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Wescam Inc. announces first quarter results 455 percent net earnings increase on revenue of $10.8 million.

FLAMBOROUGH, Ontario--(BUSINESS WIRE)--March 7, 1996--WESCAM INC. (TSE:WSC) WESCAM Inc. ("WESCAM") today reported net earnings of $305,000 for the first quarter of fiscal 1996, an increase of 455 percent compared to $55,000 for the first quarter of fiscal 1995.

Revenue increased 125 percent to $10.8 million compared to $4.8 million for the same period last year. Earnings per share for the first quarter were $0.03 compared to $0.01 for the first quarter of the previous year.

Gross profit for the quarter expressed as a percentage of sales was 40.6 percent compared to 37.2 percent for 1995's first quarter. -0-

 Comparable Financial Highlights as at January 31
 (in Cdn. $000's, except per share amounts)


Statement of Earnings 1996 1995


Revenue 10,799 4,790
Gross profit 4,380 1,783
Net earnings 305 55
Basic earnings per share 0.03 0.01


-0-

WESCAM is the world leader in the design and manufacture of stabilized aerial camera and video transmission systems, used in numerous applications including: public safety and surveillance, search and rescue, feature films and television broadcast of news and major sporting events around the globe. WESCAM is traded on the Toronto Stock Exchange under the symbol "WSC". -0-
 WESCAM INC.
 CONSOLIDATED BALANCE SHEETS
 (in thousands of dollars)


Assets January 31 October 31 January 31
Current Assets: 1996 1995 1995
 ---------- ----------- ----------
 (unaudited) (unaudited)


Bank and short-term
 investments $ 9,278 $ 12,780 $ -
Accounts receivable 11,366 7,276 4,905
Inventories 10,112 7,352 4,548
Income taxes and tax
 credits receivable 541 157 334
Deposits to suppliers 1,222 1,260 876
Prepaid expenses 458 351 88
 ------ ------ ------
 32,977 29,176 10,751
 ------ ------ ------


Capital Assets:
 Property and equipment 16,165 12,679 6,134
 Less accumulated
 depreciation (5,053) (2,935) (2,306)
 ------ ------ ------
 11,112 9,744 3,828
 ------ ------ ------


Other Assets:
 Distribution rights, net
 of accumulated amortization 226 246 308
 Deferred income taxes 665 543 -
 Goodwill 7,709 2,175 665
 Other assets 175 486 307
 ------ ------ ------
 8,775 3,450 1,280
 ------ ------ ------
 $ 52,864 $ 42,370 $ 15,859
 ------ ------ ------
 ------ ------ ------


Liabilities and Shareholders' Equity


Current Liabilities:
 Bank indebtedness $ - $ - $ 2,668
 Accounts payable and
 accrued liabilities 11,418 6,794 4,132
 Customer deposits 3,436 2,949 3,745
 Deferred income taxes - - 152
 Current portion of long-term
 debt 127 141 965
 ------ ------ ------
 14,981 9,884 11,662
 ------ ------ ------


Customer deposits - - 180
Long-term debt 1,130 714 2,094
Deferred income taxes - - 45
Minority interest - 243 -
 ------ ------ ------
 1,130 957 2,319
 ------ ------ ------


Shareholders' Equity:
 Share capital 34,029 29,110 1,131
 Retained earnings 2,724 2,419 747
 ------ ------ ------
 36,753 31,529 1,878
 ------ ------ ------
 $ 52,864 $ 42,370 $ 15,859
 ------ ------ ------
 ------ ------ ------


 WESCAM INC.
 CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
 (in thousands of dollars, except per share data)


 Three Months Ended January 31
 -----------------------------
 1996 1995
 -----------------------------
 (unaudited)


Revenue $ 10,799 $ 4,790
Cost of sales 6,419 3,007
 --------- ---------
Gross Profit 4,380 1,783
 --------- ---------


Expenses
 Research & development 607 336
 Administrative 1,769 749
 Selling 1,221 247
 Depreciation and amortization 470 198
 --------- ---------
 4,067 1,530
 --------- ---------


Operating income 313 253


 Interest on long-term debt 23 76
 Other interest and finance charges 46 41
 Interest (income) (210)
 --------- ---------
 (141) 117
 --------- ---------
Earnings before income taxes
 and minority interest 454 136


Income taxes
 Current 106 44
 Deferred 70 37
 --------- ---------
 176 81
 --------- ---------


Net earnings before
 minority interest 278 55


Minority interest 27
 --------- ---------


Net earnings 305 55


Retained earnings,
 beginning of period 2,419 692
 --------- ---------
Retained earnings,
 end of period $ 2,724 $ 747
 --------- ---------
 --------- ---------


Earnings per common share $0.03 $0.01
 --------- ---------
 --------- ---------


Weighted average number
 of common shares outstanding 11,881,075 6,445,862
 ---------- ---------
 ---------- ---------




 WESCAM INC.
 CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
 (in thousands of dollars)


 Three Months Ended January 31
 ------------------------------
 1996 1995
 --------- ---------
 (unaudited)
Cash provided by (used in):


Operations:


Net Earnings $ 305 $ 55
Items not involving cash:
 Depreciation and
 Amortization 470 198
 Deferred income taxes 70 37
 Minority interest (27) -
 Loss on sale of equipment 23 -
Changes in non-cash operating
working capital (2,899) (1,312)
 --------- ---------
 (2,058) (1,022)


Financing:


 Customer deposits 487 971
 Principal payments on
 long-term debt (442) (162)
 Issuance of common shares 4,919 -
 --------- ---------
 4,964 809


Investments:
 Acquisition of subsidiaries (5,098) (999)
 Acquisition of minority interest(s) (80) -
 Expenditures on capital assets (1,252) (232)
 Deferred foreign exchange loss 22 18
 --------- ---------
 (6,408) (1,213)
 --------- ---------
Increase (decrease) in cash position (3,502) (1,426)


Cash and short-term investments (bank
indebtedness), beginning of period 12,780 (1,242)
 --------- ---------
Cash and short-term investments (bank
indebtedness), end of period $ 9,278 $ (2,668)
 --------- ---------




CONTACT: Wescam Inc.

Rick Ziemski, 905/689-2231 (ext. 259)

or

Wescam Inc.

Caroline Glasbey, 905/689-2231 (ext. 310)
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Date:Mar 7, 1996
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