Astec generates a profitable increase in 1994; parent company reports overall sales increase of 7.1 percent

Business Wire, May 3, 1995

OCEANSIDE, Calif.--(BUSINESS WIRE)--May 3, 1995--The Power Conversion group of Astec (BSR) Plc, which includes Astec America, reported a 36.1 percent rise in operating profits for 1994.

The increase was reflected in worldwide (U.S. dollar) sales of $391.1 million, up from $348.7 million in 1993, for power conversion. Operating profit for 1994 was $27.5 million, up from $19.4 million the previous year.

Hong Kong-based Astec (BSR) Plc reported that overall company-wide, pre-tax profits increased a healthy 41 percent for 1994, with total sales of $487.2 million, and earnings per share were up 40.9 percent to $0.0914 per share. The power conversion division accounts for the bulk of the company's sales.

The company also includes BI Technologies, a smaller electronics division which concentrates on advanced technology and semiconductors and ENI, which manufactures RF amplifiers and plasma generators.

According to Astec officials, its power conversion business is now a ``competitive global player,'' making the transition from the start-up business phase to becoming a competitive industry force in the power module market. During 1994, the product range of the AMPSS high density DC/DC modular power supplies was enlarged and significant market penetration was achieved, resulting in a major portion of the power division's sales increase.

The company expects the product category will continue to increase penetration of all application areas in 1995, including telecommunications and industrial markets.

In related company news, Astec's manufacturing facility in the Philippines, purchased last November, is now fully operational. The facility continues Astec's low-cost Asian manufacturing strategy, which will help support the company's future growth plans.

At the same time, Astec (BSR) Plc is continuing its cost-reduction program throughout its entire organization, which has resulted in a 1994 increased gross profit margin to 25.5 percent from 24.6 percent in 1993, and a decline in net operating expenses of sales to 18.9 percent from 19.4 percent in 1993.

Astec America is a subsidiary of Astec (BSR) Plc, Hong Kong, the world's leading supplier of power conversion solutions. With headquarters in Oceanside, Astec America is a leading supplier worldwide of standard and modified standard power supplies. The company's product line includes AC/DC switchmode and linear supplies, DC/DC converters and custom rack assemblies.

CONTACT: Astec America Inc.

Roberta Halliburton, 619/439-4245

or

Masar-Johnston

Sue Varga, 619/281-3484