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BRENDLE'S FIRST QUARTER RESULTS MEET COMPANY'S PLAN

 BRENDLE'S FIRST QUARTER RESULTS MEET COMPANY'S PLAN
 ELKIN, N.C., June 17 /PRNewswire/ -- Brendle's Incorporated


(NASDAQ-NMS: BRDL) reported that its first quarter results closely matched or exceeded its business plan for the period.
 The company's net loss before income taxes for the quarter was $6.9 million, as compared to $7.1 million the previous year. It reported an after-tax net loss of $6.9 million for the quarter, as compared to an after-tax net loss of $4.3 million the year before. The company exhausted its tax loss carry-backs in the previous fiscal year, so it did not have tax benefits to apply to the first quarter of this year.
 "Our objectives during the first quarter were to arrest the downward trend in operating losses and review every aspect of our business to complete our strategic turnaround plan," said Walter A. Jones, president and chief executive. "We achieved both objectives. Reducing our advertising and promotional activities and closing losing stores were key elements of the foundation of our plans."
 "We fully anticipated the effects these actions would have on first quarter sales," Jones added. "At the same time, we took significant steps to increase gross margins and reduce selling, operating and administrative costs to improve our operating results. The operating results were actually $400,000 better than we projected for the quarter."
 The company reported net sales of $42.2 million for the quarter ending May 2, 1992, compared with net sales of $52.6 million for the same quarter last year. The 19.7 percent decrease in net sales was primarily a result of closing six poor-performing stores in January 1992 and a planned reduction in advertising and promotion during the quarter. Brendle's experienced a 14.7 percent decline in comparable store sales which it anticipated due to reduced promotional activities and an expectation of cautious consumer spending.
 These and other actions taken as a part of the implementation of the company's turnaround plan resulted in costs and expenses for this quarter of $49.3 million, as compared with $59.8 million for the same period last year.
 During the first quarter of fiscal 1992-93, Brendle's concentrated on laying the foundation for its business turnaround plan. Key aspects included streamlining corporate operations, closing poor-performing stores and overhauling its merchandising strategy.
 Also in May, the company negotiated a $56.9 million agreement with its banks and announced plans to shift its merchandise mix during 1992 and 1993 to become a focused specialty retailer of gifts, jewelry, leisure living products and home accessories.
 Brendle's Incorporated operates 53 stores in North and South Carolina, Virginia, Georgia and Tennessee.
 Its shares are traded on the NASDAQ national market system under the symbol BRDL.
 -0- 6/17/92
 /CONTACT: (MEDIA) Walter Jones, Brendle's Incorporated, 919-526-6570/
 (BRDL) CO: Brendle's Incorporated ST: North Carolina IN: REA SU: ERN


CM -- CH011 -- 1227 06/17/92 16:48 EDT
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Date:Jun 17, 1992
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