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NEUTROGENA REPORTS THIRD QUARTER RESULTS

 LOS ANGELES, Aug. 23 /PRNewswire/ -- Neutrogena Corp. (NASDAQ: NGNA) today reported net income for the quarter ended July 31, 1993, of $6.1 million, or $0.23 per share, compared with $6.1 million, or $0.23 per share, for the corresponding year-earlier quarter. Sales for the period were $61.7 million vs. $62.9 million a year ago.
 For the current nine-month period, net income equaled $15.5 million, or $0.58 per share, compared with $16.6 million, or $0.62 per share, last year. Sales for the nine months rose to $198.5 million from $190.2 million for the first nine months of fiscal 1992.
 Lloyd E. Cotsen, Neutrogena chairman and chief executive officer, said: "The good news here certainly is that we held the bottom line for the quarter. This reflects the positive impact of moving from a heavily promotional schedule early in the year to a more balanced non- promotional sales mix. We also benefited from planned reductions in marketing expenditures and continuing cost controls."
 Cotsen added: "The quarter's sales performance reflects tough conditions internationally as well as domestically. Business continues soft in Europe, and we are being challenged by currency fluctuations. In the U.S., our industry in general has been hampered by retailers who cut back on inventories during the quarter."
 Cotsen reiterated his expectation of a strong fourth quarter and superior year-over-year sales and earnings performance for the full fiscal year ending Oct. 31, 1993. For fiscal 1992, the company reported net income of $24.0 million, or $0.90 per share, on net sales of $267.5 million.
 Neutrogena Corp., headquartered in Los Angeles, manufactures and sells high-quality, premium-priced specialty skin care and hair care products.
 NEUTROGENA CORP. AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited)
 (In thousands, except per share data)
 For the Three Months For the Nine Months
 Ended July 31, Ended July 31,
 1993 1992 1993 1992
 Net sales $61,656(a) $62,944 $198,464(a) $190,234
 Cost of sales 16,964 13,770 51,994 43,386
 Gross profit 44,692 49,174 146,470 146,848
 Operating expenses:
 Marketing and selling 30,500 36,196 113,051 110,437
 General and
 administrative 3,948 3,791 11,112 11,459
 Income from operations 10,244 9,187 22,307 24,952
 Other income, net (91) 338 892 1,334
 Income before
 income taxes 10,153 9,525 23,199 26,286
 Provision for
 income taxes 4,054 3,441 8,816 9,726
 Income before cumulative
 effect of accounting
 change 6,099 6,084 14,383 16,560
 Cumulative effect on
 prior years of change
 in accounting for
 income taxes 0 0 1,069 0
 Net income $6,099 $6,084 $15,452(b) $16,560
 Per share amounts:
 Income before
 cumulative effect of
 accounting change $0.23 $0.23 $0.54 $0.62
 Cumulative effect on
 prior years of change
 in accounting for
 income taxes 0 0 0.04 0
 Net income $0.23 $0.23 $0.58(b) $0.62
 Average number of
 shares and
 equivalent shares
 outstanding 26,341,734 26,697,401 26,460,426 26,795,967
 (a) Includes domestic unit volume decrease on existing products of $6.8 million and $8.4 million (including $0.5 million and $1.4 million from the scheduled discontinuance of two products) for the three- and nine-month periods, respectively, and domestic new product sales increases of $6.0 million and $19.9 million for the same respective periods.
 (b) Includes $1,069,000, or $0.04 per share, effective Nov. 1, 1992, of cumulative impact on prior years resulting from the implementation of Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes."
 NEUTROGENA CORP. AND SUBSIDIARIES
 Selected Consolidated Balance Sheet Information
 July 31, 1993 Oct. 31, 1992
 (Unaudited) (Audited)
 Cash and temporary investments $32,515,000 $48,494,000
 Inventory 26,802,000 27,506,000
 Working capital 57,881,000 70,624,000
 Fixed assets, net 55,386,000 49,763,000
 Long-term debt 0 0
 Shareholders' equity $121,695,000(c) $124,465,000
 (c) Change in shareholders' equity includes effect of net income, payment of annual dividend, foreign translation, use of treasury shares for exercised stock options and common stock repurchases.
 -0- 8/23/93
 /CONTACT: Donald R. Schort of Neutrogena, 310-642-1150; or Cecilia A. Wilkinson or Kim P. Feazle of Pondel Parsons & Wilkinson, 310-207-9300, for Neutrogena/
 (NGNA)


CO: Neutrogena Corp. ST: California IN: HOU SU: ERN

JL-LM -- LA013 -- 4929 08/23/93 09:01 EDT
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Date:Aug 23, 1993
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