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PAINEWEBBER AGGRESSIVE GROWTH CONFERENCE

 PAINEWEBBER AGGRESSIVE GROWTH CONFERENCE
 NEW YORK, June 2 /PRNewswire/ -- In a presentation made today at the


PaineWebber Aggressive Growth Stock Conference, Alex Erdeljan, president of R.P. Scherer Corporation (NYSE: SHR), gave an overview of the company's business and its financial performance since 1989, when the new management, in conjunction with Lehman Brothers' Merchant Banking Fund, acquired the company through a leveraged buy-out.
 R.P. Scherer's sales have grown at a three year 12.6 percent compounded annual rate. Over the same period, operating earnings grew at a 30.5 percent compounded annual rate. The operating margin (operating earnings as a percentage of sales) has doubled from 11.3 percent in fiscal 1988, the year before the buy-out, to 22.6 percent last fiscal year. On a pro forma basis, the company has reported earnings per share of $.92 for fiscal 1992, as compared with last years' earnings per share of $.64, which represents a 42 percent increase.
 For the medium term, Scherer expects sales to continue to grow at 10-15 percent per year, with annual earnings per share growth of 25 percent. During the second half of the decade, Scherer expects its earnings growth to accelerate as a result of a more significant contribution by its advanced drug delivery technologies. By 1997, Scherer expects that approximately 10 percent of its worldwide revenues, and 20 percent of its operating earnings will be derived from products utilizing its advanced drug delivery technologies, SCHERERSOL(R), ZYDIS(R) and PULSINCAP(TM).
 As a result of the very successfully completed IPO in October 1991, the company has significantly reduced debt to only 48 percent of total capitalization as of March 31, 1992. The stronger balance sheet and consistently high cash flow generated from operations is being further augmented by a revolving credit line of $120 million. This funding source will permit Scherer, in the next three to five years, to finance over $100 million on new facilities in order to meet growing demand for its softgel, ZYDIS and PULSINCAP products.
 R.P. Scherer Corporation, a leading international developer and manufacturer of drug delivery systems, is the world's largest producer of soft gelatin capsules ("softgels"). The company is currently developing and commercializing advanced drug delivery systems, including SCHERERSOL, ZYDIS and PULSINCAP technologies. The company's proprietary drug delivery systems improve the efficacy of drugs by regulating the dosage, rate of absorption and place of release. The company operates a global network of 15 facilities in 11 countries.
 -0- 6/2/92
 /CONTACT: Nicole Williams of R.P. Scherer Corporation, 313-649-0900/
 (SHR) CO: R.P. Scherer Corporation ST: Michigan IN: MTC SU:


SM-LR -- NY072 -- 6396 06/02/92 17:17 EDT
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Publication:PR Newswire
Date:Jun 2, 1992
Words:444
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