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A&W BRANDS, INC. REPORTS THIRD QUARTER NET EARNINGS INCREASE OF 7 PERCENT

 A&W BRANDS, INC. REPORTS THIRD QUARTER
 NET EARNINGS INCREASE OF 7 PERCENT
 WHITE PLAINS, N.Y., Oct. 20 /PRNewswire/ -- A&W Brands, Inc. (NASDAQ: SODA) today announced net earnings of $3,636,000 or $.39 per share, on net sales of $35,215,000 for the three-month period ending Sept. 30, 1992. In the third quarter of 1991, A&W reported net earnings of $3,403,000 or $.37 per share, on net sales of $35,090,000.
 For the first nine months of 1992, A&W reported net earnings of $10,936,000 or $1.18 per share, on net sales of $100,952,000. For the same period in 1991, A&W reported net earnings of $9,614,000 or $1.05 per share, on net sales of $95,938,000.
 "Our 1992 third quarter sales were disappointing, with domestic concentrate shipment down 5 percent," said M.L. Lowenkron, chairman and chief executive officer. "This quarter was especially challenging considering the unseasonably cool and rainy weather in the company's major selling areas, and the overall impact of a sluggish economy. These same conditions affected the entire domestic soft drink industry. However, the company remained focused on bottom line results, controlled costs and achieved a respectable net earnings increase of 7 percent in the third quarter, with nine months earnings up 14 percent."
 Lowenkron added, "Internationally, our unit shipments decreased 14 percent after increasing more than 50 percent in the prior quarter. As previously stated, international shipments are few but sizable, and shipment timing typically results in quarterly fluctuations. In the quarter, we announced an agreement with Pepsi-Cola International Asia giving them the exclusive right to distribute our leading brands in 20 markets throughout Asia. We expect this agreement to have a longer term benefit."
 "Our Tetley ready-to-drink business continued to strengthen in the quarter," Lowenkron said, "as we have now positioned ourselves for distribution in over 65 percent of the U.S. market."
 "We also announced in the quarter," Lowenkron continued, "an agreement with Everlast World's Boxing Corporation giving A&W the exclusive manufacturing and distribution rights to introduce an Everlast Sports Drink. This provides us with an outstanding opportunity to enter the rapidly growing sports drink category with a great tasting drink that contains no artificial colors or flavors, no preservatives and has the powerful Everlast trademark. We began our first market test of Everlast in September and are expanding testing to three additional markets in several weeks."
 Lowenkron concluded, "The company is confident that the third quarter market conditions are temporary and we look optimistically to improved fourth quarter results. Also, with the previous quarter paydown of our debt, the company's balance sheet continued to strengthen."
 A&W Brands, Inc., based in White Plains, is a leading marketer of soft drinks in niche flavor segments.
 A&W BRANDS, INC.
 Actual Operating Results
 (Unaudited, in thousands, except per share data)
 July 1 to Jan. 1 to
 Sept. 30 Sept. 30
 Third quarter Nine months
 1992 1991 1992 1991
 Net Sales $35,215 $35,090 $100,952 $95,938
 Cost of Sales 6,944 5,842 19,285 16,734
 Gross Profit 28,271 29,248 81,667 79,204
 Marketing Expenses 19,060 20,119 52,543 51,204
 General & Admin. 2,597 2,530 9,234 8,623
 Amort. of Intangibles 701 789 2,103 2,367
 Total Operating
 Expenses 22,358 23,438 63,880 62,194
 Operating Income 5,913 5,810 17,787 17,010
 Interest Expense -- 314 182 1,263
 Other Income (48) (106) (323) (88)
 Earnings Before Taxes 5,961 5,602 17,928 15,835
 Income Taxes 2,325 2,199 6,992 6,221
 Net Earnings $ 3,636 $ 3,403 $ 10,936 $ 9,614
 Net Income per
 Common Share $ 0.39 $ 0.37 $ 1.18 $ 1.05
 Average Common Shares
 Outstanding 9,326 9,185 9,283 9,157
 -0- 10/20/92
 /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


TS -- NY038 -- 2095 10/20/92 10:00 EDT
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