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SEDA SPECIALTY PACKAGING HAS SHARP GAINS IN RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 1993

 LOS ANGELES, Nov. 22 /PRNewswire/ -- Seda Specialty Packaging Corp. (NASDAQ: SSPC), a rapidly growing manufacturer of specialty plastic packaging products, today announced sales and profits for the third quarter and nine months ended Sept. 30, 1993.
 The company became publicly held on Oct. 26, 1993 through an underwritten public offering of 1.84 million common shares, co-managed by Sutro & Co. and NatWest Securities, which raised $23 million for the company's account. The reporting period immediately preceded the effective date of the company's initial public offering.
 For the third quarter, sales climbed 41 percent to $6.5 million from $4.6 million for the same period a year ago. Pro forma net income totaled $993,000, up 32 percent from $751,000 in the prior year. Pro forma net income per share was 31 cents, compared with 23 cents in the corresponding quarter of 1992.
 Sales for the first nine months of 1993 posted a 51 percent advance to $18.9 million from $12.5 million for the prior year. Pro forma net income was $3.0 million, equal to 95 cents per share, a 61 percent increase from $1.9 million, or 59 cents per share, in 1992.
 A pro forma provision for income taxes at a 40 percent rate has been included in the company's reported results, reflecting a change in its tax status from an "S" corporation to a "C" corporation status concurrent with its initial public offering.
 Shawn Sedaghat, Seda's president, commented: "Seda continues to benefit from strong, broad-based demand for its products from major customers, and accordingly we're adding substantial manufacturing capacity in response to our customers' needs. However, expanding capacity, and successfully managing growth, present some short-term challenges.
 "Fourth quarter tube orders are higher than anticipated; however, additional tube production lines, financed from the offering proceeds, are on order, but present production capacity is insufficient to meet this higher than anticipated demand. We are currently processing shorter runs to meet critical customer needs, which is temporarily restraining productivity.
 "Our partially completed move to a new, 300,000-square-foot facility is proceeding well and on schedule, but will continue to have some impact on fourth-quarter operations. In addition, initial production of our new tamper evident cap, originally scheduled for November, has been pushed back six to eight weeks.
 "Despite these challenges, our business continues to reflect rapid growth and strong demand. The fourth quarter will be another favorable period of business for the company. Currently, we anticipate that fourth-quarter sales will rise 35 to 45 percent from $4.9 million in the prior year. Pro forma net income in dollars should show an increase of 70 to 100 percent from $553,000 in the fourth quarter of 1992. Pro forma net income per share should be in the range of 20 to 25 cents based on 4.5 million average shares outstanding, compared with pro forma net income per share of 17 cents based on 3.2 million shares one year earlier.
 "On that basis, the year will clearly be the best in Seda's history, and we remain very enthusiastic about our future opportunities."
 Seda Specialty Packaging Corp. develops, manufactures and sells specialty plastic packaging products to the personal care, food and beverage, household and industrial chemical and pharmaceutical industries.
 SEDA SPECIALTY PACKAGING CORP.
 Summary of Operations
 (In thousands except per share data)
 For the Nine Months Ended
 Sept. 30,
 1993 1992
 Net sales $18,930 $12,514
 Cost of sales 11,002 7,445
 Gross profit 7,928 5,069
 Selling, general
 and administrative expenses 2,131 1,170
 Income from operations 5,797 3,899
 Interest expense 757 770
 Other (income) expense (7) (1)
 Income before income taxes 5,047 3,130
 Provision for income taxes 126 97
 Net income $4,921 $3,033
 Pro forma data:
 Income before income taxes $5,047 $3,130
 Pro forma provision
 for income taxes 2,019 1,252
 Pro forma net income $3,028 $1,878
 Pro forma net income per share $0.95 $0.59
 Weighted average number
 of shares 3,202 3,202
 SEDA SPECIALTY PACKAGING CORP.
 Summary of Operations
 (In thousands except per share data)
 For the Three Months Ended
 Sept. 30,
 1993 1992
 Net sales $6,499 $4,611
 Cost of sales 3,816 2,714
 Gross profit 2,683 1,897
 Selling, general
 and administrative expenses 769 420
 Income from operations 1,914 1,477
 Interest expense 258 226
 Other (income) expense 0 0
 Income before income taxes 1,656 1,251
 Provision for income taxes 41 31
 Net income $1,615 $1,220
 Pro forma data:
 Income before income taxes $1,656 $1,251
 Pro forma provision
 for income taxes 663 500
 Pro forma net income $993 $751
 Pro forma net income per share $0.31 $0.23
 Weighted average number
 of shares 3,202 3,202
 -0- 11/22/93
 /CONTACT: Ronald W. Johnson, VP-Finance, 213-727-0159/
 (SSPC)


CO: Seda Specialty Packaging Corp. ST: California IN: SU: ERN

JL-MF -- LA038 -- 7016 11/22/93 18:09 EST
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Date:Nov 22, 1993
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