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SCIENTIFIC-ATLANTA REPORTS FIRST QUARTER RESULTS

 SCIENTIFIC-ATLANTA REPORTS FIRST QUARTER RESULTS
 ATLANTA, Oct. 29 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA), today reported that sales for the first quarter ended September 25, 1992 were $171.2 million, 34 percent ahead of last year's sales of $128.0 million.
 Net earnings were $6.8 million ($0.28 per share) compared with $2.3 million ($0.10 per share) in the same quarter a year ago. Higher sales and earnings in Broadband and Instrumentation were the major contributors to the year-to-year improvements. New orders were $151.8 million, up 24 percent over last year.
 "Cable industry fundamentals continued to improve despite the sluggish economy," said William E. Johnson, chairman and chief executive officer. "We are pleased at the continued strong sales momentum in our distribution and fiber optic products as well as strong international bookings and shipments. Cable operators are beginning to invest again in basic infrastructure to prepare themselves for franchise renewals, new service offerings and for competition from telephone companies, direct satellite broadcasters and MMDS operators. While the developing recovery in the domestic cable market is not yet broad based, due in part to continuing regulatory uncertainties, we continue to feel that the longer term outlook is clearly positive.
 "Our Instrumentation results continued strong. In Network Systems, our new mobile satellite communications products are being successfully introduced into the market and we continued to make progress in the development of digital video compression products for the cable and satellite industries."
 Communications
 Broadband results were highlighted by strong sales of distribution, fiber optic and digital audio equipment and systems. The company increased fiber optic manufacturing capacity to meet growing customer demand as its fiber-to-the-serving-area architecture continues to provide more cable channels for less money, while preparing cable operators for coming competition and access to other revenue streams.
 The international CATV business was strong, with significant activities in the UK, Czechoslovakia, Japan and Latin America. The company announced its first orders for its new Model 8607 advanced MMDS communications system from customers in the U.S. and Bolivia, and orders were booked for business television network equipment in Latin America and Canada as well.
 The company was selected by CableLabs to be a finalist in the search for digital video compression technologies for the cable industry. Since then the company has been conducting extensive Ku band and C band satellite testing of its compression system for a number of US cable operators and programmers using production hardware. The company is also conducting tests of its system for international customers such as Star TV of Hong Kong. The compression portion of the Scientific-Atlanta system is based on the MPEG international compression standard which is gaining growing acceptance in the cable industry as well as the consumer electronics and computer industries. MPEGUs compatibility advantages, combined with Scientific-Atlanta's open architecture approach and universal transport layer for compressing multiple signals and varying data rates, makes Scientific-Atlanta's complete digital system well suited for a range of applications in satellite and cable delivery.
 The Digital Music Express (DMXTM) audio programming service continued its successful rollout in systems throughout the United States, including Tele-Communications, Inc. (TCI), the nation's largest operator, which is making the service available to the majority of its industry leading subscriber base. More than 30 cable operators have affiliated with DMX to date. Many individual systems are in early stages of launching the DMX product, and as the effectiveness of marketing programs increases, we anticipate strong growth in the service as it is marketed to a larger percentage of total cable subscribers. We believe that additional future growth will result from international opportunities as plans progress in a number of overseas areas. DMX is provided by International Cablecasting Technologies Inc. (ICT). Scientific-Atlanta has an equity position in ICT and provides the tuners, DMX-DJTM hand-held remote control and other DMX equipment.
 Network Systems results were highlighted by a series of contracts for digital telecom network expansions, VSAT systems and television earth station systems.
 Several Scientific-Atlanta customers expanded their digital telecom networks with significant network expansions, including Impsat and Telintar of Argentina. Banca Serfin of Mexico also made significant new investments in their digital network.
 National broadcasters in Belgium and Turkey joined nine other European Broadcast Member countries in ordering Scientific-Atlanta digital/analog television broadcasting earth station systems. More than ninety percent of EBU member countries that have purchased new digital earth station systems have elected to use complete systems from Scientific-Atlanta. The company announced its selection by Brightstar Communications of the UK as its turnkey supplier of the first privately owned satellite earth station system for transatlantic television transmission. Announcement was also made of the sale to the Societe Europeenne de Satellites (SES), a private company based in Luxembourg that operates the ASTRA television satellite system, of an 11 meter earth station to receive CNN from Intelsat for rebroadcast throughout Europe.
 Among VSAT developments was the announcement of a new VSAT network to provide Indonesia with previously unavailable weather data from some of the country's most remote areas. Information will be used to organize the timely evacuation of the Indonesian people during periods of flash flooding and to determine optimal planting and harvesting times. Thai Skycom Ltd. (TSL) in Bangkok purchased a VSAT system, which will operate on AsiaSat. TSL has been granted a 15 year license from the Communications Authority of Thailand (CAT) to build, transfer and operate a satcom network offering data, voice, fax and video to customers in the commercial and government sectors.
 The company announced the creation of a new mobile satellite communications unit which will serve the maritime and land mobile communications market. The mobile satellite services industry is expected to be one of the decade's fastest growing markets. The company's Maristar-CTM and TerraStar-CTM will provide two-way tracking and message capability on land or sea. In addition, Scientific-Atlanta is the first company to announce manufacture of an Inmarsat-M terminal for voice, fax and data. This digital terminal, when used in conjunction with the newly introduced Inmarsat-M service, provides telephone service to boat owners at approximately half the previously available system price. The first terminal was delivered for sea trials during the first quarter.
 Instrumentation
 Instrumentation sales and performance increased significantly over the prior year with good results in the group's three major areas of concentration, communications, signal processing and measurement and control.
 In communications, the company provided advanced digital analysis equipment and software to support Teleglobe Canada's TAT-9 high speed transatlantic telecommunications system. Scientific-Atlanta equipment is used to detect, analyze and troubleshoot circuit problems in the world's newest intercontinental fiber optic telecommunications system.
 In signal processing, the company continued production of the U.S. Navy's AN/BQR-22A sonars, Fast Time Analyzer Systems (FTAS), anti submarine warfare equipment and rotor track and balance equipment for military and commercial helicopters.
 In the measurement and control business, increased sales were due to growing demand from utility customers for products to automate their electric power distribution systems.
 Scientific-Atlanta, Inc. is a world leader in broadband communications systems, cable television electronics, satellite-based communications networks, and electronic instrumentation for industrial, telecommunications, and government applications.
 SCIENTIFIC-ATLANTA, INC., AND SUBSIDIARIES
 SUMMARY DATA
 (In Thousands, Except Earnings Per Share)
 Three Months Ended
 Sept. 25, Sept. 27,
 1992 1991
 Change
 Sales $171,200 $128,001 34 pct.
 Earnings Before
 Income Tax $9,053 $3,037 198 pct.
 Net Earnings $6,790 $2,278 198 pct.
 Earnings Per Common
 Share and Common
 Share Equivalent $.28 $.10 180 pct.
 Weighted Average
 Number of Common
 Shares and Common
 Equivalent Shares
 Outstanding 24,410 22,705 8 pct.
 New Orders
 Received $151,760 $122,799 24 pct.
 -0- 10/29/92
 /CONTACT: Bob Meyers of Scientific-Atlanta, 404-903-4608/
 (SFA) CO: Scientific-Atlanta, Inc. ST: Georgia IN: CPR SU: ERN


BR -- AT001 -- 6382 10/29/92 08:09 EST
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