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GRAHAM-FIELD HEALTH PRODUCTS, INC. ANNOUNCES FIRST QUARTER RESULTS

 HAUPPAUGE, N.Y., May 6 /PRNewswire/ -- Graham-Field Health Products, Inc. (NYSE: GFI), a manufacturer and supplier of healthcare products, today reported revenues and net earnings for the first quarter ended March 31, 1993. Revenues for the quarter were $23,017,000 as compared to $16,685,000 for the same period last year, a 38 percent increase. Income before income taxes and cumulative effect of change in accounting principle was $201,000 as compared to $985,000 for the prior year. Income before cumulative effect of change in accounting principle was $111,000 or $.01 per share on 12,896,000 weighted average shares outstanding, as compared to $592,000 or $.05 per share on 12,523,000 weighted average shares outstanding for the prior year. After the cumulative effect of a change in accounting for income taxes recorded in the first quarter of 1993, net income for the quarter ended March 31, 1993 was $641,000 or $.05.
 The increase in revenues was primarily due to the increase in product lines resulting from the company's acquisition of Diamond Medical Equipment Corp. and National Health Care Equipment Inc. on May 28, 1992, along with the continued growth and acceptance of the company's Consolidation Advantage Program ("CAP") by our customers. The growth in revenue was primarily in the home healthcare marketplace, which historically has lower profit margins than in the hospital/physician market. Due to a favorable change in the mix of sales, along with price increases, improvements resulting from purchasing and manufacturing efficiencies, the gross profit margin in the first quarter of 1993 improved from the fourth quarter of 1992, from 30.4 percent to 32.1 percent.
 Throughout the first quarter of 1993, the St. Louis Distribution Center, the company's largest facility, continued to increase its operations, and by the end of the quarter achieved the ultimate goal of replacing the company's Hauppauge, Long Island facility as the company's primary distribution center. At the present time, substantially all inventory relocations to the appropriate facilities have been completed, thus enabling the company to more closely achieve its goals of shipping the majority of orders complete from one location and reducing overall freight and handling costs.
 During 1993, the number of employees in the distribution network has been reduced by 30 percent, and further reductions are planned for the remainder of the year. In addition, certain warehouse locations have been eliminated and others are under current review.
 Irwin Selinger, chairman and chief executive officer stated, "Now that the physical reorganization is basically behind us, we are positioned to achieve the goals we have set for ourselves. We believe that Graham-Field is better prepared to handle expanded growth in revenues in the future. At the same time, we will continue to improve internal systems and operating efficiencies, enabling us to turn these increased revenues into profits."
 In February 1992, the Financial Accounting Standards Board ("FASB") issued FASB Statement No. 109 "Accounting for Income Taxes" which supersedes FASB Statement No. 96 and became effective for fiscal years beginning after December 15, 1992. The company applied the new rules in the first quarter of 1993, and therefore recorded a deferred tax benefit of $530,000 as of Jan. 1, 1993.
 Graham-Field manufactures, markets and distributes more than 20,000 healthcare products for hospital, physician and home use to approximately 16,000 home healthcare, physician, hospital supply and pharmaceutical distributors, retailers and wholesalers.
 GRAHAM-FIELD HEALTH PRODUCTS, INC.
 Consolidated Condensed Statements of Operations
 Three Months Ended March 31,
 1993 1992
 Revenues $ 23,017,000 $ 16,685,000
 Cost and expenses:
 Cost of revenues 15,618,000 10,575,000
 Selling, general and
 administrative 6,642,000 4,870,000
 Interest expense 556,000 255,000
 Total 22,816,000 15,700,000
 Income before income taxes
 and cumulative effect of
 change in accounting principle 201,000 985,000
 Income taxes 90,000 393,000
 Income before cumulative effect
 of change in accounting principle 111,000 592,000
 Cumulative effect of change in
 accounting for income taxes 530,000 --
 Net income $ 641,000 $ 592,000
 Per share data income before
 cumulative effect of change
 in accounting principle $ .01 $ .05
 Cumulative effect of change in
 accounting for income taxes .04 --
 Net income $ .05 $ .05
 Weighted average number of
 common and common equivalent
 shares outstanding 12,896,000 12,523,000
 -0- 05/06/93
 /CONTACT: Gary M. Jacobs, chief financial officer of Graham-Field Health Products, 516-582-5900/
 (GFI)


CO: Graham-Field Health Products, Inc. ST: New York IN: MTC SU: ERN

AH -- NY083 -- 5497 05/06/93 13:15 EDT
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Date:May 6, 1993
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