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CHILD CARE FIRM INCREASES NEW CENTERS AND ENROLLMENTS

 SAN RAFAEL, Calif., Nov. 16 ~PRNewswire~ -- Children's Discovery Centers of America Inc. (NASDAQ: CDCRA) today announced that it has agreed to acquire the business of Pacific Northwest Childcare, an eight-center child care company which operates in the Olympia and Vancouver, Washington markets. The acquisition, which is expected to be completed well before the end of 1992, will raise the number of centers operated by the company to 134, an increase of 41 centers or approximately 45 percent from the 93 centers the company was operating at the beginning of the year.
 On Nov. 5, 1992, the company announced that it had completed the acquisition of two other child care chains in Pennsylvania and New Jersey which operate a combined total of 23 centers.
 Additionally, the company announced that it had been awarded a contract by the New York Port Authority to operate a child care center in the World Trade Center in New York City, which houses 50,000 employees. Also, the company stated that it will open new centers for Amgen in Thousand Oaks, Calif., and for the City of Torrance, Calif., in January and April, respectively.
 The company also announced that same center enrollments for the 1992~1993 school year increased approximately 6 percent over last year. Weak enrollments had been plaguing the child care industry and depressing profits since the recession began in 1990.
 Richard A. Niglio, president and chief executive officer of Children's Discovery Centers, said, "Market conditions for the child care industry are definitely improving. Our strong enrollment increase is particularly notable in that it directly followed a 5 percent price increase instituted for the new school year."
 The improving market conditions are attributed to the closing of competitive centers that were casualties of the recession and, to a lesser extent, to improving economic conditions. Niglio added that further enrollment gains for the company are expected as the nation's economy and employment numbers continue to improve.
 Children's Discovery Centers also announced that its revenues for the third quarter and nine months ending Sept. 30, 1992, increased to $5,980,000 and $17,982,000, respectively. The company reported net losses for the quarter and nine months of $509,000 or 28 cents per share and $721,000 or 39 cents per share, respectively.
 In addition to weak enrollments which persisted through the summer period, a number of timing factors contributed to the loss for the quarter which is traditionally the weakest period of the year.
 General and administrative expenses were increased during the quarter to higher than normal levels in anticipation of the planned acquisition of over 30 additional centers during the fourth quarter. These expenses, as a percentage of revenues, are expected to decline in future periods as a result of the completion of these acquisitions. The company also increased its spending on advertising, incentives, school supplies and other promotional activities during the quarter in its successful effort to increase enrollments. This effort is expected to significantly benefit future periods. Finally, startup expenses associated with the establishment of new job site centers for employers negatively impacted the quarter. These operations are planned to contribute significantly to future profitability.
 The company indicated that, as a result of the enrollment and new center growth, it expects to return to profitable operations in the months ahead and to continue its growth pattern.
 Children's Discovery Centers, the nation's fifth largest child care company, operates centers in the Northeastern, Mid-Atlantic, Midwestern, and Western United States, and is a leading operator of job site child care centers for employers.
 Children's Discovery Centers of America Inc.
 Financial Results
 (Thousands Except Per Share Data)
 Three Months Nine Months
 Ended Sept. 30 Ended Sept. 30
 1992 1991 1992 1991
 Revenues $5,980 $5,263 $17,982 $14,105
 Net Loss $ (509) $ (198) $ (721) $ (184)
 Net Loss Per Share $(0.28) $(0.19) $ (0.39) $ (0.21)
 Weighted Average
 Number of Shares 1,834 1,029 1,834 858
 -0- 11~16~92
 ~CONTACT: Richard A. Niglio, president, or Frank A. Devine, general counsel, both of Children's Discovery Centers of America, 415-459-1291~
 (CDCRA)


CO: Children's Discovery Centers of America, Inc. ST: California IN: SU: ERN

ML-TM -- SF010 -- 1546 11~16~92 17:49 EST
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Date:Nov 16, 1992
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