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1992 GOODY EARNINGS INCREASED 166 PERCENT EXCLUDING SPECIAL CHARGES

 KEARNY, N.J., March 10 /PRNewswire/ -- Goody Products, Inc. (NASDAQ: GOOD), today reported that net earnings for 1992, excluding special charges associated with the company's restructuring plan and the adoption of FASB 106 and FASB 109, were $4,070,000 or $.62 per share. After special charges and the adoption of accounting treatments, the company reported a net loss of $16,779,000 or $2.54 per share for the year ended Dec. 31, 1992. For the comparable period in 1991, net earnings were $1,531,000 or $.23 per share.
 Net sales for the year amounted to $218,125,000 compared with $228,912,000 (restated) for the same period a year ago. The lingering recession, coupled with weaker product category consumption in a fragmented retail sales environment, contributed to sharp inventory reductions at retail level and corresponding lower sales for the company versus 1991.
 The company also announced today that as of Jan. 1, 1992, it adopted FASB 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and is recording a one-time, non-recurring pre-tax charge against earnings of $3.7 million for 1992. This amount includes $2.4 million of postretirement costs originally recorded as part of its restructuring plan announced in the second quarter of 1992. In addition, effective Jan. 1, 1992, FASB 109, "Accounting for Income Taxes," was adopted and resulted in a one-time favorable adjustment of $600,000. As a result of the adoption of these accounting treatments, Goody will restate its previously reported quarterly earnings for 1992. The special charges recorded on a pre-tax basis for the year are $22,686,000 for restructuring and $3,696,000 for FASB 106. The cost of prepaying the company's promissory note with Metropolitan Life, with related expenses, amounted to $2,977,000 (recorded in June 1992) and is treated as an extraordinary item.
 Ronald B. Gordon, Goody's president, said, "We continue to see progress as our new management team changes and revitalizes Goody. Particularly satisfying was Goody Hair Accessories' return to positive sales growth in the fourth quarter. This, in combination with cost savings, improved operating margins and the greatly enhanced service we are able to provide to our customers, is beginning to be reflected in the operating results."
 Goody Products, Inc. designs, manufactures and markets a wide variety of hair accessories. Goody owns and operates three additional consumer products subsidiaries and divisions: Opti-Ray, a designer and marketer of high quality fashion sunglasses and reading glasses; Ace Comb, a manufacturer of premium quality hard rubber combs; and Pretty Neat Products, a producer of cosmetic organizers and travel accessories.
 GOODY PRODUCTS, INC.
 Consolidated Statement of Operations
 (Dollars in thousands except per share amounts)
 Year ended Dec. 31 1992 1991(A)
 Net sales $218,125 $228,912
 Cost of sales 125,969 140,419
 Total 92,156 88,493
 Selling, shipping, general
 and administrative expenses 83,052 82,387
 Restructuring charges 22,686 --
 Total 105,738 82,387
 Operating earnings (loss) (13,582) 6,106
 Other expense (income):
 Interest expense 2,282 3,652
 Interest income (53) (181)
 Other, net 22 (49)
 Total 2,251 3,422
 Earnings (loss) before income taxes,
 extraordinary item and cumulative
 effect of accounting changes (15,833) 2,684
 Income taxes (3,727) 1,153
 Earnings (loss) before extraordinary
 item and cumulative effect of
 accounting changes (12,106) 1,531
 Extraordinary item (B) (2,977) --
 Earnings (loss) before cumulative
 effect of accounting changes (15,083) 1,531
 Cumulative effect of accounting changes:
 Postretirement health care benefits,
 net of income taxes of $1,400 (2,296) --
 Accounting for income taxes 600 --
 Net income (loss) $(16,779) $ 1,531
 Earnings (loss) per common share:
 Earnings (loss) per share before
 extraordinary item and cumulative
 effect of accounting changes $(1.83) $.23
 Extraordinary item (.45) --
 Cumulative effect of accounting changes:
 Postretirement health care benefits (.35) --
 Accounting for income taxes .09 --
 Net earnings (loss) per common share $(2.54) $.23
 Average number of common
 shares outstanding 6,597,412 6,543,567
 (A) -- Restated to conform to current year's presentation.
 (B) -- From early extinguishment of debt.
 -0- 3/10/93
 /CONTACT: Kevin E. Walsh of Goody, 201-997-3000; or Thomas M. Daly Jr. of Kekst and Company, 212-593-2655, for Goody/
 (GOOD)


CO: Goody Products, Inc. ST: New Jersey IN: HOU SU: ERN

GK-OS -- NY017 -- 4878 03/10/93 10:31 EST
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Date:Mar 10, 1993
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/ C O R R E C T I O N -- GOODY PRODUCTS, INC./

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