The Cooper Companies amends lending agreements with more favorable terms; expects interest cost savings of about 2 cents per share in fiscal 1997

Business Wire, Sept 20, 1996

IRVINE and PLEASANTON, Calif.--(BUSINESS WIRE)--Sept. 20, 1996-- The Cooper Companies Inc. (NYSE/PSE:COO) on Friday announced that it has completed an agreement with its lender to amend the $11 million of debt of Hospital Group of America Inc., its psychiatric services affiliate.

Among other things, the company expects that the interest rate on this debt will be reduced by two percentage points effective at the beginning of fiscal 1997, for an annual savings in interest expense of approximately $220,000.

Also, as previously announced, the company recently effected a rate reduction of one percentage point under an $8 million line of credit held by another affiliate, CooperVision Inc., a manufacturer of specialty contact lenses. Most of this line is not drawn and is available for the company's use. If this line were completely utilized, the rate reduction would result in an annual savings in interest expense of $80,000.

Robert S. Weiss, executive vice president and chief financial officer, said, "These reductions in our cost of money reflect the continuing improvement in the company's financial condition that is being driven by strong operating results combined with a successful right sizing program.

"Assuming full utilization of the CooperVision credit line by acquisition or other strategic transaction, these recent improvements would save the company in excess of 2 cents per share in annual interest expense in fiscal 1997. Given our net operating loss carry forwards, virtually all of the expense savings would drop to the bottom line."

This news release contains forward-looking projections of the company's results. Actual results could differ materially from these projections. Additional information concerning factors that could cause material differences can be found in the company's periodic filings with the Securities and Exchange Commission. These are available publicly and on request from the company's investor relations department.

The Cooper Companies and its subsidiaries develop, manufacture and market specialty health-care products and services. CooperVision, located in Irvine, with additional manufacturing facilities in Huntington Beach, Calif., Rochester, N.Y., and Ontario and Quebec, Canada, markets a broad range of contact lenses for the vision care market.

CooperSurgical Inc., located in Shelton, Conn., markets diagnostic and surgical instruments and accessories for the gynecological market. Hospital Group of America provides psychiatric services through hospitals and satellite locations in New Jersey, Delaware and Illinois. -0-

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CONTACT: The Cooper Companies Inc., Irvine

Norris Battin, 714/597-8130, Ext. 3343

714/673-4299 or 500/346-6580

or

D.F. King & Co. Inc.

David B. Frank or Jennifer R. Wall, 212/269-5550