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VISHAY ANNOUNCES CONTINUING RECESSION WILL CAUSE DECLINE IN 1991 FOURTH-QUARTER RESULTS

 VISHAY ANNOUNCES CONTINUING RECESSION WILL
 CAUSE DECLINE IN 1991 FOURTH-QUARTER RESULTS
 MALVERN, Pa., Jan. 2 /PRNewswire/ -- Dr. Felix Zandman, chairman and chief executive officer of Vishay Intertechnology, Inc. (NYSE: VSH), announced today that the continuing recession, particularly in Europe, will cause a decline in earnings for the fourth quarter ended Dec. 31, 1991.
 As a consequence, the net earnings for the year ended Dec. 31, 1991, will be slightly lower than the previous year. Net earnings for the quarter and year ended Dec. 31, 1990, were $5,774,000 ($.37 per share) and $23,201,000 ($1.63 per share), respectively. Zandman stated, "Although the company was able to have increases in earnings for the first nine months of the year, the recession, particularly in France, has continued to have negative effects on the profitability of the company. In addition, the year's results have been negatively affected by layoff costs in Europe of approximately $1,500,000 as well as additional manufacturing costs of approximately $1,000,000 in the U.S. due to production problems which have subsequently been corrected."
 Zandman added, "We are excited about the upcoming acquisition of the worldwide tantalum capacitor and U.S. thick-film network businesses of Sprague Technologies, Inc. (NYSE: SPG) for approximately $120,000,000. It is anticipated that the acquisition will be completed in early 1992. These businesses have annual sales of approximately $220,000,000 and a reputation as an industry leader which, when combined with Vishay's position in the U.S. and European resistor market, will provide an excellent strategic fit. If the recession does not get any worse, we believe that net earnings should improve due primarily to cost reduction, synergies including those resulting from the consolidation of Vishay with Sprague, as well as better market penetration due to the size of the combined organizations. On a combined basis, the company will have annual sales of approximately $700 million. The company's financial condition at December 31, 1991, is strong, and we will continue to focus our attention on cost reduction and cash generation."
 Vishay Intertechnology, Inc. is a leading U.S. and European producer of a wide range of electronic resistors and resistive sensors. It is also a major producer of other types of passive electronic components. The company's products are used in a broad range of industries.
 /delval/
 -0- 1/2/92
 /CONTACT: Robert A. Freece, vice president and treasurer of Vishay Intertechnology, 215-644-1300/
 (VSH SPG) CO: Vishay Intertechnology, Inc.; Sprague Technologies, Inc. ST: Pennsylvania IN: CPR SU: ERP


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Date:Jan 2, 1992
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