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CIRCLE FINE ART REPORTS FINANCIAL RESULTS FOR FISCAL 1992 THIRD QUARTER AND FIRST NINE MONTHS, ANNOUNCES COMPLETION OF FINANCIAL RESTRUCTURING

CIRCLE FINE ART REPORTS FINANCIAL RESULTS FOR FISCAL 1992 THIRD QUARTER AND FIRST NINE MONTHS, ANNOUNCES COMPLETION OF FINANCIAL RESTRUCTURING
 CHICAGO, Aug. 17 /PRNewswire/ -- Circle Fine Art Corp. (NASDAQ: CFNE) today reports revenues and earnings for its third quarter and for the nine months ended June 30, 1992.
 CIRCLE FINE ART CORP.
 QUARTER ENDING JUNE 30 1992 1991
 Revenues $5,999,000 $7,682,000
 Pre-tax income ($1,146,000) ($1,642,000)
 Income taxes -- $625,000
 Net income ($1,146,000) ($1,017,000)
 PER SHARE EARNINGS
 Net income ($.46) ($.41)
 NINE MONTHS ENDING JUNE 30
 Revenues $19,879,000 $26,971,000
 Pre-tax income continuing operations ($3,864,000) ($3,468,000)
 Pre-tax income discontinued operations ($526,000) --
 Income taxes -- $1,355,000
 Net income ($4,390,000) ($2,113,000)
 PER SHARE EARNINGS
 Income from continuing operations ($1.56) ($.85)
 Net income ($1.77) ($.85)
 Figures in parenthesis are losses.
 "The art market continues soft, but it seems to have hit bottom, and is slowly improving," noted Jack Solomon, chairman. "Our strategy of downsizing and cost containment is working as evidenced by the continuing quarter by quarter improvement in cutting operating losses.
 "Turning to another matter which is very important, I am pleased to announce that on Aug. 13, 1992, the company formally concluded its financial restructuring," Solomon said. "As part of the restructuring, interest rates have been significantly reduced, periodic principal payments have been postponed on the company's long-term subordinated debt and the company's revolving term credit has been extended, principally as long-term debt with certain periodic payments due on a monthly basis. In addition, the company raised $867,500 of new capital by selling 667,000 newly issued common shares for $500,000 to a management group, while Chrysler Capital Corporation exercised certain warrants it held for 245,000 shares of common stock at $1.50 per share ($367,500). Chrysler's shares were paid for by a reduction in the outstanding balance of the company's subordinated debt.
 "When you consider the continuing positive effects of our downsizing and cost containment measures, a modest up-turn in the art market, and the substantial savings accruing to Circle Fine Art in the future as a result of the financial restructuring, you can see why management is optimistic that Circle is on the road to returning to profitability," Solomon concluded.
 Solomon continued, "At the end of June, a Circle Gallery of Animation and Cartoon Art was opened in a prime location on Michigan Avenue in Chicago. A full scale Circle Gallery is scheduled to open in mid-September in the Somerset Collection Shopping Center in Troy, Mich. The Troy Circle will feature paintings, graphics, Art to Wear and animation art. Both locations were selected for their access to affluent shoppers and heavy traffic patterns. The Michigan Avenue location had a very successful opening and continues to exceed our expectations."
 Circle Fine Art Corp. publishes and distributes limited edition original graphics, deals in contemporary fine art and manufactures and distributes "Art To Wear" limited edition fine art jewelry designed by a number of the world's leading contemporary artists. The company owns and operates 33 fine art galleries in the United States and Canada. The company also owns The Art Collectors Circle(TM), a club for both beginning and advanced art collectors which it operates in association with the American Express Company.
 -0- 8/17/92
 /CONTACT: Jack Solomon, chairman, or Joseph Atkin, vice president, 312-616-1300, of Circle Fine Art Corp./
 (CFNE) CO: Circle Fine Art Corp. ST: Illinois IN: SU: ERN


PS -- NY072 -- 0628 08/17/92 15:45 EDT
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Date:Aug 17, 1992
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