0.02
Net Income              $  1.23     $   1.39     $   0.44 $  0.47

Dividends Declared      $  0.54     $   0.54     $   0.18 $  0.18


The accompanying notes are an integral part of these statements.

Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(Unaudited; in millions)

                                                Sept. 30,  Dec. 31,
                                                  1998       1997
     Assets

Current Assets
     Cash and short-term investments          $    93.0 $    97.0
     Receivables, net                             593.5     559.7
     Inventories                                  450.5     428.3
     Deferred taxes on income and other
      current assets                              143.8     114.1
          Total current assets                  1,280.8   1,199.1

Investments                                       401.8     310.0

Plant and Equipment,  Net                       2,457.2   2,267.9

Goodwill and Other Intangible Assets, Net         283.2     294.2

Other Assets                                      337.3     263.1

Net Assets of Discontinued Operations                       357.6
                                              $ 4,760.3 $ 4,691.9


     Liabilities and Stockholders' Equity

Current Liabilities
     Loans payable                            $    60.4  $  213.0
     Accounts payable                             213.8     300.0
     Other accrued liabilities                    582.9     444.7
          Total current liabilities               857.1     957.7

Other Liabilities                                 658.7     627.5
Loans Payable Beyond One Year                   1,093.3   1,125.8
Minority Interest in Subsidiary Companies         362.1     349.3
Convertible Preferred Securities of Subsidiary    365.5     365.3
Convertible Preferred Stock                        18.4      19.8
Common Stockholders' Equity                     1,405.2   1,246.5
                                              $ 4,760.3 $ 4,691.9

The accompanying notes are an integral part of these statements.


Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 3, 1998


(1) Basic earnings per share is computed by dividing net income
    less dividends on Series B convertible preferred stock by the
    weighted average number of common shares outstanding during
    each period.  The weighted average shares outstanding were
    229.5 million and 229.7 million for the third quarter and third
    quarter year-to-date 1998, respectively, compared with 228.7
    million and 227.7 million for the same periods in 1997.  Series
    B preferred dividends amount to $0.4 million and $1.2 million
    in the third quarter and third quarter year-to-date 1998 and
    1997, respectively.

    Diluted earnings per share is computed by dividing net income,
    increased in 1998 by dividends on convertible preferred stock,
    by the weighted average number of common shares outstanding
    during the period after giving effect to dilutive stock options
    and, in 1997, adjusted for dilutive common shares assumed to be
    issued on conversion of Corning's convertible securities.  The
    shares used in computing diluted earnings per share for the
    third quarter and third quarter year-to-date 1998 were 242.2
    million and 243.9 million, respectively, compared with 246.8
    million and 245.1 million for the same periods in 1997.

(2) Depreciation and amortization charged to continuing operations
    during the third quarter year-to-date 1998 and 1997 totaled $233
    million and $230.2 million, respectively.

(3) Corning's effective tax rate for continuing operations was 30.4%
    and 31.5% for the third quarter and third quarter year-to-date
    1998, respectively, and 32% and 33.4% for the same periods in
    1997.  The lower 1998 rate is due to a higher percentage of
    Corning's earnings resulting from consolidated entities with lower
    effective tax rates.

(4) On April 1, 1998, Corning completed the recapitalization and sale
    of a controlling interest in its consumer housewares business to
    an affiliate of Borden, Inc.  Corning received cash proceeds of
    $593 million and will continue to retain an 8 percent interest in
    the Corning Consumer Products Company.  In addition, Corning could
    receive an additional payment of up to $15 million if certain
    financial targets are met by Corning Consumer Products Company for
    the three year period 1998-2000.

    Corning recorded an after-tax gain of $67.1 million, or $0.29 per
    share, in the second quarter of 1998.  Corning used approximately
    $350 million of the proceeds to repay current borrowings and will
    use the remaining proceeds to fund restructuring activities and to
    invest in its future operations.

    Corning's consolidated financial statements and notes thereto
    report the consumer housewares business as a discontinued
    operation.  Prior period consolidated financial statements and
    notes have been restated accordingly.

(5) In the second quarter of 1998, Corning recorded a restructuring
    charge of $84.6 million ($49.2 million after tax and minority
    interest), or $0.21 per share.  The charge is comprised of early
    retirement incentives and severance costs.

(6) In June, 1998, Molecular Simulations, Inc. (MSI) merged with
    Pharmacopeia, Inc., a publicly traded company (NASDAQ: PCOP).
    Corning previously owned 35% of MSI.  Corning realized a gain of
    $20.5 million ($13.2 million after tax), or $0.06 per share from
    this transaction.

(7) Dow Corning Corporation, in which Corning has a 50% interest, has
    reported to the Federal Bankruptcy Court that agreements in
    principle have been reached with the Tort Claimants' Committee and
    that it expects to file a plan or reorganization by the end
    of October 1998.  Certain significant points remain subject to
    negotiation, and the agreements are subject to final
    documentation.  The plan of reorganization will require a
    favorable vote by many classes of creditors, as well as court
    approval, and may be subject to appeals.  The recent developments
    tend to increase the probability that Dow Corning will
    successfully emerge from Chapter 11 proceedings, but the timing
    and eventual outcome of these proceedings are inherently
    uncertain.