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BABBAGE'S ANNOUNCES SALES FOR FIVE-WEEK PERIOD

 DALLAS, Jan. 3 /PRNewswire/ -- Babbage's, Inc. (NASDAQ-NMS: BBGS) today announced that sales for the five-week period ended Jan. 1, 1994 were $64,288,000 compared to $64,229,000 for the five-week period ended Jan. 2, 1993. Comparable store sales for the period declined 15 percent. "Our sales performance in December was hurt by a significant decline in sales of video game systems and software. Although same store sales of video game systems had been negative for several months, the unexpected drop-off in sales of video game software began the weekend after Thanksgiving, the traditional start of the all-important Christmas selling season," said James B. McCurry, chairman of the board. "We responded to this sharp decline in video game sales by cutting prices on hundreds of video game titles. As a result, we ended the month with video game software inventories per store that were approximately 23 percent lower than at the end of December last year. We estimate that markdowns taken on video game software during the month are likely to reduce gross margin for the fourth quarter by approximately 2-1/2 to 3 percentage points."
 Although same store sales of video game software in total were down, sales of software for the Sega 16-bit system registered double-digit gains. In addition, the company experienced substantial growth in sales of CD ROM-based software for use on personal computers.
 As of Jan. 3, 1994, Babbage's, Inc. operated 302 company-owned stores in 39 states and Puerto Rico. Virtually all of the company's stores are located in major regional shopping malls.
 -0- 1/3/94
 /CONTACT: Opal P. Ferraro of Babbage's, Inc., 214-401-9000/
 (BBGS)


CO: Babbage's, Inc. ST: Texas IN: REA SU: SLS

PS -- NY056 -- 8628 01/03/94 16:46 EST
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Publication:PR Newswire
Date:Jan 3, 1994
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