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GENERAL SIGNAL DIVESTS SEMICONDUCTOR OPERATIONS ADOPTS FAS 106 AND 109 IN 1992

 STAMFORD, Conn., Jan. 14 /PRNewswire/ -- According to an announcement made today by Chairman and Chief Executive Officer Edmund M. Carpenter, General Signal (NYSE: GSX) decided in the fourth quarter of 1992 to divest all of its semiconductor equipment operations. "After thoroughly evaluating these businesses, we believe it is in the best interests of the company and its shareholders to sell our semiconductor equipment operations and to devote our capital and management resources to our core process, electrical, and other industrial technology businesses," Mr. Carpenter stated.
 The charge to earnings is estimated at $85.6 million ($58.2 million after-tax) to provide for net losses on sales, potential future operating losses, severance, idle facilities, and related restructuring costs that will affect the company's overall systems and infrastructure. During the first three quarters of 1992, semiconductor equipment operations, with revenues of $135 million, lost approximately seven million dollars or 26 cents per share.
 "Over the past few years we have undergone an extensive repositioning of General Signal, exiting the defense, rail, and now semiconductor equipment businesses. With limited exception these divested operations, we believe, were unlikely to meet General Signal's overall performance objectives on a sustainable basis. At the same time, we have made 20 acquisitions which have been added to existing core units, significantly increasing their critical mass and market presence. These actions leave General Signal with 16 units as compared to 44 units in 1988 and much more tightly focused on our core businesses," said Mr. Carpenter.
 The company also announced today that it has elected to adopt Financial Accounting Standards Board Statement 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, and Statement 109, Accounting for Income Taxes, in the fourth quarter of 1992, effective as of Jan. 1, 1992.
 The effects of the adoption of both FAS 106 and FAS 109 fall into two categories. The first is a one-time charge to reflect the application of these changes to prior years (the "catch-up" charge).
 The second category is the annual impact on after-tax operating profits starting in the year of adoption (1992). Both categories are non-cash in nature.
 The "catch-up" charge for FAS 106 (retiree health benefits) is estimated to be $155 million pre-tax ($96 million after tax or $4.97 per share). The "catch-up" effect of FAS 109 (income taxes) is estimated to be a credit of $3.7 million.
 The impact of FAS 106 on operating results for 1992 is a decrease in net income of $.24 per share. The impact of FAS 109 on operating results for 1992 is an estimated increase in the effective tax rate from 27.5 percent to 32 percent.
 In 1993, the incremental costs of FAS 106 should be nearly offset by steps the company has taken to control medical costs for both active and retired employees and therefore essentially no impact on net income is anticipated.
 Although FAS 106 and FAS 109 will be adopted in the fourth quarter of 1992, the changes are required to be retroactive to the beginning of 1992. The first three quarters will therefore be restated to properly reflect these changes.
 General Signal Corporation, with 1991 sales of $1.6 billion, is a leading manufacturer of equipment and instruments for the process control, electrical, and industrial technology industries.
 -0- 1/14/93
 /CONTACT: Nino J. Fernandez, vice president Investor Relations, General Signal Corporation, 203-329-4320/
 (GSX)


CO: General Signal Corporation ST: Connecticut IN: CPR SU:

LD -- NY005 -- 4710 01/14/93 08:41 EST
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Date:Jan 14, 1993
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