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JEWELMASTERS REPORTS RESULTS

 WEST PALM BEACH, Fla., Oct. 1 /PRNewswire/ -- Jewelmasters, Inc. (AMEX: JEM) today reported its unaudited results for the fiscal year ended Jan. 30, 1993, and for the first two fiscal quarters of the current year. The company had experienced delays in completing its annual financial statements and its filings with the Securities and Exchange Commission as a result of the closing of 40 departments in January and February 1993, and a significant turnover among internal financial personnel, as previously reported in a July 30, 1993 press release. The company's auditors are in the process of finalizing their review of the Jan. 30, 1993 financial statements and the company expects to file its annual audited financial report within the next week.
 The company had a net loss of $4,251,451 ($2.20 per share) for its fiscal year ended Jan. 30, 1993, compared to a net loss of $2,527,194 ($1.30 per share) for the prior fiscal year. Jewelmasters net worth was approximately $7,100,000 as of Jan. 30, 1993. For the fiscal quarters ended May 1, 1993, and July 31, 1993, the company reported net losses of $1,008,423 ($.52 per share) and $794,261 ($.41 per share) respectively, compared with $827,248 ($.43 per share) and $701,706 ($.36 per share) for the comparable quarterly periods in the prior fiscal year. A significant portion of the net losses were incurred in connection with the total closing of 52 of the company's departments and free-standing stores during the fiscal year ended Jan. 30, 1993 as well as the first fiscal quarter of the current year.
 Net sales for the fiscal year ended Jan. 30, 1993 increased to $36 million from $31.8 million in the prior fiscal year. The increase in net sales was primarily attributable to inventory "close-out" sales at the 52 departments and free-standing stores.
 Net sales for the fiscal quarters ending May 1, 1993 and July 31, 1993, were $4,590,037, and $1,624,366, respectively, compared with $5,838,224 and $7,899,420 for the prior quarterly periods. The decreases in net sales resulted from the reduced number of 52 departments, partially offset by close out sales during the first quarter.
 These close out sales, however, enabled Jewelmasters to pay off its last remaining bank debt of $500,000, reduce long-term debt from $5 million to $1.5 million (payable in annual installments of $500,000 beginning Jan. 31, 1994) and, therefore, reduce related interest expense. Cost reductions have been implemented and accounts payable has been reduced approximately $4.0 million, to approximately $3.75 million at July 31, 1993.
 Jewelmasters is introducing new product lines in an effort to develop a wholesale manufacturing business to replace lost volume and profits. Manufacturing was previously solely directed to fulfill the needs of its own departments. The company expects that sales from the remaining 18 leased fine jewelry departments and two free-standing stores will meet company projections; and the company plans to continue to pursue opportunities with other department store chains. New financial personnel are now in place.
 Jewelmasters, Inc. designs, manufactures and sells fine jewelry through leased jewelry departments in department stores and through free- standing stores.
 JEWELMASTERS, INC.
 SUMMARY FINANCIAL INFORMATION
 Jan. 30, 1993 Feb. 1, 1992
 (Unaudited) (Audited)
 Net Sales $36,021,841 $31,802,350
 Net (Loss) (4,251,451) (2,527,194)
 Net (Loss) per share $ (2.20) $ (1.30)
 Average shares outstanding 1,935,833 1,937,500
 May 1, 1993 May 2, 1992
 (Unaudited) (Unaudited)
 Net Sales $ 4,590,037 $ 5,838,224
 Net (Loss) (1,008,423) (827,248)
 Net (Loss) per share $ (.52) $ (.43)
 Average shares outstanding 1,933,500 1,937,500
 July 31, 1993 Aug. 1, 1992
 (Unaudited) (Unaudited)
 Net Sales $ 1,624,366 $ 7,899,420
 Net (Loss) (794,261) (701,706)
 Net (Loss) per share $ (.41) $ (.36)
 Average shares outstanding 1,933,500 1,937,500
 -0- 10/1/93
 /CONTACT: Josef J. Barr of Jewelmasters, 407-655-7260/
 (JEM)


CO: Jewelmasters, Inc. ST: Florida IN: REA SU: ERN

JB-AW -- FL002 -- 7817 10/01/93 13:06 EDT
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Date:Oct 1, 1993
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