CommScope, Inc. (NYSE: CTV) said today that unit sales and pricing patterns for July and August indicate that earnings for the third quarter will be significantly weaker than those of the second quarter of 1997. The company now expects revenues to be down 5 to 10 percent from second-quarter revenues of $159 million.

Significant factors affecting third-quarter performance are lower margins, and weakening international sales, primarily resulting from a slow down in sales to the Australian market.

"Certainly, we are disappointed with the third-quarter outlook," said Frank M. Drendel, CommScope CEO and Chairman. "Due to sluggish cable TV sales and increasing margin pressures, we are cautious regarding our expected level of performance for the next 12 months. However, we remain positive about our longer-term outlook due to the prospect of world-wide coaxial cable usage in hybrid-fiber-coax networks."

"Also, the company's local area network (LAN) business continues to experience robust demand. While orders remain strong, we expect modest sales growth for LAN during the third quarter of 1997 due to competitive pricing and capacity constraints. As a result of the increased demand, CommScope will continue to expand its LAN production capability," Drendel added.

CommScope is the world's largest manufacturer of coaxial cable and is a leading supplier of high-performance cables for LAN and other applications.

Statements in this press release are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, and include, but are not limited to, those statements relating to CommScope's relative market position, sales, margins and earnings. While CommScope believes such statements are reasonable, the actual results and effects could differ materially from those currently anticipated. Factors and risks that could cause such differences include, but are not limited to developments in technology pricing and acceptance of CommScope's products, changes in raw material costs, industry competition, cable television industry capital spending, and other factors. The cautionary statements contained in Exhibit 99 to CommScope's Form 10-Q for the quarter ended June 30, 1997, are incorporated herein by reference.

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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding CommScope's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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