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ELECTROCOM AUTOMATION SAYS DELAYS IN CONTRACT AWARDS WILL IMPACT 1994 RESULTS

 DALLAS, Nov. 9 /PRNewswire/ -- ElectroCom Automation Inc. (NYSE: ECA) today announced that it expects its 1994 earnings to be adversely impacted by continued delays in decisions by the U.S. Postal Service with respect to the exercise of options under existing contracts and award of contracts on which ECA has bid.
 Tom Burmeister, ECA's senior vice president and chief financial officer, said: "As we have watched the award date for several significant USPS programs slip, we have become uncomfortable with analysts' estimates for our 1994 earnings. As previously reported, we expect 1993 earnings to exceed 1992 earnings. It now appears probable 1994 earnings will be in a range similar to 1993.
 "While we are disappointed that slippage in award of USPS contracts will adversely impact us in 1994, we do view 1994 as a potentially good year for USPS and other bookings. Unfortunately, some of these potential bookings may come too late to generate the level of 1994 sales for which we had hoped."
 Burmeister added: "As previously disclosed, we have submitted bids, which are now under evaluation, or expect to bid within the next few months on USPS contracts with a potential value in excess of $600 million. The USPS has reconfirmed its continued commitment to automation in its recently released Capital Investment Plan. The Postal Service's expenditure plan relating to ElectroCom's areas of interest for the next three years, $3.2 billion, represents an increase of nearly $400 million over its previously released capital plan for the comparable years."
 ElectroCom Automation Inc. manufactures high-speed automated document processing systems for use primarily by the U.S. Postal Service and other government and commercial customers. The company also designs and produces materials handling systems and equipment for the commercial warehouse and distribution markets, provides funded research and development, and manufactures mobile data and voice communications systems and products for public safety and transit authorities. The company's common stock is listed on the NYSE under the symbol "ECA."
 -0- 11/9/93
 /CONTACT: Steve Hullett of ElectroCom Automation, Inc., 817-695-3035/
 (ECA)


CO: ElectroCom Automation Inc. ST: Texas IN: CPR SU: ERP

TW -- NY042 -- 3634 11/09/93 11:26 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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