Correcting Zycon Corp. Financial Results (BW267) and Correction (BW309); Consolidated Statements of Income table, Net Sales for three months ended March 31, 1996; $55,066 sted $55,088.

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 17, 1996--Zycon Corp. (NASDAQ/NMS:ZCON), today reported a 456% increase in net income on a 44% increase in revenues for the first quarter ended March 31, 1996, over the same quarter of 1995.

In the first quarter of 1996 the company had net income of $3.9 million, or $.35 per share, compared with a pro forma $0.7 million, or $.08 per share, in the same quarter of 1995. The pro forma results reflect income taxes as if the company had been a C corporation during the first quarter of 1995.

Sales rose to a record $55.1 million in the first quarter of 1996 from $38.4 million in the same quarter last year. Ronald H. Donati, chairman and president, noted that "The increase was primarily due to the strength of the data communications and contract manufacturing segments of our customer base.

"Although Zycon's computer related segment was down significantly, this did not materially affect overall results due to our ongoing efforts to diversify our customer base."

The gross profit margin in the first quarter improved almost nine percentage points, increasing to 19.1% of sales, from 10.3% in the same quarter of 1995. This improvement was mainly due to the spreading of fixed costs over a larger sales base and the trend in customer demand toward more complex, higher layer count, higher margin product.

Construction of the company's new manufacturing plant in Malaysia is on schedule and it is expected that this facility will be operational in the fourth quarter of this year. The plant will initially produce lower layer count boards for both the U.S. and Asian markets before moving progressively into more complex, higher layer count boards.

In order to expand its growth opportunities in the backpanel segment, the company is in the process of adding a backpanel assembly operation in Santa Clara with the goal of commencing operations during the fourth quarter of 1996. "This will allow the company to better serve its existing customers and should provide greater opportunities for adding new customers," Donati said.

Except for the historical information contained herein, the matters included in this release (including pricing, revenue, earnings, and operating expectations) are forward looking statements that involve risks and uncertainties.

Factors that could cause actual results to differ materially include, but are not limited to, general economic conditions, business conditions in the electronics industry, demand for the company's products, and other risks and uncertainties described in reports and other documents filed by the company from time to time with the Securities and Exchange Commission.

Headquartered in Santa Clara, Zycon manufactures high quality, complex multilayer printed circuit boards for original equipment manufacturers and contract manufacturers in such industries as data communications, telecommunications, advanced storage systems, workstations, servers and personal computers. -0-

                     Zycon Corporation
              Consolidated Statements of Income
              (in thousands, except per share)

                             Three Months Ended
                          3/31/96        3/31/95
                               (unaudited)

Net Sales                  $55,066    $38,367
Cost of Sales               44,557     34,414
                            -----------------
Gross Profit                10,509      3,953
Selling, General &
 Administrative Expenses     4,027      2,280
                             ----------------
Income from operations       6,482      1,673
Interest Expense                 6        509
                             -----------------
Income Before Income Taxes   6,476      1,164
Income Tax Expense           2,615         14
                             -----------------
Net Income                  $3,861    $ 1,150
                            ------------------
Net Income Per Share        $0.35

Weighted Averages Shares    11,089
             Outstanding

Pro Forma Net Income Data:
 Income Before Income Taxes            $ 1,164
 Pro Forma Income Tax Expense              469
                                        -------
 Pro Forma Net Income                  $   695
 Pro Forma Net Income
  Per Share                             $ 0.08

 Weighted Average Shares                 8,650
       Outstanding

    Note: Pro forma results reflect income taxes as if the company
had been a C corporation during the first quarter of 1995.

                   Consolidated Summary Balance Sheets
                           (in thousands)

ASSETS                            March 31, 1996   Dec. 31, 1995
                                     (unaudited)

Current assets                        $43,771        $ 40,015
Property, plant and equipment, net     56,178          52,130
Other Assets                            6,727           2,830
Total Assets                          $106,676       $ 94,975

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                   $ 28,718       $ 26,982
Deferred income taxes                    6,934          6,634
Long-term debt, excluding
     current portion                    11,262          5,458
Stockholders' equity                    59,762         55,901

Total Liabilities and Stockholders'   $106,676        $94,975
           Equity

CONTACT: Zycon Corp., Santa Clara

Ken Shilling, 408/241-9900, ext. 4408

or

Kalt, Rosen & Associates Inc.

Howard Kalt or Jane Whaley, 415/397-2686