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ALOETTE COSMETICS REPORTS RESULTS FOR SECOND QUARTER ENDED JUNE 30, 1993

 WEST CHESTER, Pa., Aug. 9 /PRNewswire/ -- Aloette Cosmetics, Inc. (NASDAQ: ALET) today reported net income of $336,000 or $.16 per share, for the six months ended June 30, 1993, a $72,000 decrease from the prior year's results of $408,000 or $.19 per share.
 Net income for the second quarter decreased from $415,000 or $.19 per share, in 1992 to $233,000, or $.11 per share for the current year. Prior year's earnings have been restated to reflect the adoption of SFAS No. 109, "Accounting for Income Taxes." The decline in year-to-date earnings was primarily due to a decrease in net product sales in the first quarter related to the timing of the company's new product packaging launch and the increase in selling and administrative expenses.
 Net product sales for the second quarter decreased 5 percent from $5.1 million to $4.8 million. This decrease primarily resulted from a $210,000 decrease in sales at the company's Canadian division. Approximately 60 percent of the decrease in Canadian sales related to currency exchange fluctuations. Cost of goods sold decreased to 61 percent of net product sales for the second quarter primarily as a result of increase production efficiencies at Superior Products related to Aloette's production and the timing of the new packaging launch.
 The quarterly decrease in net income is substantially due to a 15 percent, or $267,000 increase in selling, general and administrative expenses. The increases were related to the introductions of new training materials, temporary personnel costs related to the new product packaging, the development of new strategies designed to increase market penetration by broadening the basis for awarding franchises, and expenses relating to the launch of the company's sales division in Hermosillo, Mexico, and the expansion of its operations in Australia and New Zealand.
 John H. Teaford, the company's president stated, "The positive impact on second quarter net product sales that we had anticipated as a a result of the spring launch of our new product packaging was somewhat tempered by the effects of currency exchange fluctuations and the later introduction of the new packaging in Canada. Overall, we are pleased with the response our new look has received from our sales force. In addition, we are poised to implement several new programs developed to stimulate the awarding of franchises in areas not currently serviced and strengthen our franchise sales and operational support. Furthermore, the company is currently reviewing its administrative expenses to more effectively allocate its resources. While we expect a slow return to prior year's sales levels, our outlook for the future remains cautiously optimistic."
 Aloette Cosmetics, a franchisor, direct marketer, and manufacturer of skin care products and cosmetics is located in West Chester. As of June 30, 1993, the company's products were being sold by more than 100 franchises worldwide.
 ALOETTE COSMETICS INC.
 Financial Summary
 (In thousands, except per-share data)
 Pct.
 Three months ended June 30 1993 1992(A) Change
 Total revenues $5,537 $5,908 (6)
 Total costs and expenses 5,068 5,220 (3)
 Operating income 469 688 (32)
 Income before cumulative
 effect of accounting change 233 415 (44)
 Cumulative effect of accounting
 change --- --- ---
 Net income 233 415 (44)
 Per share data:
 Income before cumulative effect
 of accounting change $.11 $.19 (42)
 Cumulative effect of accounting
 change --- --- ---
 Net income $.11 $.19 (42)
 Weighted average shares 2,157 2,155 --
 Pct.
 Six months ended June 30 1993 1992(A) Change
 Total revenues $9,341 $10,991 (15)
 Total costs and expenses 8,839 9,794 (10)
 Operating income 502 1,197 (58)
 Income before cumulative
 effect of accounting change 336 698 (52)
 Cumulative effect of accounting
 change --- (290) 100
 Net income 336 408 (18)
 Per share data:
 Income before cumulative effect
 of accounting change $.16 $.33 (50)
 Cumulative effect of accounting
 change --- ($.14) 100
 Net income $.16 $.19 (16)
 Weighted average shares 2,157 2,155 ---
 (A) Restated to reflect cumulative effect of accounting change from
 adoption of SFAS No. 109 "Accounting for Income Taxes."
 /delval/
 -0- 8/9/93
 /CONTACT: Jean M. Lewis, vp-finance of Aloette Cosmetics, 215-692-0600/
 (ALET)


CO: Aloette Cosmetics, Inc. ST: Pennsylvania IN: HOU SU: ERN

CC-MJ -- PH929 -- 0942 08/09/93 18:00 EDT
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Date:Aug 9, 1993
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