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SCOTTS REPORTS HIGHER SIX-MONTH SALES AND EARNINGS BEFORE EXTRAORDINARY CREDIT

 Growth Achieved Despite Severe March Weather
 MARYSVILLE, Ohio, May 12 /PRNewswire/ -- The Scotts Company


(NASDAQ: SCTT) announced today that for the six-month fiscal period ended April 3, 1993, sales increased approximately 8 percent to $228.9 million compared to $212.4 million for the six months ended March 28, 1992. For the quarter ended April 3, 1993, sales were $161.1 million, up 7 percent from the comparable prior year period. Sales without Republic Tool, which was acquired in November 1992, increased by 1 percent for the quarter and 2 percent for the six months.
 The sales gains were achieved despite the unusually severe winter weather that plagued most of the United States this March, which is normally one of the highest sales periods in the lawn and garden business. "With improved weather contributing to a fiscal April sales increase of approximately 36 percent over last year, we are encouraged that we will meet our 12-15 percent sales target for this fiscal year," said Tadd C. Seitz, Scotts Chairman and Chief Executive Officer.
 Net earnings for the six months were $11.2 million, up 69 percent compared to net earnings last year before an extraordinary credit. Last year's earnings for the same period totaled $11.3 million including an extraordinary credit of $4.7 million for utilization of net operating loss carryforwards. Net earnings per share for the 1993 six-month fiscal period were $.54, based upon 20.6 million weighted average shares outstanding, compared to $.44 on earnings in last year's comparable period before the extraordinary credit and $.76 per share after the credit. Earnings per share for last year's comparable period were based upon 14.8 million weighted average shares outstanding.
 Operating income for the six months declined 3 percent, reflecting the company's peak seasonal spending on promotions and distribution, which were geared for higher normal seasonal levels of sales, as well as costs related to the start-up of new technology and the introduction of new products.
 Commenting on the results, Mr. Seitz said: "Sales of the Consumer Business Group were up approximately 11 percent to $190.7 million for the first half of fiscal 1993 and approximately 8 percent to $144.5 million for the second quarter of fiscal 1993, including sales of Republic Tool. Sales of the Professional Business Group were approximately equal to last year for the quarter and were down approximately 6 percent for the six months."
 With over $400 million in sales in fiscal 1992, Scotts is the country's leading producer and marketer of consumer do-it-yourself lawn care and professional golf course turf care products. The Company's Turf Builder(R) products are the nation's most popular lawn care fertilizers and fertilizer/control combinations. The Company's Hyponex(R) products are the nation's leading line of organic products, including top soil, potting soils, composted manures, and bark mulches. Through Republic Tool and Manufacturing Company, Scotts offers a full line of lawn spreaders and other lawn and garden equipment under the "EZ" label and under retailers' private brands.
 THE SCOTTS COMPANY
 Summary Income Statement
 (Dollars in thousands except per share data)
 Unaudited results of operations for the three months and six months ended April 3, 1993, and March 28, 1992, are as follows:
 Periods Ended Three Months Six Months
 4/3/93 3/28/92 4/3/93 3/28/92
 Net sales $161,102 $150,780 $228,859 $212,418
 Cost of sales 82,481 76,861 119,535 109,539
 Gross profit 78,621 73,919 109,324 102,879
 Percent of net sales 48.8 49.0 47.8 48.4
 Selling, general &
 admin. expense
 Marketing expense 25,407 24,183 37,346 35,257
 Distribution expense 21,262 18,716 31,080 27,955
 General & administration 7,671 6,379 13,197 11,929
 Research & development 2,052 1,609 3,604 2,922
 Total SG&A 56,392 50,887 85,227 78,063
 Percent of net sales 35.0 33.7 37.2 36.7
 Operating income 22,229 23,032 24,097 24,816
 Interest expense and
 related charges 3,030 5,989 4,913 12,752
 Income before income taxes
 and extraordinary credit 19,199 17,043 19,184 12,064
 Percent of net sales 11.9 11.3 8.4 5.7
 Income taxes 8,027 7,777 8,021 5,475
 Income before
 extraordinary credit 11,172 9,266 11,163 6,589
 Utilization of loss
 carry forwards -- 4,699 -- 4,699
 Net income $11,172 $13,965 $11,163 $11,288
 Per common share:
 Income before
 extraordinary credit 0.55 0.52 0.54 0.44
 Utilization of loss
 carry forwards -- 0.27 -- 0.32
 Net income 0.55 0.79 0.54 0.76
 Average common shares
 outstanding 20,138,585 17,690,462 20,637,432 14,786,751
 NOTES:
 Results of operations for the three months ended April 3, 1993, include results of operations for Republic Tool and Manufacturing Corporation ("Republic") for the full three months.
 Results of operations for the six months ended April 3, 1993, include Republic's results of operations from its acquisition by Scott on November 11, 1992.
 Certain amounts included in the three months and six months ended March 28, 1992, have been reclassified to conform with current year presentations. These changes did not impact net income.
 -0- 5/12/93
 /CONTACT: William J. Jenks of Broadgate Consultants, Inc., 212-229-2222, for Scotts Company/
 (SCTT)


CO: Scotts Company ST: Ohio IN: ENV SU: ERN

LD -- NY007 -- 7367 05/12/93 08:17 EDT
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