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INNOVEX REPORTS FIRST QUARTER RESULTS

 HOPKINS, Minn., Jan. 18 /PRNewswire/ -- Innovex, Inc. (NASDAQ: INVX), today reported net sales of $5,662,000 for the first quarter of fiscal 1994 ended Dec. 31, 1993, down 4 percent from $5,868,000 in the year-earlier period. Net income came to $537,000 or $.12 per share, a decline of 22 percent from $690,000 or $.16 per share in the first quarter of fiscal 1993. The company's first quarter earnings were reduced by $30,000 or $.01 per share due to a loss related to the discontinuation of the Mar Engineering operation.
 Thomas W. Haley, Innovex's chairman and chief executive officer, attributed the lower first quarter earnings primarily to soft demand for thin-film lead wire assemblies, the company's primary business. He said industry experts have been forecasting an upturn in the disk drive market for some time, but weak market conditions have persisted since the fourth quarter of fiscal 1993.
 Haley said the performance of the company's lead wire operations was also affected by pricing pressures in the case of one major customer. In addition, he said earnings were reduced by the added operating expenses of the company's new software and medical businesses. Initial medical and software sales are currently anticipated during the second half of fiscal 1994.
 He said most disk drive industry observers believe market conditions will strengthen over the balance of the year. However, Haley said the second quarter of fiscal 1994 is shaping up as a period of lower earnings in comparison to the exceptionally strong results reported in the year-earlier quarter.
 Innovex is the nation's leading manufacturer of lead wire assemblies for thin-film disk drives. Other businesses involve a software product line that prepares indexes and abstracts of electronically stored documents as well as manufacturing permanent lead wires for pacemakers. The company's common stock is traded on the National Market System under the NASDAQ symbol INVX.
 INNOVEX, INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (Unaudited)
 Three Months Ended
 12/31/93 12/31/92
 NET SALES $5,662,215 $5,868,305
 COST AND EXPENSES:
 Cost of sales (4,128,282) (3,845,477)
 Selling, general and administrative (564,771) (701,883)
 Engineering (233,122) (178,937)
 Net interest income (expense) 86,658 8,127
 Other income (expense) (2,865) (1,125)
 INCOME FROM CONTINUING OPERATIONS
 BEFORE INCOME TAXES 819,833 1,149,010
 Provision for income taxes (253,000) (340,000)
 INCOME FROM CONTINUING OPERATIONS $566,833 $809,010
 Discontinued operations (loss) net of tax (29,996) (118,611)
 NET INCOME $536,837 $690,399
 Net income per share from continuing
 operations $.13 $.19
 Total net income per share $.12 $.16
 -0- 01/18/94
 /CONTACT: Thomas W. Haley, chairman and CEO of Innovex, 612-938-4155/
 (INVX)


CO: Innovex ST: Minnesota IN: CPR SU: ERN

CP-DB -- MN001 -- 2620 01/18/94 09:47 EST
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Date:Jan 18, 1994
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