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CHEMFAB CORPORATION ANNOUNCES FIRST QUARTER FISCAL 1998 EARNINGS UP 19%


MERRIMACK, NEW HAMPSHIRE, October 23, 1997 -- Chemfab Corporation (NYSE:CFA) today announced that its first quarter earnings per share increased 19% over the same period in the prior year.

Net income for the quarter, which ended September 28, 1997, was $2,038,000, or $0.25 per share, compared with $1,700,000, or $0.21 per share, for the same quarter a year ago. Worldwide sales for the quarter increased 11.1% to $22.2 million from $19.9 million in the first quarter of the prior year.

Commenting on the results for the quarter, John W. Verbicky, Chemfab's Executive Vice President and Chief Operating Officer, said "We are very pleased with the Company's first quarter performance. Industrial, fabricated and architectural products all achieved solid sales gains for the period. We are especially pleased with the performance of our Canton Bio-Medical business and our sales into Asia Pacific markets relative to the same period in the prior year. For the quarter, gross profit margins strengthened to 34.1% from 33.8% a year ago due to improved manufacturing efficiencies."

Commenting on the outlook for the remainder of the fiscal year, Mr. Verbicky added, "We are very excited about the increased level of architectural activity which includes the recently announced order received for the Millennium Dome in England. Also, overall our industrial and fabricated product sales and related order entry remain strong. Based on these factors, we continue to expect current year sales growth to be higher than that achieved last year and a strong double digit percentage increase in earnings per share for the full year."

Chemfab Corporation is a world leader in polymer-based engineered products and materials systems for use in severe service environments. Chemfab's principal core competence is in the design, manufacture and fabrication of flexible fiber-reinforced fluoropolymer composite materials which comprise, in whole or in part, the majority of its products. The Company also produces and sells specialty fluoropolymer films and silicone-based products. Worldwide end-use applications are in electrical, environmental, food processing, architectural, aerospace, communications, protective clothing and other industrial markets.

FOR MORE INFORMATION CONTACT:
Moosa E. Moosa
Vice President - Finance
and Chief Financial Officer
CHEMFAB CORPORATION
701 Daniel Webster Highway
P.O. Box 1137
Merrimack, New Hampshire 03054
Phone: 603-424-9000 ext. 2302
Fax: 603-424-9028
Toll-free: 1-800-451-6101
NOTE: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested due to certain risks and uncertainties. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1997 which has been filed with the Securities and Exchange Commission. The forward-looking statements contained herein represent the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.


CHEMFAB CORPORATION
CONSOLIDATED INCOME STATEMENTS
Quarter Ended
09/28/9709/29/96
Net Sales$22,154,000$19,938,000
Gross Profit7,559,0006,747,000
Selling, General and Administrative Expenses3,969,0003,684,000
Research and Development659,000562,000
Other (Income) Expense, Net16,000(21,000)
Interest (Income) Expense, Net(82,000)29,000
Income Before Taxes2,997,0002,493,000
Provision for Income Taxes959,000793,000
Net Income$ 2,038,000$ 1,700,000
Earnings Per Share$0.25$0.21
Weighted Average Common and Common Equivalent Shares8,281,0008,238,000

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