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GBC TECHNOLOGIES CONTINUES SALES AND EARNINGS GROWTH DURING THIRD QUARTER

 BERLIN, N.J., Oct. 28 /PRNewswire/ -- GBC Technologies, Inc. (NASDAQ-NMS: GBCT) today announced continued high growth in sales and earnings during its third quarter ended Sept. 30, 1993.
 For the quarter ended Sept. 30, 1993, the company reported record sales of $39,218,000, eclipsing the record set just last quarter. These sales represented a 70 percent increase over the $23,065,000 recorded in the third quarter of 1992. For the nine-month period ended Sept. 30, 1993, company revenues were $99,406,000, which represented a 60 percent increase over sales for the same period last year. Net income for the quarter and nine-month period was $781,000 and $1,930,000, respectively, which represented an increase of 64 percent and 73 percent over the same periods in 1992. On a per-share basis, GBC's net income was $.27 a share for the third quarter just ended, as compared to the pro forma $.22 a share one year earlier. The growth in EPS is not commensurate with the company's net income growth due to the greater number of shares outstanding in fiscal 1993 (table to follow).
 Commenting on the results, Norman M. Some, chief executive officer, said, "Our focus on client/server computing in an open systems networking environment is continuing to pay dividends as GBC strengthens its positioning as a full-service technical distributor. S, G & A as a percentage of sales dropped to 6.9 percent for the nine months ended September 30, 1993, compared to 7.8 percent during the comparable period in 1992. Control of expenses and focus on reducing S, G & A as a percent of sales will continue to be a priority at GBC. We are well positioned to respond to the needs of our customers with product and services as enterprise networking continues to grow in complexity. Our focus in this area has enabled the company to enjoy record back-to-back quarterly results," added Some.
 In addition, he said he was pleased to note that GBC was recognized by Forbes in its November issue as one of "The World's Best 200 Small Companies." In the listing of 200 selected companies, GBC ranked 69 worldwide, based on a number of financial criteria.
 GBC Technologies is a wholesale distributor of technically advanced microcomputer products, specializing in networking, connectivity, data communications and related products. The common stock of GBC Technologies trades on the NASDAQ National Market System under the symbol "GBCT."
 GBC TECHNOLOGIES, INC.
 Selected Financial Data
 Consolidated Income Statement Data
 (Unaudited; in thousands, except per-share data)
 Periods ended Three months Nine months
 Sept. 30 1993 1992 1993 1992
 Net sales $39,218 $23,065 $99,406 $62,121
 Cost of sales 35,406 20,463 89,285 55,157
 Gross profit 3,812 2,602 10,121 6,964
 Selling, general
 & administrative 2,504 1,730 6,850 4,876
 Operating income 1,308 872 3,271 2,088
 Interest income (expense) (2) (68) 54 (203)
 Income before income taxes 1,306 804 3,325 1,885
 Income taxes 525 84 1,395 180
 Net income 781 720 1,930 1,705
 Net income per share $.27 --- $.67 ---
 Weighted average shares
 outstanding 2,874 --- 2,899 ---
 Pro forma income data (unaudited):
 Income before income taxes,
 as reported --- 804 --- 1,885
 Pro forma income taxes(A) --- 327 --- 768
 Pro forma net income(A) --- 477 --- 1,117
 Pro forma net income
 per share(A) --- $.22 --- $.54
 Weighted average shares
 outstanding(A) --- 2,307 --- 2,292
 (A) Presented on a pro-forma basis for the three and nine months ended Sept. 30, 1992, as if (a) the company had been a C corporation for the period presented and (b) the debt outstanding during the period had been paid with the proceeds of the company's 1992 initial public offering. (For further information, see the company's prospectus dated Dec. 18, 1992.)
 GBC TECHNOLOGIES, INC. AND SUBSIDIARY
 Consolidated Balance Sheets
 Periods ended Sept. 30, 1993 Dec. 31, 1992
 Assets: (unaudited)
 Current Assets:
 Cash and cash equivalents $399,435 $7,337,767
 Short-term investments 500,000 300,000
 Accounts receivable, net of allowance
 for doubtful accounts of $194,448
 and $175,247 20,858,771 8,744,147
 Inventories 21,383,492 12,690,419
 Deferred income taxes 417,562 417,562
 Prepaid expenses and other 558,961 227,802
 Total current assets 44,118,221 29,717,697
 Property and Equipment, net 658,827 426,481
 Other assets 27,266 15,176
 Total 44,804,314 30,159,354
 Liabilities and Shareholders' Equity:
 Current liabilities:
 Line of credit 3,260,368 ---
 Accounts payable 25,285,036 16,547,252
 Accrued expenses 1,399,235 738,125
 Total current liabilities 29,944,639 17,285,377
 Deferred income taxes 18,250 18,250
 Shareholders' Equity:
 Preferred stock, $.01 par value,
 2 million shares authorized, none
 issued --- ---
 Common stock, $.01 par value,
 10 million shares authorized,
 2,865,000 shares issued and
 outstanding 28,650 28,650
 Additional paid-in capital 12,711,282 12,711,282
 Retained earnings 2,387,135 457,313
 Deferred compensation (285,642) (341,518)
 Total shareholders' equity 14,841,425 12,855,727
 Total 44,804,314 30,159,354
 /delval/
 -0- 10/28/93
 /CONTACT: Richard Altus, vp-finance of GBC Technologies, 609-767-2500/
 (GBCT)


CO: GBC Technologies, Inc. ST: New Jersey IN: CPR SU: ERN

MK-MJ -- PH044 -- 8154 10/28/93 16:47 EDT
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Date:Oct 28, 1993
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