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ENCORE WIRE DISCLOSES CUSTOMER LOSS

 MCKINNEY, Texas, Feb. 19 /PRNewswire/ -- Encore Wire Corporation (NASDAQ: WIRE), an electrical wire manufacturer, disclosed today that its principal distributor to the manufactured housing market has made a determination to align with a vendor other than Encore Wire. The customer, Manufactured Structures Supply Division of Westinghouse Electric Supply Co., said the decision was made in an effort to consolidate its vendor base and would be effective upon completion of all current purchase orders and inventories.
 Vincent A. Rego, chairman of Encore Wire, said, "We are disappointed, but we understand that the decision was based on internal considerations and the breadth of product line offered by another vendor. We have been assured that Westinghouse has been pleased with the quality, pricing and availability of Encore Wire products and our customer responsiveness."
 Rego and Donald M. Spurgin, president and chief executive officer of Encore Wire, said, "Currently, more than 73 percent of our business is with wholesale electrical distributors and retail home improvement centers and the balance is with manufactured housing suppliers, including Westinghouse. Encore Wire may remain a secondary source of supply to Westinghouse, but we have already had discussions with several existing and prospective customers in the manufactured housing supply business in an effort to offset the anticipated loss of business from Westinghouse. Encore Wire is constantly seeking to expand its sales base in all three customer categories -- wholesale electrical distributors, retail home improvement centers and manufactured housing suppliers. While future sales cannot be predicted, Encore Wire is confident of its ability to replace lost sales resulting from the Westinghouse decision."
 Westinghouse has been one of Encore Wire's principal customers since it commenced manufacturing operations in February 1990. In fiscal 1990, 1991 and 1992, sales to Westinghouse accounted for $1.5 million, or 13.6 percent, approximately $8.0 million, or 25.6 percent, and approximately $16.9 million, or 26.8 percent, respectively, of Encore Wire's net sales. No other customer of Encore Wire accounted for more than 6 percent of net sales in fiscal 1992.
 Encore Wire, based in McKinney, Texas, is a manufacturer of copper electrical wire, principally NM cable for interior wiring in homes, apartments and manufactured housing. Encore Wire recently reported fiscal 1992 net sales of $63,135,814 compared with net sales of $31,337,599 in fiscal 1991, an increase of 101 percent. Net income for fiscal 1992 was $3,332,364 compared with $1,967,811 for fiscal 1991, an increase of 69 percent.
 -0- 2/19/93
 /CONTACT: Vincent A. Rego of Encore Wire Corporation, 817-469-9473/
 (WIRE)


CO: Encore Wire ST: Texas IN: CST SU:

LD -- NY073 -- 8609 02/19/93 18:57 EST
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Publication:PR Newswire
Date:Feb 19, 1993
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