
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, August 25, 1995                   TAG: 9508250077
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: F.J. GALLAGHER STAFF WRITER
DATELINE:                                 LENGTH: Medium

TELE-PATH BOUGHT SALEM CONCERN WASN'T FOR SALE

The Dynatech Corp., a leading manufacturer of telecommunications testing equipment, has agreed to acquire Salem's Tele-Path Industries Inc. for a combination of cash and stock worth $25 million, a Dynatech spokesman said Thursday.

Tele-Path, with 80 employees and annual sales of nearly $20 million, manufactures products used by telephone companies to test standard copper phone lines that transmit voice and digital data simultaneously.

"It [Tele-Path] is a very strong organization with strong management," said Steve Cantor, Dynatech's corporate communications manager. "We both address the same customer base, so we're looking at the advantage of being able to exploit the same customer base."

The sale, which is not yet complete, reflects the frantic pace of growth which the telecommunications industry is now experiencing, Tele-Path President and CEO Leon Harris said.

"We, in fact, weren't for sale," Harris said. "We didn't have time to put in place some of the sales channels we needed to take advantage of the growth of this technology. This puts us in a position to grow the company more quickly."

Indeed, Dynatech representatives have indicated, he said, that not only will they retain all employees, they intend to hire more as expansion occurs.

"They have no interest in making any changes," he said. "Their only interest was in a healthy growing company with a good staff to run it."

Cantor agreed with Harris, adding that the Burlington, Mass.-based Dynatech, with 1995 earnings of $489 million, expects the acquisition to substantially increase its 1996 revenues, Cantor said.

"It's a very valuable company," he said, "and buying it will make us more valuable. I imagine it will add about 10 cents a share on an annual basis."

The testing equipment manufactured by Tele-Path is used to maintain communications links known as Integrated Services Digital Networks. One of the most recognized functions of the ISDNs, Cantor said, provides consumers with access to the internet via telephone and modem.

"It gives people a high-speed digital link right from home," he said. "It's certainly one of the fastest-growing segments of the telecommunications market."

by CNB