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GELMAN SCIENCES REPORTS MODEST FIRST-QUARTER EARNINGS DESPITE EXTRAORDINARY EXPENSE

 GELMAN SCIENCES REPORTS MODEST FIRST-QUARTER EARNINGS
 DESPITE EXTRAORDINARY EXPENSE
 ANN ARBOR, Mich., Dec. 5 /PRNewswire/ -- Gelman Sciences Inc. (AMEX: GSC) Chairman and Chief Executive Officer Charles Gelman announced today that for the first quarter of its fiscal year, ended Oct. 31, 1991, the company reported net earnings of $45,000 or $.02 per share. Net earnings were reduced by $352,000 or $.14 per share due to extraordinary after-tax expenses resulting from the settlement of a significant product liability lawsuit.
 For the first quarter, earnings from operations, excluding the extraordinary expense, were $397,000 or $.16 per share, as compared with earnings from operations of $305,000 or $.13 per share for the previous year's first quarter. Consolidated sales increased 4 percent to $19.6 million for the first quarter as compared with $18.8 million for the first quarter of the previous fiscal year.
 The extraordinary expense resulted from the company's agreement to settle an adverse $2.6 million verdict in a product liability case for $1.8 million. While the lawsuit was pending, the company believed that it had full insurance coverage. In the interim, however, its primary insurance carrier was placed in reorganization and the company's secondary carrier failed. The company received $1.3 million from its primary insurance carrier as part of the reorganization. The balance of the settlement, $558,000, has been expensed and recorded as an extraordinary loss.
 "Although this legal settlement negatively impacted first-quarter performance," said Mr. Gelman, "it does remove a major uncertainty that has surrounded the company for several years." The company's experience in product liability has been excellent, with this being the only significant case in its 34-year history.
 Operationally, during the first quarter, the company performed above prior-year sales, both in domestic and international markets. The sales of laboratory and process products, as well as roll stock membrane, continued to strengthen. Sales in the medical device area, traditionally a strong contributor to corporate sales growth, were lower than anticipated. Said Mr. Gelman, "The past two quarters have demonstrated our ability to turn around the operating performance of the company and to provide the foundation for future growth."
 GELMAN SCIENCES INC.
 First-Quarter Ended Oct. 31
 1991 1990
 Net sales $19,560,000 $18,815,000
 Earnings before extraordinary item 397,000 305,000
 Extraordinary item (352,000) ---
 Net earnings 45,000 305,000
 Earnings per share before extraordinary item $.16 $.13
 Earnings per share $.02 $.13
 Weighted average shares 2,515,000 2,397,000
 -0- 12/5/91
 /CONTACT: James J. Fahrner or Robert L. Buker of Gelman Sciences Inc., 313-665-0651/
 (GSC) CO: Gelman Sciences Inc. ST: Michigan IN: MTC SU: ERN


JG-SB -- DE015 -- 9665 12/05/91 12:18 EST
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Publication:PR Newswire
Date:Dec 5, 1991
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