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ORANGE COUNTY EARNINGS

August 15, 1996

Research Engineers Inc.: The Yorba Linda provider of engineering design and analysis software products reported net income of $140,000, or 3 cents a share, for the first quarter ended June 30, compared to net income of $57,000, or 1 cent a share, for the like period last year. Revenue increased 50% to $2.1 million from $1.4 million.

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