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PEAK TECHNOLOGIES GROUP REPORTS DRAMATIC IMPROVEMENT IN SALES AND INCOME FOR THE THIRD QUARTER AND NINE MONTHS

 PEAK TECHNOLOGIES GROUP REPORTS DRAMATIC IMPROVEMENT
 IN SALES AND INCOME FOR THE THIRD QUARTER AND NINE MONTHS
 NEW YORK, Oct. 26 /PRNewswire/ -- The Peak Technologies Group, Inc. (NASDAQ: PEAK) today reported that sales for the third quarter reached approximately $22 million up 126 percent compared the $9.7 million reported for the same period last year. Sales for the 1992 period reflect both contributions from the Gentry and Mesa acquisitions as well as increased unit sales which year on year accounted for approximately 20 percent of the increase. Net income for the third quarter was $673,000 or $0.16 per share compared to $52,000 on $0.02 per share for the third quarter of 1991.
 Sales for the first nine months of this year were $60.7 million up 118 percent compared to $27.8 million for the same period in 1991. Net income increased to $947,000 or $0.29 per share from a loss of $246,000 or ($0.08) for the comparable period last year.
 Gross margin decreased to 30.5 percent from 32 percent for the same period in 1991, principally because of the inclusion of results from acquired operations. Nonetheless, this is an increase from the 28.7 percent achieved in the second quarter of 1992. This improvement reflects a redirection of sales emphasis to value added solutions.
 Sales, general and administration expenses were even with the 21.3 percent of sales achieved in the comparable quarter last year. However, as a result of consolidation savings and efficiencies realized from recently acquired operations, SG&A for the 1992 third quarter was reduced from the 21.6 percent recorded in the second quarter of this year.
 Nicholas Toms, chairman and CEO, stated, "We have been able to achieve substantially our profit goals with improved margins and tight control of costs notwithstanding depressed conditions in the general economy and expenses associated with the integration of the Gentry acquisition. The internal growth pattern of our core bar coding and storage businesses continued to report strong year-on-year gains in excess of 20 percent. Increases in total revenues were, however, limited by the elimination of non-core product lines as part of our integration plans, and by a shortage of product from one key storage supplier which reduced shipments by approximately $1,000,000 during the period. Consolidation of acquired operations is proceeding according to plan thanks to the extraordinary contributions of all of our people."
 The Peak Technologies Group, Inc., which completed its initial public offering of stock on Aug. 11, is a full service value added distributor and systems integrator of bar code based data collection systems; mass storage systems; office automation equipment, principally printers; and related supplies. Peak markets the products of more than 50 manufacturers.
 THE PEAK TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Dollars in thousands, except per share amounts - Unaudited)
 Periods ended Nine months Three months
 Sept. 30 1992 1991 1992 1991
 Sales
 Equipment 48,191 22,359 17,268 7,975
 Maintenance 12,494 5,482 4,708 1,766
 Total 60,685 27,841 21,976 9,741
 Cost of sales:
 Equipment 36,095 15,902 12,932 5,677
 Maintenance 6,598 2,940 2,348 947
 Total 42,693 18,842 15,280 6,624
 Gross Profit 17,992 8,999 6,696 3,117
 Selling, general and
 administrative expenses 13,058 6,132 4,638 2,036
 Engineering costs 137 135 44 42
 Amortization of
 intangibles 889 785 309 251
 Income from operations 3,908 1,947 1,705 788
 Other income (expense)
 Interest income 29 34 6 11
 Interest expense (1,858) (1,929) (437) (603)
 Amortization of debt
 Insurance costs (264) (92) (87) (30)
 Total (2,093) (1,987) (518) (622)
 Income (loss) before
 income taxes 1,815 (40) 1,187 166
 Provision for income
 taxes 868 206 514 114
 Net income (loss) 947 (246) 673 52
 Primary and fully diluted
 earnings per common share 0.29 (0.08) 0.16 0.02
 Weighted average shares
 outstanding 3,351 2,605 4,319 2,605
 -0- 10/26/92
 /CONTACT: Nicholas Toms, chairman and CEO, 212-832-2833, or Ed Stevens, vice president-investor relations, 410-997-6702, both of Peak Technologies Group, or Desmond Towey or Bernadette McLaughlin of Desmond Towey & Associates, 212-888-7600, for Peak Technologies Group/
 (PEAK) CO: Peak Technologies Group, Inc. ST: New York IN: SU: ERN


SM-LD -- NY109 -- 5062 10/26/92 17:30 EST
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Date:Oct 26, 1992
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