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KIDDIE PRODUCTS LAYS OFF 34 EMPLOYEES, CLOSES AVON PACKAGING AND PRODUCT ASSEMBLY OPERATIONS

 AVON, Mass., July 12 /PRNewswire/ -- Kiddie Products, Inc. (NASDAQ: KIDD) announced today that it is laying off 34 employees as part of a realignment of operations to focus on marketing and distribution strengths and to improve operating productivity. The company also announced that it is closing down the packaging and product assembly operations at its facility in Avon, and will outsource these functions.
 Prior to the repositioning, Kiddie had a total worldwide workforce of 145 employees. The staff reduction relates principally to employees in the Avon production facility.
 Employees affected by the layoff will be provided with outplacement counselling and services, in addition to severance pay and benefits considerations.
 Kiddie's Avon facility will continue to house its corporate headquarters offices, as well as warehouse and distribution operations, employing a total of 101 persons.
 Commenting on the repositioning, Ronald J. Sidman, president, said, "For the past year, Kiddie has looked at how it can deliver quality products and services to its customers in a more focused, productive way. We have concluded that our strength is in product development, marketing, supply system management, trade customer service and distribution, and that we can effectively outsource packaging and assembly to firms who specialize in these functions.
 "It is very difficult to let employees go, and this is the first time in Kiddie's history that we have taken this kind of step. We are dedicated to providing all of the support that we can to them."
 Sidman concluded, "Kiddie is in a solid operating position, and has a strategy in place to expand its business. We are simultaneously upgrading and realigning how we do business to maximize productivity and to strengthen the company over the long-term"
 Expenses related to the layoffs will be primarily incurred in the third quarter ending Sept. 30, 1993. The company anticipates that the effect on results for the quarter will total approximately $200,000 net after taxes, or 9 cents per share. As a result of cost savings from outsourcing and rightsizing, the move is not expected to have a material impact on earnings in the current fiscal year.
 Kiddie Products, Inc. is a leading marketer of products for infants and toddlers, under The First Years brand name.
 -0- 7/12/93
 /CONTACT: Ronald J. Sidman, president, or Benjamin Peltz, senior vice president & treasurer, 508-588-1220, both of Kiddie Products/
 (KIDD)


CO: Kiddie Products ST: Massachusetts IN: REA SU:

SJ-DJ -- NE008 -- 0608 07/12/93 17:15 EDT
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Publication:PR Newswire
Date:Jul 12, 1993
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