DEP reports second-quarter results.

LOS ANGELES--(BUSINESS WIRE)--March 20, 1995--DEP Corp. (NASDAQ:DEPCA/DEPCB) Monday reported net sales for the second quarter of 1995 were $31,011,000, compared with $33,345,000 in the second quarter of 1994.

Net sales principally fell as the result of a 14 percent decline in Agree and Halsa sales. Excluding sales of Agree and Halsa, hair care sales increased 4 percent for the 1995 second quarter over the same period in 1994. All the company's skin care brands continued to grow in the 1995 second quarter, resulting in an aggregate increase of 8 percent over the prior year's period.

While Topol toothpaste sales were flat compared with the same period of 1994, sales of Lavoris mouthwash and Jordan toothbrushes declined significantly.

For the second quarter of 1995, the company recorded a net loss of $779,000, or 12 cents per share, compared with a net loss of $4,382,000, or 70 cents per share, for the same period in the prior year. The reduction in the current period loss was primarily due to higher gross profits and lower selling, general and administrative expense, offset by higher interest expense.

For the first six months of 1995, net sales were $62,352,000, compared with $63,204,000 in the comparable period in 1994. The company reported a net loss of $745,000, or 12 cents per share, for the first six months of 1995, compared with a net loss of $4,601,000, or 73 cents per share, for the comparable period of the prior year.

``DEP Corporation continues to be negatively impacted by the steep decline in Agree and Halsa sales,'' said Chairman and President Robert Berglass. ``We believe the sales and marketing practices instituted by their previous owner, S.C. Johnson & Son Inc., dramatically affected the brands.''

Domestic combined sales of Agree and Halsa declined 34 percent to approximately $7.6 million for the six months ended Jan. 31, 1995, compared to the prior year. The company initiated litigation against S.C. Johnson & Son in March 1994.

``On the plus side, we are pleased with the sales growth of the L.A. Looks, Dep, Natures Family, Porcelana and Cuticura brands,'' Berglass said. According to independent market research data, market share for the Dep and L.A. Looks brands rose during the most current 12- and 52-week periods compared with the same periods one year earlier.

``In addition, international sales continue to increase, driven by the success of DEP's China joint venture,'' said Berglass.

As a result of the second-quarter net loss, the company is currently not in compliance with certain financial covenants relating to its bank loan and is discussing possible waivers of such covenants with its lenders. The company has consistently made and continues to make timely principal and interest payments under the bank loan and currently anticipates continuing to do so.

Following the close of the 1995 second quarter, the company initiated a plan to reduce operating expense. Dep Corp. reduced its non-production workforce by 9 percent, reduced the annual base salary of four of its top executives by 10 percent and reduced the salary of the chairman and president by 15 percent.

Future periods are expected to be positively affected by the savings, estimated to be approximately $1.2 million annually. These actions had no impact on second-quarter 1995 results.

``While I deeply regret the need to reduce our workforce, this was an essential step in reducing our cost structure,'' Berglass said. ``Our well-known trademarks are valuable assets, and I have no doubt we will emerge a stronger and more efficient company.''

DEP Corp. is a consumer products company that develops, manufactures and markets a wide variety of hair, oral and skin care products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa, Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura. -0-

               DEP CORPORATION -- FINANCIAL HIGHLIGHTS
                (in thousands, except per-share data)
                             (unaudited)

                       Three Months Ended        Six Months Ended
                            Jan. 31,                 Jan. 31,
                       1995          1994        1995        1994

Net sales            $ 31,011      $ 33,345    $ 62,352    $ 63,204
Gross profit           19,767        19,376      39,987      39,059
Selling, general
 & administrative      19,855        24,613      38,484      43,677
Income (loss) from
 operations               (88)       (5,237)      1,503      (4,618)
Interest expense        1,543         1,111       2,972       2,124
Net (loss)           $   (779)     $ (4,382)   $   (745)   $ (4,601)

Net (loss) per
 share              (12 cents)    (70 cents)  (12 cents)  (73 cents)
Weighted average
 shares outstanding 6,244,900     6,244,311   6,243,312   6,261,825

CONTACT: DEP Corp., Los Angeles

D. Lee Johnson, 310/604-0777, ext. 485