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.