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CUSTOMEDIX DISCONTINUES OPERATION OF AUTOMATIC INJECTION MOLDING

 CUSTOMEDIX DISCONTINUES OPERATION OF AUTOMATIC INJECTION MOLDING
 BERKELEY HEIGHTS, N.J., Jan. 21 /PRNewswire/ -- Customedix Corporation (AMEX: CUS) announced today the decision to discontinue the operations of its wholly owned subsidiary, Automatic Injection Molding, Inc. (AIM). AIM's Berkeley Heights plant is expected to cease operations on or about Jan. 31, 1992. Several prospective purchasers have expressed interest in purchasing the remaining business and assets of AIM's Spartanburg, S.C. plant and keeping the facility open. If, however, such a transaction is not completed, AIM's Spartanburg plant is expected to cease operations on or about Feb. 29, 1992.
 Although the exact impact of the company's decision to terminate AIM's operations cannot be determined at this time, it is estimated that the company will incur a significant charge to its operations from the anticipated writedown of AIM's net assets and the incurrence of other costs on connection with the discontinuance of AIM's operations.
 The discontinuance of the operations will be reflected in the company's results for the second quarter (ended Dec. 31) of fiscal 1992, which will include management's preliminary estimate of the costs associated with the disposal of AIM's operations. The company anticipates a significant loss in fiscal 1992 as a result of the termination of AIM's operations.
 The decision to discontinue AIM's operations resulted primarily as a result of the previously reported loss of AIM's largest customer as well as the recent loss of another major customer. These customers accounted for approximately 58 percent of AIM's revenues during the first two quarters of fiscal 1992. AIM revenues during the first two quarters of fiscal 1992 accounted for approximately 17.6 percent of the company's consolidated revenues.
 In addition, certain anticipated new business that management hoped would offset a substantial part of the lost business had not materialized. As a result, management determined that keeping AIM's facilities open was imprudent in view of the continuing losses which have been incurred at AIM, the inability to quickly replace the lost injection molding business with new business and the significant decline in injection molding business nationally in 1991.
 The company has guaranteed certain of AIM's operating and capital equipment leases (such guaranteed liabilities estimated at between $1,600,000 and $1,900,000) and is currently negotiating with the primary lessor to structure a settlement of AIM's obligations to such lessor. Approximately $1,581,000 of the guaranteed obligations have been called due as a result of AIM's default in lease payments. All of AIM's assets are pledged to the company's principal lending bank.
 The company's remaining subsidiaries, Jeneric/Pentron, Inc. and Transidyne General Corporation, which have accounted for approximately 82.4 percent of the company's consolidated revenues during the first two quarters of fiscal 1992, are currently profitable on an operating basis and are expected to continue to be profitable on an operating basis for the balance of fiscal 1992. Management believes that, despite the significant loss in fiscal 1992 expected as a result of the non-recurring impact on earnings from the discontinuance of AIM's operations, the company will return to profitability in fiscal 1993 if the anticipated increased revenues from Jeneric/Pentron's new dental products and expanded marketing efforts are realized.
 -0- 1/21/92
 /CONTACT: Gordon S. Cohen, chairman and CEO, or Barry L. Kosowsky, assistant treasurer, 203-265-7397; or Andrew A. Miller, chief financial officer, 908-464-2214, all of Customedix/
 (CUS) CO: Customedix Corporation ST: New Jersey IN: SU: RCN


TS-SM -- NY052 -- 1793 01/21/92 11:48 EST
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Publication:PR Newswire
Date:Jan 21, 1992
Words:578
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