Meade Instruments Corp. Reports First-Quarter Results.

IRVINE, Calif.--(BUSINESS WIRE)--June 18, 1998--Meade Instruments Corp. (Nasdaq: MEAD) Thursday reported results for the first quarter ended May 31, 1998.

The company's current fiscal year ends on Feb. 28, 1999.

Net sales for the three months ended May 31, 1998, were $14.8 million, a 16 percent increase over $12.7 million in the comparable period a year ago.

Net income for the three months ended May 31, 1998, was $554,000, or $0.08 per share, compared with net income of $2,000, or $0.00 per share (after a redeemable preferred stock accretion adjustment of $374,000, or $0.07 per share), for the comparable period a year ago.

"The 16 percent increase in net sales," said John C. Diebel, chairman and CEO of Meade Instruments, "is attributable to strong sales of our domestically produced products including the LX Series of Schmidt-Cassegrain telescopes and the ETX.

"Sales of the ETX were much improved in the quarter as we filled the distribution channels of several key distributors -- including both existing and new accounts -- that are selling the ETX for the first time. Increased sales of products manufactured in our new Irvine facility were offset in part by an expected year-to-year reduction in sales of less-expensive imported telescopes."

During the first quarter of the prior year, sales of less-expensive imported telescopes were especially strong due to interest in the Hale-Bopp comet.

"Gross margins of 41.0 percent, compared to 33.0 percent in the first quarter of fiscal 1998, were positively affected by the sales mix," continued Diebel. "The increase in selling, general and administrative expenses -- to 32.5 percent of net sales in first-quarter fiscal 1999 from 21.8 percent a year ago -- reflects increases in personnel costs and other increases across a broad category of expenses.

"More importantly, however, this increase is primarily due to expenses associated with our previously announced multimillion-dollar print advertising campaign that is now appearing in nearly two dozen national consumer magazines. Although it is still early in the campaign," concluded Diebel, "initial results are promising."

Meade Instruments is the leading designer and manufacturer of telescopes and accessories for the beginning to serious amateur astronomer. The company offers more than 40 different telescope models with several different optical configurations, as well as more than 250 accessory products. Meade also offers a complete line of binoculars for the casual observer to the serious sporting or birding observer. The company's telescopes retail for less than $100 to as much as $15,000; its binoculars retail for approximately $49 to $499.

The company distributes its products worldwide through a network of more than 500 specialty retailers, mass merchandisers and foreign distributors which offer Meade's products in more than 1,000 retail store locations.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The matters discussed in this news release contain comments and forward-looking statements based on current plans, exceptions, events, and financial and industry trends which may affect the company's future operating results and financial position. Such statements involve risks and uncertainties which cannot be predicted or quantified and which may cause future activities and results of operations to differ materially from those discussed above. The historical results achieved are not necessarily indicative of future prospects of the company. For additional information, refer to the company's filings with the Securities and Exchange Commission. -0-

                       MEADE INSTRUMENTS CORP.
                         INCOME STATEMENT DATA
                              (Unaudited)
                   (000s omitted, except share data)

                                      First quarter ended May 31,
                                           1998          1997

Net sales                               $ 14,821      $ 12,735
Cost of sales                              8,741         8,526
Gross profit                               6,080         4,209
Selling, general and
 administrative expenses                   4,820         2,783
Research and development expenses            245           194
Operating income                           1,015         1,232
Interest expense                              42           594
Income before income taxes                   973           638
Income tax provision                         419           262
Net income                                   554           376

Accretion on redeemable preferred
 stock (a)                                    --          (374)
Net income available to common
 stockholders                           $    554      $      2

Per-share information:
Net income                              $   0.08      $   0.07
Accretion on redeemable preferred
 stock (a)                                    --         (0.07)
Net income available to common
 stockholders -- basic and diluted      $   0.08      $   0.00

Weighted average common shares
 outstanding -- basic                  6,807,000     5,424,000
Weighted average common shares
 outstanding -- diluted                6,954,000     5,424,000

(a) Represents accretion reflecting original issue discount and
accrued dividends on the redeemable preferred stock.

CONTACT: Meade Instruments Corp., Irvine

Brent W. Christensen, 949/451-1450

or

Silverman Heller Associates, Los Angeles

Philip Bourdillon or Eugene Heller, 310/208-2550