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DAMARK INTERNATIONAL REPORTS FIRST-QUARTER RESULTS

 DAMARK INTERNATIONAL REPORTS FIRST-QUARTER RESULTS
 MINNEAPOLIS, April 21 -- DAMARK International, Inc. (NASDAQ: DMRK)


today reported results for the first quarter ended March 28, 1992. First-quarter net sales increased 48.5 percent to $69.8 million from $47.0 million for the same period in 1991. Operating income was $94,000, versus $9,000 in 1991. Net loss was $329,000, versus $624,000 last year. On a per share basis excluding the effect of a warrant valuation increase, the net loss was 5 cents versus 11 cents in the year-ago quarter.
 In commenting on the results for the quarter, Mark Cohn, DAMARK's chairman and chief executive officer said, "We are pleased with the results for the quarter and are off to a good start for the year. We added approximately 270,000 new customers during the quarter versus 146,000 during the first quarter of 1991, bringing our proprietary customer list to approximately 2.9 million names. Our Preferred Buyer's Club grew by 99,000 new members in the quarter, versus 35,000 last year, and now totals 279,000 members. Additionally, sales per catalog mailed increased 38.7 percent."
 Selling, general and administrative expense decreased as a percent of sales and reflects more efficient spending for new customer acquisition. The company's gross profit margin was down from the prior year to 26.7 percent, reflecting the continuation of a successful promotional strategy begun in the fourth quarter of 1991.
 During the 1992 first quarter, the company elected to begin reporting under SFAS number 109, "Accounting for Income Taxes." This change benefited 1992 first-quarter results by about 5 cents per share, including the cumulative effect from prior years of 1 cent per share.
 DAMARK's initial public offering was completed on April 1 and will be reflected in the company's second quarter results.
 Founded in 1986, DAMARK International, Inc., headquartered in Minneapolis, has become a leading national direct merchandiser of "great deals," offering brand name and other quality general merchandise at value-oriented prices.
 DAMARK INTERNATIONAL, INC.
 STATEMENTS OF OPERATIONS
 (dollar and share amounts in thousands except per share data)
 (unaudited)
 Three Months Ended
 March 28, 1992 March 30, 1991
 Net Sales $69,804 $46,999
 Cost of Sales 51,160 32,753
 Gross Profit 18,644 14,246
 Selling, General and Administrative
 expenses 18,550 14,236
 Operating income 94 9
 Interest Expense 688 603
 Other Expense, net 42 30
 Loss before taxes and cumulative effect
 of a change in accounting principle (636) (624)
 Income Tax Benefit (216) --
 Loss before cumulative effect of a
 change in accounting principle (420) (624)
 Cumulative effect of change in income tax
 accounting method, net of taxes 91 --
 Net Loss $(329) $(624)
 Loss Per Common Share and Common Share Equivalents:
 Primary and Fully Diluted:
 Loss before cumulative effect of change
 in accounting principle per common share
 and common share equivalents, including
 the impact of the increase in warrant
 value of $4,891 in 1992 $(0.96) $(0.11)
 Cumulative effect of change in income tax
 accounting method, net of taxes 0.01 --
 Net Loss per common share and common share
 equivalents including the impact of the
 increase in warrant value of $4,891
 in 1992 $(0.95) $(0.11)
 Weighted Average Common Share and Common
 Share Equivalents Outstanding 5,504 5,704
 Supplemental loss per common share and common share equivalents:
 Net loss per common share and common
 share equivalents excluding the
 impact of the increase in warrant
 value of $4,891 in 1992 $(0.05) $(0.11)
 Weighted average common share and
 common share equivalents 6,064 5,704
 -0- 4/21/92
 /CONTACT: John Mackay of Padilla Speer Beardsley, 612-871-8877, for DAMARK, or James Tuller, 612-531-0066, of DAMARK International/
 (DMRK) CO: Damark International Inc. ST: Minnesota IN: SU: ERN


AL -- MN021 -- 0855 04/21/92 16:23 EDT
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Date:Apr 21, 1992
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