Applewoods Announces 162% Revenue Increase.

WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 23, 1997--Applewoods Inc. (NASDAQ:APWD) announced today results for the company's three months ended Sept. 30, 1997.

Applewoods recorded a net loss of ($100,249) or ($0.01) per share on 8,472,000 weighted average Common Shares outstanding, on total revenues of $2,660,539. These results compare to a net loss of ($582,295) or ($0.07) per share on 8,524,364 weighted average Common Shares outstanding, on total revenues of $1,016,950 for the company's first quarter of its 1997 financial year.

Roger M. Buoy, the chairman and chief executive officer of Applewoods stated: "Our sales increased 162% over the same quarter of the prior year, and we are very encouraged by this revenue increase. In addition, we have signed distribution agreements in five (5) new countries. These are Singapore, Hong Kong, Malaysia, the Dominican Republic and Uruguay and expect to open new stores in each during the next year. In general, we are pleased with our progress and we continue to strive toward profitability."

This release, other than historical financial information, may contain forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward looking statements are set forth in the company's filings with the Securities and Exchange Commission.

Applewoods stores are located around the world in 29 countries. Applewoods develops and manufactures the majority of its products and sells toiletries, soaps, lotions and aromatherapy products for men and women. Applewoods shares of Common Stock are traded on The Nasdaq SmallCap Market.

CONTACT: Applewoods Inc.

Roger M. Buoy, 011 44 1626 831217 (President & CEO)