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ALOETTE COSMETICS, INC. REPORTS THIRD QUARTER RESULTS

 ALOETTE COSMETICS, INC. REPORTS THIRD QUARTER RESULTS
 WEST CHESTER, Pa., Oct. 29 /PRNewswire/ -- Aloette Cosmetics, Inc.


(NASDAQ: ALET) reported today total revenues of $4.9 million for the three months ended Sept. 30, 1992, down 11 percent from the same period in 1991.
 Net income for the third quarter totalled $257,000 or $.12 per share, vs. $451,000 or $.21 per share in 1991. Third quarter net product sales of $4.2 million represented a 12 percent decrease from the $4.7 million reported for the third quarter of 1991.
 The decline in net product sales for the quarter was attributable to several factors, including the exclusion of sales totalling approximately $275,000 in 1991 from Spectrum Cosmetics -- the company's Canadian manufacturer which was closed late in the third quarter under a previously announced restructuring plan, and a decline in sales at Superior Products and to the Canadian franchises. Manufacturing renovations are on schedule at Superior Products and phase-in of Aloette production began in the third quarter, however, benefits related to increased production efficiencies are not expected to favorably impact results until 1993.
 On a year-to-date basis, the company reported a 10 percent decrease in total revenues from $17.7 million in 1991 to $15.9 million in the current year primarily due to the factors described above. Net income from the year-to-date period decreased to $1.0 million, or $.47 per share, vs. $2.2 million, or $.89 per share.
 Aloette's president and chief operating officer, Albert E. Edwards, commented on the company's results, "Although our results continue to be impacted by a weak economy and other factors, the company has been focusing its efforts on implementing new marketing strategies and reinvestment. Our emphasis continues to be on recruiting and retaining beauty consultants -- the primary link to our customers -- and we are in the process of re-evaluating our marketing and distribution systems. We were pleased with the response to several new product introductions in the third quarter, and work is proceeding on schedule on the enhancement and redefinition of our product offerings. As part of our continuing efforts to seize on opportunities in international markets, we are excited to announce plans to open a regional sales office of Aloette Cosmetics in Mexico. This division, which will begin operations in northern Mexico in early 1993, will ship products directly to the beauty consultant for distribution to the customer instead of through a franchise network as has been our primary method in the past. We are looking forward to capitalizing on the opportunity available in this country."
 The company also announced its intention to purchase up to 50,000 shares of its common stock in the open market under a previously announced stock repurchase program. The stock will be used from time to time to contribute to the company's Employee Stock Ownership Plan.
 Aloette Cosmetics, a franchisor, direct marketer and manufacturer of skin care products and cosmetics, is located in West Chester.
 ALOETTE COSMETICS, INC.
 (In thousands, except per-share data)
 Pct.
 Three months ended Sept. 30 1992 1991 Change
 Total revenues $4,888 $5,495 (11)
 Total costs and expenses 4,646 4,629 ---
 Operating income 242 866 (72)
 Income before income taxes and
 extraordinary item 413 795 (48)
 Extraordinary item --- --- ---
 Net income 257 451 (43)
 Per share data:
 Earnings before extraordinary
 item $.12 $.21 (43)
 Extraordinary item --- --- ---
 Earnings .12 .21 (43)
 Weighted average shares 2,155 2,155 ---
 Pct.
 Nine months ended Sept. 30 1992 1991 Change
 Total revenues $15,879 $17,633 (10)
 Total costs and expenses 14,440 14,415 ---
 Operating income 1,439 3,218 (55)
 Income before income taxes and
 extraordinary item 1,575 3,705 (57)
 Extraordinary item 90 --- 100
 Net income 1,005 2,215 (55)
 Per share data:
 Earnings before extraordinary
 item $.43 $.89 (52)
 Extraordinary item .04 --- 100
 Earnings .47 .89 (47)
 Weighted average shares 2,155 2,483 (13)
 /delval/
 -0- 10/29/92
 /CONTACT: Jean M. Lewis, vp-finance of Aloette Cosmetics, 215-692-0600/
 (ALET) CO: Aloette Cosmetics, Inc. ST: Pennsylvania IN: REA SU: ERN


MJ-CC -- PH038 -- 6784 10/29/92 16:42 EST
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Date:Oct 29, 1992
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