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GROW GROUP, INC. REPORTS 36 PERCENT INCREASE IN FIRST QUARTER INCOME BEFORE EXTRAORDINARY CHARGE OF $349,000 FOR REDEMPTION OF $20M OF NOTES

GROW GROUP, INC. REPORTS 36 PERCENT INCREASE IN FIRST QUARTER INCOME BEFORE EXTRAORDINARY CHARGE OF $349,000 FOR REDEMPTION OF $20M OF NOTES
 NEW YORK, Oct. 15 /PRNewswire/ -- Grow Group, Inc. (NYSE: GRO), today reported that income before extraordinary items for the quarter ended Sept. 30, 1992, rose 36 percent to $3,295,000 or $.25 per primary share (13,060,000 primary shares) on revenues of $105,445,000 as compared to the prior year's first quarter results of $2,418,000 or $.21 per primary share (based on the then outstanding 11,766,000 primary shares) on revenues of $113,577,000, which included revenues of $7,811,000 related to disposed operations. Fully diluted income before extraordinary items was $.24 per share compared to $.20 per share in the prior year's quarter.
 During the quarter there was an extraordinary charge of $349,000 after income taxes or $.02 per primary share related to the redemption effected on Oct. 10, 1992, of $20 million of Grow's 12-1/2 percent subordinated notes due in February 1994.
 Commenting on the results, Russell Banks, president and chief executive officer, stated, "Our restructured consumer and professional products group's fine results were led by the household and professional products operations which recorded a 22 percent increase in revenues from continuing operations. Despite severe weather in the south and the recession in California, our architectural coatings operations results improved significantly, showing an increase in operating profit of 20 percent. These positive results were offset by a volume decline in our profitable marine and maintenance operations which reflected the effect of the recession in the oil industry. This has caused deferrals in oil tanker drydockings and offshore and petrochemical facilities maintenance schedules which are expected to be revived in the second half of the company's fiscal year. We were pleased that the continuation of the cost containment aspect of our restructuring program enabled Grow to continue to show double digit earnings growth and also allowed a 19 percent earnings per share increase after the effect of the shares issued to Corimon."
 Grow formed a strategic alliance with Corimon C.A. S.A.C.A. (OTC: CASAY), a leading Venezuela-based manufacturer of paints (marketed under the brand Montana), building materials, chemicals, petrochemicals, processed foods and packaging, to penetrate international coatings markets. Corimon purchased 2,312,000 newly-issued shares of Grow Group on Aug. 7, 1992, which represented 16.6 percent of the then outstanding shares.
 Grow Group is a leading producer of specialty chemical coatings and paints and household products. Grow operations include manufacturing facilities, sales offices and licensees throughout the world.
 GROW GROUP, INC.
 Summary of Results of Operations
 (In thousands)
 Quarter ended Sept. 30 1992 1991
 Revenues $105,445 $113,577(A)
 Income (loss) before extraordinary item 3,295(B) 2,418
 Extraordinary item (349) --
 Net income $ 2,946 $ 2,418
 Per share (primary):
 Income (loss) before extraordinary item $0.25 $0.21
 Extraordinary item 0.02 --
 Net income $0.23 $0.21
 Per share (fully diluted):
 Income (loss) before extraordinary item $ 0.24 $0.20
 Extraordinary item (0.02) --
 Net income $ 0.22 $0.20
 Average shares outstanding (primary) 13,060,000 11,766,000
 (A) -- Includes $7,811,000 revenues related to product lines disposed of.
 (B) -- Includes unusual items (after tax) gain of $150,000 ($.01 per share).
 -0- 10/15/92
 /CONTACT: Jennifer R. Wall or Peter C. Harkins of D.F. King & Co., 212-269-5550, for Grow Group/
 (GRO) CO: Grow Group, Inc. ST: New York IN: CHM SU: ERN


GK-PS -- NY081 -- 0551 10/15/92 15:13 EDT
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Date:Oct 15, 1992
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