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WASHINGTON SCIENTIFIC REPORTS FIRST QUARTER LOSS

 MINNEAPOLIS, Jan. 6 /PRNewswire/ -- Washington Scientific Industries, Inc. (NASDAQ: WSCI) today reported a net loss of $1,161,000, or 49 cents per share, for the 13 weeks ended Nov. 28, 1993. This compares with a net loss of $56,000, or 2 cents per share, for the comparable period last year. Net sales from continuing operations for this year's first quarter were $6,186,000, compared with $7,713,000 in the first quarter of last year.
 The company's loss from continuing operations in this year's first quarter of $1,161,000, or 49 cents per share, compares with earnings from continuing operations of $441,000, or 19 cents per share, in the first quarter of last year.
 Reduced production requirements from one of the company's major customers, and low gross margins from start-ups of new programs are the primary reasons for losses from continuing operations in the first quarter. However, despite net losses, the company generated a positive cash flow from operations during the quarter.
 Michael J. Pudil, president and CEO, said, "Our primary objectives in fiscal 1994 are to generate improved gross margins on both new and existing business, and to continue downsizing the company to bring costs in line with revenues."
 Washington Scientific Industries is a provider of high precision manufacturing services for a variety of industries. The company produces machined metal components and subassemblies in two Minnesota plants.
 WASHINGTON SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
 (In thousands except per share data)
 13 Weeks Ended 13 Weeks Ended
 Nov. 28, 1993 Nov. 29, 1992
 Net Sales $ 6,186 $7,713
 Cost of products sold 6,588 6,411
 Gross margin (402) 1,302
 Selling and
 administrative expense 602 716
 Interest and other income (39) (9)
 Interest expense 196 154
 (Loss) earnings from
 continuing operations
 before income
 taxes (benefit) (1,161) 441
 Income taxes (benefit) -- --
 (Loss) earnings from
 continuing operations (1,161) 441
 Discontinued operations:
 (Loss) from operations of
 discontinued
 Advanced Custom
 Molders segment, net of
 income tax benefit -- (497)
 Net (loss) $(1,161) $ (56)
 (Loss) earnings per share:
 (Loss) earnings from
 continuing operations $ (.49) $ .19
 (Loss) on discontinued
 operations -- $(.21)
 Net (loss) per share $ (.49) $(.02)
 Weighted average number of
 common shares outstanding 2,382 2,382
 WASHINGTON SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED BALANCE SHEETS (unaudited)
 (In thousands)
 Nov. 28, Nov. 29,
 1993 1992
 Assets
 Total current assets $ 4,766 $11,304
 Property, plant and
 equipment, net 10,841 15,461
 Other 704 239
 Total Assets $16,311 $27,004
 Liabilities and Stockholders'
 Equity:
 Total current liabilities $ 7,280 $ 9,599
 Long-term debt 4,396 6,071
 Deferred income taxes -- 144
 Long-term pension liability 842 718
 Stockholders' equity 3,793 10,472
 Total Liabilities and
 Stockholders' Equity $16,311 $27,004
 Note: Interim results are subject to audit and adjustments
 at the end of the fiscal year.
 -0- 1/06/94
 /CONTACT: Jack Falker of Swenson/Falker Associates, 612-371-0000, for Washington Scientific; or Bill Lucke of Washington Scientific Industries, 612-473-1271/
 (WSCI)


CO: Washington Scientific Industries, Inc. ST: Minnesota IN: SU: ERN

AL-DB -- MN018 -- 9916 01/06/94 17:04 EST
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Date:Jan 6, 1994
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