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MORNINGSTAR GROUP REPORTS THIRD CONSECUTIVE PROFITABLE QUARTER

 DALLAS, May 3 /PRNewswire/ -- The Morningstar Group Inc. (NASDAQ: MSTR) today reported net income of $1.9 million compared to net income of $0.2 million for the first quarter of 1992. On a per-share basis, earnings per common share for the quarter ended March 31, 1993, were $0.13, compared to a loss of $0.07 per share in the first quarter of 1992 after consideration of the payment of preferred stock dividends in that quarter.
 For the 1993 quarter, Morningstar's net sales from remaining operations were $88.3 million, up 4.0 percent from $84.9 million for the first quarter of 1992. Reflecting the divestiture of certain operations in July 1992, net sales in the 1993 quarter were down from $109.4 million during the same quarter in 1992. Primarily reflecting increases in promotional expenditures to introduce new products in 1993, operating income from remaining operations was $4.4 million, down 15.8 percent from $5.2 million a year ago. Total operating income decreased to $4.4 million in the first quarter of 1993 from $4.7 million in the comparable 1992 quarter.
 James A. Bach, Morningstar's president and chief executive officer, said, "Our branded products strategy continues to exhibit substantial growth, with branded products up 21 percent over the same period last year. During the first quarter, we introduced Naturally Yours(R) No Fat Sour Cream nationwide, and also began the national introduction of our new non-fat twin pak Second Nature(R) egg product. The additional promotional expenses involved in launching these products are an investment in the future as these products take hold in their respective markets."
 The Morningstar Group paid a quarterly dividend of $.0375 per share on April 15, 1993 to shareholders of record as of March 31, 1993.
 As previously reported, the company also completed at first quarter end its acquisition of Favorite Foods, a California-based private-label yogurt processor, from Nestle U.S.A. Inc.
 Morningstar is a nationally prominent manufacturer, distributor and marketer of refrigerated food products. Its established branded products include: International Delight(R), a gourmet-flavored coffee creamer; Second Nature(R), a refrigerated no-cholesterol egg substitute; Naturally Yours(R), a no-fat, real dairy sour cream; and, in the western two-thirds of the United States, Lactaid(R), a lactose-reduced milk produced under license from McNeil Consumer Products Company, a subsidiary of Johnson & Johnson. Morningstar also specializes in providing private-label refrigerated products to grocery warehouses and dairy companies and operates Velda Farms, a regional dairy located in Florida.
 A controlling interest in Morningstar is held by an investor group led by Hicks, Muse & Co. Incorporated, a private investment firm with offices in Dallas and New York.
 THE MORNINGSTAR GROUP INC.
 (Dollars in millions except share data)
 Quarter ended March 31 1992 1993
 Sales:
 Remaining operations $ 84.9 $ 88.3
 Total sales 109.4 88.3
 Gross Profit:
 Remaining operations 21.7 23.2
 Total gross profit 28.0 23.2
 Operating income:
 Remaining operations 5.2 4.4
 Total operating income 4.7 4.4
 Interest expense 3.6 1.5
 Non-operating expense (income) 0.5 (0.1)
 Taxes 0.4 1.1
 Net income (loss) 0.2 1.9
 Less: Dividends on preferred stock .7 --
 Net income (loss) to common
 shareholders $ (.5) $ 1.9
 Average shares (000's) 7,869 15,075
 Earnings (loss) per common share: $ (0.07) $ 0.13
 -0- 5/3/93
 /CONTACT: Tracy L. Noll, CFO of The Morningstar Group, 214-360-4777, or Roy Winnick of Kekst & Company, 212-593-2655, for The Morningstar Group/
 (MSTR)


CO: The Morningstar Group Inc. ST: Texas IN: FOD SU: ERN

TS -- NY020 -- 3617 05/03/93 09:19 EDT
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Date:May 3, 1993
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