Date: Thu, 20 Nov 1997 21:07:23 GMT Server: Apache/1.2.4 lock_local/0.1 Last-Modified: Wed, 12 Nov 1997 14:52:12 GMT ETag: "29bc3c-1382f-3469c29c" Content-Length: 79919 Accept-Ranges: bytes Connection: close Content-Type: text/html X-Pad: avoid browser bug PureTec Corporation Press Releases

Recent Press Releases


Nov. 12, 1997 Tekni-Plex, Inc. To Acquire PureTec Corporation For $3.50 Per Share In Cash. Transaction Values PureTec At $325 Million, Including $215 Million In Assumed Debt.
Oct. 10, 1997 PureTec Reports Strong 4th Quarter; Earns $1.3 Million in Fiscal 1997 from Continuing Operations
Sept. 2, 1997 Rockefeller Brings New Recycling Plant To Huntington, Creates More Than 100 New Jobs For West Virginia Workers
June 19, 1997 PureTec Successfully Concludes Offer for PS&T Shares
June 9, 1997 PureTec Earns $2.3 Million From Continuing Operations in 3rd Quarter; Announces Further Restructuring Actions
May 20, 1997 PureTec's Medical Plastics Group Opens New Facility in Northern Ireland
May 12, 1997 PureTec Corporation Retains Schroder Wertheim to Advise Management on Long-Term Strategies
May 9, 1997 PureTec Initiates Personnel Reductions at its Burlington Plant
Feb. 26, 1997 PureTec Reports Second Quarter Results; Loss of 11 Cents Per Share versus Loss of 17 Cents Per Share in Prior Year
Feb. 18, 1997 PureTec's Plant In Sparks, Nevada Recovers From Flood Damage
Dec. 18, 1996 PureTec Reports Quarterly Loss of $2.8 Million, Reflecting Seasonally Weak First Quarter and Recycled PET Price Decline

TEKNI-PLEX, INC. TO ACQUIRE PURETEC CORPORATION FOR $3.50 PER SHARE IN CASH. TRANSACTION VALUES PURETEC AT $325 MILLION, INCLUDING $215 MILLION IN ASSUMED DEBT.

New Jersey, November 12, 1997 -- PureTec Corporation (NASDAQ: PURT) and Tekni-Plex, Inc. jointly announced today that Tekni-Plex has agreed to acquire PureTec for $3.50 per share, in cash, which is approximately a 30% premium to the closing price of the stock on Tuesday, November 11. The transaction values PureTec at $325 million, including approximately $215 million in assumed debt.

The Board of Directors of PureTec unanimously approved the transaction and intends to recommend that shareholders adopt the merger agreement. Schroder & Co. Inc. acted as financial advisor to PureTec and provided a fairness opinion to PureTec’s Board of Directors in connection with the transaction. Tekni-Plex’s financial advisor is J.P. Morgan.

The transaction is expected to be completed during the first quarter of 1998. Completion of the transaction is subject to the approval of PureTec’s stockholders and regulatory approvals. Tekni-Plex has received commitments from Morgan Guaranty Trust Company of New York to provide the necessary financing.

The transaction contemplates a tender offer and consent solicitation for the 11.25% Senior Secured Notes due 2003 of Plastic Specialties & Technologies, Inc. (PS&T), a 96% owned subsidiary of PureTec. In addition, the 4% minority interest in PS&T is expected to be acquired for $7.00 per PS&T share.

The combined companies will operate under the name Tekni-Plex, Inc., and will be headed by its Chairman and Chief Executive Officer, Dr. F. Patrick Smith.

Both PureTec and Tekni-Plex hold leading positions in a number of related markets for plastic products and materials. These include medical and pharmaceutical applications, and a wide variety of high value-added packaging products.

“This is an important step in the development of Tekni-Plex, and a very exciting opportunity for employees of both companies,” said Dr. Smith. He went on to explain that, “since 1994, Tekni-Plex has pursued an aggressive growth strategy, expanding both organically and through synergistic acquisitions. During that time, annualized revenue has grown more than 325% and operating cash flows have improved by more than a factor of eight. The combination of PureTec and Tekni-Plex will bring us close to a half billion dollars in sales.”

Fred Broling, Chairman and Chief Executive Officer of PureTec Corporation added that, “PureTec’s goal has been to grow this business into a billion-dollar company. Over the past two years, it has become evident that our existing operations alone were not providing the level of growth needed to achieve this objective. Recognizing that we need growth to thrive in our competitive markets, PureTec’s Board has agreed to combine our strengths with those of Tekni-Plex, a well-established leader in a number of complementary businesses. We feel that the owners of Tekni-Plex are making a fair offer to PureTec stockholders, and I look forward to a successful transaction.”

Tekni-Plex is the global market leader in clear, high-barrier laminations used in pharmaceutical packaging, as well as foamed polystyrene products used primarily in food packaging applications. Tekni-Plex operates seven manufacturing facilities in North America and employs approximately 900 people.

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. PureTec employs approximately 1,900 people and operates 22 manufacturing facilities worldwide.

For additional information, contact:

Dr. F. Patrick Smith - Chairman & Chief Executive Officer, Tekni-Plex, Inc., 908-722-4800

William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC REPORTS STRONG 4TH QUARTER; EARNS $1.3 MILLION IN FISCAL 1997 FROM CONTINUING OPERATIONS

Ridgefield, New Jersey, October 10, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced a strong improvement in profitability for both the fourth quarter and the 1997 fiscal year. Net income from continuing operations was $3.9 million, or 13 cents per share, for the fourth quarter ended July 31, 1997, versus a loss of $6.3 million, or 23 cents per share, in the same period last year. Including discontinued operations, the net income for the quarter was $2.0 million, or 7 cents per share, versus a loss of $7.0 million, or 26 cents per share, in the prior year. For the full year, net income from continuing operations was $1.3 million, or 5 cents per share, versus a loss of $4.4 million, or 18 cents per share, in fiscal 1996. Including discontinued operations, the net loss for the year was $2.8 million, or 9 cents per share, versus a loss of $8.2 million, or 32 cents per share, in fiscal 1996.

Sales for the fourth quarter increased 7.3%, to $98.8 million, due primarily to growth in specialty tubing, dispenser gaskets, and specialty vinyl resins. For the year, sales declined 3.4% due to the previously disclosed drop in the price of the Company's recycled plastic products, and the impact of unfavorable spring weather on garden hose sales. Sales in the Company's other operations increased by about 7% versus last year, in line with their historical trends.

"I am very pleased to report that our intensive efforts to turn this business around are beginning to show positive results," said Chief Executive Officer Fred Broling. "We have finished the year with substantial improvement, in spite of the up-front costs needed to eliminate problem areas and reorganize certain operations. PureTec is focused on the future and we plan to continue to build on this momentum."

The Company's underlying business strength in fiscal 1997 was led by the specialty tubing and gasket product lines, with double digit growth in sales and operating income. The Specialty Vinyl Resins division also posted strong improvement in both sales and operating income. Another key factor was the significant turnaround achieved in the Company's plastic recycling division, which went from a sizable loss last year to an operating income of approximately $500,000 in the fourth quarter.

President David Katz said that "we are particularly gratified at the improvements in our recycling operations. Not only has this division returned to profitability, but it is also anticipating significant growth with the opening of a new state-of-the-art recycling plant in early 1998. Although last year's drop in recycled PET prices hurt our financial results for the short term, it has driven us to strengthen our business for the longer term. We have reengineered the business to improve productivity and to significantly reduce our vulnerability to future commodity price changes." Mr. Katz also announced that the sale of Styrex Industries has been completed. Financial results for Styrex have been included in discontinued operations.

PureTec continued its record of steady international growth in fiscal 1997. In spite of the stronger dollar, during the fourth quarter the Company's operations in Belgium and Italy increased operating income by more than 60% in dollar terms. In Northern Ireland, the Company absorbed a $1.4 million operating loss related to start-up costs at its new facility, as anticipated. The Northern Ireland plant manufactures medical-grade vinyl compounds, which require a long "qualification" process by our customers. As this qualification is completed over the next few quarters, volume is expected to increase substantially at the Northern Ireland plant.

Chief Financial Officer Thomas V. Gilboy pointed out that "PureTec continues to generate substantial earnings before interest, taxes, depreciation, and amortization ("EBITDA"), which is a measure of cash flow and the Company's ability to pay interest on its debt. In fiscal 1997, PureTec had EBITDA of $37.4 million, or approximately $1.27 per share."

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. PureTec employs approximately 1,900 people and operates 22 manufacturing facilities worldwide.

The forward looking information in this press release is subject to numerous uncertainties, including price variations, actions of major customers, seasonality, and other risk factors listed in the Company's most recent Form S-3 registration statement and other filings with the U.S. Securities and Exchange Commission. Actual results may differ materially.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands, except per share data)

Three months ended July 31,
1997 1996(1)
NET SALES $98,763 $92,040
COSTS AND EXPENSES:
Costs of goods sold 77,481 75,262
Selling, general and administrative 9,938 10,525
Amortization of intangible assets 800 923
Write-off of goodwill & obsolete facilities -- 4,636
Research and development 174 182
--------------- ---------------
$88,393 $91,528
--------------- ---------------
INCOME FROM OPERATIONS $10,370 $512
OTHER EXPENSES (INCOME):
Interest expense 4,016 4,405
Amortization of debt discount and issuance costs 197 665
Equity in loss (net income) of affiliates 956 1,829
Other, net 230 (672)
--------------- ---------------
$5,399 $6,227
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND PROVISION FOR INCOME TAXES 4,971 (5,715)
Provision for income taxes 1,045 537
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST $3,926 $(6,252)
MINORITY INTEREST (60) --
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 3,866 (6,252)
DISCONTINUED OPERATIONS (1,817) (736)
--------------- ---------------
NET INCOME $2,049 $(6,988)
========== ==========
INCOME (LOSS) PER SHARE:
Income (loss) from continuing operations $0.13 $(0.23)
(Loss) income from discontinued operations $(0.06) $(0.03)
--------------- ---------------
NET INCOME (LOSS) PER SHARE (2) $0.07 $(0.26)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (000) 30,037 27,346

Notes:
(1) Fiscal 1996 results have been restated as a result of discontinued operations and to reflect a change to the equity method of accounting for certain affiliates.

(2) Loss per share for the three months ended July 31, 1996 is calculated after accounting for a $126 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands, except per share data)

Year ended July 31,
1997 1996(1)
NET SALES $315,334 $326,344
COSTS AND EXPENSES:
Costs of goods sold 248,419 260,891
Selling, general and administrative 36,091 35,555
Amortization of intangible assets 3,553 3,705
Write-off of goodwill & obsolete facilities -- 4,636
Research and development 654 689
--------------- ---------------
$288,717 $305,476
--------------- ---------------
INCOME FROM OPERATIONS $26,617 $20,868
OTHER EXPENSES (INCOME):
Interest expense 18,108 18,702
Amortization of debt discount and issuance costs 1,641 2,180
Equity in loss of affiliates 1,824 2,175
Other, net 135 (419)
--------------- ---------------
$21,708 $22,638
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND PROVISION FOR INCOME TAXES 4,909 (1,770)
Provision for income taxes 3,131 2,637
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST $1,778 $(4,407)
MINORITY INTEREST (433) --
--------------- ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 1,345 (4,407)
DISCONTINUED OPERATIONS (4,136) (3,766)
--------------- ---------------
NET INCOME (LOSS) $(2,791) $(8,173)
========== ==========
INCOME (LOSS) INCOME PER SHARE:
Income (loss) from continuing operations (2) $0.05 $(0.18)
(Loss) from discontinued operations $(0.14) $(0.14)
--------------- ---------------
NET LOSS PER SHARE (2) $(0.09) $(0.32)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (000) 29,429 27,268

Notes:
(1) Fiscal 1996 results have been restated as a result of discontinued operations and to reflect a change to the equity method of accounting for certain affiliates.

(2) Loss per share for the year ended July 31, 1996 is calculated after accounting for a $524 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



The following is the text of a press release issued by Jay Rockefeller, U.S. Senator for West Virginia.

ROCKEFELLER BRINGS NEW RECYCLING PLANT TO HUNTINGTON, CREATES MORE THAN 100 NEW JOBS FOR WEST VIRGINIA WORKERS

WASHINGTON -- U.S. Senator Jay Rockefeller (D-WV) today joined executives from Pure Tech Plastics (PTP) and the Huntington Area Development Council (HADCO) to announce the plastics company's decision to locate a state-of-the-art recycling facility in Huntington. The Huntington plant will initally create over 100 new jobs when it opens in February. The facility will recycle soft-drink bottles into plastic flakes, to be used in making new bottles, sheets for packaging, and polyester fibers for clothing, textiles and reinforcing garden hoses.

"Recycling, Pure Tech Plastics and Huntington are a great match: a booming industry, a growing company and a city dedicated to economic development, with loyal and skilled workders eager for jobs," Rockefeller said. "Pure Tech Plastics' decision to locate their newest facility in Huntington demonstrates their confidence in West Virginia as a place where innovative companies grow and thrive."

"The proprietary recycling technology that will be installed in this new plant will allow further productivity improvement and provide the capacity to meet strong consumer demand," said Anthony Conte, president of the Pure Tech Plastics division. "Our decision to locate our facility in Huntington was a result of our search to find a site that is strategically located to best service our customer base and to have the personnel resources to staff our facility. Huntington offered both of these advantages to us."

In December, 1995, Rockefeller flew to New York to convince executives from PTP and its parent company, PureTec Corporation, to consider opening a facility in West Virginia. Since then, he has worked closely with officials from PTP, PureTec Corporation, HADCO, the City of Huntington, Huntington National Bank, West Virginia Exonomic Development Authority and the U.S. Department of Commerce Economic Development Administration (EDA) to bring the company to the former Owens Illinois facility in Huntington. Rockefeller also lobbied the EDA for the $1.5 million grant that enabled the Huntington Municipal Development Authority to renovate the former Owens Illinois glass complex for new businesses.

"Huntington is keeping pace with the global economy as we head into the 21st century, and the city's economic progress is embodied by this building," Rockefeller said. "When demand for glass bottles dropped, the old plant shut down, but companies are coming in, investing in new equipment and shifting gears, and the factory will come alive again, this time using cutting-edge technology to recycle yesterday's soda bottles into tomorrow's bottles, carpets and packaging.

"In my years of working to create new jobs in West Virginia, two qualities I really have come to value are patience and persistence," Rockefeller continued. "When Owens Illinois closed its doors at the end of 1993, I was sorely disappointed, but I never quit trying to attract new businesses to the Huntington area.

"The Owens Illinois closing shook up the community, leading Huntington to rethink its economic development strategy," Rockefeller added. "In particular, HADCO, its Chairman Marc Sprouse and President Jerry McDonald; Mayor Jean Dean' and other city leaders have worked tirelessly to rebuild the Huntington economy, and the Huntington National Bank showed great vision in putting together the financial package that made it possible for Pure Tech Plastics to establish a plant in Huntington. HADCO, Huntington National Bank and the entire Huntington community should be proud of their hard work and determination in turning the vacant Owens Illinois facility into a thriving industrial center."

Pure Tech Plastics will invest $8 million in its Huntington facility, which will recycle polyester terephthalate (PET) containers, such as soft-drink bottles, food packages and detergent jugs. PTP buys containers collected by municipal recycling programs and from states that recycle beverage containers. These PET containers will be brought to the Huntington facility, where they will be cleaned, sorted and recycled into clean, high-quality PET flakes or filament. The recycled PET filament is used by the Home and Garden Division of PureTec Corporation to strengthen garden hoses. Pure Tech Plastics sells recycled PET flakes to companies that make bottles, rigid "clamshell" consumer-goods packaging and carpet fibers.

Each year, PTP recycles nearly 1 billion plastic bottles, keeping 100 million pounds of plastic out of America's landfills.

Pure Tech Plastics (PTP) is a wholly owned subsidiary of the PureTec Corporation.

Contact: Kassy Kelley - 202-224-6101


For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC SUCCESSFULLY CONCLUDES OFFER FOR PS&T SHARES

Ridgefield, New Jersey, June 19, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced that it has successfully concluded a private offer for most of the common stock of Plastic Specialties and Technologies ("PS&T") not owned by the Company. The Company expects this transaction will be slightly accretive to earnings per share in fiscal 1998 and beyond.

PureTec currently holds 82.7% of PS&T, its principal operating subsidiary. The private exchange offer, which expired on June 18, was made to accredited investors who owned 1,000 or more shares of PS&T. The Company offered to exchange two new shares of PureTec common stock for each share of PS&T common stock. A condition for completion of the offer was that at least 7.5% of the outstanding PS&T common stock (approximately 624,000 shares) be tendered. PureTec has been advised by its exchange agent that the number of shares tendered is 1,116,325, or 13.4%. As a result of this exchange, the Company's ownership of PS&T is expected to increase to approximately 96.1%. The total number of PureTec common shares outstanding will increase by approximately 2.2 million, or 7.7%, to 31.3 million shares.

The Company anticipates that this transaction will reduce earnings dilution from minority interest accounting in the future. Accounting treatment for the minority interest shares reduces the amount of PS&T's net income that may be included in PureTec Corporation's consolidated earnings. For the fiscal third quarter ended April 30, 1997, the effect of this accounting treatment was to reduce PureTec's earnings by $373,000. Over time, future earnings at PS&T would increase the dilutive effect of minority interest shares.

"We are very pleased at the enthusiastic response from our PS&T investors and we welcome them as PureTec Corporation shareholders," said Chief Financial Officer Tom Gilboy. "Some of these are institutions that have been long-term holders in both the equity and debt of PS&T, and we look forward to their continuing support as we build on PureTec's solid business foundation."

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC EARNS $2.3 MILLION FROM CONTINUING OPERATIONS IN 3RD QUARTER; ANNOUNCES FURTHER RESTRUCTURING ACTIONS

Ridgefield, New Jersey, June 9, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced net income from continuing operations of $2.3 million, or 8 cents per share, for the fiscal third quarter ended April 30, 1997. Sales for the quarter were $93.1 million. After accounting for discontinued operations, net income for the quarter was $1.1 million, or 4 cents per share. For the nine months ended April 30, 1997, the loss from continuing operations was $2.5 million, or 9 cents per share, on sales of $216.6 million.

In the prior year, the Company had posted sales of $101 million for the three months and $234 million for the nine months ended April 30, 1996. Net income from continuing operations was $5.1 million for the quarter, and $1.8 million for the nine months ended April 30, 1996. Last year's third quarter benefitted from record sales in the garden hose division due principally to favorable weather conditions. Another factor affecting year-over-year comparisons was the recent industry-wide drop in PET (Polyethylene Terephthalate) prices. PET is the principal product of the Company's recycling division. With the exception of these two divisions, all other core business units achieved sales and volume increases over the prior year.

During the past few months, PureTec has taken a number of significant steps in a series of restructuring actions designed to improve future earnings. These steps include: expanding medical plastics capacity in the western United States and Europe; reducing workforce and overhead costs at the Burlington Resins subsidiary; initiating a sale of the Styrex Industries subsidiary; and writing down most of the remaining investment in Evolutions, Inc. Styrex has been reclassified as a discontinued operation effective with the third quarter of 1997, and 1996 results have been restated to reflect this change. The Evolutions write down is reported as "Equity in loss of affiliates."

The medical plastics expansions involved two additions to PureTec's growing Colorite Polymers division. Colorite Polymers is the world's leading producer of medical-grade vinyl, used by manufacturers of a wide variety of medical devices. Colorite opened its new, state-of-the-art medical plastics facility in a suburb of Belfast, Northern Ireland, which will operate as "Colorite Europe, Ltd." Colorite also completed an upgrade of existing facilities in Nevada that will enable the Company to better serve customers on the West Coast and in northern Mexico.

At the Burlington Resins subsidiary, the Company initiated a reorganization of operational and administrative functions. These moves included a reduction of approximately 10% of Burlington's employee base. The Company anticipates that this action will reduce annualized expenses by approximately $750,000.

As previously announced, PureTec has retained Schroder Wertheim & Co. Incorporated to advise management on various strategic and financing initiatives with the goal of enhancing shareholder value and positioning the Company for future growth.

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in thousands, except per share data)

Three months ended April 30,
1997 1996(1)
NET SALES $93,141 $101,101
COSTS AND EXPENSES:
Costs of goods sold 73,275 77,397
Selling, general and administrative 9,273 10,083
Amortization of intangible assets 1,006 927
Research and development 153 109
--------------- ---------------
$83,707 $88,516
--------------- ---------------
INCOME FROM OPERATIONS $9,434 $12,585
OTHER EXPENSES (INCOME):
Interest expense 4,811 4,806
Debt issuance cost and discount amortization 256 503
Equity in loss (net income) of affiliates 603 (220)
Other, net (2) 415
--------------- ---------------
$5,668 $5,504
--------------- ---------------
EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND PROVISION FOR INCOME TAXES 3,766 7,081
Provision for income taxes 1,135 1,947
--------------- ---------------
EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST $2,631 $5,134
MINORITY INTEREST (373) --
--------------- ---------------
EARNINGS FROM CONTINUING OPERATIONS 2,258 5,134
DISCONTINUED OPERATIONS (1,128) 57
--------------- ---------------
NET INCOME $1,130 $5,191
========== ==========
INCOME (LOSS) PER SHARE:
Income from continuing operations $0.08 $0.19
(Loss) income from discontinued operations $(0.04) $0.00
--------------- ---------------
NET INCOME PER SHARE (2) $0.04 $0.19
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,006 27,346

Notes:
(1) Fiscal 1996 results have been restated as a result of discontinued operations and to reflect a change to the equity method of accounting for certain affiliates.

(2) Loss per share for the three months ended April 30, 1996 is calculated after accounting for a $126 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in thousands, except per share data)

Nine months ended April 30,
1997 1996(1)
NET SALES $216,571 $234,304
COSTS AND EXPENSES:
Costs of goods sold 170,938 185,629
Selling, general and administrative 26,153 25,030
Amortization of intangible assets 2,753 2,782
Research and development 480 507
--------------- ---------------
$200,324 $213,948
--------------- ---------------
INCOME FROM OPERATIONS $16,247 $20,356
OTHER EXPENSES (INCOME):
Interest expense 14,092 14,297
Debt issuance cost and discount amortization 1,444 1,515
Equity in loss of affiliates 868 346
Other, net (95) 253
--------------- ---------------
$16,309 $16,411
--------------- ---------------
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND PROVISION FOR INCOME TAXES (62) 3,945
Provision for income taxes 2,086 2,100
--------------- ---------------
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST $(2,148) $1,845
MINORITY INTEREST (373) --
--------------- ---------------
(LOSS) EARNINGS FROM CONTINUING OPERATIONS (2,521) 1,845
DISCONTINUED OPERATIONS (2,319) (3,030)
--------------- ---------------
NET LOSS $(4,840) $(1,185)
========== ==========
(LOSS) INCOME PER SHARE:
(Loss) income from continuing operations (2) $(0.09) $0.05
Loss from discontinued operations $(0.08) $(0.11)
--------------- ---------------
NET LOSS PER SHARE (2) $(0.17) $(0.06)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,227 27,114

Notes:
(1) Fiscal 1996 results have been restated as a result of discontinued operations and to reflect a change to the equity method of accounting for certain affiliates.

(2) Loss per share for the nine months ended April 30, 1996 is calculated after accounting for a $126 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC'S MEDICAL PLASTICS GROUP OPENS NEW FACILITY IN NORTHERN IRELAND

Ridgefield, New Jersey, May 21, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced the opening of its new medical plastics facility in a suburb of Belfast, Northern Ireland. This state-of-the-art facility is the latest addition to PureTec's growing Colorite Polymers division, and will operate as "Colorite Europe, Ltd." Colorite Polymers is the world's leading producer of medical-grade vinyl, used by manufacturers of a wide variety of medical devices. The plant will have an initial capacity of more than 20 million pounds, and will serve the European market for high-quality medical and automotive plastics.

The grand opening will include an open house on Thursday, May 22, hosted by Mr. Al Lloyd, who has recently accepted the position of managing director of Colorite Europe, Ltd. Mr. Lloyd has an extensive background in manufacturing and the plastics industry. Prior to joining Colorite, Mr. Lloyd was managing director of Associated Plastics of Ireland. European sales will continue to be directed by Mr. Peter Watts, Colorite Polymers' European marketing manager. Mr. Watts has been successfully leading Colorite's European sales effort for the past three years.

The new Colorite Europe facility will have a number of immediate benefits. By becoming a "local supplier," the Company will be able to serve its European customers more efficiently. Both Northern Ireland and the Republic of Ireland in particular have been attracting a concentration of medical device manufacturers. As a result, there is a significant demand for Colorite's medical plastics. Colorite Europe will also facilitate continued expansion into Eastern European and Asian markets.

"Our strategic plan includes a strong international growth component," said Dr. Robert Brookman, president of Colorite Polymers. "The completion of our Colorite Europe facility is a major milestone in this business development." Dr. Brookman continued, saying that "demand for our specialty plastics has been increasing in Europe for a number of years. We are working to ensure that our customers can continue to rely on Colorite to deliver consistent supply and specialized services."

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. In addition to Colorite Polymers, PureTec serves the medical plastics market through its Plastron and Action - Belgium divisions. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC CORPORATION RETAINS SCHRODER WERTHEIM TO ADVISE MANAGEMENT ON LONG-TERM STRATEGIES

Ridgefield, New Jersey, May 12, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced that the Company and its primary operating subsidiary, Plastic Specialties and Technologies ("PS&T") have retained Schroder Wertheim & Co. Incorporated to advise management on a number of strategic issues. The Company is in the process of considering various strategic and financing initiatives with the goal of enhancing shareholder value and positioning the Company for future growth.

Schroder Wertheim has had a long-term business relationship with PureTec, and has acted as an advisor in previous business transactions. In addition, Schroder Wertheim underwrote PS&T's $125 million, 11 1/4% Senior Secured Note offering in 1993.

"We are happy to have Schroder Wertheim's assistance with the financial aspect of our strategic planning process," said Fred Broling, PureTec's chairman and chief executive officer. Mr. Broling added that "PureTec has an excellent foundation for future growth. We have established leading positions in our four market segments, and we are determined to build on these core businesses to develop PureTec's full potential."

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC INITIATES PERSONNEL REDUCTIONS AT ITS BURLINGTON PLANT

Ridgefield, New Jersey, May 9, 1997 -- PureTec Corporation (NASDAQ: PURT) today announced that it is restructuring its Specialty Vinyl Resins operation in Burlington, New Jersey ("Burlington"). The restructuring will include a reduction of approximately 10% of Burlington's employee base. These moves are being made as part of an overall effort to improve operations and profitability at the Burlington division. The Burlington restructuring is one in a series of strategic actions that management has initiated or is considering, with the goal of enhancing shareholder value and positioning PureTec for future growth. The Company anticipates that the reductions being announced today will reduce annualized expenses by approximately $750,000.

"Our Burlington operation produces excellent, high-quality resins," said Fred Broling, PureTec's chairman and chief executive officer. "We have developed a strategy to maintain this quality, while reducing overhead costs. This includes both a restructuring of administrative functions and improved operational efficiencies. Taken together, these moves are another step in a concerted effort to create long-term value and build on Burlington's core business."

Ted Blandy, Burlington's general manager, indicated that the reductions include both management and union employees. "We are continuing to review all aspects of our operation," said Mr. Blandy. "This review focuses on realigning work functions so that every activity adds value to the business."

PureTec is a leading producer of plastic products in four niche markets: home and garden products; medical plastics; packaging components; and specialty materials. Burlington serves the specialty materials market, and produces vinyl resins for a variety of industries, including floor coverings, and automotive sealants and adhesives. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC REPORTS SECOND QUARTER RESULTS; LOSS OF 11 CENTS PER SHARE VERSUS LOSS OF 17 CENTS PER SHARE IN PRIOR YEAR

Ridgefield, New Jersey, February 26, 1997 -- PureTec Corporation (NASDAQ: PURT) today reported results for the Company's fiscal 1997 second quarter ended January 31, 1997. The Company reported a loss of $3.2 million, or 11 cents per share, versus a loss of $4.5 million, or 17 cents per share in the second quarter of fiscal 1996. Excluding charges for discontinued operations, the net loss was 9 cents per share, equal to the loss of 9 cents per share on the same basis in the prior year. For the six month period, the net loss per share was 20 cents versus 24 cents in the same period last year.

Sales for the second quarter were $66.4 million versus $73.1 million in the prior year. The sales decline was due primarily to an industry-wide drop in PET (Polyethylene Terephthalate) prices. PET is the principal product of the Company's recycling division. Although volumes have remained relatively constant, the price that PureTec's recycling division received for recycled PET was less than half that of the previous year. This impact has resulted in a year-over-year decline in dollar terms of approximately $6 million for the second quarter. Sales in the Company's garden hose manufacturing division were also less than last year, due primarily to late ordering by a number of customers.

In the second quarter, the Company settled a lawsuit and certain other claims brought against the former Ozite Manufacturing company. Related costs were charged to discontinued operations. Unusual items also impacted results from continuing operations, including a previously announced charge related to flood damage at the Sparks, Nevada facility. In addition, a tax benefit recorded in the prior year affected the year-over-year comparison of continuing operations.

Chairman and CEO Fred Broling discussed the Company's overall results today at the Company's Annual Meeting of Stockholders. Broling reported that "most of PureTec's core business is showing steady growth." As an example, he cited the Action Technology division's precision tubing and gasket product line, with year-to-date domestic sales up 5% and EBIT up over 40%. He also pointed to growth in the Company's medical-grade vinyl products.

Commenting on the future of the recycling division, Broling said, "we have responded to this changing market by consolidating our operations, adjusting our raw material contracts, and aggressively reducing our processing costs. As a result, we are one of the survivors in PET recycling, with an ability to strengthen our leadership position now that the market for recycled PET has stabilized. With renegotiated supply contracts now in place, this division last month returned to profitability, and we face a brighter picture in the second half of the fiscal year."

Chief Financial Officer Tom Gilboy reported that PureTec is making progress in its efforts to streamline the corporation's financial structure. "In January, we improved the terms of our principal revolving credit line, thereby reducing future short-term borrowing costs," said Gilboy. "We continue to work on ways to improve PureTec's financial condition. As we enter our seasonally strong second half, we will use our cash flow to support this objective."

PureTec is a leading producer of garden hose, medical tubing and plastic compounds for the medical device industry, and precision tubing for writing instruments and spray dispensers. The Company is also a leading producer of specialty vinyl and recycled plastic materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in thousands, except per share data)

Three months ended January 31,
1997 1996(1)
NET SALES $66,431 $73,053
COSTS AND EXPENSES
Cost of goods sold 52,564 59,147
Selling, general and administrative 9,518 9,194
Amortization of intangibles 641 868
Research and development 169 354
--------------- ---------------
$62,892 $69,563
--------------- ---------------
INCOME FROM OPERATIONS $3,539 $3,490
OTHER EXPENSES (INCOME)
Interest expense 5,014 5,114
Debt issuance cost and discount amortization 608 510
Equity in loss of affiliates 265 401
Other, net (80) 40
--------------- ---------------
$5,807 $6,065
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES (2,268) (2,575)
Provision for income taxes 404 (292)
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS $(2,672) $(2,283)
LOSS FROM DISCONTINUED OPERATIONS (545) (2,218)
--------------- ---------------
NET LOSS $(3,217) $(4,501)
========== ==========
LOSS PER SHARE:
Continuing Operations (2) $(0.09) $(0.09)
Discontinued Operations $(0.02) $(0.08)
--------------- ---------------
NET LOSS PER SHARE (2) $(0.11) $(0.17)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,339 27,223

Notes:
(1) Fiscal 1996 results have been restated to reflect the equity method of accounting for certain affiliates. These affiliates had previously been included in consolidated results.

(2) Loss per share for the three months ended January 31, 1996 is calculated after accounting for a $126 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in thousands, except per share data)

Six months ended January 31,
1997 1996(1)
NET SALES $132,391 $140,701
COSTS AND EXPENSES
Cost of goods sold 106,126 115,272
Selling, general and administrative 17,776 15,438
Amortization of intangibles 1,784 2,020
Research and development 327 662
--------------- ---------------
$126,013 $133,392
--------------- ---------------
INCOME FROM OPERATIONS $6,378 $7,309
OTHER EXPENSES (INCOME)
Interest expense 9,493 9,693
Debt issuance cost and discount amortization 1,188 1,012
Equity in loss of affiliates 265 566
Other, net (94) (163)
--------------- ---------------
$10,852 $11,108
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES (4,474) (3,799)
Provision for income taxes 951 153
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS $(5,425) $(3,952)
LOSS FROM DISCONTINUED OPERATIONS (545) (2,424)
--------------- ---------------
NET LOSS $(5,970) $(6,376)
========== ==========
LOSS PER SHARE:
Continuing Operations (2) $(0.18) $(0.15)
Discontinued Operations $(0.02) $(0.09)
--------------- ---------------
NET LOSS PER SHARE (2) $(0.20) $(0.24)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,339 27,173

Notes:
(1) Fiscal 1996 results have been restated to reflect the equity method of accounting for certain affiliates. These affiliates had previously been included in consolidated results.

(2) Loss per share for the six months ended January 31, 1996 is calculated after accounting for a $252 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC'S PLANT IN SPARKS, NEVADA RECOVERS FROM FLOOD DAMAGE

Ridgefield, New Jersey, February 18, 1997 -- Thanks to the tremendous efforts of employees at PureTec Corporation's (NASDAQ: PURT) Colorite Plastics and Colorite Polymers divisions, manufacturing operations have now returned to full production following flood damage suffered by its plant in Sparks, Nevada in January. This facility is one of seven Colorite plants in North America that manufacture garden hose and vinyl products. During the clean-up period, customers were serviced from the Company's other facilities.

"The flood has given us the opportunity to demonstrate to customers the benefits of our geographically diverse manufacturing operation," said Matt Drozdoff, president of Colorite Plastics. "The fact is that no customer shipments were missed, and no customers were inconvenienced by this natural disaster. Our manufacturing diversity gives PureTec companies a strong competitive advantage, and this proved it."

PureTec's Chief Financial Officer Tom Gilboy reported that the plant is adequately insured. "We do not have final settlement of the claims yet, but the impact on the Company's results should be limited to the cost of the insurance deductibles, which will be in the range of $400,000," said Gilboy. "We will book any such expenses in the fiscal second quarter ending January 31, 1997."

PureTec's Colorite Plastics division is the world's leading producer of garden hose. The garden hose business is highly seasonal in nature, with most sales occurring in the February through July period. PureTec's Colorite Polymers and Action Technology divisions are leading international producers of medical tubing and plastic compounds for the medical device industry, and precision tubing for writing instruments and spray dispensers. PureTec subsidiaries also have built leading positions in niche markets for specialty vinyl and recycled plastic materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.



PURETEC REPORTS QUARTLERLY LOSS OF $2.8 MILLION, REFLECTING SEASONALLY WEAK FIRST QUARTER AND RECYCLED PET PRICE DECLINE

Ridgefield, New Jersey, December 18, 1996 -- PureTec Corporation (NASDAQ: PURT) today announced results for the first quarter of the 1997 fiscal year ended October 31, reporting sales of $66.0 million and a net loss of $2.8 million, or 9 cents per share. This compares with sales of $67.6 million and a net loss of $1.9 million, or 7 cents per share, in the same period last year.

The year-over-year decline in sales and net income was due primarily to weakness in recycling operations as a result of an industry-wide drop in PET (Polyethylene Terephthalate) prices. Although volumes have remained relatively constant, the price that PureTec's recycling division received for recycled PET was essentially half that of the previous year. "The severe decline in PET prices has hurt our financial results for the short term," said David Katz, PureTec's president and chief operating officer. "The year-over-year impact amounts to about $5 million in sales and $2 million in net loss. However, as previously announced, we are taking corrective actions to adjust to the lower prices. We are making steady progress in reducing costs in the recycling division and expect to return this division to profitability in the near future. Although it appears to us that PET prices are showing some signs of recovery, our plans are designed to operate profitably at current price levels."

Excluding the recycling division, PureTec's business improved over the comparable period last year. Although, as expected, there was a year-over-year decline in the specialty vinyl resins division, this was offset by increased sales in other areas of the Company's Colorite Polymers group, especially in medical-grade vinyl compounds.

At Colorite Plastics -- PureTec's largest division and the world's leading producer of garden hose -- operating income in a seasonally weak quarter also showed improvement over the prior year. Because of the highly seasonal nature of Colorite's lawn and garden products, PureTec's first quarter historically shows a loss and is not indicative of full-year results. Matt Drozdoff, president of Colorite Plastics, explained that "during the first quarter, we produce garden hose to prepare for our peak season." However, much of the corresponding revenue is not recognized until our third and fourth fiscal quarters when these products are shipped to customers. This timing difference causes the characteristic seasonal impact on PureTec's results. "Our manufacturing plants are running near full capacity now as we build inventory," continued Drozdoff. "Of course, we look forward to booking the sales when we ship our hose products later in the fiscal year."

Chief Financial Officer Thomas V. Gilboy said that "although this is our weakest quarter, EBITDA amounted to $6.4 million. Our cash interest costs for the quarter were approximately $4.5 million and our taxes, mostly from European operations, were $547,000. Looking ahead, we continue to implement our strategic plan, which is focused on improving financial results. We expect to see the results of this plan begin to materialize over the next several quarters."

PureTec is a leading producer of medical tubing and plastic compounds for the medical device industry, precision tubing for writing instruments and spray dispensers, and lawn and garden products. The Company is also a leading producer of specialty vinyl and recycled plastic materials. PureTec employs approximately 2,000 people and operates 22 manufacturing facilities worldwide.



PureTec Corporation and Subsidiaries
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars and shares in thousands, except per share data)

Three months ended October 31,
1996 1995(1)
NET SALES $65,960 $67,648
COSTS AND EXPENSES
Cost of goods sold 53,562 55,404
Selling, general and administrative 8,258 6,244
Amortization of intangibles 1,143 1,152
One-time inventory valuation charge 0 721
Research and development 158 308
--------------- ---------------
$63,121 $63,829
--------------- ---------------
INCOME FROM OPERATIONS $2,839 $3,819
OTHER EXPENSES (INCOME)
Interest expense 4,479 4,579
Debt issuance cost and discount amortization 580 502
Equity in loss of affiliates 0 165
Other, net (14) (203)
--------------- ---------------
$5,045 $5,043
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES (2,206) (1,224)
Provision for income taxes 547 445
--------------- ---------------
LOSS FROM CONTINUING OPERATIONS $(2,753) $(1,669)
LOSS FROM DISCONTINUED OPERATIONS 0 (206)
--------------- ---------------
NET LOSS $(2,753) $(1,875)
========== ==========
LOSS PER COMMON SHARE(2) $(0.09) $(0.07)
========== ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 29,339 27,124

Notes:
(1) Fiscal 1995 results have been restated to reflect the equity method of accounting for Evolutions, Inc., a 42% owned affiliate as of October 31, 1996. Previously, PureTec had a majority ownership and therefore had accounted for Evolutions as a consolidated subsidiary.

(2) Loss per share for the three months ended October 31, 1995 is calculated after accounting for a $126 increase in value of Redeemable Preferred Stock. The Redeemable Preferred was converted to Common Stock on July 31, 1996.

For additional information, contact William A. Walkowiak, CFA - Director of Investor Relations, PureTec Corporation, 201-941-6550, ext. 107.






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