Elexsys Announces First Quarter 1997 Financial Results; First Quarter Net Income up by 31 Percent over Prior Year.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 23, 1997--Elexsys International Inc. (NASDAQ/NMS:ELEX) today reported financial results for the first fiscal quarter ended Dec. 28, 1996.

Net sales for the first quarter of fiscal 1997 were $36.5 million, up 26 percent from the $28.9 million reported in the first quarter of fiscal 1996. Net income for the first quarter was $2.6 million, compared with $2.0 million in the first quarter of 1996, an increase of 31% from the first quarter of 1996. Earnings per share for the first quarter were $0.27 on 9.8 million shares outstanding, compared with $0.21 on 9.5 million shares outstanding in the same quarter of 1996.

Elexsys International Inc. is one of the country's leading manufacturers of high-performance medium- and high-density backpanel assemblies and sophisticated subsystem assemblies. In addition, the company is one of the leading manufacturers of high-technology circuit boards. The company offers advanced inter-connect solutions for the telecommunications, datacommunications, computer, industrial, medical and instrumentation markets.

The company operates its own fabrication and assembly facilities in the United States and the United Kingdom and employs approximately 1,200 people worldwide. Further information may be obtained from the company's SEC filings or by contacting the company directly. Elexsys stock is traded on the NASDAQ National Market under the symbol ELEX. -0-

                       ELEXSYS INTERNATIONAL INC.
                  CONSOLIDATED STATEMENT OF OPERATIONS
                  (in thousands, except per share data)
                               (Unaudited)

                                    Three Months Ended
                              Dec. 28,               Dec. 30,
                               1996                    1995

Net sales             $ 36,501      100.0%     $ 28,911      100.0%
Cost of sales           29,713       81.4%       23,533       81.4%

Gross profit             6,788       18.6%        5,378       18.6%

Operating expenses:
 Selling, general and
   administrative        3,471        9.5%        2,941       10.2%
 Research and
   development              49        0.1%           43        0.1%

   Total operating
    expenses             3,520         9.6%       2,984        10.3%

Income from operations   3,268         9.0%       2,394         8.3%

Other expenses:
Interest expense, net      465         1.3%         365         1.3%

Income before income
 taxes                   2,803         7.7%       2,029         7.0%

Provision for income
 taxes                     164         0.5%          19         0.1%

Net income            $  2,639         7.2%     $  2,010        6.9%

Earnings per share    $   0.27          ---     $   0.21         ---

Weighted average
 common shares and
 common equivalent
 shares outstanding      9,777          ---        9,474         ---


                      ELEXSYS INTERNATIONAL INC.
                      CONSOLIDATED BALANCE SHEETS
                 (in thousands, except share data)

                                    Dec. 28,             Sept. 30,
                                      1996                  1996
                                   (unaudited)
ASSETS
Current Assets
    Cash and cash equivalents      $     320         $        1,075
    Accounts receivable, net          20,421                 20,463
    Inventories                       13,359                 10,690
    Prepaid expenses and other
     current assets                    1,450                  1,447
       Total current assets           35,550                 33,675
Property, plant and
 equipment, net                       29,384                 24,818
Other assets                           3,258                  3,612
    Total assets                   $  68,192             $   62,105

LIABILITIES AND STOCKHOLDERS'
 EQUITY
Current liabilities
    Accounts payable             $    14,497         $       12,629
    Accrued payroll and related
     costs                             3,310                  2,611
    Other current liabilities          1,545                  1,321
    Short-term borrowings              4,884                  5,310
    Current portion of long-term
     debt                              1,222                  1,234
       Total current liabilities      25,458                 23,105

Long-term debt                         3,095                  2,448

Convertible subordinated
 debentures                           12,000                 12,000

Stockholders' equity:
Common stock, $1.00 par value,
 20,000,000 shares authorized,
 9,364,105 shares issued and
 outstanding at Dec. 28, 1996
 and 9,300,810 shares issued and
 outstanding at Sept. 30, 1996         9,364                  9,301
Additional paid-in capital             7,476                  7,294
Retained earnings                     10,618                  7,979
Cumulative foreign currency
 translation adjustments                 181                    (22)
    Net stockholders' equity          27,639                 24,552
Total liabilities and
 stockholders' equity          $      68,192         $       62,105

CONTACT: Elexsys International Inc., San Jose

Michael Shimada, 408/935-6300

W.F. "Barry" Hegarty, 408/935-6363