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LXE FORECASTS LOSS FOR THIRD QUARTER

 NORCROSS, Ga., Oct. 4 /PRNewswire/ -- LXE Inc. (NASDAQ: LXEI) today announced that third quarter revenues will be approximately $7.5 million, which is substantially less than the preceding quarter, and the company expects to report a third quarter net loss of approximately $1.5 million.
 Commenting on the quarter, Dr. John E. Pippin, chairman of the company, stated: "The third quarter financial results have been affected by the final stages of LXE's transition to a new generation of products. These new products utilize high RF data-rates and are seamlessly integrated within a customer's computer network. We believe that this new technological direction has long-term strategic importance, because it should create opportunities for LXE's wireless expertise in the growing field of computer network communications.
 "As these new systems were installed in the first half of 1993, follow-up testing and field experience uncovered software problems in certain applications. During the third quarter, we have worked to make the necessary software corrections, and the final testing process is now expected to be completed in October. Because the redesign and testing has taken somewhat longer than we had expected, anticipated product shipments were delayed and our shipments during the last weeks of the third quarter were substantially lower than we had been expecting.
 "While this product transition has been difficult, we continue to believe that it offers the prospect of significant competitive advantages for the company's future. In our existing markets, the new products will ultimately permit lower installation costs, easy expansion to meet customers' growth and a tighter integration to existing information systems. Furthermore, the new architecture should enable us to move into developing markets associated with 'open systems' networking. We believe that the company will be profitable for the fourth quarter and for the full year, and we are encouraged about the prospects for 1994."
 LXE Inc. is a leading supplier of wireless data communications systems for real-time transaction processing in materials handling operations. An LXE system utilizes mobile, wireless terminals that are radio-linked with a host computer. Typical customers are medium and large companies that have substantial inventories or complex distribution networks.
 -0- 10/4/93
 /CONTACT: Don T. Scartz, vice president-Finance of LXE, 404-447-4224, ext. 4850/
 (LXEI)


CO: LXE Inc. ST: Georgia IN: CPR SU: ERP

BR-CF -- AT004 -- 8367 10/04/93 12:52 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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