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CARDIS CORP. REPORTS RESULTS

 CARDIS CORP. REPORTS RESULTS
 BUENA PARK, Calif., Dec. 12 /PRNewswire/ -- Cardis Corp. (OTC)


reduced its loss before extraordinary item for the second quarter and six months ended Oct. 31, 1991. The company's improved bottom line performance was attributable to the recently completed major recapitalization that reduced Cardis' outstanding debt and interest expense. The benefits of operating expense reductions were offset by lower sales due to the sluggish economy.
 For the second quarter, revenues were $19.4 million compared with $21.1 million a year ago. The loss before an extraordinary item -- the debt restructuring and reorganization -- was $448,000, or $.20 cents per share, compared with a net loss of $871,000, or $1.70 per share, in the year-earlier quarter. Including the extraordinary gain from the recapitalization, Cardis posted net income of $21.0 million, or $9.35 per share, in the current year period.
 For the six months ended Oct. 31, 1991, sales were $38.4 million versus $42.6 million a year ago. The company incurred a loss before extraordinary item of $879,000, or $.39 per share, compared with a net loss of $2.0 million, or $3.95 per share, in the same period last year. The effect of the recapitalization in the 1991 six-month period made net income $20.6 million, or $9.22 per share.
 Prior year periods have been restated to give effect to the one- for-twenty reverse stock split effective concurrently with the recapitalization approved by shareholders in October 1991.
 The recapitalization involved the exchange of Cardis' common stock for $20 million of bank debt and $724,000 in interest owed on that debt; 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 granted to Cardis officers and directors.
 "The year-to-date gain achieved at the operating profit level reflects the fundamental strength of Cardis' business, but we still have much to do," stated President Kenneth Walker. "In spite of the positive effect of the recapitalization, we will continue to investigate the possibilities of strategic alliances that might further enhance shareholder value."
 Cardis Corp. currently operates nine warehouse distribution centers and 21 retail stores located primarily in California.
 CARDIS CORP. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Dollars in thousands except per share data)
 (Unaudited)
 Three Months Six Months
 Ended Oct. 31, Ended Oct. 31,
 1991 1990 1991 1990
 Net sales $19,367 $21,114 $38,418 $42,632
 Cost of sales 13,393 14,384 26,367 29,340
 Gross profit 5,974 6,730 12,051 13,292
 Selling, general and
 administrative
 expenses 5,768 6,394 11,614 12,940
 Operating profit 206 336 437 352
 Interest expense 654 1,207 1,316 2,394
 Loss before
 extraordinary item (448) (871) (879) (2,042)
 Extraordinary item-debt
 restructuring and
 reorganization 21,459 -- 21,459 --
 Net income (loss) $21,011 ($871) $20,580 ($2,042)
 Loss per common share(a):
 Loss before
 extraordinary item ($.20) ($1.70) ($.39) ($3.95)
 Extraordinary item 9.55 --- 9.61 ---
 Net income (loss) $9.35 ($1.70) $9.22 ($3.95)
 Weighted average
 number of common
 shares used in
 computing earnings
 (loss) per share 2,247,101 547,587 2,232,342 547,587
 (a) Gives effect to the 1 for 20 reverse stock split effective Oct. 31, 1991.
 -0- 12/12/91
 /CONTACT: John L. Olson of Cardis, 213-227-4855; or Craig A. Parsons of Rifkind Pondel & Parsons, 310-207-9300, for Cardis/ CO: Cardis Corp. ST: California IN: SU: ERN


AL-EH -- LA004 -- 1812 12/12/91 09:30 EST
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Date:Dec 12, 1991
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