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LILLIAN VERNON DECLARES INITIAL DIVIDEND AND REPORTS IMPROVED EARNINGS FOR FISCAL 1992

LILLIAN VERNON DECLARES INITIAL DIVIDEND AND REPORTS IMPROVED EARNINGS
 FOR FISCAL 1992
 MOUNT VERNON, N.Y., May 1 /PRNewswire/ -- The board of directors of Lillian Vernon Corporation (AMEX: LVC) yesterday declared an initial quarterly cash dividend of $.05 per share, payable on May 29, 1992 to shareholders of record as of May 15, 1992. The company also reported results for its fourth quarter and fiscal year ended Feb. 29, 1992.
 For the year ended Feb. 29, 1992, net income was $9.5 million, or $1.02 per share, compared to $9.3 million, or $1.00 per share, the prior year. Revenues were $162.4 million, a 1.3 percent increase over fiscal 1991.
 Fourth quarter net income was $3.2 million, or $.35 per share, for the three months ended Feb. 29, 1992, up 80 percent from net income of $1.8 million, or $.19 per share, for the fourth quarter of fiscal 1991. Revenues were $45.4 million for the fourth quarter of fiscal 1992, compared to $47.7 million in fiscal 1991.
 Lillian Vernon, chairman and chief executive officer, commented, "We are very pleased to institute a cash dividend, sharing our success with our shareholders." In commenting on the year, Vernon said, "We improved both revenues and profitability in fiscal 1992 despite the ongoing impact of the recession, 8 percent lower catalog circulation, and significantly higher postal rates. We increased sales per catalog by offering value-oriented merchandise which appeals to today's consumer, and by improved targeting of our mailings. In addition, we maintained our profitability by eliminating circulation which would not have been profitable given the increased mailing costs, as well as by controlling other expenses. Fourth quarter earnings improved primarily as a result of higher margins, combined with cost controls. December sales were very strong, while January and February sales were impacted by an unusually late Easter."
 Looking forward, Vernon continued, "The strong response to our Lilly's Kids catalog has led us to expand our emphasis on children's merchandise. Ms. Jean Mombert has joined us as vice president of Lilly's Kids, coming to us from the Childcraft catalog division of the Walt Disney Company. We also plan to launch a new specialty catalog in the 1992 Christmas season, leveraging our strong
buying experience and distribution capabilities. We will continue to grow our business and implement new strategies and programs to keep our merchandise fresh and appealing," concluded Vernon.
 The company continued to improve its financial strength. At the end of fiscal 1992, shareholders' equity had increased to $75.5 million, and cash and investments totalled $43.5 million, or $4.67 per share. Long-term debt was further reduced to $11.0 million, a conservative 14.6 percent of equity. In March 1992, Andrew Gregor joined the company as vice president-finance and chief financial officer. Formerly with McCrory Corporation, he brings a strong background of financial experience to the company.
 Lillian Vernon Corporation is a 41-year-old specialty catalog company that markets gift, household, decorative, gardening and children's products.
 LILLIAN VERNON CORPORATION
 Financial Highlights
 (In thousands, except per share amounts)
 Periods Fourth Quarter Fiscal Year
 Ended 2/29/92 2/23/91 2/29/92 2/23/91
 Revenues $45,434 $47,705 $162,397 $160,293
 Costs and expenses:
 Product and delivery
 costs 18,428 21,477 64,534 64,788
 S,G&A expenses 22,498 24,449 84,067 81,607
 Total 40,926 45,926 148,601 146,395
 Operating income 4,508 1,779 13,796 13,898
 Interest income 560 576 1,968 1,981
 Interest expense (396) (328) (1,445) (1,981)
 Inc. before inc. taxes 4,672 2,027 14,319 13,898
 Provision for inc. taxes 1,450 236 4,826 4,628
 Net income $ 3,222 $ 1,791 $ 9,493 $ 9,270
 Net inc. per com. share $0.35 $0.19 $1.02 $1.00
 Weighted average number
 of com. shares outstg. 9,318 9,272 9,310 9,289
 The results for the fiscal year ended Feb. 29, 1992, reflect 53 weeks.
 -0- 5/1/92
 /CONTACT: Andrew Gregor of Lillian Vernon Corporation, 914-662-5630; or Robert Jones or JoAnn Horne of Morgen-Walke Associates, 212-986-5900, for Lillian Vernon Corporation/
 (LVC) CO: Lillian Vernon Corporation ST: New York IN: REA SU: ERN DIV


GK-SO -- NY010 -- 5336 05/01/92 09:22 EDT
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Date:May 1, 1992
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