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JMC GROUP ANNOUNCES RECORD SECOND QUARTER RESULTS

 SAN DIEGO, Aug. 5 /PRNewswire/ -- JMC Group Inc. (NASDAQ: JMCG) today reported record results for the second quarter ended June 30, 1993. Revenue for the second quarter was $12,786,246, 20 percent over revenue of $10,651,158 in the year-earlier quarter. The 1992 revenue included a one-time payment of $890,000 from Security Pacific Bank Arizona which terminated its contract with JMC following its merger with Bank of America. After adjustment for this non-recurring payment, revenues grew 31 percent from the second quarter of 1992. Net income in the second quarter was $2,171,424, or 31 cents per share, compared with $1,298,128, or 17 cents per share, in the similar 1992 period. Included in 1993 net income was a gain of $712,904, or 10 cents per share, from the divestiture of the company's securities operations which was essentially completed during the period. Included in 1992 net income was a loss from operations of the discontinued securities businesses of $265,543, or 4 cents per share.
 After-tax income from continuing operations in the recent second quarter was $1,458,520, or 21 cents per share, compared with $1,563,671, or 21 cents per share, in the comparable quarter of 1992. The 1992 second quarter results included the termination payment of $890,000, or 7 cents per share, from Security Pacific Bank Arizona.
 Revenue for the six months ended June 30, 1993, increased 41 percent to $26,729,222 from $18,992,219 in the same period of 1992. Excluding the one-time payment from Security Pacific Bank Arizona, revenue for the period rose 48 percent over 1992 revenue. After-tax income from continuing operations for the first half of 1993 was $3,187,552, or 45 cents per share, compared with $2,308,750, or 30 cents per share in 1992. Net income totalled $3,900,456, or 55 cents per share, in 1993 versus $2,324,822, or 31 cents per share in 1992.
 According to James K. Mitchell, chairman and chief executive officer, "Second quarter results reflected growth of our annuities and other insurance products and the recently introduced mutual funds. Gross mutual funds and insurance sales totalled $199 million during the quarter, 30 percent above production in the second quarter of 1992. The divestiture of the securities operations resulted in a one-time gain of $712,904, reflecting the conservative position we took when we set aside reserves for the disposal of discontinued operations in late 1992.
 "As announced in June, the company was successful in obtaining an agreement to market mutual funds and annuities to customers of San Francisco-based Sumitomo Bank of California beginning in September 1993. The addition of Sumitomo Bank and its 48-branch network provides strong momentum for JMC as we enter the third quarter," noted Mitchell.
 "Looking forward, we believe the outlook for our business is good. The company is on track to meet revenue and earnings expectations for the year, and we are diligently working towards the addition of new bank clients," Mitchell concluded.
 JMC Group Inc., through its wholly owned subsidiary James Mitchell & Co., is a leading marketer of annuities and other insurance products and mutual funds to customers of financial institutions.
 JMC GROUP INC. FINANCIAL HIGHLIGHTS
 Second Quarter
 1993 1992
 Total revenue 12,786,246 10,651,158
 Total operating expenses (10,323,264) (7,907,199)
 Income from continuing operations
 before income taxes and
 accounting change 2,462,982 2,743,959
 Provision for income taxes (1,004,462) (1,180,288)
 Income from continuing operations
 before accounting change 1,458,520 1,563,671
 Loss from discontinued operations,
 net of income tax benefit 0 (265,543)
 Gain on disposal of securities
 businesses 712,904 0
 Cumulative effect of change in
 accounting for income taxes 0 0
 Net income 2,171,424 1,298,128
 Earnings per share:
 Income from continuing operations
 before accounting change $ 0.21 $ 0.21
 Discontinued operations $ 0.00 ($ 0.04)
 Gain on sale of securities businesses $ 0.10 $ 0.00
 Accounting change $ 0.00 $ 0.00
 Net income $ 0.31 $ 0.17
 Weighted average shares outstanding
 Primary and fully diluted 7,063,503 7,607,526
 Year To Date
 1993 1992
 Total revenue 26,729,222 18,992,219
 Total operating expenses (21,222,437) (14,919,938)
 Income from continuing operations
 before income taxes and
 accounting change 5,506,785 4,072,281
 Provision for income taxes (2,319,233) (1,763,531)
 Income from continuing operations
 before accounting change 3,187,552 2,308,750
 Loss from discontinued operations,
 net of income tax benefit 0 (168,928)
 Gain on disposal of securities
 businesses 712,904 0
 Cumulative effect of change in
 accounting for income taxes 0 185,000
 Net income 3,900,456 2,324,822
 Earnings per share:
 Income from continuing operations
 before accounting change $ 0.45 $ 0.30
 Discontinued operations $ 0.00 ($ 0.01)
 Gain on sale of securities businesses $ 0.10 $ 0.00
 Accounting change $ 0.00 $ 0.02
 Net income $ 0.55 $ 0.31
 Weighted average shares outstanding
 Primary and fully diluted 7,031,906 7,603,916
 -0- 8/5/93
 /CONTACT: Doug Sherk or Jenifer Kirtland, 415-296-7383, or Michele Katz or Miriam Adler, 212-850-5600, all of Morgen-Walke, for JMC Group/
 (JMCG)


CO: JMC Group Inc.; James Mitchell & Co. ST: California IN: FIN SU: ERN

GT-TM -- SF002 -- 9631 08/05/93 06:31 EDT
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Date:Aug 5, 1993
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