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DIY HOME WAREHOUSE ANNOUNCES RECORD SALES AND EARNINGS

 CLEVELAND, Oct. 28 /PRNewswire/ -- Clifford L. Reynolds, President and Chief Executive Officer of DIY Home Warehouse, Inc. (NASDAQ-NMS: DIYH) today announced record sales and earnings for the quarter ended Oct. 2, 1993.
 Sales for the third quarter of fiscal 1993 were $23,388,000 compared to $18,220,000 for the same period of 1992, a 28.4 percent increase. The increase resulted from the addition of new stores in Bedford, Brook Park, and Boardman, Ohio. Comparable store sales decreased 3.5 percent due primarily to anticipated cannibalization by the company's new stores.
 Operating income increased 81.4 percent for the third quarter of fiscal 1993 to $1,596,000 from $880,000 in the third quarter of fiscal 1992.
 In connection with the company's initial public offering on May 18, 1993, the company revoked its election to be taxed as an S corporation whereby its shareholders were taxed directly, and, on that date, began being taxed as a C corporation. Had the company been taxed as a C corporation for prior comparable periods, pro forma net income would have been $1,003,600, or $0.13 per share for the third quarter of fiscal 1993 compared with $527,300 or $0.10 per share for the third quarter of 1992.
 Sales for the nine month period ended Oct. 2, 1993, were $66,000,000, a 28.3 percent increase over sales in 1992 of $51,450,000.
 Treating both the nine month periods for 1993 and 1992 as if taxed as a C corporation at a 41 percent effective tax rate, pro forma net income would have been $2,663,000, $0.42 per share for the nine month period ended Oct. 2, 1993, and would have been $1,653,000, $0.33 per share for the comparable 1992 period.
 DIY HOME WAREHOUSE, INC.
 CONDENSED BALANCE SHEET (Unaudited)
 (Dollar amounts in thousands)
 October 2, January 2,
 1993 1993
 ASSETS
 Cash and cash equivalents $12,063 $ 465
 Merchandise inventories 16,375 9,700
 Other current assets 786 366
 TOTAL CURRENT ASSETS 29,224 10,531
 Property and equipment, net 7,870 3,295
 Other assets 46 409
 TOTAL ASSETS $37,140 $14,235
 Liabilities and Shareholders' Equity
 Notes payable $ 900 $ 2,500
 Accounts payable 8,813 3,693
 Other current liabilities 2,340 2,108
 Total current liabilities 12,053 8,301
 Long-term debt and other 94 1,235
 Total shareholders' equity 24,993 4,699
 Total liabilities and
 shareholders' equity $37,140 $14,235
 DIY HOME WAREHOUSE, INC.
 CONDENSED STATEMENT OF INCOME (Unaudited)
 (Dollar amounts in thousands except per share data)
 For The For The
 Three Months Ended Nine Months Ended
 Oct. 2, Sept. 26, Oct. 2, Sept. 26,
 1993 1992 1993 1992
 Net sales $23,388 $18,220 $66,000 $51,450
 Cost of sales 16,553 13,024 46,980 36,693
 Gross profit 6,835 5,196 19,020 14,757
 Operating expenses 4,973 3,947 13,886 11,049
 Store preopening costs 266 368 752 955
 Operating income 1,596 881 4,382 2,753
 Other income
 (expense) net 105 13 131 49
 Income before
 income taxes 1,701 894 4,513 2,802
 Taxes on Income(A) 591 0 1,181 0
 Net Income $ 1,110 $ 894 $ 3,332 $ 2,802
 Net Income per Share $ 0.15 $ 0.17 $ 0.52 $ 0.56
 Weighted average common
 equivalent shares
 outstanding 7,625,000 5,143,406 6,398,901 5,047,802
 Pro forma data(A)
 Net income $ 1,004 $ 527 $ 2,663 $ 1,653
 Net income per share $ 0.13 $ 0.10 $ 0.42 $ 0.33
 (A) -- In connection with the company's initial public offering on May 18, 1993, the company revoked its election to be taxed as an S corporation whereby its shareholders were taxed directly, and on that date, began being taxed as a C corporation. Assuming a 41 percent effective tax rate and the inclusion of certain shares issued in 1992, pro forma net income per share would have been $.13 and $.10 for the three months ended Oct. 2, 1993, and Sept. 26, 1992, respectively, and $.42 and $.33 for the nine months ended Oct. 2, 1993, and Sept. 26, 1992, respectively.
 DIY Home Warehouse, Inc. operates 7 warehouse format home centers which sell products primarily to do-it-yourself home repair and remodeling customers, in the northeast Ohio marketplace. The company was ranked fifth out of 200 "best small companies in America," in the Nov. 8, 1993, issue of Forbes magazine.
 DIY Home Warehouse is traded on NASDAQ and is quoted daily in The Wall Street Journal. Its NASDAQ symbol is DIYH.
 -0- 10/28/93
 /CONTACT: Clifford L. Reynolds, President and Chief Executive Officer, of DIY Home Warehouse, 216-328-5100/
 (DIYH)


CO: DIY Home Warehouse, Inc. ST: Ohio IN: REA SU: ERN

KL-AR -- CL006 -- 8118 10/28/93 16:13 EDT
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