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A&W BRANDS, INC. REPORTS RECORD FOURTH QUARTER EARNINGS

 WHITE PLAINS, N.Y., Jan. 27 /PRNewswire/ -- A&W Brands, Inc. (NASDAQ: SODA) today announced record fourth quarter net earnings of $4,613,000 or $.49 per share, on net sales of $29,829,000 for the three- month period ended December 31, 1992. In the fourth quarter of 1991, A&W reported net earnings of $4,382,000 or $.48 per share, on net sales of $27,161,000.
 For the full year 1992, A&W reported net earnings of $15,549,000 or $1.67 per share, on net sales of $130,781,000. For the full year 1991, A&W reported net income of $13,996,000 or $1.53 per share, on net sales of $123,099,000.
 "1992 was a year of continued growth for A&W," said M.L. Lowenkron, Chairman and Chief Executive Officer. "Fourth quarter and total year earnings, which included the costs of introducing our Tetley and Everlast brands, were the largest in the Company's history. Net earnings in the quarter were 5 percent higher than comparable 1991 earnings with full year 1992 results an impressive 11 percent higher than 1991. Our core brands unit volume grew 2 percent in the quarter while total domestic volume, which includes Tetley and Everlast, was up 4 percent."
 "Our total year unit volumes were adversely affected by the unseasonably cool and rainy weather during the Company's peak summer selling period," continued Lowenkron. "As a result, our total year core business volume was flat despite three up quarters. For the year, total domestic volume was up 2 percent."
 Lowenkron added, "Internationally, our unit shipments for the year were down 3 percent entirely due to the transition within areas covered by our Pepsi Cola International Asia agreement. Our unit shipments in Canada and Central/South America were up 5 percent and 17 percent, respectively."
 "Although we experienced higher than anticipated introductory costs for marketing and distributing our Tetley and Everlast products, we consider this an investment for much improved 1993 sales results," said Lowenkron. "We are confident that both of these quality products will be successful in what has become a very competitive environment. Tetley is distributed in over 65 percent of the U.S. market, and Everlast will be expanded beyond the present two test markets. We will strongly support both of these brands with focused marketing programs."
 "Despite a year of economic distractions, many new brand introductions and weather conditions not conducive to the beverage industry," added Lowenkron, "we again demonstrated our ability to grow revenues, control costs and achieve record earnings."
 Lowenkron said, "In 1992 we pursued our goal to strengthen our balance sheet and further enhance shareholder value through the elimination of all long term debt, increasing the dividend payment by 10 percent, and most recently, through the announcement of a 3-for-2 stock split and Company stock repurchase program."
 Lowenkron concluded, "As we enter 1993 our prospects for sales and earnings growth are excellent. Our core brands, new brands and international markets have outstanding growth potential and our financial position is extremely solid with a debt free balance sheet and very strong cash flows. We will continue to pursue our goal of increasing shareholder value through profitable growth, seeking acquisition opportunities and the strategic employment of the Company's cash."
 A&W Brands, Inc., based in White Plains, New York, is a leading marketer of soft drinks in niche flavor segments.
 A&W BRANDS, INC.
 ACTUAL OPERATING RESULTS
 (IN THOUSANDS, EXCEPT PER SHARE DATA)
 (UNAUDITED)
 OCTOBER 1 TO JANUARY 1 TO
 DECEMBER 31 DECEMBER 31
 FOURTH QUARTER TWELVE MONTHS
 1992 1991 1992 1991
 Net Sales $29,829 $27,161 $130,781 $123,099
 Cost of Sales 6,087 4,347 25,372 21,081
 Gross Profit 23,742 22,814 105,409 102,018
 Marketing Expenses 12,454 12,500 64,997 63,704
 General & Administrative
 3,120 2,224 12,354 10,847
 Amortization of Intangibles
 700 788 2,803 3,155
 Total Operating Expenses
 16,274 15,512 80,154 77,706
 Operating Income 7,468 7,302 25,255 24,312
 Interest Expense - 193 182 1,456
 Other (Income) Expense
 ( 94) 29 ( 417) ( 59)
 Earnings Before Taxes
 7,562 7,080 25,490 22,915
 Income Taxes 2,949 2,698 9,941 8,919
 Net Earnings $ 4,613 $ 4,382 $ 15,549 $ 13,996
 (A)Net Income per Common Share
 $ 0.49 $ 0.48 $ 1.67 $ 1.53
 (A)Average Common Shares
 Outstanding 9,375 9,188 9,306 9,165
 (A) Represents Pre-Stock Split. As announced on January 7, 1993, the Board of Directors has approved a 3-for-2 split on the shares of A&W Common Stock to be payable on February 16, 1993, to the shareholders of record on February 1, 1993.
 The Post-Split Net Income Per Common Share for the fourth quarter 1992 would have been $.33 as compared to $.32 for the same period 1991, and for the total year 1992 would have been $1.11 as compared to 1991 of $1.02.
 -0- 1/27/93
 /CONTACT: Ernest J. Cavallo of A&W Brands, Inc., 914-397-1700/
 (SODA)


CO: A&W Brands, Inc. ST: New York IN: FOD SU: ERN

LR -- NY020 -- 9452 01/27/93 08:49 EST
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