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ALOETTE COSMETICS REPORTS SECOND QUARTER RESULTS

 ALOETTE COSMETICS REPORTS SECOND QUARTER RESULTS
 WEST CHESTER, Pa., July 24 /PRNewswire/ -- Aloette Cosmetics, Inc.


(NASDAQ: ALET) today reported total revenues for the three months ended June 30, 1992, of $5.9 million, a 9 percent decrease from $6.5 million a year ago.
 Net income for the second quarter was $407,000 or $.19 per share compared to $1.1 million or $.46 per share in 1991.
 The reduction in net income was primarily attributable to the recognition of a gain on the sale of the company's former corporate headquarters in the second quarter of 1991 and the effect of the under- utilization of Superior Products Company, the company's manufacturing facility located in Texas. Scheduled renovations under the restructuring plan announced in February 1992 to consolidate cosmetic and skin care manufacturing are continuing at this facility, and phase- in of production of Aloette's products is expected to begin during the third quarter.
 Net product sales for the three months ended June 30, 1992, totalled $5.1 million compared to $5.6 million for the same period last year. The exclusion of sales from the company's Canadian manufacturing facility scheduled for closure under the restructuring plan mentioned previously accounted for 58 percent of the decline with sales totalling approximately $300,000 in the second quarter of 1991. Sales at Superior Products for the same period represented approximately 23 percent of the decline totalling $600,000 in 1992, compared to 1991 levels of $748,000. Canadian net product sales of $2.2 million were relatively flat while sales to domestic franchises decreased slightly to $2.3 million from $2.4 million for the second quarter of 1991.
 The company also reported total revenues of $11 million for the six months ended June 30, 1992, vs. $12.1 million in 1991. Net income for the same period decreased to $748,000 or $.35 per share, vs. $1.8 million or $.67 per share for the comparable 1991 period.
 Albert E. Edwards, president and chief operating officer, stated, "As we've indicated previously, 1992 has been identified as a year of investment for Aloette, and we are pleased with our progress to date. We've completed the introduction of several marketing and sales support tools and will be launching a new product training video and audio cassette in the third quarter. The manufacturing renovations at Superior Products are on schedule and we are gearing up to reinstate production of Aloette skin care in the third quarter. While we are somewhat disappointed with our operating results for the first six months of the year, we have confidence in the effectiveness of our new marketing and sales strategies. In addition, we are continuing to review our marketing and distribution systems with emphasis on more closely meeting the market demands of the nineties. Accordingly, preliminary test results from several recent enhancements to our recruiting strategies have been encouraging."
 Aloette Cosmetics, a franchisor, direct marketer and manufacturer of skin care products and cosmetics, is located in West Chester.
 ALOETTE COSMETICS INC.
 (In thousands, except per-share data)
 Pct.
 Three months ended June 30 1992 1991 Change
 Total revenues $5,908 $6,482 (9)
 Total costs and expenses 5,220 5,057 3
 Operating income 688 1,425 (52)
 Income before income taxes
 and extraordinary item 681 1,792 (62)
 Extraordinary item 20 --- 100
 Net income 407 1,096 (63)
 Per share data:
 Earnings before
 extraordinary item .18 .46 (61)
 Extraordinary item .01 --- 100
 Earnings .19 .46 (59)
 Weighted average shares 2,155 2,369 (9)
 Pct.
 Six months ended June 30 1992 1991 Change
 Total revenues $10,991 $12,138 (9)
 Total costs and expenses 9,794 9,786 ---
 Operating income 1,197 2,352 (49)
 Income before income taxes
 and extraordinary item 1,162 2,910 (60)
 Extraordinary item 90 --- 100
 Net income 748 1,764 (58)
 Per share data:
 Earnings before
 extraordinary item .31 .67 (54)
 Extraordinary item .04 --- 100
 Earnings .35 .67 (48)
 Weighted average shares 2,155 2,649 (19)
 /delval/
 -0- 7/24/92
 /CONTACT: Jean M. Lewis, vp-finance of Aloette Cosmetics, 215-692-0600/
 (ALET) CO: Aloette Cosmetics, Inc. ST: Pennsylvania IN: REA SU: ERN


CC -- PH025 -- 3236 07/24/92 19:07 EDT
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Date:Jul 24, 1992
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