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HERSHEY FOODS ANNOUNCES 1991 RECORD SALES AND EARNINGS REGULAR QUARTERLY DIVIDEND DECLARED

 HERSHEY FOODS ANNOUNCES 1991 RECORD SALES AND EARNINGS
 REGULAR QUARTERLY DIVIDEND DECLARED
 HERSHEY, Pa., Feb. 4 /PRNewswire/ -- Hershey Foods Corporation (NYSE: HSY) today announced record consolidated net sales and net income for the year 1991.
 Net sales were $2,899,165,000 compared with $2,715,609,000 in 1990. Net income for 1991 was $219,528,000, or $2.43 per share, compared with $215,882,000, or $2.39 per share in 1990. Excluding an after-tax gain from business restructuring activities of $20,295,000, or $.22 per share, 1990 income from continuing operations was $195,587,000, or $2.17 per share.
 Net sales in the fourth quarter were $863,932,000 compared with $763,066,000 in the fourth quarter of 1990. Net income for the quarter was $74,904,000, or $.83 per share, compared with $46,391,000, or $.51 per share, in 1990. Excluding the after-tax impact of a manufacturing restructuring charge of $15,000,000, or $.17 per share, income from continuing operations for the fourth quarter of 1990 was $61,391,000, or $.68 per share. Weighted average shares outstanding were 90,186,336 for all periods.
 "We are very pleased by our strong finish in 1991," said Richard A. Zimmerman, Chairman and Chief Executive Officer. "During the fourth quarter, all of our divisions posted healthy sales gains, with strong seasonal sales being achieved by Hershey Chocolate U.S.A. and Hershey Canada Inc. The acquisition of Gubor Schokoladen and the remaining 50 percent of Nacional de Dulces also contributed significantly to the sales growth. In addition, Hershey Pasta Group had a fine quarter, realizing a double digit sales increase. Hershey Chocolate U.S.A. was the chief contributor to the earnings improvement in the quarter, although all divisions achieved strong gains compared with last year.
 "For the year 1991, all our divisions posted record sales and earnings. The international acquisitions and Hershey Pasta Group drove sales growth as our North American confectionery businesses were hampered earlier in the year by the recession, heavy competitive pressures and consumer resistance to price increases. However, Hershey Chocolate U.S.A. was the major contributor to earnings growth as stronger margins resulted from price increases and reduced marketing expenses stemming, in part, from a lower level of new product introduction costs. As anticipated, interest costs were slightly higher for the year due to a higher level of borrowing to fund working capital requirements and acquisitions.
 "The year was particularly gratifying because our fine 1991 results were achieved in the context of soft economies in key markets, intense competition, selected price increases, and higher Pennsylvania state income taxes. We expect 1992 to be equally challenging as we increase our marketing efforts and step up new product activities to maintain and enhance market share. Despite the competitive atmosphere, however, we expect to achieve another record year for the Corporation," Zimmerman concluded.
 HERSHEY FOODS CORPORATION
 REGULAR QUARTERLY DIVIDEND DECLARED
 The Board of Directors of Hershey Foods Corporation today declared regular quarterly dividends of $.245 on the Common Stock and $.2225 on the Class B Common Stock. Both dividends are payable on March 13, 1992, to stockholders of record February 26, 1992. It is the 249th consecutive regular dividend on the Corporation's Common Stock and the 30th consecutive regular dividend on the Class B Common Stock.
 HERSHEY FOODS CORPORATION
 Summary of Consolidated Statements of Income
 for the periods ended December 31, 1991 and December 31, 1990
 (in thousands of dollars except per share amounts)
 Fourth Quarter Twelve Months
 1991 1990 1991 1990
 Net Sales $863,932 $763,066 $2,899,165 $2,715,609
 Costs and Expenses:
 Cost of sales 497,361 441,444 1,694,404 1,588,360
 Selling, marketing
 and administrative 236,702 213,489 814,459 776,668
 Total costs and
 expenses 734,063 654,933 2,508,863 2,365,028
 Gain on Business
 Restructuring, net -- (25,000) -- 35,540
 Income before Interest
 and Income Taxes 129,869 83,133 390,302 386,121
 Interest Expense, net 5,856 5,815 26,845 24,603
 Income before Income
 Taxes 124,013 77,318 363,457 361,518
 Provision for Income
 Taxes 49,109 30,927 143,929 145,636
 Net Income $ 74,904 $ 46,391 $ 219,528 $ 215,882
 Net Income per Share $ .83 $ .51 $ 2.43 $ 2.39
 Note: Net Income per Share has been computed based on the weighted average number of shares of Common Stock and Class B Common Stock outstanding during the period. Average shares outstanding were 90,186,336 for all periods.
 The Corporation's financial results for 1990 include a net pre-tax gain from business restructuring activities, totalling $35.5 million. This gain, which increased net income by $20.3 million or $.22 per share, resulted from two events:
 On May 25, 1990, the Corporation sold its equity interest in AB Marabou for approximately $78.0 million. The sale resulted in a gain of $60.5 million and had the effect of increasing net income by $35.3 million or $.39 per share.
 In the fourth quarter of 1990, the Corporation recorded a manufacturing restructuring charge of $25.0 million associated with the modernization and relocation of certain manufacturing operations. This charge reduced net income by $15.0 million or $.17 per share.
 /delval/
 -0- 2/4/92
 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, both of Hershey Foods/
 (HSY) CO: Hershey Foods Corporation ST: Pennsylvania IN: FOD SU: ERN DIV


JS -- PH028 -- 6721 02/04/92 13:02 EST
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Date:Feb 4, 1992
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