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COSTCO WHOLESALE CORP. RELEASES FOURTH QUARTER AND YEAR-TO-DATE INCOME STATEMENT AND BALANCE SHEET

 KIRKLAND, Wash., Oct. 15 /PRNewswire/ -- Costco Wholesale Corp. (NASDAQ-NMS: COST) made available today its income statement and balance sheet detail for its previously-announced fourth quarter and fiscal 1993 earnings. The earnings release on Sept. 20, 1993 had been accelerated due to information included in a Form S-4 registration statement filed with the Securities and Exchange Commission on Sept. 22, 1993, related to the company's proposed merger with The Price Co.
 Net Sales for the fiscal year, the 52 weeks ended Aug. 29, 1993, were $7.506 billion, an increase of 15 percent from $6.500 billion the year earlier. Comparable warehouse sales increased 3 percent over the prior year. Net sales for the fourth quarter, the 16-weeks ended Aug. 29th increased 14 percent to $2.365 billion from $2.082 billion during the fiscal 1992 fourth quarter. Comparable warehouse sales during the fourth quarter increased 2 percent over the year-earlier period.
 Net income during fiscal 1993 decreased to $109.4 million or 90 cents per share (fully diluted), as compared to fiscal 1992 net income of $113.3 million, or 93 cents per share.
 Net income for the 16-week fourth quarter of fiscal 1993 decreased to $34.9 million, or 29 cents per share, compared to $39.2 million or 32 cents per share during the fourth quarter of fiscal 1992.
 Costco ended its fiscal year on Aug. 29, 1993 with 108 cash-and- carry membership warehouses in sixteen states and Western Canada. Since that time two new warehouses have been opened in Sequim, Wash. and Waterbury, Conn. and 12 additional warehouses are expected to open prior to calendar year-end in Waltham, Mass.; Juneau, Alaska; Wharton, N.J.; Vista, Livermore, and San Francisco, Calif.; Kona, Hawaii; Lethbridge, Alberta, Canada; Kalispell, Mont.; Merced, Calif.; Barrie and Ajax, Ontario, Canada. These openings will bring to 122 the total number of warehouses in operation by calendar year-end.
 As previously announced, the company will hold a special meeting of shareholders at 10 a.m. on Oct. 21, 1993 at the Bellevue Conference Center, 505-106th Avenue N.E., Bellevue, Wash., for purposes of voting on the previously-announced merger with The Price Co.
 The company's common stock trades on the NASDAQ National Market System under the ticker symbol, "COST".
 COSTCO WHOLESALE CORP. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (dollars in thousands, except per share data)
 (Unaudited)
 Fourth Quarter Year-to-Date
 (16 Weeks) (52 Weeks)
 Aug. 29, Aug. 30, Aug. 29, Aug. 30,
 1993 1992 1993 1992
 REVENUE
 Net sales $2,364,839 $2,081,852 $7,506,215 $6,500,193
 Membership fees
 and other 42,040 35,442 143,169 120,570
 Total revenue 2,406,879 2,117,294 7,649,384 6,620,763
 MERCHANDISE COSTS 2,139,089 1,886,585 6,801,578 5,897,586
 Gross profit 267,790 230,709 847,806 723,177
 SELLING, GENERAL AND
 ADMINISTRATIVE
 EXPENSES 201,932 164,553 640,778 525,607
 PREOPENING EXPENSES 7,036 3,171 18,778 12,455
 PROVISION FOR ESTIMATED
 WAREHOUSE CLOSING COSTS 1,500 1,000 1,500 1,000
 Operating income 57,322 61,985 186,750 184,115
 OTHER INCOME (EXPENSE)
 Interest expense (4,966) (5,734) (17,177) (7,236)
 Interest income 2,274 4,135 8,241 8,192
 Other 895 209 1,877 658
 Income before
 provision for
 income taxes 55,525 60,595 179,691 185,729
 PROVISION FOR INCOME
 TAXES 20,587 21,423 70,258 72,434
 Net income $ 34,938 $ 39,172 $ 109,433 $ 113,295
 NET INCOME PER COMMON
 AND COMMON EQUIVALENT
 SHARE -PRIMARY $ .29 $ .32 $ .90 $ .93
 Weighted average
 shares (000's) 120,915 121,731 121,436 122,174
 NET INCOME PER COMMON
 AND COMMON
 EQUIVALENT SHARE
 - FULLY DILUTED $ .29 $ .32 $ .90 $ .93
 Weighted average
 shares (000's) 121,029 121,731 121,436 122,227
 COSTCO WHOLESALE CORP. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (dollars in thousands)
 (Unaudited)
 ASSETS
 Aug. 29, 1993 Aug. 30, 1992
 CURRENT ASSETS
 Cash and cash equivalents $ 120,227 $ 253,992
 Restricted cash - 22,948
 Vendor and other receivables,
 net of allowance for
 doubtful accounts of $795
 and $1,141 52,941 37,993
 Inventories 570,681 485,877
 Deferred income taxes 27,118 22,262
 Other current assets 11,022 7,905
 Total current assets 781,989 830,977
 PROPERTY AND EQUIPMENT
 Land and land improvements 391,437 299,268
 Buildings 479,021 357,185
 Leasehold improvements 41,147 36,042
 Equipment and fixtures 198,731 155,994
 Construction in progress 87,536 32,351
 1,197,872 880,840
 Less-accumulated depreciation
 and amortization (143,045) (102,731)
 Net property and equipment 1,054,827 778,109
 OTHER ASSETS
 Notes receivable 24,534 17,393
 Long-term deposits and other assets 24,119 22,068
 Total other assets 48,653 39,461
 $1,885,469 $1,648,547
 LIABILITIES AND EQUITY
 Aug. 29, 1993 Aug. 30, 1992
 CURRENT LIABILITIES
 Accounts payable $ 528,938 $ 410,069
 Accrued salaries and benefits 69,965 57,908
 Accrued taxes 34,520 31,934
 Interest payable 5,099 4,354
 Income taxes payable 168 4,999
 Other current liabilities 8,240 9,770
 Total current liabilities 646,930 519,034
 LONG-TERM DEBT AND CAPITAL
 LEASE OBLIGATIONS
 Convertible subordinated debentures 300,000 300,000
 Capital lease obligations, net 0 628
 Other, net of current portion 62 79
 Total long-term debt and
 capital lease obligation 300,062 300,707
 DEFERRED INCOME TAXES 18,207 14,510
 OTHER LIABILITIES 2,608 2,287
 Total liabilities 967,807 836,538
 COMMITMENTS AND CONTINGENCIES
 STOCKHOLDERS' EQUITY
 Preferred stock $.01 par value;
 10,000,000 shares authorized;
 no shares issued and outstanding
 Common stock $.0033 par value;
 600,000,000 shares authorized;
 119,058,262 and 117,597,230
 shares issued and outstanding 397 392
 Additional paid-in capital 537,244 524,814
 Accumulated foreign currency
 translation adjustment (18,719) (2,504)
 Retained earnings 398,740 289,307
 Total stockholders' equity 917,662 812,009
 $1,885,469 $1,648,547
 -0- 10/15/93
 /CONTACT: Richard Galanti, chief financial officer, of Costco Wholesale, 206-828-8100, ext. 203/
 (COST)


CO: Costco Wholesale Corp.; The Price Co. ST: Washington IN: REA SU: ERN

RB -- SE001A -- 2561 10/15/93 07:20 EDT
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