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URETHANE TECHNOLOGIES REPORTS SECOND QUARTER AND FIRST HALF, 1993 RESULTS

    IRVINE, Calif., Aug. 13 /PRNewswire/ -- Urethane Technologies Inc. (NASDAQ: UTEC) today announced a net loss for the second quarter, ended June 30, 1993, of $783,000, or $0.11 per share, on revenues of $761,000, compared with a net loss of $785,000, or $0.15 per share, on revenues of $890,000 in the year-ago quarter.
    For the first half, 1993, the company reported a net loss of $1.50 million, or $0.23 per share, on revenues of $1.29 million vs. a net loss of $1.98 million, or $0.39 per share, on revenues of $1.21 million in the comparable period, 1992.  The prior-year's period included a $500,000 non-cash litigation settlement expense.  On June 30, 1993, Urethane Technologies had $8.8 million in working capital on its balance sheet, an increase of $7.2 million from a year ago.
    Chemical sales revenues in the second quarter and first half, 1993, increased 73 percent to $756,000 and 66 percent to $1.21 million, respectively, from year-earlier levels reflecting increasing sales to domestic and foreign customers.  The decrease in the second quarter, 1993 total revenues from the 1992 quarter is attributed largely to a $454,000 decline in equipment sales, which in turn reflects a single substantial equipment sale recorded in the second quarter of 1992.
    Commenting on the quarter's results, Roy McClellan, president, said, "The second quarter has been an exciting period which has brought us closer to achieving my goal of turning the company profitable in the first half of next year.  The quarter's 73 percent increase in chemical sales, our core business, is encouraging and should prove an important source of continuing company growth.
    "As previously announced, we have agreed to supply two new Asian manufacturers with our proprietary blended chemicals used to produce the flat-free, microcellular bicycle tire.  Shipment of chemicals to those two customers are anticipated to begin in September or later this year," McClellan added.
    "Discussions with other potential customers for our flat-free, microcellular bicycle tire continue in Asia and elsewhere.  Jim Orefice, who will be joining the company next week as chief operating officer, will lead Urethane Technologies in business development, particularly in the emerging Asian markets.
    "Also in the second quarter," McClellan said, "we received net proceeds of $8.74 million from our March offering of common stock, giving us the strongest balance sheet in company history.  This financial strength enables us to conduct the R & D and marketing activities we consider necessary to build a strong future of company growth and expansion."
    Development of other primary company technology -- athletic shoe sole components, kitchen and bathroom fixtures, and composite polyurethane/rubber industrial tires -- is progressing, with certain manufacturers co-funding a portion of the development costs.
   Urethane Technologies develops proprietary polyurethane technology which the company licenses and sells to original equipment manufacturers.  Applications now in commercialization include flat-free microcellular bicycle tires.  Applications in development include bathroom and kitchen fixtures, athletic shoe soles and shoe sole components, and composite polyurethane/rubber industrial tires.
    For information on Urethane by fax, dial 800-PRO-INFO, ext. 171.
                       URETHANE TECHNOLOGIES INC.
                 Consolidated Statements Of Operations
                              (Unaudited)
                                     Three Months Ended
                               6/30/93               6/30/92
    Revenues                  $761,781               $889,573
    Cost of sales              668,955                872,823
    Gross profit                92,826                 16,750
    SG&A                       804,840                745,148
    R&D                        172,111                 65,707
    Litigation settlement          ---                    ---
    Operating expenses         976,951                810,855
    Operating loss            (884,125)              (794,105)
    Other income               101,461                  9,275
    Net loss                 ($782,664)             ($784,830)
    Net loss per share          ($0.11)                ($0.15)
    Weighted average number
     of shares outstanding   6,918,385               5,072,978
                                      Six Months Ended
                               6/30/93                6/30/92
    Revenues                $1,288,311              $1,213,228
    Cost of sales            1,111,630               1,168,967
    Gross profit               176,681                  44,261
    SG&A                     1,553,092               1,441,590
    R&D                        282,063                 114,620
    Litigation settlement          ---                 500,000
    Operating expenses       1,835,155               2,056,210
    Operating loss          (1,658,474)             (2,011,949)
    Other income               151,663                  32,705
    Net loss               ($1,506,811)            ($1,979,244)
    Net loss per share          ($0.23)                 ($0.39)
    Weighted average number
     of shares outstanding   6,448,293               5,060,054
                       URETHANE TECHNOLOGIES INC.
                      Consolidated Balance Sheets
                              (Unaudited)
                                    June 30, 1993    Dec. 31, 1992
    Assets
     Cash and cash equivalents        $7,204,958      $1,239,023
     Short-term investment             1,002,500             ---
     Accounts receivable, net            505,278         249,848
     Inventories, net                    327,524         262,224
     Other current assets                288,025         226,493
    Total current assets               9,328,285       1,977,588
    Total long-term assets               847,946         871,429
    Total assets                     $10,176,231      $2,849,017
    Liabilities and
     shareholders' equity:
      Accounts payable                  $355,066        $188,710
      Other current liabilities          170,027         144,355
    Total current liabilities            525,093         333,065
    Total long-term liabilities              ---          20,000
    Minority interest in consolidated
     joint venture                       846,938         937,003
    Stockholders' equity:
     Common stock                         69,736          59,729
     Capital in excess of par value   18,509,829       9,767,774
     Accumulated deficit              (9,775,365)     (8,268,554)
    Total shareholders' equity         8,804,200       1,558,949
    Total liabilities and
     stockholders' equity            $10,176,231      $2,849,017
    -0-             08/13/93
    CONTACT:  Nick Farina (Chicago), 312-266-7800, Regina Ryan (NY), 212-661-8030, or John H. Shaw (LA), 818-783-2400, all of The Financial Relations Board for Urethane Technologies
    (UTEC) CO:  URETHANE TECHNOLOGIES INC. IN:  CHM SU:  ERN ST:  CA


-- LA011 -- X517 08/13/93
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Date:Aug 13, 1993
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