Electroglas Reports Record Third Quarter Results.

Electroglas, Inc. (NASDAQ:EGLS) reported today continued record results for the third quarter ended Sept. 30, 1995. Net sales for the quarter were $45.3 million, an increase of 54% over the third quarter 1994 net sales of $29.4 million. The current quarter's net sales were up 15% from the immediate prior quarter. Net income was $9.9 million, up 77% from a year ago. Net income per share increased to $1.08, versus $.63 for the same quarter last year.

For the nine months, net sales were $118.7 million, up 45% from the same period a year ago. Net income increased 64% to $25.4 million while net income per share increased to $2.83 versus $1.84 last year. The comparable results for the third quarter and nine months of 1994 exclude a favorable non-recurring tax benefit of $.9 million, or $.11 per share.

"We were very pleased with our year over year financial performance as well as our strong sequential sales growth," reported Neil Bonke, Electroglas' Chief Executive Officer. "We continue to see broad demand for added semiconductor capacity as our customers share their specific requirements with us."

Bonke also remarked, "We had a very demanding quarter from an operational viewpoint as we accelerated production rates to meet the increased customer demand. Our added people, plant and vendor resources should position us well for continued growth."

Electroglas, Inc., is a leader in the development, manufacture, marketing and servicing of automatic wafer probing equipment for use in the semiconductor industry. The company's stock trades on the Nasdaq national market under the symbol "EGLS." -0-

                         ELECTROGLAS, INC.
            CONSOLIDATED CONDENSED STATEMENTS OF INCOME
             (In thousands, except per share amounts)
                          (Unaudited)

                               Three months ended  Nine months ended
                                   Sept. 30,           Sept. 30,

                               1995       1994      1995      1994

Net sales                    $45,339    $29,363   $118,660   $81,578
Cost of sales                 20,401     13,185     53,399    36,650

Gross profit                  24,938     16,178     65,261    44,928

Operating expenses:
 Engineering, research
  and development              3,402      2,582      9,625     7,271
 Selling, general and
  administrative               6,855      5,190     18,434    13,969

Total operating expenses      10,257      7,772     28,059    21,240

Operating income              14,681      8,406     37,202    23,688
Interest income                  959        624      2,774     1,520
Other (expense) income,
 net                             (98)       173         77       369

Income before income
 taxes                        15,542      9,203     40,053    25,577
Provision for income
 taxes                         5,672      3,635     14,619    10,103
Non-recurring tax
 benefit (1)                     --        (941)       --       (941)

Net income                   $ 9,870    $ 6,509    $25,434   $16,415

Net income per share
 before non-recurring tax
  benefit                    $  1.08    $  0.63    $  2.83   $  1.84
Tax benefit per share (1)        --        0.11        --       0.11

Net income per share         $  1.08    $  0.74    $  2.83   $  1.95

Shares used in per share
 calculations                  9,135      8,830      9,003     8,400

(1) Net income was favorably impacted by new tax legislation in
1994.

                         ELECTROGLAS, INC.
              CONSOLIDATED CONDENSED BALANCE SHEETS
                          (In thousands)

                                             Sept. 30,    Dec. 31,
                                                1995        1994
                                             (Unaudited)     (1)
Assets
Current assets:
 Cash and short-term investments              $ 91,533    $ 79,214
 Accounts receivable, net                       31,079      22,179
 Inventories                                    25,285      12,501
 Prepaid expenses and other current assets       4,355       4,144
  Total current assets                         152,252     118,038

Long-term investments                           12,337       3,826
Equipment and leasehold improvements, net        3,608       2,731
Other assets                                     7,374       7,306
Total assets                                  $175,571    $131,901

Liabilities and stockholders' equity
Current liabilities:
 Short-term borrowings                        $  1,194    $    --
 Accounts payable                                8,347       5,091
 Accrued liabilities                            17,152      13,725
 Income taxes payable                            7,653       2,330
  Total current liabilities                     34,346      21,146

Stockholders' equity                           141,225     110,755

Total liabilities and stockholders' equity    $175,571    $131,901

(1) The information in this column was derived from the Company's
audited consolidated financial statements for the year ended
December 31, 1994.

CONTACT: Electroglas, Inc.

Armand Stegall, 408/727-6500