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DAMON CORPORATION ANNOUNCES 1993 FIRST QUARTER RESULTS

 NEEDHAM HEIGHTS, Mass., May 10 /PRNewswire/ -- Damon Corporation (NYSE: DCL) announced today net income per common share of $0.07 for its first quarter ended March 31, 1993.
 First quarter 1993 sales rose 12.4 percent to $83.5 million from $74.3 million from the comparable 1992 period. Operating cash flow, or earnings before net other income or expenses, interest, taxes, depreciation and amortization and after minority interests ("EBITDA"), was $8.9 million compared to $12.1 million in 1992. Net income was $1.1 million compared to $4.6 million or $.30 per common share in 1992. Net income in 1992 significantly benefited from the use of a tax loss carryforward, which was fully utilized by year-end 1992.
 Robert L. Rosen, Damon's chairman of the board and chief executive officer, stated, "Damon's net new sales production during the 1993 first quarter was very strong. One of our principal objectives in the first quarter was to reserve the shortfall in net new sales production that was experienced in the latter part of 1992. We accomplished this objective. During the first quarter, all budgeted sales representative positions were filled, and on average, each sales representative's productivity significantly exceeded budgeted expectations. This provides a strong base for continued sales growth improvement in 1993, which will more rapidly offset the previously reported carryover slowness experienced in the latter part of 1992."
 "Severe weather in February and March negatively affected operating results, primarily through lost sales days, in nearly half of our regional laboratories. Also in the first quarter we experienced continued competitive pricing, customer mix changes and slightly lower test utilization in our existing physician customer base. Expenditures made by Damon in the second half of 1992 increasing our service capabilities contributed to an unfavorable operating margin comparison between the first quarter of 1993 and 1992. As sales growth is realized later in the year, we expect our operating margins to improve. While continuing to emphasize net new sales production, we are also focused on cost reductions. As a result we expect to realize material cost savings impacting earnings throughout 1993.
 "In the first quarter we began servicing several new managed care clients. Damon should continue to experience strong unit volume growth from this segment as our strategic penetration continues. With over 8 percent of our sales derived from managed care, Damon is a leading provider of laboratory testing services to this market.
 "In April we acquired a fold-in laboratory in Rhode Island. The number of acquisition opportunities under review remains at an historically high level. As the clinical laboratory industry continues to consolidate, Damon's growth will be fueled by internal volume growth and by acquisitions, particularly fold-ins."
 Damon is a leader in the rapidly growing clinical laboratory testing industry, operating 13 regional laboratories throughout the United States and one in Mexico City. A full range of high quality routine and esoteric testing and customized client services used in the diagnosis and monitoring of disease are delivered by Damon to physicians, hospitals, managed care organizations, nursing homes, corporations and the United States government.
 DAMON CORPORATION
 Summary Consolidated Statements of Operations
 (in thousands, except per share amounts -- unaudited)
 Three months ended March 31 1993 1992
 Sales $83,495 $74,306
 Gross profit 31,029 29,701
 Selling and administrative expenses 23,671 18,119
 Amortization of goodwill 1,500 1,346
 Operating profit 5,858 10,236
 Interest & expense, net 2,247 2,949
 Other (income) expense, net (15) 0
 Minority interest 1,056 1,343
 Income before provision for income taxes 2,570 5,944
 Provision for income taxes 1,505 1,367
 Net income 1,065 4,577
 Net income per common share 0.07 0.30
 Weighted avg. common share outstanding 16,142 15,122
 Other data:
 Operating profit 5,858 10,236
 Depreciation and amortization 4,062 3,210
 Minority interest (1,056) (1,343)
 Operating cash flow (EBITDA) 8,864 12,103
 -0- 5/10/93
 /CONTACT: David C. Asheim, vice president-investor relations, of Damon Corporation, 617-449-0800/
 (DCL)


CO: Damon Corporation ST: Massachusetts IN: HEA SU: ERN

TS-SL -- NY033 -- 6441 05/10/93 11:18 EDT
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Date:May 10, 1993
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