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MILES' 1991 SALES RISE 5 PERCENT TO $6.2 BILLION; NET INCOME DECLINE TIED TO FOURTH QUARTER CHARGE

 MILES' 1991 SALES RISE 5 PERCENT TO $6.2 BILLION;
 NET INCOME DECLINE TIED TO FOURTH QUARTER CHARGE
 PITTSBURGH, March 4 /PRNewswire/ -- Miles Inc. said today that its sales in 1991 grew 5 percent to $6.2 billion from $5.9 billion a year earlier, while net income declined to $101 million from $149.2 million in 1990.
 Miles Inc. was formed on Jan. 1, 1992, through the merger of Mobay Corporation, Miles Inc. and Agfa Corporation with their holding company.
 The sales increase was due to the growth of Miles' pharmaceutical business and inclusion for the full year of the U.S. sales of the Polysar Rubber Division; this business was acquired in October 1990. To a great extent, the decrease in net income was attributable to disappointing results in the laboratory instrumentation products line of the company's Diagnostics Division and a $40 million pre-tax charge against earnings in the fourth quarter of 1991 to restructure the division.
 According to President and Chief Executive Officer Helge H. Wehmeier, Miles' performance in 1991, like that of many companies, was directly affected by the general economic recession in the United States.
 "Taking the extended view, however, we have many reasons to be optimistic about the future of Miles," he explained, pointing to the diversity of the company's businesses. In 1991, chemicals accounted for 40 percent of sales, health care, 44 percent and imaging technologies, 16 percent.
 "Not only does this diversity enable us to smooth out the impact of economic swings, it puts us in an excellent position to benefit during periods of sustained growth," emphasized Wehmeier.
 The performance of Miles' pharmaceutical business in 1991 demonstrated the advantages of the company's diversity within health care. Pharmaceutical sales rose significantly, led again by the oral anti-infective drug Cipro, and supplemented by the March 1991 introduction of an intravenous (I.V.) form of the drug -- Cipro I.V. The company's biological business also continued its strong performance.
 The slow economic conditions that prevailed during 1991 affected the entire chemical industry, including most of Miles' businesses. Despite this, Miles' plastics, consumer household products and crop protection products businesses all recorded earnings gains in 1991.
 The imaging technologies business of Miles' Agfa Division experienced another difficult year as a decline in advertising and publishing severely affected the company's graphic arts business. However, the company made major strides in 1991 to focus its imaging technologies business to better serve society's growing need for tools that produce information quickly, accurately and efficiently.
 To assure the flow of innovative new products, Miles invested $375 million in research and development in 1991, up 4 percent from the previous year. The majority of R&D resources were devoted to those businesses that serve the health care, agriculture, automotive and coating markets. Miles also receives benefits from the $1.8 billion worldwide research programs of its German parent company.
 One of the most promising new products from Miles' pharmaceutical research pipeline is Kogenate, which will be used to treat people with hemophilia. It is the company's first drug to be produced by genetic engineering. A major benefit of this drug is that its manufacture is not dependent on blood plasma donations.
 In December 1991, an advisory committee of the Food and Drug Administration (FDA) unanimously agreed that Kogenate was safe and effective, and FDA approval is anticipated this year.
 In chemicals, new coating resins for the automotive and furniture industries further illustrate the company's innovative R&D. Coatings produced from these resins enable manufacturers to meet stringent government air emission standards without compromising the outstanding properties for which high quality urethanes are known.
 Capital expenditures for property, plant and equipment totaled $306 million in 1991. While less than the $373 million invested in 1990, the 1991 amount exceeded depreciation by 37 percent. Nearly 20 percent of capital expenditures in 1991 was to enhance the environmental standards and safety of the company's plants. Substantial investments also were made to modernize facilities and equipment for improved manufacturing processes and to reduce waste.
 The company's major capital projects include: a $30 million water treatment system in progress at Miles' multidivision facility in Bushy Park, S.C., that virtually eliminates the possibility of groundwater contamination and reduces odorous emissions; a state-of-the-art organic pigments plant, also at Bushy Park, that was completed on schedule in 1991; also at Bushy Park, a $100 million film and paper finishing plant for the company's Agfa Division was started in fall 1991; the second phase of the $125 million Miles Research Center in West Haven, Conn., which will be dedicated this fall. West Haven is the location of the company's Pharmaceutical Division and the center for both pharmaceutical discovery and clinical research in the United States.
 MILES INC.
 1991 Financial Results
 (Millions U.S. $) 1991 1990 Pct. Change
 Net sales $6,197.4 $5,903.7 5.0
 Net income 101.0 149.2 (32.3)
 Total assets 5,110.5 5,035.7 1.5
 Stockholder's equity:
 Amount 2,167.1 2,060.4 5.2
 Percent of total assets 42.4 pct. 40.9 pct.
 Additions to property 305.9 372.5 (17.9)
 Research and development 375.4 361.0 4.0
 Employees 27,607 28,451 (3.0)
 /delval/
 -0- 3/4/92
 /CONTACT: Stephen F. Lee, 412-394-5591, or Barry S. Cohen, 412-394-5504, both of Miles Inc./ CO: Miles Inc. ST: Pennsylvania IN: MTC CHM SU: ERN


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