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FORSCHNER GROUP REPORTS RECORD SALESAND NET INCOME FOR THE THIRD QUARTER

 SHELTON, Conn., Oct. 21 /PRNewswire/ -- The Forschner Group, Inc. (NASDAQ: FSNR) today reported record revenues and net income for the third quarter and the nine months ended Sept. 30.
 Revenues of $27.7 million for the quarter and $66.5 million for the nine months were both 38 percent better than the same periods a year ago. Net income of $2.8 million for the quarter and $4.8 million for the nine months were 54 and 69 percent higher, respectively, than the comparable periods of 1992. The cumulative effect of an accounting change for income taxes accounted for $220,000 of income for the nine-month period.
 Earnings per share of $.40 compared to $.28 per share a year earlier. For the nine months, the per share earnings of $.69 (including $.03 for the cumulative effective of the accounting change) compared to $.48 a year ago.
 The company's Corporate Markets Division is participating in a major program which is responsible for approximately 16 percent and 11 percent of revenue for the quarter and year to date, respectively. The program is expected to be maintained at substantial levels through the end of the year and to continue in effect until the latter part of the first quarter of 1994.
 Forschner's overall revenue gains for the year have enabled the company to increase its planned advertising and promotional activities, including television advertising for the first time.
 Forschner also achieved the favorable settlement of various tax contingencies during the quarter which, coupled with recent changes in tax laws relating to amortization of goodwill, resulted in a 25 percent effective tax rate for the quarter. Excluding the effect of adjustments related to prior periods, the company's effective quarterly tax rate would have been 41.1 percent. This rate reflects the recurring impact of these favorable developments.
 In a successful lawsuit against a New York import firm that was offering for sale a Chinese-made multi-bladed knife as a Swiss Army Knife, the trial court agreed with Forschner that the term Swiss Army Knife can only be used to describe high quality Swiss-made multi-bladed knives.
 Forschner is the exclusive United States and Canadian marketer of Victorinox Original Swiss Army Knives and other high quality Swiss-made products bearing the Swiss Army Brand label. Forschner also markets cutlery under the R.H. Forschner brand for professional use and the Cuisine de France Sabatier brand for consumers.
 THE FORSCHNER GROUP, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited; in thousands except per-share amounts)
 Periods ended Three Months Nine Months
 Sept. 3O 1993 1992 1993 1992
 Net sales $27,688 $20,025 $66,515 $48,259
 Cost of sales 16,255 11,986 39,476 29,248
 Gross profit 11,433 8,039 27,039 19,011
 Selling, general &
 administrative expenses 7,734 4,854 20,340 14,001
 Operating income 3,699 3,185 6,699 5,010
 Interest and other income, net 29 105 203 111
 Income bef. inc. taxes & cum.
 effect of accounting changes 3,728 3,290 6,902 5,121
 Income tax provision 915 1,461 2,321 2,272
 Income before cumulative effect
 of accounting change 2,813 1,829 4,581 2,849
 Cumulative effect of accounting
 change for income taxes -- -- 220 --
 Net income $2,813 $1,829 $4,801 $2,849
 Earnings per share:
 Income before cumulative effect
 of accounting change $0.40 $0.28 $0.66 $0.48
 Cumulative effect of accounting
 change for income taxes -- -- 0.03 --
 Net income $0.40 $0.28 $0.69 $0.48
 Weighted average number of
 shares outstanding 7,004 6,624 6,991 5,957
 -0- 10/21/93
 /CONTACT: Karen Brenner, 212-371-1400, for Forschner Group/
 (FSNR)


CO: Forschner Group, Inc. ST: Connecticut IN: HOU SU: ERN

TM-CK -- NY007 -- 4941 10/21/93 07:55 EDT
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Date:Oct 21, 1993
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