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A&W BRANDS, INC. REPORTS SECOND QUARTER EARNINGS ROSE 11% ON RECORD SALES

 WHITE PLAINS, N.Y., July 20 /PRNewswire/ -- A&W Brands, Inc. (NASDAQ: SODA) today announced net earnings of $3,706,000 or $.27 per share, on record net sales of $40,581,000 for the three-month period ending June 30, 1993. In the second quarter of 1992, A&W reported net earnings of $3,341,000, or $.24 per share, on net sales of $38,873,000.
 For the first six months of 1993, A&W reported net earnings of $7,611,000 or $.55 per share, on net sales of $66,380,000. For the same period in 1992, A&W reported net earnings of $7,287,000 or $.52 per share, on net sales of $65,737,000.
 "Our 1993 second quarter net sales were the highest in the Company's history," said M.L. Lowenkron, Chairman and Chief Executive Officer, "resulting in net earnings growth of 11% versus 1992 results. Our domestic unit sales volume increased 3% with growth contributed by both core brands as well as Tetley and Everlast products."
 Lowenkron continued, "We maintained our distribution strategy with our Tetley and Everlast businesses and as a result have achieved U.S. distribution of 80% and 35%, respectively, for these brands. However, the marketing, distribution and logistics investments to establish Tetley and Everlast have resulted in a second quarter investment loss of $.03 per share on these new businesses."
 This Company also reported the following:
 o Ruby Red Squirt and hot-fill Country Time Lemonade were
 placed in test markets in 1993 but will not provide any
 profit contribution this year. With the FDA approval of
 aspartame in non-carbonated citrus beverages, a Diet Country
 Time Lemonade is being prepared for national roll out in
 1994. These three new products being introduced under
 established trademarks will offer meaningful profit
 opportunities in 1994.
 o The Company under its stock repurchase program has acquired
 to date 482,000 shares of its common stock in the open
 market; the Board of Directors previously authorized the
 repurchase of up to 750,000 shares.
 o The Company declared its tenth consecutive quarterly cash
 dividend of $0.08 per common share paid on July 15, 1993 to
 shareholders of record on July 1, 1993.
 "We were most pleased," Lowenkron concluded, "to have achieved sales growth in our core business despite the very competitive environment that continues to prevail in the soft drink industry. And, we are continuing to make marketing investments in 1993 with our Tetley and Everlast businesses to establish these brands for long term profitability. We remain optimistic that for the balance of the year we will maintain our business growth and as a result we expect sales and earnings to show continued improvement over 1992 results."
 A&W Brands, Inc., based in White Plains, New York, is a leading marketer of soft drinks in niche flavor segments.
 A&W BRANDS, INC.
 ACTUAL OPERATING RESULTS
 (IN THOUSANDS, EXCEPT PER SHARE DATA)
 (UNAUDITED)
 APRIL 1 TO JANUARY 1 TO
 JUNE 30 JUNE 30
 SECOND QUARTER SIX MONTHS
 1993 1992 1993 1992
 Net Sales $40,581 $38,873 $66,380 $65,737
 Cost of Sales 8,139 7,427 12,485 12,341
 Gross Profit 32,442 31,446 53,895 53,396
 Marketing Expenses
 22,831 22,315 33,895 33,483
 General & Administrative
 2,949 3,117 6,247 6,649
 Amortization of Intangibles
 706 707 1,415 1,415
 Total Operating Expenses
 26,486 26,139 41,557 41,547
 Operating Income 5,956 5,307 12,338 11,849
 Interest Expense 11 70 20 182
 Other (Income) Expense, net
 ( 131) ( 238) ( 160) ( 275)
 Earnings Before Taxes
 6,076 5,475 12,478 11,942
 Income Taxes 2,370 2,134 4,867 4,655
 Net Earnings $ 3,706 $ 3,341 $ 7,611 $ 7,287
 Net Income per Common Share
 $ 0.27 $ 0.24 $ 0.55 $ 0.52
 Average Common Shares
 Outstanding 13,698 13,924 13,776 13,891
 -0- 7/20/93
 /CONTACT: Ernest J. Cavallo of A&W Brands, Inc., 914-397-1700/
 (SODA)


CO: A&W Brands, Inc. ST: New York IN: FOD SU: ERN

SH -- NY015 -- 6586 07/20/93 08:52 EDT
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Date:Jul 20, 1993
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