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GALOOB TOYS REPORTS REDUCED SECOND QUARTER LOSS

 SOUTH SAN FRANCISCO, July 22 /PRNewswire/ -- Lewis Galoob Toys Inc. (NYSE: GAL, GALPR) today reported a reduced second quarter net loss applicable to common shares of $4,272,000, compared to $4,942,000 in the second quarter of 1992. Net loss per common share for the second quarter was also reduced to $.45 vs. $.53 during the same period in 1992.
 Consolidated second quarter 1993 net revenues declined to $26,769,000 from $28,794,000 in 1992. Improved margin performance more than offset the decline in sales, as gross margin increased to 34 percent from 28 percent in the second quarter of 1992.
 While consolidated revenues declined, domestic net revenues rose by 23 percent, to $14,168,000 from $11,477,000. Second quarter domestic sales of the company's core brand -- Micro Machines(R) miniature vehicles and accessories -- increased by 15 percent over 1992. Sales of the Game Genie(TM) video game enhancer also rose, compared to 1992, because of the extension of the line to the Nintendo Super NES(R) and Game Boy(R) systems.
 International net revenues for the second quarter 1993 fell by 27 percent to $12,601,000, from $17,317,000 in 1992. Reduced sales of the company's non-promoted Toy Boys line represented the principal decline in international sales. Game Genie sales also were reduced from the year-ago level. Despite generally poor European economic conditions, second quarter 1993 Micro Machines international sales increased by 16 percent compared to a year ago.
 For the six-month period ended June 30, 1993, the net loss applicable to common shares was $6,493,000, compared to $6,506,000 for the first six months of 1992. Year to date, the net loss per common share was $.68, compared to $.69 for the same period in 1992. Net revenues for the first half of 1993 declined to $54,110,000, from $70,580,000 for 1992.
 Stated Mark Goldman, president and chief executive officer: "Throughout the second quarter, domestic retail sales to consumers of our key product lines ran ahead of last year. However, continued deferral of orders and heightened inventory controls by retailers have adversely affected our shipments. We expect this condition to persist until late in the year.
 "Two new product introductions will highlight the second half of 1993. Shipment of Game Genie for the Sega Game Gear(TM) system will begin during the third quarter. Later in the year, initial shipment of our toy line for the new TV animated action series `Biker Mice From Mars' will roll out worldwide."
 The company also noted that performance in this past quarter may not be indicative of results in future quarters.
 Lewis Galoob Toys Inc. designs, develops, markets and sells quality toy and video game products worldwide.
 LEWIS GALOOB TOYS INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (Unaudited)
 (In thousands, except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net revenues $26,769 $28,794 $54,110 $70,580
 Costs of product
 sold and operating
 expenses 30,071 32,278 58,417 72,880
 Earnings (loss)
 from operations (3,302) (3,484) (4,307) (2,300)
 Expenses related to
 the resignations of
 former officers --- (490) --- (2,152)
 Interest and other
 income (expense) (188) (186) (622) (490)
 Earnings (loss)
 before income taxes (3,490) (4,160) (4,929) (4,942)
 Provision for income
 taxes --- --- --- ---
 Net earnings (loss) (3,490) (4,160) (4,929) (4,942)
 Preferred stock
 dividends paid --- --- --- 782
 Net earnings (loss)
 after dividends paid (3,490) (4,160) (4,929) (5,724)
 Preferred stock
 dividends in arrears 782 782 1,564 782
 Net earnings (loss)
 applicable to common
 shares ($4,272) ($4,942) ($6,493) ($6,506)
 Net earnings (loss)
 per common share ($0.45) ($0.53) ($0.68) ($0.69)
 Common shares
 outstanding - average 9,548 9,388 9,547 9,382
 -0- 7/22/93
 /CONTACT: Simon Halls of Baker/Winokur/Ryder, 310-277-6200, for Lewis Galoob Toys/
 (GAL GALPR)


CO: Lewis Galoob Toys Inc. ST: California IN: HOU SU: ERN

JL-BP -- LA034 -- 4870 07/22/93 18:52 EDT
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Publication:PR Newswire
Date:Jul 22, 1993
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