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CELEX GROUP SALES UP 139 PERCENT IN SECOND QUARTER FIRST HALF PROFIT OF $863,592

 CHICAGO, Dec. 16 /PRNewswire/ -- CELEX Group Inc., the publicly held creator and marketer of proprietary products for business and personal motivation, today reported continued strong sales and earnings for the second quarter ended Oct. 31. Sales were 139 percent over the same period a year ago and the net income for the second quarter was $560,436.
 Mac Anderson, chairman and president, attributed the second straight record-setting quarter of sales and earnings to the successful implementation of the prior year's strategic planning. "Each of our three channels of distribution -- retail, mail order and direct selling -- have been fine-tuned and contributed to these results. The synergy we planned for these marketing channels is now being reflected in our financial results and we expect these results to continue and to improve."
 CELEX reported a net profit of $560,436 on sales of $3,334,768 for the second quarter compared with a loss of $70,602 on sales of $1,393,198 in the second quarter last year. Second quarter net income was 29 cents per share.
 The results for the first six months of the current fiscal year were a net profit of $863,592 on sales of $5,293,607, with per share earnings of 45 cents per share. Comparable figures for last year were $92,844 of net income on sales of $2,395,145. Current year's figures represent an 830 percent increase in profits on a 121 percent increase in sales.
 Mr. Anderson, commenting on the results, said, "Last year was basically a break-even situation. This year we have doubled our sales, improved our gross profit margin and kept our operating expenses in line with sales. A substantial portion of our gross profit from the increased sales volume has dropped right to the bottom line."
 Anderson expressed a positive outlook for the balance of the year. CELEX recently announced an agreement with AT&T to distribute CELEX's products to some 40,000 AT&T managers worldwide. He estimated this agreement would generate $2,000,000 in sales in the next 12 months. Successories, the retail arm of CELEX, currently has 34 locations operating in 12 states. These retail operations are a combination of company-owned and franchise operations. Anderson expects both areas to continue their controlled expansion in the next six months.
 "Our budget for this fiscal year is $12,000,000 in sales and a net profit in excess of 15 percent of sales. We expect to meet those goals," said Mr. Anderson.
 CELEX GROUP, INC.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATING RESULTS
 Three months ended Oct. 31
 1992 1991
 Net Sales $3,334,768 $1,393,198
 Cost of Goods Sold 1,124,970 566,065
 Operating Expenses 1,575,660 883,593
 Operating Profit (Loss) 634,138 (56,460)
 Interest Expense - Net 24,660 47,255
 Other Income (Expense) (49,042) (12,043)
 Income Before Income Taxes
 and Extraordinary Credits 560,436 (115,758)
 Income Taxes 217,000 (25,000)
 Income Before Extra. Credits 343,436 (90,758)
 Extraordinary Credits
 Tax Loss Carry Forward 217,000 (25,000)
 Gain on Sale of Investment -- 45,000
 Net Income $560,436 $(70,758)
 Per Share of Common Stock -
 Income before Extra. Credits $.18 $(.05)
 Net Income $.29 $(.04)
 Average Shares Outstanding 1,919,060 1,775,560
 Six months ended Oct. 31
 1992 1991
 Net Sales $5,293,607 $2,395,145
 Cost of Goods Sold 1,906,738 926,642
 Operating Expenses 2,422,468 1,634,364
 Operating Profit (Loss) 964,401 (165,861)
 Interest Expense - Net 59,955 61,658
 Other Income (Expense) (40,854) 9,637
 Income Before Income Taxes
 and Extraordinary Credits 863,592 (237,156)
 Income Taxes 335,000 27,000
 Income Before Extra. Credits 528,592 (264,156)
 Extraordinary Credits
 Tax Loss Carry Forward 335,000 27,000
 Gain on Sale of Investment -- 330,000
 Net Income $863,592 $ 92,844
 Per Share of Common Stock -
 Income before Extra. Credits $.28 $(.15)
 Net Income $.45 $ .05
 Average Shares Outstanding 1,919,060 1,764,483
 CONDENSED CONSOLIDATED BALANCE SHEETS AT OCT. 31,
 1992 1991
 Current Assets $3,267,058 $2,029,245
 Property & Equipment - Net 594,686 393,396
 Other Assets 729,885 344,912
 Total Assets 4,591,629 2,767,552
 Current Liabilities 2,396,388 1,950,397
 Long-Term Debt 516,891 255,280
 Stockholders' Equity 1,678,350 561,874
 -0- 12/16/92
 /CONTACT: Mac Anderson, president and CEO of CELEX Group, Inc., 708-953-8440; or Nick Biro, senior vice president of O'Connor Biro & Associates, 708-498-2284, for CELEX Group, Inc./


CO: CELEX Group Inc. ST: Illinois IN: SU: ERN

LR -- NY056 -- 7711 12/16/92 12:33 EST
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