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HANSEN NATURAL CORP. (HANS) REPORTS NET PROFIT FOR THIRD QUARTER

 ANAHEIM, Calif., Nov. 15 /PRNewswire/ -- Hansen Natural Corp. (NASDAQ: HANS) today reported consolidated net income of $351,314 for the three months ended Sept. 30, 1993, and $656,645 for the nine months ended Sept. 30, 1993. Consolidated net sales for the three-month period were $6,861,996 and for the nine-month period were $17,756,942.
 Hansen Natural Corp. markets and distributes Hansen's(R) Natural Sodas, Hansen's(R) Natural Iced Teas, Hansen's(R) Natural Lemonades, Hansen's(R) Natural Spring Water and Hansen's(R) Natural Old Fashioned Apple Juice and Apple Cider. The company acquired the Hansen business on July 27, 1992.
 The company had consolidated net income of $185,443 for the three- month period ended Sept. 30, 1992, and a consolidated net loss of $9,870 for the nine-month period ended Sept. 30, 1992. (The loss was incurred by the company prior to its acquisition of the Hansen business.) Consolidated sales for both the three-month and nine-month periods ended Sept. 30, 1992, were $4,208,496. (Prior to its acquisition of the Hansen business, the company had no sales.)
 On a per share basis, the company earned $0.04 per share for the three months ended Sept. 30, 1993 and $0.07 per share for the nine months ended Sept. 30, 1993, compared to earnings of $0.02 and a loss of $0.001 per share for the corresponding periods in 1992.
 Because California CoPackers Corp. ("CCC"), from which the company acquired the Hansen business, may be deemed a "predecessor" of the company for the purposes of the rules and regulations of the Securities and Exchange Commission, pro forma combined results of operations of CCC and the company for the three-month and nine-month periods ended Sept. 30, 1992, are set forth below in a condensed format, and are compared with the actual results of operations of the company for the three-month and nine-month periods ended Sept. 30, 1993, and Sept. 30, 1992, respectively.
 The pro forma combined results of operations for the three-month and nine-month periods take into account the actual results of operations of the company from July 27 to Sept. 30, 1992. The results of operations of the company and CCC are not directly comparable, particularly with respect to certain non-operating expenses and the amortization of intangibles.
 Three Months Nine Months
 Ended Sept. 30, Ended Sept. 30,
 (Historical) (ProForma) (Historical) (ProForma)
 1993 1992 1992 1993 1992 1992
 Net sales $6,862 $4,208 $6,211 $17,757 $4,208 $16,071
 Gross profit 2,945 1,728 2,559 7,615 1,728 6,484
 Operating expenses:
 Selling,
 general &
 administrative 2,376 1,327 1,892 5,857 1,602 4,302
 Amortization of
 trademark
 license 113 88 143 363 88 523
 Other expenses 112 88 128 334 125 381
 Total operating
 expenses 2,601 1,503 2,163 6,554 1,815 5,206
 Operating income 344 225 396 1,061 (87) 1,278
 Total nonoperating
 income (expense) (81) (34) (83) (294) 83 (896)
 Income (loss)
 before benefit
 (provision) for
 income taxes 263 191 313 767 (4) 382
 Benefit (provision)
 for income taxes 88 (6) --- (110) (6) ---
 Net income (loss) $351 $185 $313 $657 (10) $382
 Figures are unaudited, with amounts expressed in thousands. For comparative purposes, earnings per share calculations are not meaningful and are therefore not provided.
 The increase in selling, general and administrative expenses was primarily attributable to aggressive marketing and promotional programs which contributed to the increase in net sales and increased payroll costs and other expenses to lay the foundation for and to support the company's expansion activities into other states and internationally.
 Total nonoperating expense for the nine-month period consists of interest expense, interest income and expenses incurred in connection with settlement of litigation. The decrease in total nonoperating expense was primarily attributable to a reduction in interest expense resulting from a reduction of approximately $9.9 million of the debt owed by CCC to Erly Industries at the time of the acquisition. The reduction resulted from the payment by the company of $5.2 million to or on behalf of Erly Industries at the closing of the acquisition, and from related debt cancellation of $4.7 million recorded by CCC in connection with the acquisition.
 On a pro forma basis, sales of soda on a case and case-equivalent basis for the three-month and nine-month periods ended Sept. 30, 1993, were 908,000 and 2,534,000 cases, respectively, compared to 904,000 and 2,328,000 cases for the same periods in 1992.
 On a pro forma basis, sales of apple juice on a case and case- equivalent basis for the three-month and nine-month periods ended Sept. 30, 1993, were 137,000 and 305,000 cases, respectively, compared to 99,000 and 224,000 cases for the same periods in 1992.
 Sales of iced teas and lemonades on a case and case-equivalent basis for the three-month period ended Sept. 30, 1993, were 79,000. Because these are new products for the company, there were no sales of iced teas and lemonades in 1992.
 Rodney C. Sacks, chairman and chief executive officer, noted that Hansen's iced teas and lemonades have begun to appear on the shelves of chain stores in Southern California, and will soon be carried by almost all chain stores in the market.
 Early results from two of Hansen's major customers in the region, who have been selling the new products for the past few months, have been favorable, he said. "These results indicate that the Hansen's(R) Natural brand name, which connotes a healthy, good-for-you drink, has successfully translated from the company's natural sodas to our iced teas," he said.
 The company is moving ahead with plans to distribute its natural sodas, iced teas and lemonades into Europe and other overseas markets. Sacks noted that consumers abroad are just beginning to develop a preference for "New Age" beverages and flavored iced teas that have become so popular in the United States. "This means that we go into these markets on a more level playing field in terms of brand recognition, and with some advantages in terms of economical, local production as well as knowledge of the international market," he said.
 Hansen Natural has modified its packaging to comply with requirements of the European Economic Community and, after consumer testing, has slightly modified the flavors of its sodas. European consumers prefer a slightly drier, less sweet product than that favored by American shoppers, Sacks explained.
 As previously announced, Hansen is holding discussions with potential bottlers and/or distributors in the United Kingdom, Spain and France. The company is also launching a Hansen's(R) Natural line of mountain spring water. The water is packaged in a clear plastic bottle with a unique label. The text is on the front of the bottle, and a panoramic mountain scene is printed on the back, visible through the water, giving the label a three-dimensional effect.
 Another new product, juice cocktails, is in the course of development. "We believe that they will be an important addition to our line," Sacks said. The company expects to market its juice cocktails by the end of the year.
 Sacks said that the entire Hansen's(R) Natural product line is expected to benefit from a change in federal labeling requirements that take effect in May of 1994. The stricter rules will make it easier for consumers to identify ingredients, he noted. As a result, many will realize for the first time that many of the brands with which Hansen's(R) Natural competes contain preservatives, artificial flavors and other chemical ingredients which are absent from Hansen's products.
 Hansen Natural Corp. is traded over-the-counter and is listed on NASDAQ under the symbol "HANS."
 -0- 11/15/93
 /CONTACT: Alex Auerbach or Mel Rifkind of Melvyn S. Rifkind Inc., 818-501-4221/
 (HANS)


CO: Hansen Natural Corp. ST: California IN: FOD SU: ERN

JB-EH -- LA025 -- 4409 11/15/93 12:17 EST
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Date:Nov 15, 1993
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