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GROW GROUP REPORTS FAVORABLE THIRD QUARTER RESULTS

 GROW GROUP REPORTS FAVORABLE THIRD QUARTER RESULTS
 NEW YORK, April 20 /PRNewswire/ -- Grow Group, Inc. (NYSE: GRO)


today reported that net income for the third quarter ended March 31, 1992, historically a seasonally low quarter, was $334,000 or $0.03 per share on revenues of $96,136,000. This compares to last year's third quarter loss of $15,130,000 or $1.33 per share on revenues of $91,798,000. Last year's third quarter results included an $11,100,000 after-tax charge arising from the restructuring of Grow's Consumer and Professional Products Group.
 For the nine months ended March 31, 1992, Grow earned $3,785,000 or $.32 per share on revenues of $298,497,000 versus last year's nine month loss of $16,629,000 or $1.46 per share on revenues of $287,302,000. Fiscal 1992 results include recoveries of insurance claims net of provisions for other unusual items amounting to $900,000 after-tax. Fiscal 1991 nine month results included an $11,100,000 or $.98 per share after-tax charge for the restructuring of Grow's Consumer and Professional Products Group and a one-time gain arising from the repurchase of debt.
 Commenting on the results, Russell R. Banks, president and CEO, stated, "Operating results for our third quarter provide further evidence of the success of Grow's Consumer and Professional Products Group restructuring program and the strength of its core Coatings and Chemicals Group.
 Improvements by our architectural and automotive divisions and the maintenance of a high level of revenues by Devoe Coatings resulted in an increase in the group's profits of approximately 20 percent over the prior year's quarter.
 "Despite the significant reduction of annualized sales as a result of the restructuring program, our Consumer and Professional Products Group reported an approximately 7 percent increase in revenues and reported operating income of approximately $2,560,000 against last year's operating loss of $3,666,000. Results included increases in sales of detergents and pool chemicals to mass merchandisers who are playing an increasing role in our consumer division."
 Grow's Fort Worth detergent facility is now in full production and the final remaining restructuring divestiture contract for the sale of the equipment and products at our Montebello plant will be closed by April 30.
 Outlook
 "As we enter the final three months of our recovery year, we are encouraged by our achievements to date. We have replaced the revenue generated by assets sold and exchanged assets that were not productive for cash. Our March 31 balance sheet reflects cash in excess of $30,000,000 which permits us to consider the re-establishment of our dividend policy and further reduction of our long-term debt," Banks concluded.
 Grow Group is one of the world's leading producers of specialty chemical coatings and paints and household products. Grow operations include manufacturing facilities, sales offices and licensees throughout the world.
 GROW GROUP, INC.
 Summary of Results Operations
 (Dollars in thousands)
 Period ended Quarter Nine months
 March 31 1992 1991 1992 1991
 Revenues $96,136 $91,798 $298,497 $287,302
 Income (loss) before
 extraordinary item 334 (15,130)(A) 3,785(B) (16,721)(A)
 Net income (loss) 334 (15,130) 3,785(B) (16,629)(C)
 Income (loss) before
 extraordinary item -
 per share (primary &
 fully diluted) 0.03 (1.33) 0.32 (1.47)
 Net income (loss) -
 per share (primary
 & fully diluted) 0.03 (1.33) 0.32 (1.46)
 Average shares
 outstanding 11,771,000 11,353,000 11,751,000 11,376,000
 (A) Includes unusual items (after tax) of $11,100,000 ($.98 per share) for the restructuring of the Consumer and Professional Products Division.
 (B) Includes recoveries of insurance claims net of provisions for other unusual items amounting to $900,000 after tax.
 (C) Extraordinary item is gain on repurchase of debt.
 GROW GROUP, INC.
 Actual Quarter Ended 3/31/92
 Current Prior
 Revenues
 Coatings & chemicals $64,477 $62,145
 Consumer & Professional 31,659 29,653
 Total revenues 96,136 91,798
 Operating Income
 Coatings & Chemicals 2,253 1,875
 Consumer & Professional 2,560 (3,666)
 Operating income 4,813 (1,791)
 Corporate expense (2,226) (2,756)
 Interest income 227 159
 Interest expense (2,206) (2,450)
 Income from operations 608 (6,838)
 Unusual item 0 (17,500)
 Pre-tax income 608 (24,338)
 Income taxes 274 (9,208)
 Income before extraordinary item 334 (15,130)
 Extraordinary item -- --
 Net income 334 (15,130)
 -0- 4/20/92
 /CONTACT: Peter C. Harkins or Marisa A. Heine of D. F. King & Co., 212-269-5550/
 (GRO) CO: Grow Group, Inc. ST: New York IN: CHM SU: ERN


SM-TO -- NY078 -- 0234 04/20/92 16:48 EDT
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Date:Apr 20, 1992
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