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ADVANCED MARKETING SERVICES ANTICIPATES LOWER THIRD QUARTER EARNINGS THAN PREVIOUS YEAR

 SAN DIEGO, Dec. 29 /PRNewswire/ -- Advanced Marketing Services (NASDAQ: ADMS), a major distributor of books to warehouse clubs and office product superstores, today announced that revenues and net income for the third quarter ended Dec. 25, 1993, will be lower than the same period of the previous fiscal year based on lower than expected sales and a higher rate of returns of books from its customers.
 Charles C. Tillinghast III, president, said ADMS won't know the exact impact on earnings until detailed information on expected returns from Christmas becomes available.
 "However, based upon preliminary information, we expect third quarter earnings per share to be in the 20 to 30 cent range, versus 52 cents per share earned in the same period of the previous fiscal year," Tillinghast said. "The higher rate of returns received by ADMS in December suggests that retail sales through its major customer locations were below expectations. The lower levels of shipments during Christmas appear, in part, to reflect recent mergers and acquisitions in the industry. Book buying staffs became more conservative in ordering as they managed both the consolidation of Price Club and Costco and Sam Club's acquisition of PACE locations."
 Tillinghast said the quarterly estimate includes a reserve of 3 cents a share against a possible one-time increase in returns during 1994 as a result of consolidations occurring in the warehouse club industry.
 Advanced Marketing Services Inc. provides product selection advice, specialized merchandising and product development programs, and distribution and handling services for general interest books and related products to membership warehouse clubs and office product superstores in the United States, Canada, Mexico and England.
 -0- 12/29/93
 /CONTACT: Charles C. Tillinghast, III, president, or Jon S. Fish, CFO, both of Advanced Marketing Services, 619-457-2500/
 (ADMS)


CO: Advanced Marketing Services Inc. ST: California IN: REA SU: ERP

NY-MF -- SD001 -- 7710 12/29/93 08:15 EST
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Publication:PR Newswire
Date:Dec 29, 1993
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