Raychem and Essex Group Form Joint Venture to Supply High-Performance Wire to Auto Industry

        

   MENLO PARK, Calif.--Oct. 31, 1996--Raychem Corporation and Essex
Group, Inc. today announced the formation of a joint venture that will
manufacture and supply thin-wall, high-temperature wire to North
American auto makers and their suppliers worldwide.  Under the
agreement, the wire will be marketed through Raychem sales channels
and manufactured in Essex' high-volume production facility in
Lafayette, Indiana.
        
   The thin-wall wire meets automotive industry needs for a 
cost-competitive, lightweight, abrasion- and fluid-resistant product 
that withstands under-hood temperatures of up to 150 degrees C.  It 
accommodates industry needs for space-savings wiring harness systems 
in automobiles with higher electrical and electronic content, 
according to both companies.  
        
   "This joint venture combines Raychem's expertise in insulation 
materials with Essex' high-volume copper and wire processing 
capabilities to supply the new wire needed for today's electronically
sophisticated automobiles," said Peter Carson, vice president of 
Raychem's automotive business unit.  "It gives both companies the 
opportunity to accelerate their growth in the automotive industry."  
        
   "This is a great match up of the complementary strengths of Essex
and Raychem.  We will produce a new electrical and electronic 
distribution system wire that will enable our automotive customers to
enhance vehicle safety, performance and comfort," said Bob Faucher, 
executive vice president of corporate development for Essex Group, 
Inc.  
        
   Up to now, auto manufacturers have had to use conventional 
crosslinked polyethylene wire for applications requiring 125 degrees 
C protection and costly fluoropolymer insulations to survive higher 
temperature environments.  The high-temperature, thin-wall wire to be
supplied by the new joint venture offers significant performance 
benefits at a much lower cost than fluoropolymer systems.  
        
   Raychem and Essex Group will operate the joint venture as a 
limited liability company.  They will share equally in the investment
and initial earnings of the joint venture.  Initial start-up costs 
for setting up a dedicated manufacturing line at the Essex facility 
in Lafayette, Indiana, will be low and meaningful revenues are not 
expected for at least a year, according to both companies.  
 
   Raychem Corporation of Menlo Park, California, is an 
international company with approximately 8,500 employees in more than
40 countries and sales of $1.7 billion in fiscal 1996.  The company 
utilizes its expertise in materials science, product design and 
process engineering to develop, manufacture and market 
high-performance products for electronics, industrial and 
telecommunications applications.  More information on Raychem 
Corporation is available on the internet at http://www.raychem.com 
        
   Essex Group, Inc. is one of the world's largest producers of 
electrical wire and cable products and is included in the Fortune 
1,000 list of industrial and service companies and the Forbes 500 
list of privately-held companies.  Essex sales in 1995 exceeded 
$1.2 billion.  The company's business operations, supported by 28 
manufacturing facilities in 16 states, produce a broad product line 
that includes magnet wire, building wire, automotive wire, appliance 
wire, industrial wire, electronic wire, specialty wiring assemblies, 
communications wire and electrical insulation materials.  More 
information on Essex Group, Inc. is available on the internet at 
http://www.essexgroup.com 
        
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   CONTACT: Raychem Corporation
            Spencer Sias, 415/361-7840
        
              or 
        
            Essex Group, Inc.
            Tom Castaldi, 219/461-4389