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TSI CORPORATION TO WRITE DOWN INVESTMENT IN GERMAN SUBSIDIARY

 MILFORD, Mass., Sept. 27 /PRNewswire/ -- TSI Corporation (NASDAQ: TSIN) announced today that it will take a one-time disposal-of- operations charge of approximately $5 million in the fourth quarter of fiscal 1993 relating to its German testing and regulatory consulting subsidiary, IBR Forschungs GmbH. The recent loss of significant sales to one customer, lower demand for IBR's services, and the current high costs of doing business in Germany all contributed to a situation in which IBR was incurring significant losses and could not be expected to operate profitably without a major financial commitment from TSI, which TSI has decided not to make. Since its acquisition in 1992 and prior to these events, IBR had generally been operating profitably, contributing approximately 20 percent of TSI's revenues in fiscal 1993.
 "We have decided not to make the substantial management and financial commitment necessary to restore IBR to profitability, which could only be done at some risk to TSI," commented Robert Baldridge, chairman and CEO of TSI. "Since IBR always was a relatively self- contained part of TSI's operation, we do not expect the loss of IBR to have a negative impact on other operations. The money we save by not contributing support to IBR will allow us to focus resources on our other testing facilities, several of which are now operating at record levels."
 TSI is a life sciences company offering in vitro and in vivo preclinical and toxicology testing services, human clinical testing services and diagnostic intermediate products.
 -0- 9/27/93
 /CONTACT: Steven T. Shedd, vice president and CFO of TSI, 508-478-0877; Peter Feinstein, president of Feinstein Partners, 617-577-8110, for TSI/
 (TSIN)


CO: TSI Corporation ST: Massachusetts IN: MTC SU:

DJ-JL -- NE011 -- 6103 09/27/93 17:16 EDT
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Publication:PR Newswire
Date:Sep 27, 1993
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