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ACTON CORPORATION ANNOUNCES RESULTS OF OPERATIONS

 RALEIGH, N.C., April 16 /PRNewswire/ -- Acton Corporation (AMEX: ATN), $3.75 Cumulative Preferred Stock (ATNPR), today announced that it had completed the necessary additional analysis of recently received information from an outside actuary reviewing the company's insurance subsidiary's loss reserves and has therefore released its 1992 financial statements. Acton's auditors are currently finalizing their report on the 1992 audit and the company anticipates receiving such report next week.
 The company announced that operations for the year ended Dec. 31, 1992, resulted in a net loss of $19,722,731 or $8.52 per share as compared to a net loss of $18,790,775 or $8.16 per share for the year ended Dec. 31, 1991. All per share computations are after consideration of the company's preferred stock dividend requirements.
 The 1992 reported operating loss resulted primarily from continuing losses at the company's insurance and furniture manufacturing subsidiaries. The insurance subsidiary's underwriting continued at unsatisfactory levels in 1992. However, during the fourth quarter a new management team at the insurance subsidiary was brought in to focus on revamping product mix, pricing and underwriting practices with the near- term objective of reducing underwriting losses while identifying new products and markets to enable the insurance business to go forward on a more profitable basis. To date, several unprofitable insurance programs have been discontinued while price increases have been implemented in other markets which were producing unsatisfactory results. On the positive side, realized and unrealized gains on the insurance subsidiary's investment portfolio totalled $10,519,729 during 1992.
 In an effort to increase operating efficiency and control costs, the company's furniture business, which has been suffering from very soft consumer demand over the past two years, previously announced the closing of one of its furniture manufacturing plants and the transfer of the production to other existing facilities. While a special charge to earnings of $1,800,000 was recorded in the third quarter to cover anticipated costs of the plant closing, the company anticipates that lower operating and overhead costs resulting from the consolidation will favorably impact future reported results of operations.
 The company's other businesses remained essentially unchanged during 1992. Military bootwear shipments remain depressed as the effect of the government's reduction in military personnel continues to be felt. The company's real estate development business continues under pressure with no immediate improvement in the real estate markets foreseen. However, necessary writedowns to real estate in 1992 of $1,098,100 compared favorably with writedowns of $4,245,744 in the prior year. Cable television and textile equipment manufacturing businesses continued to do well.
 Stockholders' equity decreased $31,500,777 during 1992 to $575,735 primarily due to the above mentioned operating loss and the previously announced reduction of $10,933,955 required in conjunction with the company's acquisition of Hickory Furniture Company's remaining interests in Sew Simple Sytems, Inc., Acton's Fountain Inn, S.C., subsidiary which designs and manufactures automated textile machinery. This reduction was required under generally accepted accounting principles due to the Sew Simple interests being acquired from an affiliate of Acton and does not represent an economic diminution in shareholders' interests since the transaction price represented no more than the fair value of the assets acquired.
 The 1991 reported operating loss resulted primarily from $4,245,774 of writedowns to the carrying value of Acton's real estate held for development and sale necessitated by the continuing decline in real estate markets coupled with writedowns of $10,863,884 of certain securities in its investment portfolio to reflect what Acton believed to be other than temporary declines in their value.
 Acton Corporation is primarily engaged in specialized automobile insurance underwriting, furniture manufacturing, real estate development and the operation of a cable television system.
 ACTON CORPORATION
 Financial Summary
 (Amounts in Thousands, except per share data)
 Quarter Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (Unaudited) (Unaudited) (Unaudited)
 Net revenues $51,575 48,388 232,778 228,796
 Net loss (19,023) (12,603) (19,723) (18,791)
 Per share data:
 Primary and fully
 diluted:
 Net loss (7.75) (5.40) (8.52) (8.16)
 Assets 270,746 290,167
 Stockholders' equity 576 32,077
 -0- 4/16/93
 /CONTACT: Glenn J. Kennedy, Chief Financial Officer, Acton Corporation, 919-781-5611/
 (ATN)


CO: Acton Corporation ST: North Carolina IN: REA TLS SU: ERN

CM-SB -- CH007 -- 6820 04/16/93 14:06 EDT
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Date:Apr 16, 1993
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