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FIBRONICS ANNOUNCES YEAR END RESULTS

 PEMBROKE, Mass., March 12 /PRNewswire/ -- Fibronics (NASDAQ: FBRX) announced fourth quarter and full year 1992 financial results. These results include charges for previously announced major steps in the company's restructuring, some which were taken in 1992 and others which are anticipated. The company is proceeding with the implementation of its strategy to be a major provider of networking solutions for workgroups in a distributed environment.
 For the year ended Dec. 31, 1992, revenues amounted to $54,337,000 as compared with revenues of $53,943,000 for 1991. The company reported a net loss of $25,188,000 (which includes $10,700,000 of restructuring charges and $4,138,000 of other provisions) or $3.92 per share for 1992, as compared with a net loss of $3,275,000 or 52 cents per share for 1991.
 For the fourth quarter of 1992, revenues were $14,278,000 as compared to $16,047,000 for the fourth quarter of 1991. The company reported a net loss of $16,814,000 (which includes $9,568,000 of restructuring charges and $4,138,000 of other provisions) or $2.59 per share as compared with a net loss of $2,190,000 or 35 cents per share for the fourth quarter of 1991.
 The restructuring charges and other provisions include costs for consolidating manufacturing and research and development operations into the company's facility in Haifa, Israel, the costs of relocation of its principal United States' operations and associated employee costs. These charges also include write downs due to product repositioning and inventory adjustment costs for discontinued products.
 Elron Electronic Industries, Ltd. ("Elron") has recently exercised $9,000,000 of warrants in exchange for the issuance of 1,500,000 shares of the company's common stock at $6.00 per share. The warrants were issued in September 1992 in connection with Elron's $6,000,000 long term loan to the company. Of the total, 1,241,666 shares were exercised effective as of Dec. 31, 1992, by conversion of the $6,000,000 long term debt and $1,450,000 of outstanding short term debt. In February 1992, Elron paid Fibronics $1,550,000 in cash to exercise warrants for 258,334 shares of common stock at the same price per share. The exercise of these warrants increased Elron's ownership of the company's common stock from 29 percent to 42 percent.
 Gil Weiser, who became president and chief executive officer on Jan. 15, 1993, said, "Although some of the changes that have been made were painful, we are already beginning to see benefits. We have significantly strengthened the management team and have seen excellent results from its efforts to solve product availability problems. These actions coupled with our strong and loyal customer base, and our worldwide distribution and support organization, provides Fibronics with a solid foundation on which to build a successful company in the networking marketplace."
 Uzia Galil, chairman of the board of Elron Electronics Industries, Ltd. added that, "Elron is very pleased that Gil Weiser has joined the company. His extensive industry experience and management ability have been invaluable in leading Fibronics through its repositioning efforts. I feel confident that in Gil we have a leader who can help Fibronics regain its industry leadership position."
 FIBRONICS INTERNATIONAL INC.
 Financial Results
 Twelve Months Ended Fourth Quarter Ended
 Dec. 31 Dec. 31
 1992 1991 1992 1991
 Net revenues $54,337 $53,943 $14,278 $16,047
 Loss before income
 taxes $(25,188) $(3,272) $(16,814) $(2,096)
 Net loss(a) $(25,188) $(3,275) $(16,814) $(2,190)
 Weighted average
 number of shares
 outstanding 6,428,946 6,327,992 6,486,191 6,339,588
 Loss per share $(3.92) (52 cents) $(2.59) (35 cents)
 NOTE (a): The net loss for the twelve months, and the fourth quarter ended Dec. 31, 1992 includes $10,700,000 of restructuring charges and additional provisions of $4,138,000, and $9,568,000 of restructuring charges and additional provisions of $4,138,000, respectively.
 -0- 3/12/93
 /CONTACT: John T. Hislop, chief financial officer of Fibronics, 617-826-0099 ext. 404/
 (FBRX)


CO: Fibronics, International, Inc. ST: Massachusetts IN: CPR SU: ERN

DJ -- NE014 -- 5678 03/12/93 17:24 EST
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Date:Mar 12, 1993
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