Brookstone Announces Fiscal 1997 Fourth Quarter And Year-End Results.

NASHUA, N.H.--(BUSINESS WIRE)--March 24, 1998--Brookstone, Inc. (Nasdaq: BKST) today announced results for the fiscal 1997 fourth quarter and year ended January 31, 1998.

For the fourth quarter, the Company reported net income of $15,312,000, or $1.87 per diluted share, compared to net income of $13,346,000, or $1.65 per diluted share, reported in the same period last year. Fourth quarter sales of $123.0 million increased 9.5% compared to $112.3 million for the fourth quarter of last year. Same store sales for the comparable period increased 4.0%.

For fiscal 1997, the Company reported net income of $7,348,000, or $0.91 per diluted share, compared to net income of $5,873,000, or $0.73 per diluted share, reported for fiscal 1996. For the year, net sales increased 10.0% to $239.9 million compared to $218.0 million for last year. Same store sales for the comparable period increased 3.6%.

Michael Anthony, President and Chief Executive Officer, commented, "We are pleased with Brookstone s strong performance during both the fourth quarter and the full year. The 1997 earnings growth of 25% reflects continuing momentum, particularly on top of the significant improvement that we achieved last year. Driving our business with new and innovative products, we achieved solid same store sales growth and expense leverage this past year. We also made important advances in the areas of improved brand marketing and the successful tests of alternative retail formats, specifically airport and summer resort locations. We are excited about the opportunities that we see ahead in fiscal 1998 and are confident of our prospects." Brookstone, Inc. is a nationwide specialty retailer that operates 179 stores in 36 states and the District of Columbia. The stores, typically located in high-traffic regional shopping malls, feature consumer products that are both functional and distinctive in quality and design. The Company also operates a mail order business consisting of The Brookstone Collection and Hard-to-Find Tools catalogs, as well as an Internet site (http://www.brookstoneonline.com).

Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements due to the risk factors discussed in periodic reports filed by the Company with the Securities and Exchange Commission which the Company urges investors to consider.

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                            BROOKSTONE, INC.
               CONSOLIDATED STATEMENT OF OPERATIONS
               (in thousands, except per share data)
                            (unaudited)


                          Quarter Ended             Year Ended
                       1/31/98      2/1/97     1/31/98      2/1/97

Net sales             $122,959     $112,340   $239,866    $218,044
Cost of sales           67,741       62,587    151,633     137,612
Gross profit            55,218       49,753     88,233      80,432
Selling, general
 & admin. expenses      29,505       27,408     75,023      69,856
  Income from
   operations           25,713       22,345     13,210      10,576

Interest expense, net      445          320      1,084         885
Income before taxes     25,268       22,025     12,126       9,691

Income tax provision     9,956        8,679      4,778       3,818
Net income            $ 15,312     $ 13,346    $ 7,348     $ 5,873

Earnings per
 share (basic)        $   1.95     $   1.72    $  0.94     $  0.76
Earnings per
 share (diluted)      $   1.87     $   1.65    $  0.91     $  0.73

Weighted average
 shares outstanding
     Basic               7,859        7,775      7,824       7,744
     Diluted             8,193        8,068      8,119       8,061

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                          BROOKSTONE, INC.
                    CONSOLIDATED BALANCE SHEET
                           (in thousands)

                                     (Unaudited)
                                       1/31/98         2/1/97
ASSETS
Current Assets:
 Cash and cash equivalents            $ 16,906       $ 10,576
 Receivables, net                        5,532          5,448
 Merchandise inventories                37,285         31,266
 Deferred income taxes                   2,805          1,026
 Other current assets                    1,464          2,953
   Total current assets                 63,992         51,269

Deferred income taxes                   2, 916          1,845
Property and equipment, net             37,854         33,413
Other assets                               556            734

                                      $105,318       $ 87,261


LIABILITIES AND SHAREHOLDERS  EQUITY

Current Liabilities:
 Accounts payable                       14,440          8,616
 Other current liabilities              16,602         12,981
Total current liabilities               31,042         21,597

 Other long-term liabilities             9,812          8,923
 Long-term obligation under
  capital lease                          2,698          2,784

COMMITMENTS AND CONTINGENCIES

Common stock                                 8              8
Additional paid-in capital              47,124         46,663
Retained Earnings                       14,681          7,333
Treasury stock at cost                     (47)           (47)
   Total shareholders  equity           61,766         53,957

                                      $105,318       $ 87,261

CONTACT: BROOKSTONE, INC.

Philip Roizin

EVP Finance and

Administration

Brookstone, Inc.

[phone]

or

Naomi Rosenfeld 

Carolyn Capaccio

Media Contact:

Stacy Berns/Jeff Siegel

Morgen-Walke Associates

[phone]