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ALOETTE COSMETICS REPORTS RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 1992

 ALOETTE COSMETICS REPORTS RESULTS FOR
 THE FIRST QUARTER ENDED MARCH 31, 1992
 WEST CHESTER, Pa., May 15 /PRNewswire/ -- Aloette Cosmetics, Inc. (NASDAQ: ALET) today reported net income of $341,000 vs. $668,000 for the same period last year and earnings of $.16 per share vs. $.23 per share on 27 percent fewer shares outstanding.
 The reduction in net income was attributable to several factors including a decline in net product sales of 11 percent and a decrease of approximately $220,000 in other income primarily related to the additional indebtedness incurred to finance the April 1991 treasury stock purchase. Net product sales to Aloette franchises decreased 7 percent primarily due to the effect of a change in the timing of the company's annual seminars from the third quarter in previous years to the first quarter in the current year; the seminars are attended by a large majority of franchise owners and top beauty consultants. The impact of this change also affected worldwide retail sales (franchise sales to their customers) which decreased 6 percent to $13.5 million. Management said it believes that product sales to Aloette franchises will be flat or slightly down at least through the second quarter as benefits related to the implementation of several new sales and marketing programs are not expected to impact sales at least until the third quarter. Operating results were down at Superior Products as a result of reduced sales and lower production volumes related to the transfer of Aloette's skin care production to an outside manufacturer. This facility is currently undergoing an extensive renovation designed to expand manufacturing capabilities and increase production efficiencies. Accordingly, production of Aloette's skin care and cosmetic products is expected to be phased in at Superior during the third and fourth quarters of 1992.
 Net income for the quarter includes the recognition of a $70,370 tax loss carryforward benefit from one of the company's subsidiaries. This extraordinary tax benefit resulted in $.03 earnings per share. The first quarter statements exclude sales and earnings from the company's Canadian manufacturing facility, Spectrum Cosmetics, scheduled for divestiture under a restructuring plan announced in February 1992. The Canadian manufacturing facility had sales of $183,000 and recorded net income of $33,000 for the first quarter of 1991.
 Selling, general and administrative expenses remained relatively constant on a consolidated level as increases related to the development and implementation of new marketing and sales strategies were offset by decreases at Superior Products and the elimination of Spectrum Cosmetics.
 Albert E. Edwards, president and chief operating officer, stated, "The current fiscal year is considered to be a year of transition for Aloette. This process began with the investment in 1991 in a professional management team whose primary responsibility is to build on the company's existing strong foundation. The consolidation of our two manufacturing facilities into a single unit is well underway and should enable us to maximize our production efficiencies. The development of our strategies can be witnessed in the recent enhancement of our sales techniques as well as the augmentation of existing training programs and recruiting methods. While we are excited and encouraged by the advancements we've made so far, we do not expect to see the benefit of our labors until late this year or 1993."
 Aloette Cosmetics, a franchisor, direct marketer and manufacturer of skin care products and cosmetics, is located in West Chester. As of March 31, the company's products were being sold by more than 100 franchises worldwide.
 ALOETTE COSMETICS, INC.
 Financial Summary
 (In thousands, except per-share data)
 Quarter ended March 31 1992 1991 Pct. Chg.
 Total revenues $5,083 $5,656 (10)
 Total costs and expenses 4,574 4,729 (3)
 Operating income 509 927 (45)
 Income before income taxes
 and extraordinary item 481 1,118 (57)
 Extraordinary item 70 --- 100
 Net income 341 668 (49)
 Per-share data:
 Earnings before extraordinary
 item $.13 $.23 (44)
 Extraordinary item .03 --- 100
 Earnings .16 .23 (30)
 Weighted average shares 2,155 2,933 (27)
 /delval/
 -0- 5/15/92
 /CONTACT: Jean M. Lewis, vp-finance of Aloette Cosmetics, 215-692-0600/
 (ALET) CO: Aloette Cosmetics, Inc. ST: Pennsylvania IN: SU: ERN


KA-CC -- PH041 -- 0966 05/15/92 17:11 EDT
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Date:May 15, 1992
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