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HOME SHOPPING NETWORK REPORTS RETURN TO PROFITABILITY IN THIRD QUARTER

 ST. PETERSBURG, Fla., June 10 /PRNewswire/ -- Home Shopping Network, Inc. (NYSE: HSN) announced a return to profitability in its third quarter.
 In reference to the period, detailed below, Gerry Hogan, president and chief executive officer, said, "While our performance in the third quarter did not match last year's level, we believe our new merchandising strategy, coupled with a renewed focus on our core business, has positioned us to turn the performance trend of HSN's first six months of 1993 around and put us on a progressive track toward long- term growth."
 Net sales were $260.2 million for the third quarter ended May 31, 1993, compared with net sales of $269.3 million in the same period last year. Net sales for the same period last year included $6.2 million from former wholly owned subsidiaries, Precision Systems Inc. (PSi) and Silver King Communications Inc. (SKC). Therefore, comparable sales for the three-month period declined by only 1.1 percent. However, comparable sales for the third quarter increased by 6.8 percent over the second quarter of fiscal 1993, representing the first time since fiscal 1986 that this quarter-to-quarter comparison reflected an increase.
 HSN's gross profit margin for the quarter decreased to 35.8 percent compared with 37.5 percent last year. The decline in the gross profit margin was primarily attributable to the liquidation of merchandise through special sales events.
 Earnings before extraordinary item were $6.2 million, or $.07 per share, compared with earnings of $9.0 million, or $.10 per share, in the comparable period last year. The extraordinary loss of ($.4) million was due to the early retirement of $16.9 million of HSN's 5 1/2 percent convertible subordinated debentures. Net income for the period was $5.8 million, or $.07 per share, compared with $9.0 million, or $.10 per share, in the comparable period last year.
 For the nine-month period ended May 31, 1993, net sales decreased to $770.0 million compared with net sales of $836.5 million in the same period last year. Net sales for the same period last year included $14.6 million from PSi and SKC. Therefore, comparable sales for the nine-month period declined by 6.3 percent.
 The gross profit margin for the nine month period decreased to 32.3 percent compared with 37.1 percent last year. During the quarter ended Feb. 28, 1993, an additional provision of $22.7 million was made to HSN's inventory reserve, which contributed to the loss and decrease in gross profit margin for the nine months ended May 31, 1993.
 Year-to-date loss before extraordinary item was ($8.1) million, or ($.09) per share, compared to earnings of $30.0 million, or $.34 per share. For the first nine months of fiscal 1993, HSN recognized an extraordinary loss of ($7.2) million, or ($.08) per share, compared with an extraordinary loss of ($.1) million, with no per share effect, in the same period last year. Net loss for the nine-month period was ($15.3) million, or ($.17) per share, compared with net income of $29.9 million, or $.34 per share, in the comparable period last year.
 The extraordinary loss in 1993 was due to the early retirement of all HSN's public debt, which was partially refinanced through bank borrowings. Since the beginning of the fiscal year, HSN's total debt has decreased $58.3 million to $142.5 million at May 31, 1993.
 HSN also noted that stock options on approximately 2 million shares of HSN common stock, held by cable system operators, were exercised during and subsequent to the end of the third quarter. The exercise of these options provided HSN with $13.0 million in cash and also increased stockholders' equity.
 Hogan said, "Our performance over the next several quarters will reflect our commitment to rebuilding the Home Shopping Club's effectiveness and the implementation of our new merchandising strategy. In the four months since our new team has been installed, significant progress has been made toward renewing HSN's vitality and strengthening our position as a leader in the rapidly expanding television shopping industry."
 HOME SHOPPING NETWORK, INC.
 THIRD QUARTER AND YEAR TO DATE
 FINANCIAL HIGHLIGHTS (UNAUDITED)
 (IN MILLIONS, EXCEPT PER SHARE DATA)
 Three Months Ended Nine Months Ended
 5/31/93 5/31/92 5/31/93 5/31/92
 Net Sales $ 260.2 $269.3 $770.0 $836.5
 Earnings (Loss) Before
 Extraordinary Item $ 6.2 $ 9.0 $ (8.1) $ 30.0
 Extraordinary Item, Net (.4) --- (7.2) (.1)
 Net Earnings (Loss) $ 5.8 $ 9.0 $(15.3) $ 29.9
 Earnings (Loss) Per
 Share:
 Earnings (Loss) Before
 Extraordinary Item $ (.07) $ .10 $ (.09) $ .34
 Extraordinary Item,
 Net $ --- $ --- $ (.08) $ ---
 Net Earnings (Loss) $ (.07) $ .10 $ (.17) $ (.34)
 Weighted Average
 Shares Outstanding 92,112 90,519 88,340 90,176
 -0- 6/10/93
 /CONTACT: Home Shopping Network corporate communications department, 813-572-8585, ext. 7420/
 (HSN)


CO: Home Shopping Network, Inc. ST: Florida IN: REA SU: ERN

JB-AW -- FL016 -- 0787 06/10/93 16:23 EST
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Date:Jun 10, 1993
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