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ELECTRONIC ASSOCIATES, INC. REPORTS GAIN IN SECOND QUARTER

 WEST LONG BRANCH, N.J., Aug. 16 /PRNewswire/ -- Electronic Associates, Inc. (EAI) (NYSE: EA) had net income of $254,000 or $.10 per common share in the second quarter ended June 30, 1993, versus a $646,000 loss equal to $.25 per common share for the same period last year. This year's results include a gain of $964,000 or $.36 per share from the sale of EAI's Field Service Division and reflect the discontinuation of the operations of the company's Product Engineering Division. The sale was completed and the discontinuation effective on June 30, 1993.
 Sales of continuing operations rose to $7.067 million in the second quarter of 1993 from $4.201 million last year. For the six-month period ended June 30, EAI reported a net loss of $573,000 or $.22 per share on sales of $14.541 million in 1993, versus a loss of $626,000 or $.24 per share on sales of $9.680 million in 1992. The company's loss from continuing operations for the quarter and six months ended June 30, 1993 was $816,000 and $1.878 million, respectively, as compared to $810,000 and $972,000 for the comparable prior year periods.
 EAI also announced that it has signed a new secured credit facility with Congress Financial Corporation, an affiliate of CoreStates Financial Corporation, which permits discretionary advances of up to $8.250 million. An initial advance under the new credit facility of approximately $3 million was used by EAI to repay the full balance outstanding under a former loan agreement with another financial institution.
 EAI President Richard G. Rogers stated, "The agreement with Congress provides us with working capital and equipment financing which will strengthen our ability to accept new, major contract manufacturing orders."
 Mezzanine Financial Fund, L.P. has acquired a $750,000 junior participation interest in the loan to EAI from Congress Financial. A maximum of 150,000 shares of the company's common stock is issuable to Mezzanine, at its election, as loan fees in lieu of cash, with the actual number of shares dependent upon the market price of the stock and the amount which has accrued.
 EAI is a contract manufacturing company providing manufacturing services for products designed and marketed by customers. The company's common stock had traded on the New York Stock Exchange since 1962.
 ELECTRONIC ASSOCIATES, INC.
 Condensed Consolidated Statement of Operations
 (Unaudited, In Thousands, Except Per Share Data)
 Periods Ended Second Quarter Six Months
 June 30, 1993 1992 1993 1992
 (Restated) (Restated)
 Sales $7,067 $4,201 $14,541 $9,680
 Cost of sales 6,689 3,850 13,187 8,409
 Selling, general and
 administrative expenses 1,906 1,530 3,758 2,672
 8,595 5,380 16,945 11,081
 Income (loss) from operations
 before nonrecurring items (1,528) (1,179) (2,404) (1,401)
 Nonrecurring items (268) 0 (85) 0
 Income (loss) from operations (1,260) (1,179) (2,319) (1,401)
 Other (income) expense:
 Interest income 0 0 0 0
 Interest expense 106 50 231 72
 Other, net 0 0 0 0
 Income (loss) from continuing
 operations before provision
 (benefit) taxes (1,366) (1,229) (2,550) (1,473)
 Income tax provision (benefit) (550) (419) (672) (501)
 Income (loss) from continuing
 operations (816) (810) (1,878) (972)
 Income from discontinued operations
 net of applicable taxes 106 164 341 346
 Income from disposition of
 discontinued operations net
 of applicable taxes 964 0 964 0
 Net income (loss) $ 254 $(646) $(573) $(626)
 Income (loss) per common share:
 Income (loss) from continuing
 operations $(0.31) $(0.31) $(0.71) $(0.37)
 Income (loss) from
 discontinued operations 0.04 0.06 0.13 0.13
 Income (loss) from disposition
 of discontinued operations 0.36 0.00 0.36 0.00
 Earnings (loss) per common share $0.10 $(0.25) $(0.22) $(0.24)
 Average shares outstanding 2,646 2,604 2,646 2,596
 NOTE: Results of operations for periods of less than a year are not necessarily indicative of results for the full year.
 ELECTRONIC ASSOCIATES, INC.
 Condensed Consolidated Balance Sheet
 (Unaudited, In Thousands)
 Periods Ended June 30, 1993 Dec. 31, 1992
 Assets:
 Current assets $12,199 $14,547
 Fixed assets - net 3,924 4,344
 Long-term receivable from sale
 of discontinued operations 650 --
 Other assets 2,732 945
 $19,505 $19,836
 Liabilities and Shareholders' Equity:
 Current liabilities $11,950 $11,594
 Noncurrent liabilities 5,350 5,466
 Shareholders' equity 2,205 2,776
 $19,505 $19,836
 Shares outstanding 2,646 2,646
 -0- 8/16/93
 /CONTACT: Paul Finkel of EAI, 201-740-0090/
 (EA)


CO: Electronic Associates, Inc. ST: New Jersey IN: SU: ERN

TM-LD -- NY101 -- 3317 08/16/93 18:31 EDT
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Date:Aug 16, 1993
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