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ELECTRO RENT POSTS 25 PERCENT INCREASE IN FISCAL 1993; NET INCOME PER SHARE TO A RECORD $1.74

 VAN NUYS, Calif., Aug. 10 /PRNewswire/ -- Electro Rent Corp. (NASDAQ: ELRC) today reported a substantial increase in net income for the fiscal year ended May 31, 1993, after year-end write-offs and an accounting change. The latter provided a substantial benefit to net income for the year.
 For fiscal 1993, net income totaled $10,083,000, up 17.6 percent from $8,572,000 in the prior year. Net income per share reached an all- time high of $1.74, an increase of 25 percent from $1.39 per share one year earlier. For the fiscal year, the company's adoption of FASB Statement No. 109, which related to accounting for deferred income taxes, produced a tax benefit to income of $2.6 million, or 45 cents per share. Year-end write-offs for obsolete computer hardware and software, and receivables relating to a specific account, as well as the closure of certain offices totaled $1.9 million, or 20 cents per share on an after-tax basis. Revenues for the year increased to $102,656,000, compared with $102,022,000 in the prior year.
 Fourth quarter net income after the above write-offs was $975,000, equal to 19 cents per share, compared with $2,018,000, or 33 cents per share, one year earlier. Since the accounting change related to deferred taxes was effective as of the beginning of fiscal 1993, it had no effect on the fourth quarter. Revenues for the period were $26,950,000, a 7.4 percent increase from $25,086,000 in the fiscal 1992 period.
 Daniel Greenberg, chairman and chief executive officer, commented: "Year-end adjustments aside, we saw an encouraging improvement as the year progressed in all areas of rental volume. In the fourth quarter, volume from personal computers and workstations advanced by well over 20 percent, and test and measurement equipment produced its best performance in several years.
 "In other important areas, the company benefited from a 31 percent decrease in interest expense to $2.1 million, from $3.1 million in the previous year as a function of lower rates. The company's balance sheet remains very strong."
 He concluded: "The company has made great strides in terms of its internal organization and focus, the addition of new key people and the successful conversion of our computer system which has become an invaluable tool for our organization. We're gaining market share in key product areas, including rentals of test and measurement equipment as well as personal computers.
 "The rental of personal computers and workstations has become a key element of our core business, and we see a continued exciting growth potential in this complex business segment. We'll also be seeking to improve used equipment sales and to capitalize on our other business opportunities, including the further development of our equipment management programs.
 "All the elements including people, products, finances and dedication to new markets are in place, and we look forward to further progress in the coming fiscal year."
 Electro Rent Corp. is one of the largest nationwide organizations devoted to the short-term rental and leasing of general purpose electronic test equipment, personal computers and workstations.
 ELECTRO RENT CORP.
 Consolidated Statements of Income
 (000 omitted, except per share data)
 Unaudited Audited
 Three Months Ended 12 Months Ended
 May 31, May 31,
 1993 1992 1993 1992
 Revenues $26,950 $25,086 $102,656 $102,022
 Depreciation and
 other cost of
 revenues 14,063 13,129 53,595 54,093
 Selling,
 administrative and
 general expenses 10,801 8,078 34,439 30,568
 Interest expense 461 517 2,136 3,075
 Income before taxes 1,625 3,362 12,486 14,286
 Income taxes 650 1,344 4,994 5,714
 Income before
 cumulative effect of
 accounting change 975 2,018 7,492 8,572
 Cumulative effect of
 change in accounting
 for income taxes --- --- 2,591 ---
 Net income $975 $2,018 $10,083 $8,572
 Net income per share $0.19 $0.33 $1.74 $1.39
 Average shares
 outstanding(a) 5,385 6,058 5,807 6,150
 (a) Reflects the company's repurchase of 850,000 common shares in fiscal 1993.
 -0- 8/10/93
 /CONTACT: Daniel Greenberg, chairman of Electro Rent, 818-786-2525/
 (ELRC)


CO: Electro Rent Corp. ST: California IN: CPR SU: ERN

BP-JL -- LA009 -- 1032 08/10/93 08:31 EDT
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Date:Aug 10, 1993
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