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GROW GROUP REPORTS HIGHER THIRD QUARTER AND NINE MONTHS RESULTS

 NEW YORK, April 21 /PRNewswire/ -- Grow Group, Inc. (NYSE: GRO) announced today that for the third quarter ended March 31, 1993, net income increased to $1,810,000, or $0.13 per share, (primary and fully diluted) compared with $334,000, or $0.03 per share in 1992's third quarter. Revenues from continuing operations for the quarter were $82.8 million compared to $85.0 million in the prior year's quarter. There were 14,012,000 primary shares in the current period compared to 11,771,000 primary shares in last year's quarter.
 For the nine months ended March 31, 1993, net income totalled $5,186,000, on revenues from continuing operations of $262.0 million compared to net income of $3,785,000 on revenues of $274.5 million in the same period in fiscal 1992. On a per share basis, earnings for the nine months increased 19 percent to $0.38 per share versus $0.32 for last year's period.
 Two License Agreements Completed
 The increase in operating profit for the 1993 third quarter and nine months periods was partially attributable to the initial payment from a license agreement executed with a major international chemical company granting it the exclusive worldwide rights, subject to certain rights retained by Grow and its affiliates, to make, use and sell certain unique resins and waterborne coatings based on Grow's technology. The agreement also calls for a running royalty for 10 years on future sales.
 In addition, pursuant to Grow's strategic alliance with Corimon, a license agreement related to architectural coatings technology was signed, and an agreement in principle with regard to licensing Grow's high performance technology was reached.
 Russell Banks, Grow Group's president, commented, "We are gratified with the completion of the licensing agreements and with the strong increases in our Consumer and Professional Products Group from the secular trend towards increased 'value' shopping by American consumers -- a growing trend which market analysts anticipate will continue."
 Highlights
 During the quarter, the Consumer and Professional Products Group posted strong results due to the increased demand for private label and controlled brand products by club stores and mass market merchandisers.
 Considering the extremely slow recovery and the poor weather conditions in our major markets, which delayed shipment of some product, the performance of our architectural coatings operations was strong, showing an increase in sales and operating profit in both periods.
 Devoe Coatings continues to experience lower maintenance requirements in the marine coatings area and with chemical and governmental accounts. Our automotive operations reported increased sales of its highly regarded sound deadener (acoustical material applied to the underside of an auto chassis) which contributed to higher sales and earnings in both the quarter and nine months.
 Unusual items recorded in the quarter and nine months relate to recovery of certain insurance claims and adjustment of related reserves.
 The company expects to complete the previously announced sale of its swimming pool products operation in early May 1993 and, accordingly, has treated these operations as discontinued in interim financial statements.
 Grow Group is a leading producer of specialty chemical coatings and plants 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)
 Periods ended Quarter Nine months
 March 31 1993 1992 1993 1992
 Revenues from
 continuing opers. $82,787(A) $85,024(B) $261,983(A) $274,463(B)
 Income (loss) from
 cont. opers. 1,464(C) (135) 5,555(C) 3,592(D)
 Discont. operations
 (AquaChem) 346 469 77 193
 Extraord. item
 (repurchase of debt) -- -- (446) --
 Net income 1,810 334 5,186 3,785
 Per Share (Primary
 and Fully Diluted):
 Income (loss) from
 cont. opers. 0.11 (0.01) 0.40 0.30
 Discont. opers.
 (AquaChem) 0.02 0.04 0.01 0.02
 Extraord. item
 (repurchase of debt) -- -- (0.03) --
 Net income 0.13 0.03 0.38 0.32
 Average shares
 outstanding
 (primary) 14,012,000 11,771,000 13,688,000 11,751,000
 (A) Includes royalty income of $1,708,000 (3 months) and $2,416,000 (9 months) for the current periods compared with $331,000 and $1,184,000 for the prior year's quarter and nine months.
 (B) Includes $15,744,000 (nine months) and $3,343,000 (three months) revenues related to product lines disposed of.
 (C) Includes unusual items (after tax) gain of $600,000 ($.04 per share) for the nine months and $450,000 ($.03 per share) for the quarter.
 (D) Includes unusual items (after tax) gain of $840,000 ($.07 per share).
 -0- 4/21/93
 /CONTACT: Jennifer R. Wall or Peter C. Harkins of D.F. King & Co., Inc., 212-269-5550, for Grow Group, Inc./
 (GRO)


CO: Grow Group, Inc. ST: New York IN: CHM SU: ERN

AH-OS -- NY094 -- 8918 04/21/93 16:04 EDT
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Date:Apr 21, 1993
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