Gleason reports third and nine-month results.

(NYSE:GLE) today reported net income for the third quarter ended Sept. 30, 1995 of $3,772,000, or $.73 per share, compared to $1,032,000, or $.20 per share, for the 1994 third quarter. Sales for the third quarter were $54,550,000 compared to $26,392,000 for the 1994 quarter. The 1995 quarter included sales of $13,951,000 from the company's subsidiary, Hurth Maschinen und Werkzeuge GmbH, which was acquired on July 1, 1995.

For the nine months ended Sept. 30, 1995, the company had net income of $10,328,000, or $2.00 per share, compared to $3,140,000, or $.61 per share, in the 1994 nine-month period. Net income for the 1994 period included a gain on the disposal of discontinued operations of $1,440,000, or $.28 per share. Sales for the nine-month period were $127,055,000 compared to $77,699,000 in 1994.

Order levels for the nine months were $170.9 million versus $110 million in the comparable 1994 period. Orders on a year-to-date basis, excluding the Hurth operations, increased 31% over the 1994 period. Order levels for all major product lines were higher in 1995. The higher order rate is primarily related to the success of the company's new products and improving demand from the company's overseas markets. Backlog at Sept. 30, 1995 increased to $139.3 million from $54.7 million at Dec. 31, 1994. The backlog for Hurth's products included in the current backlog was $54 million. Backlog at Sept. 30, 1994 was $58.6 million.

James S. Gleason, chairman and president, said, "The company's performance continues to show considerable improvement compared to the prior year due to higher operating volumes and lower manufacturing costs. Our new manufacturing facility and new product designs have enabled us to make major strides in competing more effectively in our markets. In addition, our acquisition of Hurth contributed positively to operating earnings for the quarter while adding complementary product offerings which strengthen our position in the parallel axis gear equipment market. Our parallel axis gear machine sales represent the fastest-growing segment of our business, now providing sales that exceed for the first time, our bevel gear machinery product lines."

Gleason added, "Shipments of bevel gear equipment have also experienced significant growth in the past year primarily due to higher production volumes in the light and heavy truck industries, which are the principal users of bevel gears. In addition, the quality, productivity and flexibility advantages offered by our Phoenix(R) line of products, combined with the relatively old installed base of bevel gear equipment, have created increased demand for replacement equipment."

The company's board of directors at its meeting yesterday declared a regular quarterly dividend of $.125 per share, payable on Nov. 17, 1995, to stockholders of record on November 3, 1995.

Gleason Corp. is a world leader in gear production equipment. -0-

                 Comparative results are as follows:
        (Dollar amounts in thousands, except per share amounts)

                      Three Months Ended    Nine Months Ended
                      9/30/95     9/30/94  9/30/95    9/30/94

Sales                 $54,550    $26,392  $127,055    $77,699
Cost of sales          38,472     18,105    88,295     56,128
Gross margin           16,078      8,287    38,760     21,571

Selling, general &
 administrative         9,802      5,854    22,723     16,386
Research &
 development            1,533      1,053     4,231      3,342
Other (income)           (328)      (140)     (767)      (595)
Interest (income)
 expense                  327          3       239         (7)

Income from continuing
 operations before
 income taxes            4,744     1,517   12,334       2,445
Tax provision              972       485    2,006         745

Income from continuing
 operations              3,772     1,032   10,328       1,700
Gain on disposal of
 discontinued operations    -         -        -        1,440
Net income             $ 3,772   $ 1,032  $10,328     $ 3,140

Weighted average
 number of common
 shares outstanding  5,171,584  5,162,965  5,168,517  5,162,982

Income from
 continuing operations   $0.73   $   0.20  $    2.00  $    0.33

Gain on disposal of
 discontinued operations    -            -          -    $ 0.28

Net income per share     $0.73     $   0.20  $    2.00   $ 0.61

Cash dividends
 declared              $ 0.125     $   0.10  $   0.375   $ 0.30
-0-

                            Condensed Balance Sheet
                            9/30/95        12/31/94

Cash and equivalents        $  8,183       $  3,173
Trade accounts receivable     50,035         42,363
Inventories                   34,170         11,244
Other current assets           7,418          3,911
Total current assets          99,806         60,691

Total assets                $169,334       $122,016

Total current liabilities   $ 49,202       $ 32,095
Long-term debt                24,571          2,600
Other liabilities             45,564         45,122

Total liabilities           $119,337       $ 79,817

Total stockholders' equity    49,997         42,199
Total liabilities and
 stockholders' equity       $169,334       $122,016

CONTACT: Gleason Corp., Rochester

John J. Perrotti, 716/461-8105