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ESSEX CORPORATION REPORTS FOURTH QUARTER BUSINESS ACTIVITIES

 ESSEX CORPORATION REPORTS FOURTH QUARTER BUSINESS ACTIVITIES
 COLUMBIA, Md., Dec. 30 /PRNewswire/ -- Essex Corporation (NASDAQ-NMS: ESEX) announced that delays continue in the receipt of funding on existing contracts and new contract awards under negotiation with the government. Such delays, resulting from late passage of the defense and other government budgets, will likely reduce fourth quarter revenues from earlier projections of $5 million to approximately $4 million.
 As a result, a net loss of approximately $200,000 for the fourth quarter may result from the lower revenues. While the operating loss anticipated will not significantly impact cash flows for the quarter, such loss may reduce tangible net worth below $3 million, the amount required by covenant with the company's bank. Discussions have been initiated with the bank regarding amendment of the covenant should the figure fall below the minimum at year-end. Essex cannot give assurances as to the outcome of those discussions.
 In a key operational area, Essex has been informed that its patent, "Sequential Image Synthesis," will issue on Jan. 7, 1992. Additional patent applications have been filed. Completion of the company's internally designed and constructed Image Synthesis Laboratory now allows ImSyn technology to be demonstrated to prospective government and industrial customers and strategic partners. Such demonstrations are expected to result in contractual arrangements in 1992. In another development, Essex has been notified informally that its proposal to a major foreign power company has been favorably received. Essex proposes to assist in reduction of human error in power plant maintenance tasks. The scope of the first phase of this work, to begin early in 1992, is approximately $500,000.
 Dr. Harry Letaw, chairman and chief executive officer of Essex, stated: "Relatively slow growth in revenues tends to shackle our efforts to speed corporate development. Nevertheless, we are pleased with the superb quality of innovation in Essex and the excellent position of the company to participate in the growth of the '90s."
 -0- 12/30/91
 /NOTE: ImSyn is a trademark./
 /CONTACT: Harry Letaw Jr., chairman and CEO, Essex Corporation, 410-730-1097/
 (ESEX) CO: Essex Corporation ST: Maryland IN: SU:


DC-MH -- DC009 -- 5685 12/30/91 14:23 EST
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Date:Dec 30, 1991
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