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STEWART FOODS REFINANCING ARRANGED; 3RD QUARTER SALES UP 14.7 PERCENT

STEWART FOODS REFINANCING ARRANGED; 3RD QUARTER SALES UP 14.7 PERCENT
 NORFOLK, Va., May 18 /PRNewswire/ -- Stewart Foods, Inc. (NASDAQ: STEW) (formerly Stewart Sandwiches, Inc.), the Norfolk, Virginia-based producer and distributor of fresh and frozen sandwiches and other refrigerated convenience food products, announced today that it had entered into new financing arrangements to fund the company's operations and to support its new growth plans.
 The company's new financing arrangements include:
 (A) $1,000,000 in subordinated debt carrying a 12.5 percent coupon, a five-year term, and the right to purchase 150,000 shares of Stewart common stock. This financing was completed May 15, 1992;
 (B) The company has received a commitment from a Virginia-based financial institution to provide a $1,500,000 revolving line of credit, secured by accounts receivable and inventory, among other assets. This financing is expected to be completed during the next 45 days; and,
 (C) Restructured existing term loans with the company's current senior lender and Stewart Foods Holding, Inc., a private investment company controlled by Stewart Foods' chairman and president.
 In announcing these new financing arrangements, Douglas J. Stanard, president and chief operating officer, said, "We are pleased with the progress we have made in reshaping and improving Stewart, and in getting it back on the road to growth and profitability. Securing this financing is another important step in our program and we're pleased to have this new capital available to move the company forward."
 For the three months ended March 27, 1992, Stewart reported a 14.7 percent sales increase over the same three-month period in 1991. For the nine months, sales were up 10.3 percent over 1991 year-to-date.
 In commenting on this improvement in sales, Stanard said, "We are particularly pleased with our sales momentum. March was up 17 percent over March of last year and this shows that our new sales and marketing programs are having a significant, positive impact."
 For the three months, Stewart reported a net loss of $464,005, compared to a net loss for the same three-month period in 1991 of $998,811. The loss per share for the quarter of $0.26 compared to a loss per share of $0.56 for the same period last year.
 Stanard said, "We are pleased that we reduced the loss for the quarter, historically the company's slowest period, to less than half of last year. We are looking for continuing improvement in the months ahead."
 -0- 5/18/92
 /CONTACT: Donna Eller, Stewart Foods, Inc., 804-466-9300/
 (STEW) CO: Stewart Foods, Inc. ST: Virginia IN: FOD SU:


JZ -- CH009 -- 1406 05/18/92 14:28 EDT
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Publication:PR Newswire
Date:May 18, 1992
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