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OPTA FOOD INGREDIENTS REPORTS INCREASED THIRD-QUARTER REVENUE; CONTINUED INVESTMENT IN PRODUCT R&D

 BEDFORD, Mass, Oct. 25 /PRNewswire/ -- Opta Food Ingredients, Inc. (NASDAQ: OPTS) achieved a 15-percent improvement in third-quarter revenue to $779,000, for the period ended Sept. 30, 1993, from $677,000 in the comparable quarter of 1992, Lewis C. Paine III, chairman and chief executive officer, announced today.
 "The gain in revenue is the result of a 27-percent increase in product sales, which more than offset the decline in the role of contract research and development," Paine said. "The sales increase stems primarily from increased unit volume in the Opta Oat Fibers(TM) line. Since acquiring the oat fibers business in June 1992, the company has pursued product improvements, the development of new product- application uses and increased the marketing focus, and is now seeing growing customer interest in the benefits of this versatile natural food ingredient."
 The company had a net loss of $1,520,000, or $0.31 per share, for the 1993 third quarter as compared with a net loss of $1,243,000, or $0.26 per share, in the prior year's third quarter. "The 1993 loss reflects the planned increase in marketing costs in conjunction with the introduction of the company's OptaGrade(TM) starch-based fat replacer and the expansion of its new product development program over the past year," Paine said.
 For the nine months ended Sept. 30, 1993, Opta had revenue of $2,368,000, almost double revenue of $1,213,000 reported in the prior year. For the same reasons affecting the third quarter, there was a net loss of $4,263,000, or $0.89 per share, as compared with a net loss of $2,378,000, or $0.56 per share, in the nine months of 1993.
 Opta develops and markets proprietary new food ingredients that enable consumer-products companies to improve the nutritional content, healthfulness and taste of foods. The company applies advanced enzymology and protein- and carbohydrate-chemistry to develop ingredients that can replace nutritionally undesirable food elements, such as fats and oils, while preserving important characteristics, such as flavor, texture, mouthfeel and shelf life. Opta's product- development strategy is to modify inexpensive raw materials to produce natural-food ingredients which can be considered Generally Recognized As Safe under current Food and Drug Administration regulations.
 OPTA FOOD INGREDIENTS, INC.
 STATEMENT OF OPERATIONS
 For the three months For the nine months
 ended Sept. 30 ended Sept. 30
 1993 1992 1993 1992
 Revenue:
 Product sales $779,000 $614,000 $2,243,000 $724,000
 Contract research and
 development under
 collaborative
 relationship with
 related party - Pfizer 0 63,000 125,000 489,000
 779,000 677,000 2,368,000 1,213,000
 Cost and expenses:
 Costs of goods sold 716,000 730,000 2,044,000 826,000
 Selling, general and
 administrative 617,000 500,000 1,923,000 989,000
 Research and
 development 908,000 830,000 2,790,000 2,111,000
 2,295,000 2,060,000 6,757,000 3,926,000
 Loss from
 operations (1,516,000) (1,383,000) (4,389,000) (2,713,000)
 Interest income 57,000 147,000 231,000 399,000
 Interest expense (63,000) (4,000) (74,000) (34,000)
 Other income (expense) 2,000 (3,000) (31,000) (30,000)
 (4,000) 140,000 126,000 335,000
 Net income (loss) ($1,520,000)($1,243,000)($4,263,000)($2,378,000)
 Net loss per share ($0.31) ($0.26) ($0.89) ($0.56)
 Shares used in computing
 net loss per share 4,838,724 4,731,767 4,804,429 4,202,905
 -0- 10/25/93
 /CONTACT: Lewis Paine, chairman and CEO of Opta Food Ingredients, 617-276-5100; or Bill Pfund of P.L. Thomas Group, 312-906-8060, for Opta Food Ingredients/
 (OPTS)


CO: Opta Food Ingredients, Inc. ST: Massachusetts IN: FOD SU: ERN

KE-ML -- DE008 -- 6168 10/25/93 09:30 EDT
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Date:Oct 25, 1993
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