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MORGAN PRODUCTS LTD. ANNOUNCES PROFITABLE FIRST QUARTER RESULTS

 LINCOLNSHIRE, Ill., April 23 /PRNewswire/ -- Morgan Products Ltd. (NYSE: MGN) today reported a profit of $47,000 or $0.01 per share for the first quarter ended April 3, 1993, compared to a loss of $1,032,000 or $.12 per share in the prior year's comparable quarter. The substantial improvement in performance occurred on sales of $95.0 million versus $90.5 million reported in the first quarter of 1992.
 Arthur L. Knight Jr., president and CEO, commented, "We are very pleased to report our first profitable first quarter since 1990. Both Morgan Manufacturing and Morgan Distribution were profitable on an operating basis in the quarter and each contributed to the $1.8 million improvement in pre-tax earnings. While distribution had a modest volume increase, demand appeared to have suffered from one of the more severe winters in the recent years. Morgan Manufacturing's volume increased by over 10 percent reflecting strong demand in the Southeastern United States and restocking by major retailers following large fourth quarter inventory cutbacks. Manufacturing profitability benefited from the higher volume plus the operational benefits of the restructuring done in the fourth quarter of 1992. The huge run up in wood raw material costs was partially mitigated by aggressive pricing actions."
 Expanding on the lumber cost issue, Knight said, "We see no short- term relief from the record levels of wood pricing. Therefore, we are redoubling our efforts to find additional reliable offshore material sources, to accelerate the use of engineered materials in more door components and to switch to alternative wood species."
 The company ended the quarter with total debt net of cash of $55.9 million up from $51.6 million in 1992's first quarter, reflecting a growth in inventory to meet current and projected demand. Mr. Knight also commented that the company was in the final stages of completing the downsizing begun in 1989 and had contingent agreements to dispose of the last two significant idle facilities by mid-July for a price at or above book value. He also noted that the search for a purchaser for a part or all of Morgan Technologies is making good progress and should be resolved by the end of the second quarter. Further, Knight stated, "This business had only minimal losses in the first quarter."
 Commenting on the balance of 1993, Knight said, "We are cautiously optimistic about the remainder of the year. The low level of mortgage interest rates and expected continued improvement in the economy should mean an increase in volume over the weather-related weakness we saw in the first quarter."
 Morgan Products Ltd. is a leading manufacturer and distributor of specialty building products through its three business units: Morgan Distribution, Morgan Manufacturing, and Morgan Technologies.
 Morgan Distribution, a regional wholesale distributor, is comprised of eleven distribution/fabrication centers. Major products distributed include Morgan doors, Andersen premium window systems, Morgan mantels, Morgan stairway systems, Pease and Therma-Tru steel and composite doors, flush doors, molded doors, wood bi-fold doors and louvered doors.
 Morgan Manufacturing is a national manufacturer of premium solid wood interior and exterior doors and entrance systems and other specialty building products such as wood veneer and fireplace mantels. Products manufactured by the company are sold under the trade names "Morgan" and "Nicolai." Manufactured products are sold through the company's Morgan Distribution unit and independent distributors, home improvement chain stores and other retail outlets.
 Morgan technologies is a developer and marketer of electronic and computer software services for the building products industry.
 MORGAN PRODUCTS LTD.
 Three months ended 4/3/93 4/4/92
 (unaudited)
 Net sales $94,964,000 $90,476,000
 Net income (loss) 47,000 (1,032,000)
 Income (loss) per share 0.01 (0.12)
 Average shares outstanding 8,492,812 8,488,937
 -0- 4/23/93
 /CONTACT: Arthur L. Knight Jr., president and chief executive officer or Douglas H. MacMillan, vice president and chief financial officer of Morgan Products Ltd., 708-317-2400; or Steven J. Barach of G.A. Kraut Company Inc., 212-696-5600, for Morgan Products Ltd./
 (MGN)


CO: Morgan Products Ltd. ST: Illinois IN: CST SU: ERN

LR-OS -- NY018 -- 9937 04/23/93 09:57 EDT
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Date:Apr 23, 1993
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