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MORGAN PRODUCTS ANNOUNCES FIRST QUARTER RESULTS; COMPANY SEES IMPROVEMENT

 MORGAN PRODUCTS ANNOUNCES FIRST QUARTER RESULTS;
 COMPANY SEES IMPROVEMENT
 LINCOLNSHIRE, Ill., April 24 /PRNewswire/ -- Morgan Products Ltd. (NYSE: MGN) today reported a loss of $1,032,000 or $.12 per share for the first quarter ended April 4, 1992, compared to a loss of $4,137,000 or $.49 per share in the prior year's comparable quarter. The improved performance occurred on sales of $90.5 million compared to the $69.8 million reported in the first quarter of 1991. Excluding the results of the company's former Heritage Hardwoods subsidiary which was liquidated in late 1991, first quarter 1991 sales were $68.2 million, with a net loss of $2,672,000 or $.32 per share.
 Arthur L. Knight Jr., president and CEO, commented, "The widely reported improvements in housing starts, combined with exceptionally mild weather in the north and inventory rebuilding throughout our wholesale and retail distribution channels, certainly helped our first quarter performance, especially when measured against the post World War II lows reached in the new home construction market a year ago. We do look for modest improvement in both new housing and the repair and remodeling portions of the business for the remainder of 1992 with a resulting return to profitable operation. However, with volume remaining below historical levels, we continue to be in a difficult operating environment that is exacerbated by rapidly escalating wood prices and continuing competitive pricing pressures."
 Elaborating further on the wood pricing issues, Knight said, "The pine lumber used in over one-half of our doors costs substantially more than a year ago. The inability of our government to find a balanced solution between environmental concerns and the ongoing need for a stable supply of timber from public lands has resulted in dramatic cost escalation and raw material supply constraints. At our Morgan Manufacturing business unit we are pursuing an aggressive program involving the use of more engineered structural wood components to counteract these factors."
 The company ended the quarter with total debt of $54.2 million, down slightly from $54.5 million reported at the end of 1991's first quarter. Tight working capital control enabled the company to keep debt from growing despite an increase in sales volume of almost 30 percent.
 Morgan Products Ltd. is a leading manufacturer and distributor of specialty building products through its three business units: Morgan Distriburibution/fabrication centers. Major products distributed include Morgan doors, Andersen premium window systems, Morgan mantels, Morgan stairway systems, Pease and Therma-Tru steel and composite doors, flush doors, molded doors, bi-fold doors and louvered doors.
 Morgan Manufacturing is a national manufacturer of premium solid wood interior and exterior doors and entrance systems and other specialty building products such as wood veneer and fireplace mantels. Products manufactured by the company are sold under the trade names "Morgan" and "Nicolai." Manufactured products are sold through the company's captive Morgan Distribution unit, independent distributors, home improvement chain stores and other retail outlets.
 Morgan Technologies is a developer and marketer of electronic and computer software services for the building products industry.
 MORGAN PRODUCTS LTD.
 (Unaudited)
 Three months ended 4/4/92 3/30/91
 Net sales $90,476,000 $69,793,000
 Net loss $(1,032,000) $(4,137,000)
 Loss per share $(0.12) $(0.49)
 Average shares outstanding 8,488,937 8,450,393
 -0- 4/24/92
 /CONTACT: Arthur L. Knight Jr., president and CEO, or Douglas H. MacMillan, vice president and CFO of Morgan Products, 708-317-2400; or Gerard Coffey of G.A. Kraut Company, 212-696-5600, for Morgan Products/
 (MGN) CO: Morgan Products Ltd. ST: Illinois IN: CST SU: ERN


GK-OS -- NY036 -- 2420 04/24/92 11:50 EDT
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Date:Apr 24, 1992
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