WEST LONG BRANCH, N.J., Sept. 29 /PRNewswire/ -- EA Industries, Inc.
(OTC Bulletin Board: EAIN) has revised its outlook for the third quarter of
1998.
    Constraints on cash have impacted third quarter shipments, so that third
quarter revenues will be down slightly from second quarter levels.  This
compares to the Company's prior outlook of significant sequential growth from
second quarter.  Responding to these cash constraints, the Company has
curtailed its new account development so as to focus its working capital on
key accounts.
    The Company's ability to generate a profit in future periods requires
solving the cash shortage.  At this time, the Company is not able to predict
the timing of its return to profitability.
    The Company's cash constraints are a result of, among other things, the
startup expenses of SupplyPoint Solutions, the investment in a large number of
new accounts, compounded by a significant delinquency in payments from a small
number of customers.
    The Company has engaged an investment banker to advise it on its strategic
options and methods to raise additional working capital including the possible
sale of certain assets, such as a portion of the Company's interest in its
wholly owned subsidiary, SupplyPoint Solutions.
    EA Industries, Inc., through its wholly owned subsidiaries, Tanon
Manufacturing, Inc., Tanon EXPRESS, and SupplyPoint Solutions, Inc., is a
full-service manufacturing partner servicing the electronics industry from
manufacturing facilities and offices in West Long Branch, N.J.; Fremont,
Calif.; Methuen, Mass.; and Wareham, Mass.
    Except for historical matters contained in this press release, statements
made in this press release are forward-looking and are made pursuant to the
safe harbor provisions in the Private Securities Litigation Reform Act of
1995.  Investors are cautioned that these forward-looking statements reflect
numerous assumptions and involve risks and uncertainties which may affect EA's
business and prospects and cause actual results to differ materially from
these forward-looking statements, including loss of current customers,
reductions in orders from current customers, or delays in ordering by current
customers, failure to obtain anticipated contracts or orders from new
customers, or expected order volume from such customers, failure to obtain
financing, higher material or labor costs, unfavorable results in litigation
against EAI, economic, competitive, technological, governmental, and other
factors discussed in EAI's filings with the Securities and Exchange
Commission.

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