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ELTRAX FORECASTS RESULTS, ANNOUNCES NEW CONTRACTS

 MINNEAPOLIS, March 31 /PRNewswire/ -- Eltrax Systems, Inc. (NASDAQ: ELTX), a developer and marketer of patient card systems and optical disk image storage devices for health care facilities, expects to report a slight decrease in sales for the fiscal year ended March 31, 1993, compared to the prior fiscal year. A loss of approximately $0.09 per average share outstanding is expected for the year, which is higher than analysts' expectations.
 According to Patrick J. Oven, chairman, president and chief executive officer, the higher-than-expected loss is due to three primary factors. First, the company was delayed in marketing its Optical Disk Image Archiving System until it received pre-marketing notification clearance from the Food and Drug Administration (FDA). This slowed the sales cycle for the optical disk product.
 Second, Eltrax was not able to ship a software interface for its optical disk product to DuPont's Clinical Review System. Although the company has completed development of the software, modifications to be made by outside software vendors delayed time-to-market. This product also may be subject to FDA clearance. Finally, many hospitals have delayed major capital expenditures until hospital management can better evaluate the impact of changes proposed by the Clinton Administration.
 Despite the loss, Eltrax will enter the new fiscal year, beginning April 1, with several positive outcomes that have occurred in recent weeks. For example, the company has recently renewed contracts with three major hospitals for its optical disk image digitizing service and signed two new contracts for its patient card system. In addition, the company will enter the fiscal year with a $730,000 backlog.
 "We're very optimistic about the potential sales for both our optical and card systems," said Oven. "As our investment in salespeople and programs accelerate, we expect to report more favorable results going forward."
 Eltrax Systems, Inc., headquartered in Minneapolis, was founded in 1984. It develops and markets primarily two application systems -- a patient card system that expedites patient admission and registration at health care facilities, and an optical disk image archiving system for storing X-ray and other medical images and associated reports. The company went public in December 1992, and its shares are traded on the NASDAQ National Market System under the symbol ELTX.
 -0- 3/31/93
 /CONTACT: Bruce Olsen or Patrick Oven, both of Eltrax Systems, 612-783-0099; or Kathy Burnham or John Mackay, both of Padilla Speer Beardsley, 612-871-8877, for Eltrax Systems/
 (ELTX)


CO: Eltrax Systems, Inc. ST: Minnesota IN: CPR SU: CON

KH -- MN011 -- 1696 03/31/93 16:59 EST
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Publication:PR Newswire
Date:Mar 31, 1993
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