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AMERICAN EDUCATIONAL PRODUCTS REPORTS IMPROVED SALES AND NET INCOME FOR SECOND QUARTER, SIX MONTHS

 BOULDER, COLO., July 28 /PRNewswire/ -- American Educational Products, Inc. (NASDAQ: AMEP) today announced net income of $489,000 for its second quarter ended June 30, 1993, a 47 percent increase over net income of $332,000 for the second quarter of 1992. Earnings per share were 12 cents for the quarter, compared with 13 cents a year ago, reflecting the effect of a 61 percent increase in shares outstanding as a result of the company's public offering of 1,415,000 shares in September 1992.
 Net income for the six month period was $645,000, or 15 cents per share, compared with $417,000, or 16 cents per share, for the first six months of last year. Per-share figures again reflect the increase in shares outstanding.
 Second quarter sales were $4,833,000, compared with $4,053,00 for the second quarter of 1992. Six-month sales were $8,033,000, compared with $6,813,000 a year ago.
 "We have increased marketing expenditures significantly this year as we expanded distribution of our catalogs and pursued other initiatives to gain market share" said Paul Whittle, president and CEO. "In addition, we incurred one-time costs charged to cost of goods sold and marketing to integrate the Redco product line and manufacturing operations into our Hubbard Scientific plant in Chippewa Falls, Wis. As a result of these efforts, sales for the first six months increased 18 percent over last year.
 "While the sales increase was significant, it was still below our plan. School budget issues have caused some teachers and administrators to defer
many purchases until later in the year. The total effect of our expanded marketing efforts and market factors was a modest reduction in operating income compared with last year's levels. However, the second half looks much stronger, and we anticipate our investments will produce record sales and earnings per share for the full year."
 American Educational Products, Inc., headquartered in Boulder, Colo., is comprised of three wholly owned subsidiaries: Summit Learning, Hubbard Scientific and Scott Resources. AEP's subsidiaries develop, manufacture and distribute hands-on educational products for the K-12 market.
 AMERICAN EDUCATIONAL PRODUCTS, INC.
 Condensed Consolidated Statement of Operations
 (In thousands except per share amounts)
 (unaudited)
 Three months ended Six months ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Sales $4,833 $4,053 $8,033 $6,813
 Cost of goods sold 2,477 2,073 4,283 3,606
 Gross profit 2,356 1,980 3,750 3,207
 Marketing 879 592 1,453 1,033
 General and admin. 685 573 1,235 1,003
 Net op. income 792 815 1,062 1,171
 Interest income
 (expense) (51) (249) (85) (447)
 Income before taxes 741 566 977 724
 Net income $489 $344 $645 $440
 Preferred dividends -- 12 -- 23
 Net income available
 to common shareholders $489 $332 $645 $417
 Net income per
 common and common
 equiv. share $.12 $.13 $.15 $.16
 Average number of
 common and common
 equivalent shares
 outstanding 4,217,000 2,618,000 4,233,000 2,624,000
 -0- 7/28/93
 /CONTACT: John Swenson of Swenson/Falker Assoc., 612-371-0000, for American Educational Products; or John E. Panasewicz of American Educational Products 303-443-0020/
 (AMEP)


CO: American Educational Products, Inc. ST: Minnesota, Colorado IN: SU: ERN

DB -- MN026 -- 6967 07/28/93 17:22 EDT
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Date:Jul 28, 1993
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