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FAY'S REPORTS YEAR END AND FOURTH QUARTER RESULTS

 FAY'S REPORTS YEAR END AND FOURTH QUARTER RESULTS
 LIVERPOOL, N.Y., March 6 /PRNewswire/ -- Fay's Incorporated


(NYSE: FAY) today reported that net earnings for the year ended Jan. 25, 1992, were $8.7 million or $.55 per share, compared to net earnings of $11.1 million or $.72 per share in the prior year. Revenues for the year increased 24.3 percent to a record $836.2 million, compared to $672.6 million a year earlier. Comparable store sales (sales from stores opened one year or more as of Jan. 25, 1992) increased five percent.
 For the fourth quarter, net earnings were $4.5 million or $.29 per share, compared to $5.0 million or $.33 per share earned in the fourth quarter of fiscal 1991. Included in fourth quarter and year end results was a charge to net earnings of $630,000 or $.04 per share reflecting settlement of a lawsuit instituted in June 1990 by the state of New York in connection with the New York State Employees Prescription Program. Revenues for the quarter increased 25.3 percent to a record $239 million from $190.7 million in the fourth quarter of last year, while comparable store sales increased 4.4 percent.
 Henry A. Panasci Jr., chairman of the board of Fay's, stated, "The year was replete with challenges for Fay's. Our aggressive expansion came just as the economic downturn deepened. Fortunately, the costs associated with our purchase of Carls Drugs are behind us and we are now in a position to reap the full benefits of the increase in market penetration provided by the acquisition.
 "Although our fourth quarter earnings did not meet expectations, we were pleased with the gains made in our core merchandise categories which, but for the cost of the settlement, enabled us to generate earnings comparable to the prior year.
 "With continued uncertainty relative to consumer confidence and spending, the key to a successful year lies in our ability to redefine the cost structure of our business, while being responsive to the changing economic climate and the needs of our customers."
 On April 29, 1991, Fay's acquired Carls Drug Co., Inc. and is now operating 43 former Carls locations as Fay's Drug Stores. In addition, the company opened five Fay's Drug Stores, seven Paper Cutter Stores and two Wheels Discount Auto Supply Stores. Also, seven traditional drug stores were acquired and a traditional drug store was converted to a Fay's Drug Store. At year-end, Fay's operated 252 drug stores in the states of New York, Pennsylvania, New Hampshire and Vermont, together with 33 Paper Cutter stores in the states of New York, Pennsylvania and New Jersey and 28 Wheels Discount Auto Supply stores in the state of New York.
 FAY'S INCORPORATED
 Year Ended
 January 25, 1992 January 26, 1991
 Revenues $836,157,000 $672,638,000
 Earnings Before Taxes and
 Extraordinary Charge 14,551,000 20,614,000
 Earnings Before Extraordinary
 Charge 8,653,000 12,347,000
 Extraordinary Charge -
 Early Extinguishment of Debt --- (1,238,000)
 Net Earnings 8,653,000(A) 11,109,000
 Earnings Per Share:
 Earnings Before Extraordinary
 Charge $.55(A) $.80
 Extraordinary Charge --- ($.08)
 Net Earnings .55(A) $.72
 Average Shares Outstanding 15,790,248 15,425,016
 Stores in Operation at End
 of Period 313 249
 Quarter Ended
 January 25, 1992 January 26, 1991
 Revenues $238,979,000 $190,670,000
 Earnings Before Taxes 7,557,000 8,567,000
 Net Earnings 4,512,000(A) 5,046,000
 Earnings Per Share $.29(A) $.33
 Average Shares Outstanding 15,715,019 15,448,395
 Stores in Operation at End
 of Period 313 249
 (A) -- Includes a charge of $630,000, net of income tax benefit, or $.04 per share, in connection with the settlement of lawsuit with the state of New York.
 -0- 3/6/92
 /CONTACT: Henry A. Panasci Jr., chairman of the board of Fay's Incorporated, 315-451-8000/
 (FAY) CO: Fay's Incorporated ST: New York IN: REA SU: ERN


KK -- CL002 -- 5737 03/06/92 08:59 EST
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Date:Mar 6, 1992
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