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SHOPSMITH REPORTS SECOND FISCAL QUARTER FINANCIAL RESULTS

       SHOPSMITH REPORTS SECOND FISCAL QUARTER FINANCIAL RESULTS
    DAYTON, Ohio, Nov. 4 /PRNewswire/ -- Shopsmith, Inc. (NASDAQ: SHOP) today reported $10.7 million in revenues for its fiscal second quarter ended Sept. 30, 1991, up 11.3 percent over revenues of $9.6 million for the same period last year.  The company's sales are typically lowest in its second quarter.  For the first six months, revenues were $21.4 million, up 8.4 percent over $19.7 million reported in the first six months of last year.
    Operations resulted in a loss of $551,000, or $.24 per share, in the second quarter and $914,000, or $.40 per share, in the first half of this year as compared to net losses of $443,000, or $.20 per share, and $877,000, or $.39 per share, in the same periods last year.
    Shopsmith chairman John R. Folkerth said, "The economic recovery has been sluggish nationwide and demand for durable goods, including our products, has remained soft.  The higher sales, therefore, were attained with greater discounts and increased operating costs.
    "We are responding to these conditions by implementing new selling offers, conducting new sales events, adjusting product pricing and by increasing the selection of merchandise offered in our stores.  In addressing near-term challenges, however, we remain prepared for increased demand when the economy strengthens.  We are also continuing to invest in programs that we believe will stimulate consumer interest and will materially benefit the company in the longer term."
    As a test, the company has converted three Shopsmith stores to full-line woodworking stores named Woodworking Unlimited.  The promotional activity for the new multi-function Sawsmith table saw is being expanded in woodworking periodicals and reorganizations in the manufacturing area should make that function more productive.  Folkerth expects results to significantly improve in the third quarter.
    Shopsmith is the leader in the production and marketing of quality multipurpose woodworking tools.  The company markets more than 1,400 products through mail order and through 45 company-owned stores in the U.S., Canada and Great Britian.
    Unaudited Results for
    the three months ended
    Sept. 30,                              1991         1990
    Revenues                          $10,720,000   $ 9,632,000
    Gross profit                        5,026,000     4,746,000
    (Loss) before income taxes           (835,000)     (672,000)
    Net (loss)                           (551,000)     (443,000)
    Loss per share                          ($.24)        ($.20)
    Average shares outstanding          2,285,385     2,235,925
    Unaudited Results for
    the six months ended
    Sept. 30,                              1991         1990
    Revenues                          $21,386,000   $19,729,000
    Gross profit                       10,226,000     9,609,000
    (Loss) before income taxes         (1,384,000)   (1,330,000)
    Net (loss)                           (914,000)     (877,000)
    Loss per share                          ($.40)        ($.39)
    Average shares outstanding          2,284,540     2,231,469
    -0-                       11/4/91
    /CONTACT:  Bill Becker, vice president-finance of Shopsmith, Inc., 513-898-6070, or Shirley Thompson, vice president of Carl Thompson Assoc., Inc., 801-533-0303, for Shopsmith, Inc./
    (SHOP) CO:  Shopsmith, Inc. ST:  Ohio IN:  CST SU:  ERN KK -- CL002 -- 0561 11/04/91 08:22 EST
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Date:Nov 4, 1991
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