Big B, Inc. reports financial results.

BESSEMER, Ala.--(BUSINESS WIRE)--Nov. 14, 1995--Big B, Inc. (OTC symbol BIGB), announced today record sales for both the twelve and thirty-eight week periods ended Oct. 21, 1995.

Sales rose 8.5% to $516,054,000 for the thirty-eight week period from $475,421,000 in the prior year while sales for the third quarter rose to $161,312,000 up 7.4% from $150,143,000 previously.

Net income for the thirty-eight weeks rose 2.9% to a record $8,310,000 from $8,075,000 in the prior year. For the third quarter, Big B recorded net income of $263,000 as compared to net income of $1,593,000 previously. Declining gross margins resulting primarily from rising third party pharmacy sales which carry much lower gross margins accounted for the decline in earnings.

Fully diluted earnings per share declined to $.46 from $.49 in the prior year, and declined to $.02 from $.10 in the twelve week third quarter.

Anthony Bruno, Chairman and CEO, stated that these results follow nineteen consecutive quarters of sales and earnings increases Big B had previously recorded. Bruno added that he was disappointed in the third quarter results and expects the decline in pharmacy margins to negatively affect fourth quarter earnings also. "With the improved capabilities of the newly installed PDX pharmacy system, management is optimistic that the decline in pharmacy margins will moderate in the coming fiscal year, and that this, coupled with expected margin improvement in non-pharmacy sales and improved inventory control resulting from POS data now available, will lead to increased profitability in the coming year," Bruno said.

Big B's Board of Directors expressed their confidence in the Company's future by declaring a quarterly dividend of $.05 per share payable Dec. 8, 1995, to shareholder's of record on Nov. 24, 1995.

Big B opened five new stores during the third quarter and consolidated two bringing to fourteen the number of new stores opened in the fiscal year. Ten new stores are planned for the fourth quarter. The new stores are located in Bessemer and Hanceville, Ala.; and Atlanta (2) and Augusta, Ga.

Big B operates 376 stores and is the nation's 10th largest drug chain with stores in Alabama (164), Georgia (161), Florida (23), Mississippi (7) and Tennessee (21). -0-

                              BIG B, INC.
                          Financial Highlights

                       Year to Date           Twelve Weeks Ending

                  10/21/95      10/22/94      10/21/95      10/22/94
Sales           $516,054,000  $475,421,000  $161,312,000  $150,143,000
Net Income      $  8,310,000  $  8,075,000  $    263,000  $  1,593,000

Net Income Per
 Common Share:
  Fully Diluted        $0.46         $0.49         $0.02         $0.10
  Primary              $0.48         $0.52         $0.01         $0.10

Average Share
 Outstanding:
  Primary                 18,572,140
  Fully Diluted           20,830,199

CONTACT: Big B, Inc., Bessemer

Mike Tortorice, 205/424-3421 ext. 213