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THE RIGHT START ANNOUNCES EARNINGS TO BE IMPACTED BY DISAPPOINTING CATALOG RESULTS

 THE RIGHT START ANNOUNCES EARNINGS
 TO BE IMPACTED BY DISAPPOINTING CATALOG RESULTS
 WESTLAKE VILLAGE, Calif., Jan. 22 /PRNewswire/ -- The Right Start Inc. (NASDAQ: RTST) today announced that earnings for the third quarter will be negatively impacted by disappointing results of the Right Start Catalog holiday, 1991 mailing. The net result was a substantial increase in revenues and a sharp decline in earnings. Catalog response rates declined as the result of the recession, as evidenced by the overall reduction in consumer spending for Christmas 1991.
 According to Lenny Targon, chief executive officer, until now the company's operations had not been significantly affected by the recession. The holiday catalog was the largest mailing in company history, totalling over 3 million catalogs vs. 1.7 million in the prior holiday season.
 Going forward, the decision was made to reduce the volume of catalogs mailed during the company's winter mailing, in January 1992, to 2.2 million, by selecting only the top producing mailing lists. As a result, revenues for the remainder of the fiscal year are expected to be relatively flat, assuming no substantial change in consumer spending in the company's market. The company earned $685,000, or $.14 per share, for the first six months of fiscal 1992 and expects earnings for the rest of the year to be at the breakeven level.
 "While we are clearly disappointed with our holiday results, we have taken positive action to prevent further declines. As we see the economy turn around, we will quickly react by mailing more catalogs to stimulate added growth and profits," said Targon.
 "On the brighter side, this economic climate reinforces our opportunity to acquire other children's mail order catalogs," continued Targon.
 Founded in 1985, The Right Start is a leading U.S. mail order catalog company, offering products for infants and children up to age four.
 -0- 1/22/92
 /CONTACT: Stan Fridstein or Lenny Targon of The Right Start, 818-707-7100; or Elizabeth Gard or Roger S. Pondel of Rifkind Pondel & Parsons, 310-207-9300, for The Right Start/
 (RTST) CO: The Right Start Inc. ST: California IN: HOU SU:


KJ -- LA032 -- 2535 01/22/92 17:57 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jan 22, 1992
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