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WTC INDUSTRIES, INC. REPORTS STRONG SECOND QUARTER SALES; SPECIAL CHARGES IMPACT OPERATING RESULTS

 MINNEAPOLIS, July 27 /PRNewswire/ -- WTC Industries, Inc. (NASDAQ: WTCO) announced today that sales for the second quarter of 1993 increased 47 percent to $546,788 from $372,650 in the same period last year. First half sales rose 68 percent to $967,551 from $577,252 for the comparable 1992 period.
 The reported net loss for second quarter 1993 was $871,950, or $.45 per share, compared to a net loss of $232,142, or $.12 per share in the same period last year. The net loss for the first half was $1,192,106, or $.63 per share, compared to a net loss of $585,246, or $.29 per share for the 1992 period.
 Excluding all one-time charges taken during the period, the net loss for the second quarter of 1993 would have been $72,634. Revenues for the last month of the quarter exceeded ongoing operating expenses.
 "Meaningful improvements in gross margins and significant reductions in operating expenses have been achieved during the quarter," said Matthew E. Gilfix, named chief executive officer in May. At the same time a total of almost $800,000 in one-time charges impacted earnings during the period. Included was a $613,316 provision for special charges, including employee severance costs, litigation settlement expenses, selective write-downs of inventories and other assets, and the cost of related professional services. A review by management led to a $186,000 supplement to the normal provision for doubtful accounts.
 "Significant steps have been taken by the new management team during its first two months to tighten controls and better focus our efforts. Employment has been cut by more than 20 percent to bring our cost structure in line with sales, while at the same time increasing attention to quality," said Ronald G. Dudley, chairman of WTC's board of directors.
 Recent water-related events in the United States make it clear that good water is not something to be taken for granted anywhere in the world, said WTC. The company's goal is to create value for its shareholders through the application of its cost-effective water purification capability.
 WTC Industries, Inc., based in Minneapolis, had sales of $1.5 million in 1992 and holds the exclusive rights to manufacture and market the patented PentaPure(R) iodinated resin worldwide. The company provides water purification devices for consumer, industrial, OEM and emergency applications.
 WTC INDUSTRIES, INC., AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDED JUNE 30, 1993 AND 1992
 (Unaudited)
 Three Months Ended
 6/30/93 6/30/92
 Net sales $546,788 $372,650
 Cost of goods sold 324,546 233,052
 Gross profit 222,242 139,598
 Expenses
 Research and development 20,685 13,698
 Selling, general and
 administrative 233,838 395,532
 Provision for doubtful accounts 228,755 (21,423)
 Provision for special charges 613,316 --
 -- 1,096,594 387,807
 Loss from operations (874,352) (248,209)
 Other income 2,402 16,067
 Net loss $(871,950) $(232,142)
 Net loss per common share $(.63) $(.29)
 Weighted average number of
 shares outstanding 1,945,276 2,163,226
 -0- 7/27/93
 /CONTACT: Lori Maki or Matthew E. Gilfix, both of WTC Industries, 612-473-1625/
 (WTCO)


CO: WTC Industries, Inc. ST: Minnesota IN: SU: ERN

KH -- MN002 -- 6142 07/27/93 10:24 EDT
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Date:Jul 27, 1993
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