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ROYAL APPLIANCE MFG. CO. REPORTS RESULTS

 CLEVELAND, Feb. 23 /PRNewswire/ -- Royal Appliance Mfg. Co. (NYSE: RAM), maker of the Dirt Devil(R) vacuum cleaners, reported today that its net sales for the year ended Dec. 31, 1992 were $394,980,000, up 44.5 percent from $273,302,000 for 1991. Net income for the year was down 26.4 percent to $20,151,000, compared with pro forma net income of $27,379,000 for 1991. Earnings throughout 1992 were impacted by a lower gross margin percentage and significantly higher advertising and promotion expenditures. Earnings per share were $.81 for the year ended Dec. 31, 1992, compared to pro forma earnings per share of $1.09 for 1991 and $.27 for 1990.
 Net sales for the fourth quarter ended Dec. 31, 1992 were $141,340,000, up 26.0 percent from $112,191,000 in the comparable 1991 period. Earnings per share, however, decreased to $.41 per share in the fourth quarter ended Dec. 31, 1992, from the $.53 per share in the fourth quarter of 1991.
 Michael J. Merriman, vice president-finance, stated, "The company's annual advertising and promotion expenditures increased by $39,389,000 to approximately $79,397,000 in 1992. The company continued to increase its market share and brand awareness in an intensely competitive market. Although the company anticipates that advertising and promotion expenditures in the first quarter of 1993 may be higher than in the first quarter of 1992, the company does not expect to increase 1993 advertising and promotion expenditures above its 1992 level, unless market conditions warrant."
 The company's inventory at Dec. 31, 1992 increased to approximately $83 million from approximately $49 million at Dec. 31, 1991. The company is experiencing lower production volumes and sales, as well as higher fixed overhead, in the first two months of 1993 than in the comparable period of 1992. As a result, the company expects to incur a loss in the first quarter of 1993, although the company anticipates profitability for the full year.
 The company develops, assembles and markets a full line of vacuum cleaners for home and commercial use under the Dirt Devil(R) and Royal(R) brand names. The company's executive offices are located at 650 Alpha Drive, Cleveland, 44143.
 COMPARATIVE FINANCIAL RESULTS
 1990 1991 1992
 3 months to December 31
 Net sales $53,309,000 $112,191,000 $141,340,000
 Gross margin 22,472,000 47,355,000 55,123,000
 Advertising & promotion 8,799,000 16,431,000 28,668,000
 Net income (pro forma
 in 1990) 4,319,000 13,362,000 9,893,000
 Per share (pro forma in
 1990) $0.17 $0.53 $0.41
 Weighted average number of
 common shares outstanding (A) 25,318,000 24,226,000
 12 months to December 31
 Net sales $120,117,000 $273,302,000 $394,980,000
 Gross margin 51,350,000 112,907,000 146,276,000
 Advertising & promotion 21,384,000 40,008,000 79,397,000
 Net income (pro forma
 in 1990 and 1991) 6,861,000 27,379,000 20,151,000
 Per share (pro forma in
 1990 and 1991) $0.27 $1.09 $0.81
 Weighted average number of
 common shares outstanding (A) (A) 24,946,000
 (A) -- The above per share amounts reflect the 2-for-1 stock split that became effective on July 17, 1992. For the period Jan. 1, 1987 through Aug. 8, 1991, the company elected to be treated as an S corporation for income tax purposes and, as a consequence, paid no federal or state income taxes. The pro forma amounts for the three and 12 month periods ended Dec. 31, 1990, and 12 months ended Dec. 31, 1991 reflect a pro forma tax provision as if the company had been a C corporation for income tax purposes, and assumes 25,200,000 shares were outstanding during these periods.
 Due to the highly seasonal nature of the company's business, particularly the critical fourth quarter holiday season, it is the company's policy not to make any annual or quarterly sales or earnings projections for external use and not to endorse any analysts' sales or earnings estimates.
 -0- 2/23/93
 /CONTACT: Michael J. Merriman, vice president-finance; or Richard G. Vasek, controller, both of Royal Appliance Mfg. Co., 216-449-6150/
 (RAM)


CO: Royal Appliance Mfg. Co. ST: Ohio IN: MAC SU: ERN

KK -- CL001 -- 9258 02/23/93 08:44 EST
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Date:Feb 23, 1993
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