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CHEMDESIGN REPORTS RECORD FOURTH QUARTER SALES AND IMPROVED FOURTH QUARTER EARNINGS

 FITCHBURG, Mass., Feb. 18 /PRNewswire/ -- ChemDesign Corporation (NASDAQ: CDCC) today reported record sales for the fourth quarter ended Dec. 31, 1992 of $12 million, up 40.3 percent from the $8.6 million reported for the same period in 1991, and up 13.2 percent from the $10.6 million reported for the third quarter of 1992.
 The company also reported net income of $590,000 for the fourth quarter of 1992, or 7 cents per share. This compares favorably with both the net loss of $831,000, or 9 cents per share (loss), reported for the fourth quarter of 1991 and the net income of $428,000, or 5 cents per share, reported for the third quarter of 1992.
 For the year ended Dec. 31, 1992, the company had record sales of $43.6 million, up 8.9 percent from the sales of $40 million reported for 1991. Net income for 1992 of $1.1 million, or 13 cents per share, however, was off 31 percent from the $1.7 million, or 19 cents per share, reported for 1991.
 Richard E.T. Brooks, chairman and chief executive officer of ChemDesign, commented: "The strong sales and improved fourth quarter earnings reported today demonstrate that the company's recovery continued to strengthen in the fourth quarter of 1992. I am proud of our efforts and the success we achieved in turning around the company's operations so quickly from the 1991 fourth quarter slide. Beginning with the first quarter of 1992, we showed steady, quarterly improvement in our operating results, growing earnings per share from break even to 1 cent to 5 cents to the 7 cents we reported today."
 Michael J. O'Donnell, vice president and chief financial officer of ChemDesign, added: "Operating results for the second half of 1992 showed significant improvement over both the second half of 1991 and the first half of 1992. Sales were strong, gross margin rates improved and earnings per share reached 12 cents for the second half of 1992, compared with the 5 cents loss reported for the second half of 1991 and 1 cent reported for the first half of 1992. Directionally that's the kind of trend we were managing for during 1992, and we achieved it."
 O'Donnell continued: "In mid-January, we closed on $4.5 million of new financing with USTrust (Massachusetts) and the Stephenson National Bank and Trust (Wisconsin). Those funds, along with the $500,000 we obtained from Massachusetts Capital Resource Company in November, should allow us to complete the construction of our third manufacturing plant in Fitchburg. Debugging of the first equipment train has begun, and we remain on schedule to start a major product campaign in that plant in March."
 Brooks concluded by commenting: "We anticipate that 1993 annual revenues and earnings will show attractive increases over those reported for 1992. I don't think, however, that we will see continued, sequential quarterly improvement in 1993, as the final debugging of new processes begun in the fourth quarter of 1992 and the start up of the new plant in Fitchburg could temporarily dampen our momentum in the early part of the year. We must meet these challenges and also strive to enhance the utilization rate of our other existing capacity if we are to achieve the anticipated overall improvements in operating results during 1993."
 CHEMDESIGN CORPORATION
 Fourth Quarter Ended Dec. 31
 1992 1991
 Sales: $11,979,000 $8,538,000
 Net income (loss) $590,000 $(831,000)
 Earnings (loss) per
 share 7 cents (9 cents)
 Average shares 8,793,000 8,862,000
 Twelve Months Ended Dec. 31
 1992 1991
 Sales: $43,609,000 $40,031,000
 Net income $1,144,000 $1,660,000
 Earnings per share 13 cents 19 cents
 Average shares 8,855,000 8,891,000
 -0- 2/18/93
 /CONTACT: Michael J. O'Donnell, vice president and chief financial officer, or Steven E. Borgeson, senior vice president and general counsel of ChemDesign Corporation, 508-345-9999/
 (CDCC)


CO: ChemDesign Corporation ST: Massachusetts IN: CHM SU: ERN

TM -- NE010 -- 8048 02/18/93 16:00 EST
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Date:Feb 18, 1993
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