Central Garden & Pet Announces First Quarter Results for Fiscal 1997.

LAFAYETTE, Calif.--(BUSINESS WIRE)--February 6, 1997--

Revenues Up 28.2%; Seasonal Net Loss Reduced by 23.5%

Central Garden & Pet Company (NASDAQ: CENT), the nation's leading distributor of lawn and garden and pet supplies, today announced financial results for the fiscal first quarter ended December 28, 1996.

Net sales for the first quarter increased 28.2% to $100.1 million from $78.1 million in the comparable 1995 period. The company recorded a net loss for the quarter of $1.8 million, or $.12 per share, compared with a net loss of $2.4 million, or $.26 per share, in the comparable year ago period. Central typically shows losses in the three-month period ending in December, which is the slowest time of the year for the lawn and garden industry. The weighted average number of shares for the quarter increased to 14,474,000 compared to 8,959,000 in the comparable 1995 period, following a secondary offering of Central Common Stock on July 19, 1996.

"We are pleased with our year-over-year growth in the first quarter, and importantly, we continued to narrow the seasonal fluctuations in our earnings primarily through stronger results in our pet supply business," said William E. Brown, Chairman and Chief Executive Officer. "In particular, Central benefited greatly from the strategic acquisitions of Kenlin Pet Supply and Longhorn Pet Supply, which both closed in Central's fourth quarter of 1996."

Brown added, "As we look forward to the balance of the year, we will continue to focus on maintaining momentum in our pet supply and proprietary branded products businesses, while preparing for the upcoming active spring and summer lawn and garden season."

Central Garden & Pet Company is the leading national distributor of lawn, garden and pet supply products, and a major national distributor of pool supplies. Central offers customers a wide array of value-added services designed to increase the sales and profitability of both manufacturers and retailers, including inventory management, advertising and promotional programs, in-store design and display assistance and sales program development. Central also offers lines of proprietary branded products which include Four Paws(R) pet products, Island(R) aquariums, Matthews(R) redwood products and Grant's(R) ant control products.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward- looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward- looking statements. These risks are described in the Company's Securities and Exchange Commission filings. -0-

                      Central Garden and Pet Company

                   Consolidated Statements Of Operations

                              (Unaudited)
                 (In thousands except per share amounts)


                                 Three Months Ended
                           December 28,       December 30,
                              1996               1995


Net Sales                  $ 100,144          $ 78,112

Cost of Goods Sold
and Occupancy                 82,690            66,792

   Gross Profit               17,454            11,320

Selling, General and
Administrative Expenses       19,633            14,018

   Loss from Operations       (2,179)           (2,698)

Interest Expense - Net          (937)           (1,376)

Loss Before Income Taxes      (3,116)           (4,074)

Income Taxes                  (1,309)           (1,711)

   Net Loss                 $ (1,807)         $ (2,363)

Net Loss per Common and
Common Equivalent Share
Fully Diluted               $  (0.12)         $  (0.26)

   Primary                  $  (0.12)         $  (0.26)

Weighted Average Shares
Outstanding
   Fully Diluted              14,474             8,959

   Primary                    14,474             8,959

-0-

                         Central Garden & Pet Company
                    Condensed Consolidated Balance Sheets

                            (Dollars in Thousands)


                                December 28,   September 28,
                                   1996            1996
                                (Unaudited)

Assets
Current Assets:
  Cash and Cash Equivalents       $ 73,826        $ 1,272
  Accounts Receivable               78,673         62,231
  Inventories                      219,696        169,835
  Other Current Assets               7,180          7,132
  Total Current Assets             379,375        240,470

Property and Equipment - Net        11,721         11,464

Other Assets                        34,906         31,730

Total Assets                     $ 426,002      $ 283,664


Liabilities & Shareholders'
Equity
Current Liabilities:
  Notes Payable                        -         $ 27,904
  Accounts Payable                $173,138        104,049
  Other Current Liabilities          8,416         12,847

  Total Current Liabilities        181,554        144,800

Long-Term Liabilities              115,000          7,635

Other Long-Term Obligations          1,670          1,670

Shareholders' Equity               127,778        129,559

Total Liabilities &
   Shareholders' Equity          $ 426,002      $ 283,664

CONTACT: Central Garden & Pet

Gregory Reams, 510/283-4573

or

Sard Verbinnen & Co.

Paul Verbinnen/Debbie Miller, 212/687-8080