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PITTWAY'S SECOND QUARTER INCOME FROM CONTINUING OPERATIONS UP 33 PERCENT ON 13 PERCENT SALES INCREASE

 CHICAGO, Aug. 2 /PRNewswire/ -- Pittway Corp. (AMEX: PRY) sales from continuing operations for the three months ended June 30, 1993 increased 13 percent to $158,414,000 as compared to $139,837,000 for the second quarter in 1992. Income from continuing operations for the quarter increased 33 percent to $4,477,000 ($.32 per share) from $3,364,000 ($.24 per share) a year ago.
 For the first half of 1993, sales from continuing operations increased 14 percent to $310,191,000 from $273,093,000. Income from continuing operations increased 109 percent to $9,646,000 ($.69 per share) from $4,615,000 ($.33 per share) a year ago.
 When the effects of accounting changes and discontinued operations are included, net income for the first half increased 36 percent to $21,907,000 ($1.57 per share) as compared to $16,262,000 ($1.17 per share) last year. However, due to the lower contribution from discontinued operations, net income for the second quarter decreased to $5,744,000 ($.41 per share) from $8,319,000 ($.60 per share) last year.
 The announcement was made today by Neison Harris, chairman, and King Harris, president, of the diversified company based in Chicago.
 Commenting on second quarter results, King Harris said, "Sales and profits in our alarm businesses continued to run well ahead of last year but at a lower rate of increase than this year's unusually strong first quarter.
 "The Ademco Security Group continues to be paced by the excellent performance of Ademco Distribution (ADI). ADI's revenues have been expanding faster than those of the overall security market, and it has been able to maintain its profit margins despite fierce price competition in certain regional markets. Ademco Manufacturing's sales growth slowed during the quarter but sales and profits are still up solidly for the year to date. Dealer acceptance of new VISTA family control-communicators remains strong. Recently introduced new products -- the 5800 series wireless line and 6000 series VISTA keypads -- should strengthen control-communicator sales the remainder of the year.
 "All companies within the Pittway Systems Technology Group had excellent sales and profit growth during the quarter. System Sensor introduced a significantly family of low-profile commercial smoke detectors which should become key contributors to its future growth. Notifier/Fire-Lite introduced a major fire protection network system -- The NOTI-FIRE-NET -- at the National Fire Protection Show in May. NOTI-FIRE-NET is the most advanced top-of-the-line fire alarm system now available and will allow Notifier to penetrate the large scale system end of the fire protection market. MicroLite, though still a very small operation, refined and expanded its advanced line of lighting control products.
 "Penton's operating performance continued to mirror the sluggish state of the business publishing industry. Sales were flat and profits dipped slightly compared with last year.
 "Principally as a result of the first quarter activity for continuing operations, there was a $2.0 million pre-tax swing in net interest and other income (expense) for the six months from a loss of $994,000 in 1992 to a gain of $986,000 in 1993.
 "Income from discontinued operations, $1,267,000 for the quarter, was far below 1992's second quarter total of $4,955,000 because it did not include full quarter results for the First Alert/BRK and Barr operations, which were sold after the 1992 second quarter, and included only a partial month's results for the Seaquist Group which was spun off in late April of this year. The 1993 six month figures for discontinued operations include a one-time $3.1 million credit for a change in accounting for income taxes. Net income for the six month period this year also reflects a one-time net benefit of $1.5 million recorded in the first quarter for changes in accounting for income taxes and postretirement benefits for continuing operations."
 Pittway is a manufacturer and distributor of professional burglar and fire alarm equipment; a publisher of trade magazines and directories; and a participant in joint venture real estate developments.
 PITTWAY CORPORATION AND SUBSIDIARIES
 SUMMARY OF CONSOLIDATED INCOME
 (Dollars in Thousands, Except Per Share Data)
 Periods ended Three Months Six Months
 June 30, 1993 1992(A) 1993 1992(A)
 CONTINUING OPERATIONS
 Net Sales $ 158,414 $ 139,837 $ 310,191 $ 273,093
 Operating Income 7,464 5,770 15,189 9,719
 Income From Continuing
 Operations Before
 Income Taxes 7,695 5,667 16,175 8,725
 Provision for Inc. Taxes 3,218 2,303 6,529 4,110
 Income from Continuing
 Operations 4,477 3,364 9,646 4,615
 Income from discontinued operations,
 including cumulative effect
 of change in accounting for
 income taxes in 1993 1,267 4,955 10,726 11,647
 Cumulative effect of changes
 in accounting for inc. taxes
 & postretirement benefits -- -- 1,535 --
 NET INCOME $ 5,744 $ 8,319 $ 21,907 $ 16,262
 NET INCOME PER SHARE OF
 COMMON AND CLASS A STOCK
 Income from continuing
 operations $ .32 $ .24 $ .69 $ .33
 Income from discontinued
 operations .09 .36 .77 .84
 Cumulative effect of changes
 in accounting for income taxes
 and postretirement benefits -- -- $ .11 --
 NET INCOME $ .41 $ .60 $1.57 $1.17
 AVG. NO. OF SHARES OUTSTG.
 (in thousands) 13,941 13,853 13,941 13,848
 (A) Restated for discontinued operations.
 -0- 8/2/93
 /CONTACT: Edward J. Schwartz of Pittway Corp., 312-831-1070, or Joe Kopec of Edelman Worldwide-Financial Relations, 312-280-7000, for Pittway Corp./
 (PRY)


CO: Pittway Corp. ST: Illinois IN: SU: ERN

SH -- NY104 -- 8490 08/02/93 15:57 EDT
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Date:Aug 2, 1993
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