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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Madpinto who wrote (126)	12/17/1997 4:46:00 PM
From: Ann Williams	Respond to of 828

A good reason to be long: Safeskin Board Approves Doubling of 1998 Capital Expenditures for Capacity Expansion and Authorizes Stock Repurchase Program Safeskin Board Approves Doubling of 1998 Capital Expenditures for Capacity Expansion and Authorizes Stock Repurchase Program December 17, 1997 7:55 AM EST SAN DIEGO, Dec. 17 /PRNewswire/ -- Safeskin Corporation (Nasdaq: SFSK), a leading developer and manufacturer of high-quality, powder-free, disposable latex and synthetic gloves for the healthcare, high-technology and scientific industries, today announced that its Board of Directors has authorized increased capital spending in fiscal 1998 and a two year stock repurchase program. 1998 Capital Spending As a result of continued strong demand for its glove products, Safeskin will increase its 1998 capital expenditures budget to approximately $80 million, or twice the dollar amount of the Company's prior plan for 1998. Due to the Company's strong cash flow, financing is projected to come primarily from internally generated funds, with any additional funds financed through borrowings from the existing credit facilities. "The greater investment in our manufacturing operations is expected to increase Safeskin's production capacity by approximately two billion gloves annualized above previous estimates," said Richard Jaffe, Chairman, President and Chief Executive Officer of Safeskin. "By fast-tracking our expansion plans, we can more rapidly serve our customers' growing demand for our powder- free and synthetic glove products and services in worldwide markets. It will also enable us to expedite our worldwide expansion strategy that includes domestic medical markets such as alternate care and dental, the high-tech and scientific markets and consumer market as well as expand into new international markets." Stock Repurchase Program The Safeskin Board also authorized the Company's first stock repurchase program. Under the program, a maximum of one million shares of the Company's common stock may be repurchased within the next 24 months. Repurchases may be effected from time to time in the open market or in private transactions at prices the Company deems appropriate. The number of share of Common Stock to be repurchased cannot be predicted at this time and will be subject to, among other things, market conditions and prevailing prices. Safeskin presently has 26.3 million shares outstanding. "Our business strategy is to extract maximum value from Safeskin's technology by focusing on building a broad line of glove products for medical, high-tech and scientific and consumer markets," said David L. Morash, Executive Vice President and Chief Financial Officer of Safeskin. "With strong cash flow, zero debt and excellent growth prospects moving forward, we believe that a share repurchase program is a sensible use of cash and will enhance shareholder value." Safeskin Corporation is the leading manufacturer of high-quality, disposable latex medical examination gloves for the United States market and believes that it is the world's leading manufacturer of high quality disposable powder-free examination gloves. The Company produces gloves at its manufacturing facilities in Southeast Asia using proprietary formulations and processes. Information on Safeskin may be found on the Company's Internet site at www.safeskin.com. This press release contains forward-looking statements that involve risks and uncertainties including those that relate to the costs and results of the Company's capacity expansion efforts, the anticipated growth in demand for the Company's gloves, the ability to meet the capital expenditure requirements through internally generated funds. Actual results may differ materially from those anticipated in such statements for various reasons, including those identified in the Company's most recent Form 10Q and other filings with the Securities and Exchange Commission. SOURCE Safeskin Corporation c PR Newswire. All rights reserved. Ann