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Uniroyal Technology Corporation Reports Fourth Quarter Earnings Per Share Of $0.19




Sarasota, Fla. Uniroyal Technology Corporation (Nasdaq: UTCI) today reported net income for the fourth quarter ended September 26, 1999 of $2,511,000 or $0.19 per diluted common share compared to net income of $2,302,000 or $0.16 per diluted common share in the prior year period.

Howard R. Curd, Chairman and Chief Executive Officer, noted, "The Company continues to make progress in the implementation of its strategic objectives. We remain confident that the significant investment spending this fiscal year for the start-up of our new Optoelectronics business segment, as well as the plant consolidation efforts at our largest business segment, High Performance Plastics, will result in accelerated earnings improvement for the Company."

The Company is nearing completion of a major modernization and plant consolidation at its Polycast division of the High Performance Plastics business segment. The incremental cash flow benefits from this project are expected to be approximately $3.0 million annually. The Company will produce high brightness light emitting diodes (HB-LEDs) at its newest business segment, Optoelectronics. HB-LEDs are forecasted by industry data sources to grow 35% annually in units for the foreseeable future. Both the plant consolidation at High Performance Plastics and the start-up of the Optoelectronics segment will be substantially completed by the close of the calendar year.

The investment spending during the quarter was offset significantly by a tax benefit utilization of a capital loss. Sales from continuing operations, excluding sales of the Coated Fabrics automotive business from both periods, increased 5% for the fourth quarter to $50.5 million versus $48.1 million in the fourth quarter of the previous year. The reported sales, which include sales from the Coated Fabrics automotive business sold last year, were $52.0 million versus $58.0 million in the fourth quarter of the prior year.

Sales for the High Performance Plastics segment increased 5% from the fourth quarter of the previous year. Both major divisions within this business segment, Royalite and Polycast, recorded increases in unit volume. Income Before Interest and Taxes for the fourth quarter increased 12% to $3,270,000 as compared to $2,923,000 for the fourth quarter of the previous year.

The continuing business of the Coated Fabrics segment, Naugahyde, increased sales 7% in the fourth quarter versus the comparable prior year period. However, overall Coated Fabrics sales declined 47% versus the prior year due to the transitional phase out of the automotive business, which was sold last year. Income Before Interest and Taxes was $1,125,000 in the current fourth quarter versus $2,643,000 in the fourth quarter of the previous year. The absence of the automotive sales this year resulted in the decline in income.

The Specialty Adhesives segment recorded an increase in sales of 2% versus the prior year period. Income Before Interest and Taxes was $1,526,000 versus $1,603,000 in the preceding year. The lower earnings were due to changes in the sales mix.

The Optoelectronics segment recorded sales of $147,000 in the fourth quarter. The loss of $2,216,000 in the fourth quarter was due to start-up costs and relocation and training costs of personnel. This segment will produce and sell HB-LEDs in blue, green and other colors for the rapidly growing optoelectronics industry at a state-of-the-art facility in Tampa, Florida.

Sales for the fiscal year ended September 26, 1999 increased 4% to $188.3 million versus $180.2 million for the prior fiscal year, excluding from both periods the sales of the Coated Fabrics automotive business which was sold last year. On a reported basis, sales for the fiscal year ended September 26, 1999 were $201.4 million versus $220.6 million for the fiscal year ended September 27, 1998. Net income for the fiscal year was $5,520,000 or $0.42 per diluted common share versus $2,390,000 or $0.16 per diluted common share for the previous fiscal year. Included in the results of the prior year period was an after-tax extraordinary charge for the early retirement of debt of $5,637,000 or $0.39 per share on a diluted basis.

Uniroyal Technology Corporation manufactures and sells proprietary plastic products and specialty chemical and polymer products. The Company has four business segments: High Performance Plastics, Coated Fabrics, Specialty Adhesives and Optoelectronics. Some of the Company s well-known brand names and products include ROYALITE(R) in thermoplastics products, POLYCAST(R) in acrylic products, VIPLEX and HAPPEL in fabrication of parts for the marine industry, NAUGAHYDE(R) in coated fabrics, SILAPRENE(R) and GUNTHER ULTRA/BOND(TM) in adhesives and in Optoelectronics, epitaxial wafers, package ready dies and lamps for LEDs.

The Company s stock and warrants trade on the Nasdaq under the symbols UTCI and UTCIW, respectively.

Statements made herein that are forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to business conditions and the financial strength of the various markets served by the Company, the level of spending for such products and the ability of the Company to successfully manufacture and market its products.

Contact:
Uniroyal Technology Corporation
George J. Zulanas, Jr., CFO. Tel: 941-361-2220; or
Mark N. Tyler, TT Communications (for Uniroyal), Tel: 212-962-3690




Uniroyal Technology Corporation
George J. Zulanas, Jr., CFO. Tel: 941-361-2220; or
Mark N. Tyler, TT Communications (for Uniroyal), Tel: 212-962-3690
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