Raychem Announces Lower Second Quarter Revenue and Earnings Outlook (Business Wire; 01/05/99) MENLO PARK, CALIF. (Jan. 5) BUSINESS WIRE -Jan. 5, 1999--Raychem Corporation (NYSE:RYC) today announced that fiscal second quarter revenues will be approximately $455 million, compared to $467 million in the year-earlier period. Revenues were lower than expected in late December, particularly in the company's circuit protection and energy businesses. As a result, earnings are likely to be approximately $0.40 per share. Second quarter electronics OEM segment revenues will be up about 3 percent, in constant currency, versus the year-ago quarter, as growth in electronics and touchscreen products offset modest revenue declines in circuit protection devices. Second quarter revenues for the telecommunications, energy and industrial segment will be down about 7 percent, in constant currency, versus year-earlier levels, reflecting slower than expected demand in infrastructure markets and lower Access Network Electronics revenues. Overall, the company is likely to see sequential improvements in revenues in each segment through the second half, but at a somewhat slower rate than previously expected. The company will release its full quarterly results after the market closes on January 13, 1999. --------- Forward Looking Statements: This press release contains forward looking statements, including statements made relating to revenues, net income, earnings and expected business conditions. Actual results may differ materially from the results anticipated in the statements made due to a variety of factors, including, but not limited to, a final accounting of revenues, margins, operating and other expenses, income taxes, share count, the effects of currency and actual business conditions. Additional risk factors are described in the company's filings with the SEC. The company does not undertake an obligation to update its forward looking statements to reflect future events or circumstances. Raychem Corporation of Menlo Park, California, is an international company with approximately 9,000 employees in 49 countries and revenues of $1.8 billion in fiscal 1998. The company utilizes expertise in materials science, electronics, and process engineering to develop, manufacture, and market high- performance products for electronics OEM businesses and telecommunications, energy and industrial applications. Information on Raychem is available on the Internet at www.raychem.com.