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CIRCLE FINE ART CORPORATION REPORTS FINANCIAL RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR ENDING SEPT. 30, 1992

 CHICAGO, Dec. 29 /PRNewswire/ -- Circle Fine Art Corp. (NASDAQ:CFNE) reports results for its fiscal year ended Sept. 30, 1992.
 Fiscal 1992 net sales were $25,660,000 compared to $35,595,000 for fiscal 1991. Net loss for fiscal 1992 was $6,366,000 versus a net loss of $3,652,000 for fiscal year 1991. Net loss per common share outstanding was $2.43 for the 1992 fiscal year versus net loss per common share of $1.47 for the previous year.
 For the three months ended Sept. 30, 1992, sales were $5,781,000 versus $8,624,000 for the comparable quarter of fiscal 1991. Net loss for the fiscal 1992 fourth quarter was $1,976,000, compared to a net loss of $1,539,000 in the fourth fiscal quarter of 1991. Net loss per common share was $.66 per share, versus a net loss of $.62 or the comparable 1991 fiscal quarter.
 Commenting on the 1991 results, Jack Solomon, chairman, stated: 1992 was a difficult year for the art industry and for Circle Fine Art. Although the loss incurred by the company was most disappointing, Circle Fine Art is, in fact, in a much better overall position than it was at this time last year. First, after a series of negotiations lasting more than a year, in August we succeeded in restructuring our outstanding debt with our three lending institutions. Second, the going concern qualification noted by our auditors on the company's 1991 year end statement was replaced by a clean opinion for the 1992 year end statement."
 Solomon continued: Inherent in the loss for 1992 were negative effects of closing six unprofitable galleries, additional costs of downsizing the company, write-offs and employee severance costs. Further losses were incurred on the closing of the Classic Moments Company, our joint venture with the Bulova Corporation, and significant legal, accounting and bank fees were incurred in the restructuring process.
 It is important to note that this year's loss is not reduced by credits for federal and state income taxes, as was the case for 1991. The company possesses possible unrecorded loss carry forward tax benefits, which may be used by the company to offset income taxes on profits in future years,'' Solomon stated.
 Circle business for late fall and for the Christmas season has improved. We expect to report substantially better financial results for the quarter ending Dec. 31, 1992, which is the company's first quarter of the 1993 fiscal year.
 Due to our successful reconstructuring, cost containment efforts and slimmed down operations, we withstood the most serious and extended shake-out period in the art industry of the last 50 years. Circle remains one of the foremost, most vital enterprises of its kind in the world. With recently gained increased market share, a more manageable debt structure, lower interest rates, and a more efficient business organization, we look to the future with optimism,'' concluded Solomon.
 CIRCLE FINE ART CORPORATION
 Financial Highlights
 QUARTER ENDED SEPT. 30 1992 1991
 Net Sales $5,781,000 $8,624,000
 Pre-Tax Income From Continuing
 Operations ($2,006,000) ($2,117,000)
 Pre-Tax Income From Closed
 Operations ($413,000) $0
 Gain on Sale Of Property $814,000 $0
 Debt Restructuring Costs ($371,000) $0
 Income Taxes $0 $578,000
 Net Income ($1,976,000) ($1,539,000)
 Per Share Earnings:
 Net Income ($0.66) ($0.62)
 Weighted Average Number of Shares
 and Common Equivalent Shares 2,934,443 2,478,409
 Year Ended Sept. 30 1992 1991
 Net Sales $25,660,000 $35,595,000
 Pre-Tax Income From Continuing
 Operations ($5,870,000) ($5,583,000)
 Pre-Tax Income From Closed
 Operations ($939,000) $0
 Gain on Sale of Property $814,000 $0
 Debt Restructuring Costs ($371,000) $0
 Income Taxes $0 $1,931,000
 Net Income ($6,366,000) ($3,652,000)
 Per Share Earnings
 Net Income ($2.43) ($1.47)
 Weighted Average Number of Shares
 and Common Equivalent Shares 2,618,866 2,480,717
 NOTE: Figures in parenthesis are losses
 -0- 12/29/92
 /CONTACT: Jack Solomon, chairman or Joseph Atkin, vice president, 312-616-1300, both of Circle Fine Art Corp./
 (CFNE)


CO: Circle Fine Art Corporation ST: Illinois IN: SU: ERN

TM -- NY047 -- 0471 12/29/92 19:51 EST
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Date:Dec 29, 1992
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