Brookstone Announces Third Quarter 1997 Results.

NASHUA, N.H.--(BUSINESS WIRE)--November 19, 1997--Brookstone, Inc. (Nasdaq: BKST) today announced results for the third quarter of fiscal 1997 ended November 1, 1997.

For the three months ended November 1, 1997, the Company reported a net loss of $3,733,000, or $0.48 per share, compared to a reported net loss of $3,281,000, or $0.42 per share, reported in the same period last year. Third quarter net sales of $38.9 million increased 11.1% compared to $35.0 million for the third quarter of last year, reflecting a comparable store sales increase of 4.5%.

For the first nine months of fiscal 1997 ended November 1, the Company reported a net loss of $7,964,000, or $1.02 per share, compared to a net loss of $7,474,000, or $0.97 per share, reported for the comparable period last year. Sales for the first nine months of fiscal 1997 increased 10.6% to $116.9 million compared to $105.7 million for the first nine months of last year. Same store sales for the first nine months increased 3.3%. Historically, new stores have had a significant negative impact on earnings during the first three quarters of the subsequent fiscal year they are open.

Michael Anthony, President and Chief Executive Officer, commented, "We are pleased with Brookstone s solid third quarter results. Our retail business performed well during the quarter, and new products contributed strongly to our sales growth. On the real estate front, we opened 6 new stores for a year-to-date total of 12 stores, including 2 airport locations, and are well underway to open 140 seasonal holiday stores this year. We are particularly enthusiastic about our 57th Street Manhattan flagship store that has enjoyed strong response since its opening approximately 10 days ago. In the mail order division, we are encouraged with the early results of the reformatted Brookstone Catalog. With a strong first nine months behind us, we feel well prepared as we enter the important holiday season."

Brookstone, Inc. is a nationwide specialty retailer operating 173 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 catalog business for hard-to-find tools and other household products.

                            BROOKSTONE, INC.
                 CONSOLIDATED  STATEMENT OF OPERATIONS
                 (IN THOUSANDS, EXCEPT PER SHARE DATA)
                              (Unaudited)

                      Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                         11/1/97  11/2/96     11/1/97   11/2/96

Net sales                $38,922 $ 35,022    $116,907  $105,704
Cost of sales             28,647   25,473      83,892    75,025
  Gross profit            10,275    9,549      33,015    30,679
Selling, general &
 administrative expenses  16,102   14,639      45,518    42,447
  Loss from operations    (5,827)  (5,090)    (12,503)  (11,768)

Interest expense, net        333      325         639       565
  Loss before taxes       (6,160)  (5,415)    (13,142)  (12,333)

Income tax benefit        (2,427)  (2,134)     (5,178)   (4,859)
  Net loss               $(3,733) $(3,281)   $ (7,964)  $(7,474)

Net loss per share       $ (0.48) $ (0.42)   $  (1.02)  $ (0.97)

Weighted average
 shares outstanding        7,802    7,761       7,794     7,734

                            BROOKSTONE, INC.
                      CONSOLIDATED BALANCE SHEET
                            (In Thousands)

                                  (Unaudited)                 (Unaudited)
                                  Nov. 1,1997   Feb. 1, 1997  Nov. 2, 1996
ASSETS

Current Assets:
 Cash and cash equivalents            $2,409      $10,576      $1,694
 Receivables, net                      4,556        5,448       5,250
 Merchandise inventories              47,950       31,266      50,245
 Deferred income taxes                 6,675        1,026       5,675
 Other current assets                  5,929        2,953       5,850
   Total current assets               67,519       51,269      68,714
Deferred income taxes                  2,493        1,845       1,864
Property and equipment, net           34,728       33,413      31,817
Other assets                           1,688          734       2,470

                                    $106,428      $87,261    $104,865

LIABILITIES AND SHAREHOLDERS  EQUITY

Current Liabilities:
 Short-term borrowings               $20,000           --     $22,985
 Accounts payable                     19,738        8,616      22,407
 Other current liabilities             9,437       12,981       7,645
     Total current liabilities        49,175       21,597      53,037

Other long-term liabilities            8,405        8,923       8,547
Long-term obligation under
 capital lease                         2,720        2,784       2,805

COMMITMENTS AND CONTINGENCIES

Common stock                               8            8           8

Additional paid-in capital            46,799       46,663      46,529
Retained Earnings                       (632)       7,333      (6,014)
Treasury stock at cost                   (47)         (47)        (47)
     Total shareholders  equity       46,128       53,957      40,476

                                    $106,428      $87,261    $104,865

CONTACT: BROOKSTONE, INC.

Philip Roizin, 603/880-9500

or

Morgen-Walke Associates

Naomi Rosenfeld/Carolyn Capaccio

Media Contact: Stacy Berns/Jeff Siegel 

212/850-5600