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KENDALL INTERNATIONAL, INC. REPORTS RESULTS

 MANSFIELD, Mass., Oct. 21 /PRNewswire/ -- Kendall International, Inc. (NASDAQ-NMS: KEND) reported income for the quarter ended Sept. 30, 1993 of $14.6 million or 69 cents per share on sales of $209.6 million, compared to a loss of $7.1 million or 38 cents per share on sales of $200.5 million in the third quarter of 1992. The 1992 loss includes a $22.5 million pretax charge related to a write-up of inventory required by accounting rules applicable to its July 1992 restructuring.
 Richard A. Gilleland, Kendall's chairman, president and chief executive officer reported, "We continue to improve our operating performance through sales growth, gross margin improvement and expense control. Net sales in the third quarter improved by 4.5 percent vs. the year earlier period, reflecting a 7 percent increase in our largest division, Kendall Healthcare, and the adverse impact of a stronger U.S. dollar on International Division sales. Our gross margins increased to over 41 percent of sales in the quarter, compared to 40 percent in the year earlier period. Selling and administrative costs actually declined compared to the third quarter of 1992."
 The company also reported that its strong cash flows continued in the third quarter of 1993, resulting in an additional $50 million of unscheduled payments on borrowings outstanding under its bank credit agreement.
 Net sales for the first nine months of 1993 were $621.1 million, 6.7 percent higher than the $582.0 million reported in 1992. Net income before extraordinary item for the nine months ended Sept. 30, 1993 was $38.3 million or $1.82 per share. Year-to-date 1993 operating income of $91.7 million increased by 26.8 percent over the comparable income of $72.3 million, excluding the nonrecurring inventory charge, in the year earlier period.
 Kendall International, Inc. manufactures, markets and distributes medical supplies and devices for the hospital, alternate site health care and home health care markets, as well as adhesive products and tapes for the industrial and consumer markets, and employs approximately 8,800 people worldwide.
 KENDALL INTERNATIONAL, INC.
 Consolidated Statements of Operations
 (Unaudited, in millions, except per share data)
 Three Months Ended Nine Months Ended
 9/30/93 9/30/92 9/30/93 9/30/92(a)
 Net sales:
 Healthcare $107.1 $100.0 $317.9 $297.3
 International 34.2 35.8 102.3 102.9
 Futuro 33.4 32.2 93.5 91.9
 Polyken 34.9 32.5 107.4 89.9
 Total net sales 209.6 200.5 621.1 582.0
 Cost of sales 123.1 119.7 367.2 353.2
 Nonrecurring
 inventory charge --- 22.5 --- 22.5
 Selling and admini-
 strative expenses 50.1 50.7 149.4 145.1
 Amortization of
 intangibles 4.2 4.3 12.5 10.5
 Other expense 0.1 0.6 0.3 0.9
 Operating income 32.1 2.7 91.7 49.8
 Interest expense 5.2 9.8 21.4 65.5
 Reorganization items --- --- --- 38.3
 Income tax provision 12.3 --- 32.0 1.9
 Income (loss) before
 extraordinary item 14.6 (7.1) 38.3 (55.9)
 Extraordinary item(b) --- --- (2.8) 277.3
 Net income $14.6 $(7.1) $35.5 $221.4
 Earnings per share(c):
 Income before
 extraordinary item 69 cents (38 cents) $1.82
 Extraordinary item --- --- (13 cents)
 Net income 69 cents (38 cents) $1.69
 Weighted average
 shares outstanding 21.3 19.0 21.0
 ----
 NOTE: (a) Includes the six month pre-restructuring period ended June 30, 1992, however no significant basis differences exist for comparison to the post-restructuring period.
 (b) The 1993 extraordinary item represents a loss on the early redemption of the company's 10 percent/12 percent Subordinated Notes related to unamortized original issue discount and deferred financing fees related to the amended bank facilities. The 1992 extraordinary item represents the gain on forgiveness of debt as a result of the restructuring.
 (c) Earnings per share data is not presented for the nine months ended Sept. 30, 1992, as it includes pre-restructuring periods prior to the establishment and issuance of a new class of common stock in connection with the restructuring.
 -0- 10/21/93
 /CONTACT: James S. Bacciocco, investor relations of Kendall International, Inc., 508-261-8094/
 (KEND)


CO: Kendall International, Inc. ST: Massachusetts IN: HEA MTC SU: ERN

DD-JL -- NE010 -- 5121 10/21/93 11:15 EDT
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Date:Oct 21, 1993
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