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HERSHEY FOODS ANNOUNCES 1992 RECORD SALES AND EARNINGS

 HERSHEY, Pa., Jan. 26 /PRNewswire/ -- Hershey Foods Corporation (NYSE: HSY) today announced record consolidated net sales and earnings for the year 1992.
 Net sales were $3,219,805,000 compared with $2,899,165,000 in 1991. Net income for 1992 was $242,598,000, or $2.69 per share, compared with $219,528,000, or $2.43 per share in 1991.
 Net sales for the fourth quarter were $969,523,000 compared with $863,932,000 in the fourth quarter of 1991. Net income for the quarter was $82,319,000, or $.91 per share, compared with $74,904,000, or $.83 per share, in 1991. Weighted average shares outstanding were 90,186,336 for all periods.
 "The fourth quarter was a good one with all divisions contributing to the increased sales and earnings," said Richard A. Zimmerman, chairman and chief executive officer. "Hershey Chocolate U.S.A. and Hershey Pasta Group had particularly strong sales gains during the quarter. Despite higher levels of marketing expenses, Hershey Chocolate U.S.A. was the chief contributor to earnings improvement in the quarter, although all other divisions achieved solid earnings gains compared with 1991's fourth quarter.
 "For the year 1992, Hershey Chocolate U.S.A., Hershey International and Hershey Pasta Group achieved strong sales increases. Hershey Chocolate U.S.A.'s sales increase was virtually all volume growth resulting in market share increases with both established brands and new products contributing to our largest division's record year. Hershey International's sales increase resulted from excellent growth in export sales and the consolidation of Hershey Mexico, the remaining shares of which were acquired in late 1991. Hershey Pasta Group's sales increase was primarily the result of volume growth, and this division also achieved strong market share gains during the year. Hershey Canada posted healthy sales gains in local currency terms, but their U.S. dollar results yielded somewhat lesser growth due to the weakening value of the Canadian dollar during the year.
 "Hershey Chocolate U.S.A. and Hershey Pasta Group were the chief contributors to earnings growth in 1992, despite generally higher marketing expenses to drive market share improvement. Net interest expense and the effective income tax rate were essentially the same compared with 1991.
 "We are very pleased with the sales volume and market share gains achieved during 1992. Our competitive positions in the U.S. confectionery and pasta industries have improved, and our businesses are entering 1993 on a positive note. The strength of Hershey's established brands and our ability to introduce new products will continue to be enhanced by appropriate levels of marketing investment. During 1993, the Corporation will record the net impact of the new post-retirement benefits and income tax accounting pronouncements (FAS 106 and FAS 109, respectively) which will result in reduced net income for the year compared with 1992. However, we fully expect that 1993 will be another record year for results from operations," Zimmerman concluded.
 HERSHEY FOODS CORPORATION
 Summary of Consolidated Statements of Income
 for the periods ended Dec. 31, 1992, and Dec. 31, 1991
 (In thousands of dollars except per-share amounts)
 Fourth Quarter Twelve Months
 1992 1991 1992 1991
 Net Sales $969,523 $863,932 $3,219,805 $2,899,165
 Costs and Expenses:
 Cost of sales 540,218 497,361 1,833,388 1,694,404
 Selling, marketing
 and administrative 282,567 236,702 958,189 814,459
 Total costs and
 expenses 822,785 734,063 2,791,577 2,508,863
 Income before Interest
 and Income Taxes 146,738 129,869 428,228 390,302
 Interest Expense, net 8,317 5,856 27,240 26,845
 Income before Income
 Taxes 138,421 124,013 400,988 363,457
 Provision for Income
 Taxes 56,102 49,109 158,390 143,929
 Net Income $ 82,319 $ 74,904 $ 242,598 $ 219,528
 Net Income per Share $ .91 $ .83 $ 2.69 $ 2.43
 Note: Net Income per Share has been computed based on the weighted average number of shares of Common Stock and Class B Common Stock outstanding during the period. Average shares outstanding were 90,186,336 for all periods. The Provision for Income Taxes for the twelve months of 1992 was favorably impacted by the sale of the Corporation's equity interest in its Brazilian joint venture, Petybon S.A., during the second quarter of 1992.
 /delval/
 -0- 1/26/93
 /CONTACT: Natalie Bailey, 717-534-7631, or James A. Edris (financial), 717-534-7552, both of Hershey Foods/
 (HSY)


CO: Hershey Foods Corporation ST: Pennsylvania IN: FOD SU: ERN

MK -- PH029 -- 9126 01/26/93 13:54 EST
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Date:Jan 26, 1993
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