Erox Announces Record Fourth Quarter Sales and Earnings.

FREMONT, Calif.--(BUSINESS WIRE)--Feb. 12, 1997--EROX Corporation (NASDAQ-SC: EROX) announced today record earnings for the fourth quarter ended December 31, 1996 of $823,637 ($.08 per share) as compared with $251,190 ($.02 per share) for the fourth quarter of 1995.

Sales for the current year quarter were $6,657,344 as compared with $3,783,518 in the prior year three month period. For the year ended December 31, 1996, sales grew to $20,323,028 from $8,973,313 in the prior year and resulted in net income of $1,217,558 ($.12 per share) as compared with a net loss of $983,027 ($.10 per share) for the comparable full year of 1995.

From a liquidity aspect, the Company said that it utilized net cash of less than $150,000 in 1996, and its Revolving Credit Agreement was adequate to cover seasonal cash needs to fund inventory and accounts receivable increases throughout the year.

A Company spokesperson indicated that "the years of scientific development that underlie REALM(R) fragrances, the only products containing synthesized human pheremones, continue to provide the Company with a discernible difference in the marketplace." Realm sales more than doubled at the retail level compared to single digit industry growth proving that the concept continues to be embraced by consumers. The Company also noted that repeat orders from established retailers represented a record 78% in the fourth quarter.

EROX manufactures and markets a line of prestige-priced fragrances and toiletries under the REALM(R) and EROX(R) trademarks. These products are the only ones that contain synthesized human pheremones as a component and have been shown to stimulate the Human Vomeronasal Organ.

The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. Further information on factors that could affect the Company's results is detailed in the Company's report on Form 10-KSB for the year ended December 31, 1995 and report on Form 10-QSB for the period ended September 30, 1996, as filed with Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. -0-

                   Condensed Statements of Income

                       Three months ended         Year ended
                          December 31,           December 31,

                        1996       1995        1996         1995

Net sales          $6,657,344  $3,783,518  $20,323,028   $8,973,313
Cost of goods       1,749,391   1,072,439    5,487,802    2,602,549

 Gross profit       4,907,952   2,711,079   14,835,226    6,370,764

Selling,
 general and
 administrative     3,840,366   2,398,240   13,088,248    7,178,882
Research and
 development          171,750      73,981      473,420      288,051

Operating income
 (loss)               895,837     238,858    1,273,558   (1,096,169)
Other income (loss)   (28,851)     12,332        8,082      113,142

Income (loss)
 before taxes         866,986     251,190    1,281,640     (983,027)
Taxes on income        43,349           0       64,082            0

Net income (loss)    $823,637    $251,190   $1,217,558   $ (983,027)

Net income (loss)
 per share              $0.08       $0.02        $0.12       $(0.10)

Common and
 common equivalent
 shares used in
 the calculation
 of net income
 (loss) per share  10,611,407  10,412,321   10,491,992    9,866,220

CONTACT: EROX Corp.

Maxine C. Harmatta, 510/226-6874