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CARDIS CORP. ANNOUNCES RESULTS

 CARDIS CORP. ANNOUNCES RESULTS
 BUENA PARK, Calif., Aug. 19 /PRNewswire/ -- Cardis Corp. (OTC)


today reported net income of $17,531,000, or $7.88 per share, for the fiscal year ended April 30, 1992, after reflecting an extraordinary item of $21,463,000, or $9.68 per share.
 Cardis' loss before extraordinary gain totaled $3,932,000, or $1.80 per share, in contrast to a net loss in fiscal 1991 of $6,505,000, or $12.32 per share. The 1992 extraordinary item reflected the company's Oct. 31, 1991 recapitalization.
 The substantial reduction in the company's loss before extraordinary gain in 1992 was achieved despite lower sales of $73,315,000 vs. $80,096,000 a year ago.
 For the 1992 fourth fiscal quarter, Cardis recorded a net loss of $2,112,000, or $.97 per share. Sales for the quarter were $17,928,000 vs. $18,489,000 a year ago.
 Prior year periods have been restated to reflect the 1-for-20 reverse stock split effected concurrently with the recapitalization.
 The recapitalization involved the exchange of $20 million of bank debt and $724,000 in interest owed on that debt for Cardis' common stock; the extension of term and interest relief on approximately $8.1 million of other indebtedness in exchange for stock; conversion of the company's mandatory redeemable class B preferred stock into shares of common stock; the reverse stock split; and an increase in the number of options available for grant to Cardis officers and directors.
 "Despite a tough economic environment that affected sales as well as margins, we were able to significantly cut Cardis' operating loss through our continued cost reduction measures," said Kenneth C. Cleveland, president and chief executive officer.
 Cleveland added: "Although near-term market conditions are clouded, the long-term growth prospects for the California market underscore our efforts to return Cardis to operating profitability."
 The fiscal 1992 operating loss put Cardis out of compliance with its bank agreement at April 30, 1992. Although a waiver of non- compliance has been granted, the company is working with its bankers to revise its loan covenants.
 "We have aggressively implemented cash and inventory management procedures, as well as new strategies to boost sales levels," Cleveland said.
 Cardis Corp. currently operates nine warehouse distribution centers and 20 retail stores located primarily in California.
 CARDIS CORPORATION AND SUBSIDIARIES

 Consolidated Statements Of Operations
 (Dollars in thousands, except per share data)
 Three Months Ended Year Ended
 April 30, April 30,
 1992 1991 1992 1991
 Net sales $17,928 $18,489 $73,315 $80,096
 Cost of sales 13,204 12,686 51,094 55,024
 Gross profit 4,724 5,803 22,221 25,072
 Selling, general
 and administrative
 expenses 5,642 6,099 23,024 25,448
 Unusual items:
 Store and warehouse
 consolidation and
 severance costs 630 800 630 800
 Write-off of obsolete
 computer equipment --- 505 --- 505
 Total 630 1,305 630 1,305
 Loss from operations (1,548) (1,601) (1,433) (1,681)
 Interest expense 568 1,192 2,499 4,824
 Loss before
 extraordinary item (2,116) (2,793) (3,932) (6,505)
 Extraordinary item --
 debt restructuring
 and reorganization 4 --- 21,463 ---
 Net income (loss) ($2,112) $2,793 $17,531 ($6,505)
 Income (loss) per
 common share:
 Loss from operations ($.97) ($5.21) ($1.80) ($12.32)
 Extraordinary item --- --- 9.68 ---
 Net income (loss) ($.97) ($5.21) $7.88 ($12.32)
 Weighted average
 number of common
 share used in
 computing earnings
 (loss) per share 2,172,140 547,587 2,217,356 547,587
 -0- 8/19/92
 /CONTACT: Kenneth C. Cleveland of Cardis Corp., 213-227-4855; or Cecilia A. Wilkinson or Craig A. Parsons of Pondel, Parsons & Wilkinson, 310-207-9300, for Cardis Corp./ CO: Cardis Corp. ST: California IN: REA SU: ERN


LS -- LA033 -- 1513 08/19/92 17:55 EDT
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Date:Aug 19, 1992
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