TCR_Public/960531.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 31, 1996



  1. Maxwell Laboratories announces third quarter results





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Maxwell Laboratories announces third quarter results



            SAN DIEGO, CA -- May 31, 1996 -- Maxwell Laboratories
        Inc. (NMS:MXWL) Friday announced fiscal 1996 third quarter and nine
        month results for the period ended April 30.
        


            For the quarter, sales rose 16 percent to $20,331,000 from
        $17,468,000 in the same period a year earlier.  The company reported
        an operating profit of $104,000 before the previously announced $4.9
        million of third quarter charges which are primarily for restructure-
        related activities.
        


            After the $4.9 million of charges, the net loss is $4,823,000,
        or $1.76 per share.  This compares to a net loss of $464,000, or
        $0.17 a share, for the same period last year.
        


            For the nine months, sales rose 11 percent to $58,843,000 from
        $53,016,000 last year.  After combined second and third quarter
        restructure, asset write-offs and other charges totaling
        approximately $14.4 million, the company's net loss is $15,329,000,
        or $5.64 per share, compared to a profit of $96,000, or $0.04 a
        share in last year's first nine months.
        


            "The positive operating results for the quarter are an important
        step," said Ken Potashner, Maxwell's recently hired president and
        CEO.  "Changes are underway at Maxwell that will enable us to
        improve our cost structure and focus our technologies for the
        marketplace, and the quarterly results reflect specific progress in
        certain of these areas.
        


            "Improved product quality and cost reduction strategies resulted
        in the Balboa division contributing to the bottom line.  Likewise,
        the restructuring of our Sierra division has resulted in profitable
        operations in the military and space segment of their business as
        they continue to enjoy strong growth in the medical filter/capacitor
        area.  In addition, we have reorganized our business units to have a
        sharper customer focus."
        


            Maxwell Laboratories develops, manufactures and markets products
        and services for purification technologies, information
        technologies, and power conversion systems and components.  The
        company's advanced technology solutions are used in the food
        processing and packaging, health care, OEM PC manufacturing, mining,
        transportation, and information technology markets, as well as for
        federal and local government applications.



                         MAXWELL LABORATORIES INC.
                            Summary of Results
                      Consolidated Statement of Income

        
                                
       Quarter Ended
                                  April 30,

                      1996             1995
                     -----------             -----------
Sales      $20,331,000        $17,468,000

Net Loss              (4,823,000)               (464,000)

Average Shares
Outstanding            2,737,000               2,675,000

Loss Per Share             (1.76)                  (0.17)
        

                               Nine Months Ended
                                   April 30,

                        1996             1995
                     -----------             ----------
Sales                $58,843,000            $53,016,000

Net Income (Loss)    (15,329,000)                96,000

Average Shares
Outstanding            2,717,000              2,678,000

Primary Earnings
(Loss) Per Share     (5.64)                  0.04



        CONTACT:  Maxwell Laboratories Inc., San Diego -
                  Gary Davidson, 619/576-7557 -
                  http://www.maxwell.com/" target=_new>http://www.maxwell.com/">http://www.maxwell.com/