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PITTWAY'S SECOND QUARTER NET INCOME DOUBLES ON 12 PERCENT SALES INCREASE; SALE OF FIRST ALERT/BRK OPERATIONS COMPLETED

 PITTWAY'S SECOND QUARTER NET INCOME DOUBLES ON 12 PERCENT SALES
 INCREASE; SALE OF FIRST ALERT/BRK OPERATIONS COMPLETED
 CHICAGO, Aug. 4 /PRNewswire/ -- Pittway Corp. (AMEX: PRY) sales for the three months ended June 30, 1992 increased 12 percent to $261,736,000 as compared to $233,314,000 for the second quarter in 1991. Net income for the quarter doubled to $8,319,000 (60 cents per share) from $4,124,000 (30 cents per share) a year ago.
 For the first half of 1992, sales increased 10 percent to $519,227,000 from $473,910,000. Net income amounted to $16,262,000 ($1.17 per share) as compared to $9,338,000 (68 cents per share) for the first half of 1991, an increase of 74 percent.
 The previously announced sale of the First Alert and BRK Electronics Divisions to a new company formed by First Alert/BRK management and Thomas H. Lee Co. was completed on July 31, 1992. The sale will be recorded in the third quarter and generate an approximate after-tax gain of $19 million. The price consists of $87.5 million in cash, subject to certain adjustments as of the closing date, and a 16 2/3 percent interest in the new company valued at $5 million. In addition, Pittway will continue to use the First Alert Professional name in its security systems business.
 The announcements were made today by Neison Harris, chairman, and King Harris, president, of the diversified company based in Chicago.
 Commenting on second quarter results, King Harris said, "Operating income increased 70 percent as growth in our packaging and commercial burglar and fire protection operations offset the recessionary forces in publishing. These favorable results reflect successful efforts throughout Pittway to reduce costs while enhancing operating efficiencies. These measures have led to an improvement in our overall operating margin.
 "The Seaqist Group posted significant increases in sales and profits. These increases were the result of improved cosmetic and perfumery markets in Europe and growth in personal care markets in the United States. Contract packaging profits at Barr, however, were down.
 "Penton's publishing revenues and profits were about even with last year's second quarter as the media recession continued.
 "Both of Ademco's principal operations - Ademco Distribution (ADI) and Ademco Manufacturing - reported increased sales and profits. ADI kept a tight lid on costs while maintaining aggressive selling programs. Market softness in the security business resulted in intense price competition from strong regional distributors. Ademco Manufacturing's market position continued to improve. Cost reductions from product redesigns and more efficient production contributed to the favorable results.
 "Sales and profits for the Pittway Fire Safety Group increased due to gains in the commercial fire protection business. Both System Sensor and Notifier/Fire-Lite recorded higher sales and profits. Sales and operating results in the residential markets by First Alert and BRK Electronics (sold as of July 31, 1992) were somewhat down from last year's strong second quarter due to reduced promotional activity in the United States and lower foreign sales."
 Pittway is a manufacturer and distributor of professional burglar and fire alarm equipment; a publisher of trade magazines and directories; a producer of dispensing closures, pumps and aerosol valves; a contract packager of aerosol and liquid household products; a real estate developer; and a participant in joint venture real estate developments.
 PITTWAY CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 (Dollars in Thousands, Except Per Share Data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991(a) 1992 1991(a)
 Net Sales $261,736 233,314 519,227 473,910
 Operating expenses:
 Cost of sales 167,546 149,301 331,222 303,828
 Selling, general and
 administrative 67,145 63,520 134,069 126,779
 Depreciation and
 amortization 11,883 11,559 23,803 23,718
 Total 246,574 224,380 489,094 454,325
 Operating income 15,162 8,934 30,133 19,585
 Other income (expense)
 net (1,497) (1,389) (3,103) (3,526)
 Income before income
 Taxes 13,665 7,545 27,030 16,059
 Income taxes 5,346 3,421 10,768 6,721
 Net income 8,319 4,124 16,262 9,338
 Net income per share
 of common and Class
 A stock $ .60 .30 1.17 .68
 Average number of
 shares outstanding
 (in thousands) 13,853 13,826 13,848 13,819
 Note: (a) Certain amounts have been reclassified to confirm to 1992 presentation.
 -0- 8/4/92
 /CONTACT: Joe Kopec of Edelman Corp., 312-649-6915, for Pittway/
 (PRY) CO: Pittway Corp. ST: Illinois IN: SU: ERN


TM -- NY079 -- 6885 08/04/92 19:51 EDT
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Date:Aug 4, 1992
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