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ELECTRO RENT REPORTS HIGHER NET INCOME PER SHARE FOR FIRST SIX MONTHS OF FISCAL YEAR

 VAN NUYS, Calif., Jan. 12 /PRNewswire/ -- Electro Rent Corp. (NASDAQ: ELRC) experienced a modest decrease in second quarter revenues and net income, Daniel Greenberg, chairman and chief executive officer, announced today.
 For the second quarter, net income was $2,096,000, equal to 35 cents per share, compared to $2,338,000, or 38 cents per share, in the like period a year ago. Revenues totaled $25,130,000 as against $26,021,000 in last year's second quarter.
 For the first six months ended Nov. 30, 1992, net income amounted to $4,452,000, equal to 74 cents per share, compared to $4,512,000, or 73 cents per share, in the same period a year ago. The increased income per share reflected the smaller number of average shares outstanding this year, 6,042,000, compared to a year ago, 6,224,000. Revenues for the six months were $50,579,000, compared to $50,926,000 in the prior fiscal year.
 The per share figures for all periods have been adjusted to reflect the 3-for-2 stock split distributed on Feb. 28, 1992.
 Greenberg commented: "The continued improvement in Electro Rent's rental activities was not sufficient in the second quarter to offset the continuing decline in revenues from leases and the sale of used equipment. Our results reflect the continuing battle between the healthy expansion of our computer/workstation business and decreases in our test and measurement and leasing activities as a result of the further contraction of the aerospace/defense industry.
 "Our continuing objective is to enhance Electro Rent's position as a premier supplier of personal computers and workstations and to further broaden our business base in areas of opportunity where our financial strength and expertise in technology and equipment management may be profitably applied."
 The company also announced that its board of directors has authorized management to purchase from time to time on the open market, or through negotiated purchases, up to 750,000 shares of the company's common stock. This authorization supersedes the board's previous 750,000 share repurchase authorization, under which 702,959 have been acquired to date, including 373,700 shares purchased in December. Electro Rent currently has 5,626,348 shares of common stock outstanding.
 The shares acquired will become authorized, but unissued shares. The funds required for the stock purchase will be provided out of working capital and bank borrowings. No time limit was set for the completion of the program.
 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.
 Statements of Income
 (Unaudited)
 (000 Omitted, Except Per Share Data)
 Three Months Ended Six Months Ended
 Nov. 30, Nov. 30,
 1992 1991 1992 1991
 Revenues $25,130 $26,021 $50,579 $50,926
 Depreciation and
 other costs of
 revenues 13,102 13,738 26,167 26,469
 Selling,
 administrative
 and general
 expenses 7,990 7,523 15,844 15,164
 Interest expense 544 863 1,148 1,772
 Income before taxes 3,494 3,897 7,420 7,521
 Income taxes 1,398 1,559 2,968 3,009
 Net income $2,096 $2,338 $4,452 $4,512
 Net income per
 share(a) $0.35 $0.38 $0.74 $0.73
 Average shares
 outstanding(a) 6,007 6,207 6,042 6,224
 (a) All share figures have been adjusted to reflect the 3-for-2 stock split distributed Feb. 28, 1992.
 -0- 1/13/93
 /CONTACT: Daniel Greenberg, chairman of Electro Rent, 818-786-2525/
 (ELRC)


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

KJ-EH -- LA023 -- 4123 01/12/93 14:47 EST
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Date:Jan 12, 1993
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