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VIATECH REPORTS RECORD NET INCOME

 VIATECH REPORTS RECORD NET INCOME
 SYOSSET, N.Y., March 16 /PRNewswire/ -- Viatech, Inc. (AMEX: VTK)


Chairman and Chief Executive Officer Donald J. Bainton today announced results for the periods ended Dec. 31, 1991.
 For the year, sales increased to $294 million compared to sales of $292 million in 1990. Net income in 1991 was $7.4 million or 46 percent greater than net income of $5.1 million reported in 1990. On a per share basis, Viatech reported earnings of $2.92 compared to $2.88 per share in 1990.
 For the fourth quarter of 1991, the company reported sales of $65.6 million, compared with sales of $76.2 million in the prior year. Net income for the quarter ended Dec. 31, 1991, was $.5 million, or $.16 per share, versus $1.3 million or $.73 per share in 1990.
 According to Bainton, net income was reduced by the company's equity in the loss of Continental Plastic Containers, Inc. (CPC) amounting to $1,045,000. Bainton emphasized that, but for the acquisition of CPC, for which the equity method of accounting is being used, net income would have increased 67 percent to $8.4 million or $3.33 per share compared to 1990. Bainton noted that the loss reported for CPC primarily reflected increased depreciation and amortization charges and net interest expense associated with the acquisition. Bainton stated that the company's European packaging subsidiaries were also impacted by a 2 percent decline in currency translation rates in 1991 and a 9 percent decline in the fourth quarter as compared to prior year periods. Earnings per share in each period of 1991 were also reduced by dilution resulting from the company's sale of stock in June 1991.
 "As expected, the loss at CPC was primarily the result of non-cash depreciation and amortization charges. These charges did not reduce CPC's positive cash flow for the period, although they increased the reported loss. We expect that the acquisition structure chosen will result in a continued high level of such non-cash charges at CPC in 1992. This will result in a higher level of cash flow for CPC than other acquisition structures, but will remain a negative to earnings in 1992. We believe that the long term benefits of the strategy we have adopted will greatly outweigh its relatively short term impact. We expect our reported earnings to resume the growth rate which we have averaged for the last several years no later than 1993," said Bainton.
 Viatech, Inc., through its subsidiaries, manufactures extrusion blow-molded containers, cans, films and equipment for the packaging industry, and prints and laminates packaging for the food and snack food industries. The company's subsidiary, Lockwood, Kessler & Bartlett, Inc., provides engineering services principally in the fields of mapping and survey, transportation, structures, site and landscape development, recreation and environmental studies and mechanical and electrical engineering.
 VIATECH, INC. PERIODS ENDED DEC. 31
 (In thousands, except per share data)
 Fourth quarter Twelve months
 1991 1990 1991 1990
 Total revenue 65,579 76,162 293,624 292,033
 Gross profit 13,510 17,110 67,785 68,014
 Operating income 5,343 6,107 28,570 25,847
 Other expense, net 3,180 3,764 11,626 14,120
 Income before provision
 for income taxes,
 Equity in losses of CPC,
 minority interest &
 extraordinary item 2,163 2,343 16,944 11,727
 Provision for income
 taxes 446 359 6,204 4,333
 Income before equity in
 losses of CPC, minority
 interest and extraordinary
 item 1,717 1,984 10,740 7,394
 Equity in losses of CPC 1,045 -- 1,045 --
 Minority interest 179 683 2,301 2,357
 Income before extraordinary
 item 493 1,301 7,394 5,037
 Extraordinary item -- 22 -- 22
 Net income 493 1,323 7,394 5,059
 Earnings per common share - Primary:
 Before extraordinary item .16 .72 2.92 2.87
 Extraordinary item -- .01 -- .01
 Net earnings .16 .73 2.92 2.88
 Earnings per common share, assuming
 full dilution:
 Before extraordinary item .15 .60 2.59 2.39
 Extraordinary item -- .01 -- .01
 Net earnings .15 .61 2.59 2.40
 Weighted average shares
 outstanding 3,001 1,801 2,533 1,758
 -0- 3/16/92
 /CONTACT: Donald J. Bainton, CEO of Viatech, 516-822-4940/
 (VTK) CO: Viatech, Inc. ST: New York IN: PAP SU: ERN


KD-KW -- NY080 -- 8526 03/16/92 17:54 EST
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Date:Mar 16, 1992
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