Pet Products reports results for fiscal second quarter and first half ended October 31, 1994.

YONKERS, N.Y.--(BUSINESS WIRE)--Dec. 15, 1994--David Greenberg, president of Pet Products Inc., today announced results for the fiscal second quarter and six months ended October 31, 1994.

For the second fiscal quarter ended October 31, 1994, sales rose to $5,106,781 from $2,577,418 for the comparable quarter of the previous year. Net income totaled $34,093, as compared with $117,679 in the previous year's fiscal second quarter. Earnings per share amounted to $.01 on 3,054,643 weighted average number of common shares outstanding, as compared with $.04 on 2,947,500 weighted average number of shares outstanding in the same period last year.

For the fiscal first half ended October 31, 1994, net sales rose to $8,368,802, as compared with $4,326,441 for the comparable six months of the previous year. Net income totaled $119,972, versus $199,798 in the same six month period of last year. Earnings per share amounted to $.04 and $.07, respectively, based on 3,054,643 weighted average number of common shares outstanding in 1994 and 2,947,500 weighted average shares outstanding for the six months ended October 31, 1993.

Greenberg stated that the significant gain in sales in the quarter and six months of the current fiscal year reflects increases attributable to existing operations as well as inclusion of the operations and business acquired from J. Narby Inc. on May 26, 1994. He noted that the reduction in profits over the comparative periods reflected a combination of higher expense levels. The company experienced higher raw material and manufacturing costs in Brazil which were exacerbated by the premium at which the country's currency traded in relation to the U.S. dollar. Further, higher expenses were incurred due to increased marketing and promotional activities, as well as costs related to the transfer of operations to the new Cortlandt Manor, New York facility.

According to Greenberg, the company anticipates that the effects of these cost increases may be offset by changes in its pricing structure and operating efficiencies resulting from the Cortlandt Manor facility and the J. Narby acquisition. The move of the operations of J. Narby from Lindenhurst, N.Y. to Cortlandt Manor will be virtually complete by the end of the third fiscal quarter. Greenberg noted that the company remains positioned to achieve record sales levels for the second fiscal half of the year.

Pet Products Inc. manufactures and markets a variety of beef-rawhide dog treats under its own brand name CURLS(R), PET-PRO BONES, DOG'S BEST(R), BAKER'S RAWHIDE(R) PRIME BEEF and BEEF RAWHIDE as well as under private label and in bulk. The company's products are designed, developed and manufactured by it at its facilities in Brazil and packaged at its facilities in Yonkers and Cortlandt Manor, N.Y. Products are sold to supermarkets, drug store chains, mass merchandisers and pet product wholesalers and retailers. J. Narby's products are marketed under its own brand names, "Choo-Choo," "Pedi-Brand" and "Pluto Pet," and under private labels, and are sold to supermarkets, drug store and hardware chains, mass merchandisers, pet wholesalers and retailers. J. Narby also acts as a marketing agent for other manufacturers' product lines.

The company's common shares are traded on the NASDAQ system under the symbol PETS and its redeemable warrants carry the symbol PETSW. The company's shares also trade on the Boston Stock Exchange under the symbol PTP and the redeemable warrants under the symbol PTPW, as well as on the Pacific Stock Exchange under the symbol PTP for the common shares and PTPSW for the redeemable warrants. -0-

                           Pet Products Inc.
                     Comparative Operating Results

                 Second Quarter Ended           Six Months Ended
              10/31/94         10/31/93     10/31/94      10/31/93

Net sales     $5,106,781       $2,577,418   $8,368,802    $4,326,441

Net income        34,093          117,679      119,972       199,798

Net income
 per share           .01              .04          .04           .07

Weighted average
 number of
 common shares
 outstanding   3,054,643        2,947,500    3,054,643     2,947,500

CONTACT: Pet Products Inc., Yonkers

              Paul A. Perlin, 914/969-3048
                       or
              Como & Associates, New York
              212/227-3010