CYRK announces financial results for third quarter ended Sept. 30, 1996.

GLOUCESTER, Mass.--(BUSINESS WIRE)--Nov. 6, 1996--CYRK, Inc. today announced an increase in sales for the third quarter ended September 30, 1996 of 110% over sales for the same period last year. Sales for the third quarter of 1996 were $55.6 million, compared to $26.4 million in the same period a year ago. For the nine month period ended September 30, 1996, net sales totaled $164.8 million, an increase of 57% or $60 million as compared to $104.8 million for the first three quarters of 1995.

For the third quarter of 1996, the company reported a net loss of $524,000 or $0.05 loss per share versus a net loss of $1.5 million or $0.14 loss per share in the third quarter of 1995. For the nine month period in 1996, net income was $126,000 or $0.01 earnings per share compared with a net loss of $871,000 or $0.08 loss per share last year.

"We continue to post strong top line growth and I am confident that this momentum will continue." said CYRK's president Patrick D. Brady. "Our 1996 goals called for us to diversify our customer base. Recently, we have been awarded several new promotional accounts. We have secured the internal corporate premium catalogs for customers in the banking, food, credit card and petroleum industries.

"Earlier this week we announced the acquisition of Marketing Incentives, Inc., an advertising specialty and promotional products sales organization with estimated 1997 sales of $20 million. This is a first step in our plan to acquire other similar companies in this industry segment.

"The Pepsi Stuff promotion has been a tremendous success, and has been described as the largest consumer event in Pepsi's history. We are extremely proud of our involvement in this promotion and the role it has played in Pepsi's acknowledged market share gains.

"Our backlog of written purchase orders at the end of September totaled $81.1 million and is at the highest level in eight quarters. One year ago at this time our backlog was $34.0 million.

"Domestically, we compete in a $70 billion, highly fragmented growth industry. Combined with international opportunities, and in particular, the United Kingdom, the overall global market is truly vast. We have committed investment spending in 1996 that has a short term negative impact on our net operating margins. However, we believe this is the appropriate long term strategy. We expect to yield significant international sales growth in 1997 from these steps."

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CYRK, INC.

CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)

ASSETS                       Sept. 30, 1996            Sept. 30, 1995
Current assets:
 Cash and cash equivalents       $ 31,950                $ 63,417
 Investments                       14,643                       -
 Accounts receivable, net          44,121                  19,358
 Inventories                       31,306                  24,231
 Prepaid expenses and other
   current assets                   9,307                  12,566
  Total current assets            131,327                 119,572

Property and equipment, net         9,777                   9,203
Other assets                        5,199                   3,601
Investment in affiliate             1,337                   2,899
Loan to affiliate                   3,850                   2,000
                                 $151,490                $137,275

LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable and
  accrued expenses               $ 26,880                 $11,381
 Total current liabilities         26,880                  11,381

Long-term liabilities                 599                     540
 Total liabilities                 27,479                  11,921

Stockholders' equity              124,011                 125,354
                                 $151,490                $137,275

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CYRK, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

                       Three Months Ended     Nine Months Ended
                           Sept. 30,             Sept. 30,
                        1996       1995       1996        1995
Net sales             $55,556    $26,403   $164,801    $104,810
Cost of sales          47,178     21,868    138,825      86,186
Gross profit            8,378      4,535     25,976      18,624
Selling, general
 and administrative
 expenses               9,378      7,590     26,695      22,044
Operating loss         (1,000)    (3,055)      (719)     (3,420)
Interest income, net     (650)      (855)    (1,866)     (2,284)
Equity in loss
 of affiliate             564        183        956         183

Income (loss) before
 income taxes            (914)    (2,383)       191      (1,319)
Income tax provision
 (benefit)               (390)      (887)        65        (448)

Net income (loss)      $ (524)   $(1,496)   $   126    $   (871)

Earnings (loss)
 per share             $( 0.05)  $ (0.14)   $  0.01    $  (0.08)
Weighted average
 shares outstanding     10,773    10,727     10,918      10,734

CONTACT: CYRK, Inc.

Dominic Mammola, 508/283-5800