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DISCOVERY ZONE, INC. ANNOUNCES 141 PERCENT INCREASE IN REVENUE FOR SECOND QUARTER

 CHICAGO, July 20 /PRNewswire/ -- Discovery Zone, Inc. (NASDAQ: ZONE), the nation's largest owner, operator and franchiser of children's indoor playgrounds (FunCenters), reported earnings for the second quarter ended June 30, 1993, of $157,000 or $0.01 per share, compared to a loss of $668,000 or $0.04 per share for the comparable period a year ago. Second quarter 1993 revenue increased 141 percent to $5.3 million from $2.2 million during the second quarter of 1992. Increased revenue is primarily attributable to an increase in the number of FunCenters in operation during the period as well as an increase in the size of FunCenters recently opened. At June 30, 1993, there were 87 Discovery Zone FunCenters in operation, 25 company-owned and 62 franchised. At June 30, 1992, there were 39 FunCenters in operation, two company-owned and 37 franchised. System-wide revenue increased to $14.7 million from $6.8 million.
 For the six months ended June 30, 1993, the company earned $457,000 or $0.03 per share, compared to the first six months of 1992 when the company lost $981,000 or $0.06 per share. Revenue for the first six months of 1993 increased 140 percent to $10.2 million from $4.2 million during the comparable period in 1992. System-wide revenue increased to $28.8 million for the first six months of 1993 from $13.6 million during the first six months of 1992.
 Donald F. Flynn, chairman and chief executive officer, said, "We are pleased with our progress to date. With the successful completion of the public offering, we are continuing our aggressive expansion plan. As of June 30, 1993, in addition to the 25 company-owned FunCenters in operation, all remaining sites to meet our 1993 build schedule had been identified, 80 percent of which were under construction, under lease or in some form of lease negotiation. We are on track to have between 90 and 100 company-owned FunCenters in operation by year end 1993. Our franchisees are also vigorously pursuing locations and plan to have about 110 to 120 FunCenters open by the end of this year. We believe the purchase of Tumble For Fun Limited Partnership by Blockbuster Entertainment Corporation, which combines our two largest franchisees, strengthens our franchise network."
 Discovery Zone FunCenters feature a distinct play zone comprised of a series of tubes, slides, ball bins, climbing mountains, air and water trampolines, obstacle courses, ramps, stairs and other devices for crawling, jumping, running, swinging and climbing. Discovery Zone FunCenters also include a separate play zone for smaller children, an open play area for infants and toddlers, a game room, party rooms, food service area, retail sales area and a parents' room.
 DISCOVERY ZONE, INC.
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Three Months Ended
 (In thousands, except per share June 30, June 30,
 and FunCenter data) 1993 1992
 Revenue $ 5,349 $ 2,220
 Cost of Sales 1,712 1,087
 Selling, General and Administrative 3,586 1,785
 Operating Income (Loss) 51 (652)
 Interest and Other Income (Expense), Net 119 (16)
 Income (Loss) Before Provision for
 Income Taxes 170 (668)
 Provision For Income Taxes 13 0
 Net Income (Loss) $ 157 $ (668)
 Earnings (Loss) Per Common and
 Equivalent Share $ 0.01 $ (0.04)
 Weighted Average Common and
 Equivalent Shares 19,447 17,088
 Number of FunCenters in Operation
 At End of Period:
 Company-Owned 25 2
 Franchised 62 37
 Total 87 39
 System-wide Revenue $14,731 $ 6,767
 DISCOVERY ZONE, INC.
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Six Months Ended
 (In thousands, except per June 30, June 30,
 share data) 1993 1992
 Revenue $10,175 $ 4,244
 Cost of Sales 3,740 2,139
 Selling, General and Administrative 6,130 3,063
 Operating Income (Loss) 305 (958)
 Interest and Other Income (Expense), Net 165 (23)
 Income (Loss) Before Provision for
 Income Taxes 470 (981)
 Provision For Income Taxes 13 0
 Net Income (Loss) $ 457 $ (981)
 Earnings (Loss) Per Common and
 Equivalent Share $ 0.03 $ (0.06)
 Weighted Average Common and
 Equivalent Shares 18,590 17,088
 System-wide Revenue $28,775 $13,619
 -0- 7/20/93
 /CONTACT: Robert D. Mitchum, vice president and chief financial officer of Discovery Zone, Inc., 312-616-3800/
 (ZONE)


CO: Discovery Zone, Inc. ST: Illinois IN: LEI SU: ERN

KL -- CL011 -- 6806 07/20/93 12:18 EDT
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Date:Jul 20, 1993
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