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FIBRONICS ANNOUNCES FIRST QUARTER RESULTS

 FIBRONICS ANNOUNCES FIRST QUARTER RESULTS
 HYANNIS, Mass., May 11 /PRNewswire/ -- Fibronics International


Inc. (NASDAQ-NMS: FBRX) today announced its first quarter operating results (January-March 1992). For the three months ended March 31, 1992, revenues were $12,703,000, as compared with revenues of $14,047,000 for the same period in 1991, a decrease of 10 percent. For the first quarter in 1992, the company reported a loss of $2,698,000 or 42 cents per share. In comparison, during the first quarter of 1991, the company earned $362,000 or 6 cents per share.
 The company believes that a continuing weakness in the world's economy has led to a decrease in revenues because of price erosion and the delay of capital purchases for networking projects until the business climate changes. These delays resulted in lower revenues from the company's high bandwidth and mainframe software products. Another factor contributing to the company's lower revenues, was the delay, during 1991, in the introduction of the company's new MultiHUB product line and more sophisticated high bandwidth products. The company has begun a program to penetrate the intelligent hub market with its MultiHUB product line. This product offering distributes local area networks such as Ethernet and Token Ring together with point to point protocol support.
 As announced in our year-end release of March 16, 1992, management believes that Fibronics enters 1992 with a product family positioned to take advantage of an expected increase in economic activity in its principal markets. The company recently began the implementation of a major restructuring plan to streamline its operations and focus resources on increasing marketing and sales productivity. While the plan of restructuring is still in the process of being finalized, it will result in the reduction of approximately 65 positions worldwide over the next several months. This will result in reducing costs by approximately $4 million annually, commencing in the third quarter of 1992. Following the restructuring, Fibronics' workforce will total approximately 410 employees. The estimated costs to be incurred in eliminating these positions, $520,000 have been charged to expense in the three months ended March 31, 1992. Additional expenses will be incurred to complete implementation of this restructuring and will be recorded when plans are final and estimates can be made.
 The company plans to consolidate worldwide research and development and manufacturing in the company's facility in Haifa, Israel, in order to improve quality, reduce costs and reduce the time to market for new Fibronics products. Fibronics' sales and service organizations in the U.S. and around the world will be reorganized to provide additional service and support capabilities for the company's sales efforts. Fibronics' marketing is also being consolidated under the leadership of a single senior executive to provide stronger support for the international sales force.
 Fibronics International Inc., headquartered in Hyannis, Mass., with subsidiaries in Israel, Germany and the U.K., is a worldwide leader in networking and interconnectivity solutions. As a forerunner in the development of FDDI (Fiber Distributed Data Interface) and multifunctional intelligent hubs, Fibronics, with its Distributed Corporate Networking Concept, allows organizations to connect departments employing diverse networking technologies. Offering one of the most extensive product lines by a single vendor in the industry, Fibronics' comprehensive family of integrated solutions includes LAN distribution systems, high-speed backbone devices, mainframe connectivity and advanced network management systems.
 Fibronics Inc.
 (Dollars in thousands, except per share amounts)
 Three months ended
 3/31/92 3/31/91
 Net revenues $12,703 $14,047
 Earnings (loss) before income
 taxes and extraordinary credit $(2,698) $459
 Provision for income taxes --- 161
 Earnings (loss) before
 extraordinary credit $(2,698) $298
 Utilization of net operating
 loss carryforward --- 64
 Net earnings (loss) $(2,698) $362
 Per Share of Common Stock:
 Earnings (loss) before
 extraordinary credit (42 cents) 5 cents
 Extraordinary credit --- 1 cent
 Earnings (loss) per share (42 cents) 6 cents
 Weighted average number of
 shares outstanding 6,365,462 6,573,789
 -0- 5/11/92
 /CONTACT: John T. Hislop, joint chief executive officer of Fibronics Inc., 508-778-0700/
 (FBRX) CO: Fibronics International Inc. ST: Massachusetts IN: CPR SU: ERN


TM -- NE012 -- 8661 05/11/92 13:01 EDT
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Date:May 11, 1992
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