Boston Acoustics Announces First Quarter Results.

    Business Editors

      PEABODY, Mass.--(BUSINESS WIRE)--July 20, 2000--Boston Acoustics,
Inc. (NASDAQ:BOSA) today announced its financial results for the first
quarter ended June 24, 2000.
      Net sales for the quarter increased approximately 5%, to $22.8
million from $21.8 million for the same period a year ago, while net
income remained relatively stable. Diluted earnings per share
increased 9.5% to $.23 per share compared to $.21 per share for the
same period a year ago.
      CEO Andy Kotsatos stated, "Sales increased in both the Core and
Multimedia segments of our business. We anticipate these trends will
continue through the end of the fiscal year ending March 31, 2001."
      "New products introduced last year in our Core business have been
well received by dealers and consumers alike, and we ended the quarter
with $1.2 million in backorders.
      "We now anticipate that our Multimedia OEM sales will increase in
the fiscal year ending March 31, 2001, based on the latest information
available from our customer. In addition, quarterly sales to our
Multimedia retail customers exceeded $1 million for the first time."
      Boston Acoustics, Inc. provides audio solutions for home
entertainment, automobiles and personal computers. Founded in 1979,
Boston Acoustics is located in Peabody, Massachusetts.

                                           Three Months Ended
                                       June 24, 2000   June 26, 1999

Net Sales                              $ 22,823,028    $ 21,845,332
Cost of Goods Sold                       15,558,859      14,805,224

  Gross Profit                            7,264,169       7,040,108

Selling and Marketing Expenses            2,708,739       2,521,173
General and Administrative Expenses       1,254,393       1,099,823
Engineering and Development Expenses      1,375,650       1,400,131

  Total Operating Expenses                5,338,782       5,021,127

  Income from Operations                  1,925,387       2,018,981
Interest Income (Expense), net              (85,903)       (171,538)

  Income before provision
   for income taxes                       1,839,484       1,847,443
Provision for Income Taxes                  690,000         708,000

  Net Income                           $  1,149,484    $  1,139,443

Basic Earnings per Share               $        .23    $        .23
Diluted Earnings per Share             $        .23    $        .21
Weighted Average Shares
 Outstanding
    Basic                                 4,908,245       5,012,689
    Diluted                               4,914,654       5,348,744


Consolidated Balance Sheets

                                June 24, 2000   March 25, 2000
Assets
Current Assets
Cash, cash equivalents
 and investments                  $ 1,632,826      $ 1,506,741
Accounts Receivable                11,599,958       12,632,632
Inventories                        21,417,769       19,333,515
Other current assets                2,656,145        2,696,536

  Total current assets             37,306,698       36,169,424
Property and equipment, at cost    16,686,891       15,614,034
Other assets                        1,082,018        1,080,569

  Total assets                    $55,075,607      $52,864,027

Liabilities and
 Shareholders' Equity
Current liabilities
Accounts payable                  $ 7,043,815      $ 6,002,158
Accrued payroll &
 related expenses                   2,228,650        2,148,272
Current maturity line of credit     1,533,499        1,602,287
Other current liabilities           2,264,449        1,588,401

  Total current liabilities        13,070,413       11,341,118
Line of credit                      4,600,000        4,850,000
Shareholders' equity               37,405,194       36,672,909

  Total liabilities and
   shareholders' equity           $55,075,607      $52,864,027
*T

      Certain statements in this press release contain certain
forward-looking statements concerning Boston Acoustics' operations,
economic performance and financial condition. Such forward-looking
statements are based on a number of assumptions and involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Boston Acoustics to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Factors that could cause such differences include, but are not limited
to, those discussed in the Company's Annual Report on Form 10-K for
the fiscal year ended March 25, 2000. The words "believe," "expect,"
"anticipate," "intend," and "plan" and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made.

    --30--kms/bos*

    CONTACT: Boston Acoustics, Inc.
             978-538-5000
             Andy Kotsatos
             [e-mail]
                 or
             Moses Gabbay
             [e-mail]
                 or
             Debby Ricker-Rosato
             [e-mail]

    KEYWORD: MASSACHUSETTS
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE
TELEVISION/RADIO EARNINGS