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LUMEX REPORTS SHARPLY INCREASED FOURTH QUARTER AND FULL YEAR EARNINGS

   LUMEX REPORTS SHARPLY INCREASED FOURTH QUARTER AND FULL YEAR EARNINGS
    BAY SHORE, N.Y., Feb. 24 /PRNewswire/ -- Lumex, Inc. (AMEX: LUM) today reported strong increases in sales and earnings for the fourth quarter and year ended Dec. 31, 1991.
    Net income for the fourth quarter increased 44% to $1,410,000, or $0.33 per share, from $979,000, or $0.23 per share, in the same period last year.  Net sales were $27.6 million compared to $24.6 million, an increase of 12 percent.
    Net income for the full year 1991 was $3,707,000, or $0.86 per share, compared with $204,000, or $0.05 per share, in the prior year. Net sales rose 12.6 percent in 1991 to $100.3 million from $89.1 million in 1990.
    The strong improvement in earnings in 1991 resulted from increased sales of new, higher margin products and continued benefits from strategic programs implemented in mid-1990 to reduce costs and improve productivity.  CYBEX achieved solid growth in all of its major markets, with sales to the medical market rising sharply due to strong demand for the CYBEX 6000 Extremity Testing and Rehabilitation System, introduced in March.  In the fitness market, CYBEX continued to increase market share and sales of CYBEX Strength Systems, including CYBEX Modular Strength Systems.
    1991 sales at the LUMEX Division were ahead of last year, as the company benefitted from increased growth of its stainless steel wheelchair line and gains recorded in the patient aids category.  The Setma Bathing Systems line of hydrotherapy products also contributed to growth.
    Lawrence N. Cohen, chairman and chief executive officer, said, "1991 was an excellent year for Lumex as we reached a milestone of $100 million in sales and
achieved progressive and substantial improvement in earnings.   We are especially pleased by the strong sales growth achieved by new products at both the CYBEX and LUMEX Divisions and the success of our ongoing efforts to increase efficiency, including significantly improved management of inventories which has greatly increased our cash flow."
    Cohen added, "We expect to show further improvement in earnings and revenues in 1992.  The LUMEX Division, under the leadership of newly- appointed president John Cowin, will focus on improving sales growth and profitability through better execution of our market strategies.  Our improved balance sheet will also enable us to take advantage of growth opportunities in our markets, particularly by expansion into related product categories through acquisitions."
    During the fourth quarter, Lumex continued to improve its financial condition as working capital increased to $28.5 million, cash and temporary investments increased by over $5 million, debt-to-equity improved to 13.7 percent and book value increased to $10.28 per share.
    Lumex, Inc. is a leading manufacturer of products for the health care industry through its LUMEX and CYBEX Divisions, serving acute and long-term care, home health care, physical therapy/sports medicine and fitness market segments.
                                 LUMEX, INC.
                     Consolidated Summary of Operations
                    (in thousands, except per share data)
                                                        Percent
    Three months ended                 Dec. 31          Increase
                                   1991       1990      (Decrease)
    Net sales                    $27,608    $24,662       11.9
    Cost of sales                 15,808     14,596        8.3
    Selling & admin. expenses      8,693      7,500       15.9
    Product development expenses   1,018        996        2.2
    Other (income) expenses          (24)       104
    Income before income taxes     2,113      1,466        44.1
    Income tax provision             703        487        44.4
    Net Income                   $ 1,410     $  979        44.0
    Net Income per share         $  0.33    $  0.23        43.5
    Average Shares                 4,351      4,211
                                                        Percent
    Twelve months ended                Dec. 31          Increase
                                   1991       1990      (Decrease)
    Net sales                   $100,348    $89,120       12.6
    Cost of sales                 59,313     53,339       11.2
    Selling & admin. expenses     31,817     30,502        4.3
    Product development expenses   3,855      4,603      (16.3)
    Other (income) expenses         (230)       392
    Income before income taxes     5,593        284
    Income tax provision           1,886         80
    Net Income                   $ 3,707    $   204
    Net Income per share         $  0.86    $  0.05
    Average Shares                 4,318      4,212
                                  LUMEX, INC.
                    Consolidated Condensed Balance Sheets
                             (Thousands of Dollars)
                                              Dec. 31,         Dec. 31,
                                                1991            1990
    ASSETS
    Cash and
      Temporary investments                  $  9,924         $  2,165
    Accounts receivable                        16,301           17,747
    Inventories                                15,806           17,878
    Other current assets                        1,385            1,281
         Total Current Assets                  43,416           39,071
    Property, plant and equipment, net         18,248           19,230
    Note receivable                             2,396            2,565
    Intangible assets                           2,338            2,480
    Other assets                                 489               732
         Total Assets                         $66,887          $64,078
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Short-term borrowings                    $   -             $ 2,250
    Accounts payable                            5,283            6,496
    Other current liabilities                   9,633            6,476
         Total Current Liabilities             14,916           15,222
    Deferred income taxes                       2,694            2,774
    Long-term debt                              5,935            6,755
    Stockholders' equity                       43,342           39,327
         Total Liabilities and
           Stockholders' Equity               $66,887          $64,078
    -0-           2/24/92
    /CONTACT:  June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for Lumex/
    (LUM) CO:  Lumex, Inc. ST:  New York IN:  HEA SU:  ERN SH -- NY014 -- 1750 02/24/92 09:26 EST
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Date:Feb 24, 1992
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