DEP Corp. Doubles Operating Income for Fiscal 1997.

LOS ANGELES--(BUSINESS WIRE)--Sept. 22, 1997--DEP Corp. (Nasdaq/SmallCap:DEPC), a leading manufacturer and marketer of hair styling gels in the United States, Monday reported that for the fiscal year ended July 31, 1997, operating income doubled to $6.4 million, up from fiscal 1996 results of $3.1 million.

Sales for fiscal 1997 were $115.0 million compared with $119.1 million for the prior year. The company stated that while sales of the company's two largest brands, Dep and L.A. Looks, increased more than 5 percent, such increase was not sufficient to offset a $4.9 million decrease in sales of its Agree and Halsa brands.

The net loss for fiscal 1997 was $438,000, or 7 cents per share, a dramatic improvement over the net loss of $8.0 million, or $1.27 per share, for the prior year. Fiscal 1996 was substantially impacted by a charge of $3.9 million, or 62 cents per share, related to reorganization expenses.

Robert Berglass, president and chief executive officer of DEP, said: "I'm pleased to report that we have made significant financial progress since exiting Chapter 11 only nine months ago. Operating income, one of the best measures of our progress, more than doubled compared to last year, and was substantially higher than our Plan of Reorganization projections."

Earnings before interest, income taxes, depreciation and amortization (EBITDA) improved to $9.6 million. The company entered fiscal 1998 with more than $11 million of cash on hand.

The company stated that fiscal 1997 results improved due to a number of factors: 1) lower administrative expenses as a result of cost reduction programs and lower amortization expense; 2) lower reorganization expenses; and 3) decreased selling and delivery expenses due to the discontinuation of certain promotional expenses.

"We are determined to make every marketing dollar count. We discontinued certain promotional programs that were not delivering an adequate return and substituted more effective consumer advertising," said Berglass.

The company stated that it expects next fiscal year results to benefit from the full year net effect of price increases, continuation of cost containment programs and the introduction of two new brands, le systeme, a department-store type skin care line, and theorie, a salon-type hair care line.

"We are very excited about the introduction of the new products. In particular, they are superior formulations and have unique positions in the marketplace. We are supporting the introduction with high impact consumer advertising and promotional programs. While distribution has just begun, if successful, the company's gross margins will improve," said Berglass.

Complete financial information for fiscal 1997 will be released when the company files its Form 10-K in late October 1997.

DEP Corp., a leading manufacturer of hair styling gels in the United States, is a consumer products company that develops, manufactures and markets personal care products under 12 major trademarks: Dep, L.A. Looks, Agree, Halsa, Lilt, theorie, Natures Family, Porcelana, Cuticura, le systeme, Topol and Lavoris. -0-

Statements in this news release which are not historical facts, including statements about the company's confidence, strategies and expectations about new and existing products and opportunities, the demand and acceptance of new and existing products and markets and the return on investments in products and markets are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, product demand and market acceptance risks, product development risks, such as delays or difficulties in developing, producing and marketing new products, the impact of competitive products, pricing and advertising; constraints resulting from the financial condition of the company, including the degree to which the company is leveraged, debt service requirements and restrictions under bank loan agreements; and other risks described in the company's Securities and Exchange Commission filings. -0-

                      DEP CORP. AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                                           Twelve Months Ended
                                                 July 31,
                                        (Audited)        (Audited)
                                          1997             1996

Net sales                           $115,034,000     $119,088,000
Selling, general and
 administrative expense               63,760,000       70,986,000

Income from operations before
 reorganization items                  6,404,000        3,080,000

Interest expense                       6,813,000        7,120,000
Loss before reorganization items        (418,000)      (4,063,000)
Reorganization items                      20,000        3,895,000
Provision for income taxes                    --               --

Net loss                               ($438,000)     ($7,958,000)

Per share data:
   Loss before reorganization items       ($0.07)          ($0.65)
   Reorganization items                       --           ($0.62)

Net loss per share                        ($0.07)          ($1.27)

Weighted average shares outstanding    6,701,916        6,250,368

Cash and cash equivalents            $11,788,000      $11,118,000
Depreciation & Amortization           $3,181,000       $5,933,000
Capital expenditures                    $722,000         $378,000

CONTACT: DEP Corp., Rancho Dominguez, Calif.

D. Lee Johnson, 310/604-0777

or

Sitrick & Co.

Ann Julsen, 310/788-2850