UniFirst posts record results for fiscal 1997 third quarter and year-to-date.

WILMINGTON, Mass.--(BUSINESS WIRE)--July 1, 1997-- UniFirst Corp. (NYSE:UNF) announced today that its revenues and net income for the fiscal 1997 third quarter and thirty-nine weeks, which ended May 31, 1997, were the highest of any comparable periods in the company's 61 year history.

For the fiscal 1997 third quarter, revenues rose 8.7 percent to a record $107.1 million from $98.6 million for the comparable period last year. Net income for the third quarter increased 11.8 percent to $7.4 million, or $0.36 per share, from the year-ago quarter's $6.6 million, or $0.32 per share.

"We are pleased with our financial performance for the first quarter and year-to-date," commented Ronald D. Croatti, UniFirst's president and chief executive officer. "A lower level of operating income in our nuclear garment services segment and higher garment costs overall narrowed our operating cost margin for the quarter somewhat, but the higher level of business as a whole and a decrease in selling and administrative expenses as a percentage of revenues helped us achieve record earnings. Our new business development efforts are working, and we are keeping our costs well controlled as we maintain the superior service practices that ensure customer loyalty."

For the first thirty-nine weeks of fiscal 1997, revenues increased 6.2 percent to $313.2 million from $294.8 million for last year's comparable forty week reporting period. Net income of $20.8 million, or $1.01 per share, was up 13.4 percent from net income of $18.3 million, or $0.89 per share, recorded a year ago.

"So far this year, our performance has been in keeping with our expectations," said Croatti. "We anticipate that fiscal 1997 will be our 29th year of consecutive revenue growth and our sixth year of growth in earnings."

A pioneer in the growing garment service industry, UniFirst Corp. services over 100,000 customers through its more than 100 facilities in the United States and Canada. The company employs over 6,600 people.

UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
(unaudited)

                 Thirty-nine     Forty       Thirteen     Thirteen
                 weeks ended   weeks ended  weeks ended   weeks ended
                   May 31,      June 1,       May 31,       June 1,
                     1997         1996          1997         1996

Revenues        $313,164,000  $294,792,000 $107,124,000  $98,554,000

Costs and
 expenses:
 Operating costs 192,243,000   180,520,000   65,905,000   59,339,000
 Selling and
  administrative
  expenses        69,676,000    68,528,000   23,123,000   22,868,000
 Depreciation and
  amortization    17,161,000    15,339,000    5,969,000    5,340,000
                    -----          -----        -----        -----
                 279,080,000   264,387,000   94,997,000   87,547,000

Income from
 operations       34,084,000    30,405,000   12,127,000   11,007,000

Interest expense
 (income):
 Interest expense  1,792,000     1,995,000      641,000      755,000
 Interest income    (155,000)     (193,000)     (49,000)     (61,000)
                     -----          -----         -----        -----
                   1,637,000     1,802,000      592,000      694,000

Income before
 income taxes     32,447,000    28,603,000   11,535,000   10,313,000
Provision for
 income taxes     11,681,000    10,297,000    4,153,000    3,713,000

Net income       $20,766,000   $18,306,000   $7,382,000   $6,600,000

Weighted average
 number of shares
 outstanding      20,510,608    20,510,608   20,510,608   20,510,608

Net income per
 share                 $1.01         $0.89        $0.36        $0.32

-0-

UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)

                              May 31,       Aug. 31,        June 1,
                               1997          1996(a)         1996

Assets
Current assets:
  Cash                   $   5,936,000  $   3,425,000  $   5,533,000
  Receivables               39,855,000     36,634,000     38,750,000
  Inventories               20,192,000     17,053,000     16,350,000
  Rental merchandise
   in service               39,362,000     37,973,000     35,611,000
  Prepaid expenses             140,000        127,000        117,000
    Total current
     assets                105,485,000     95,212,000     96,361,000
Property and equipment:
  Land, buildings and
   leasehold improvements  133,489,000    119,346,000    118,101,000
  Machinery and equipment  136,060,000    120,671,000    119,204,000
  Motor vehicles            36,690,000     33,278,000     33,379,000
                           306,239,000    273,295,000    270,684,000
  Less - accumulated
   depreciation            124,252,000    113,191,000    111,408,000
                           181,987,000    160,104,000    159,276,000
Other assets                48,767,000     47,062,000     43,520,000
                         $ 336,239,000  $ 302,378,000  $ 299,157,000

Liabilities and Shareholders' Equity
Current liabilities:
  Current maturities of
   long-term obligations $   1,037,000  $   1,058,000  $   1,050,000
  Notes Payable              3,340,000      2,757,000             --
  Accounts Payable          13,075,000     11,697,000     13,261,000
  Accrued liabilities       46,167,000     37,371,000     38,639,000
  Accrued and deferred
   income taxes              2,679,000      3,679,000      4,380,000
    Total current
     liabilities            66,298,000     56,562,000     57,330,000
Long-term obligations,
 net of current maturities  42,745,000     38,307,000     41,287,000
Deferred income taxes       17,213,000     16,400,000     15,201,000
Shareholders' equity:
  Preferred stock, $1.00 par
   value; 2,000,000 shares
   authorized; none issued         ---            ---            ---
  Common stock, $.10 par
   value; 30,000,000 shares
   authorized; issued and
   outstanding 7,893,864
   shares                      789,000        789,000        789,000
  Class B Common stock,
   $.10 par value; 20,000,000
   shares authorized; issued
   and outstanding 12,616,744
   shares                    1,262,000      1,262,000      1,262,000
  Capital surplus            7,078,000      7,078,000      7,078,000
  Retained earnings        201,531,000    182,384,000    176,568,000
  Cumulative translation
   adjustment                 (677,000)      (404,000)      (358,000)
    Total shareholders'
     equity                209,983,000    191,109,000    185,339,000
                         $ 336,239,000  $ 302,378,000  $ 299,157,000

(a)  Condensed from audited financial statements

CONTACT: UniFirst Corp.

John Bartlett, [phone]