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TASTY BAKING COMPANY REPORTS SECOND QUARTER RESULTS; CONSOLIDATED NET INCOME RISES 9 PERCENT

 PHILADELPHIA, July 20 /PRNewswire/ -- Tasty Baking Company (AMEX: TBC) reported today a 9 percent increase in consolidated net income to $2,592,000 for the second quarter of 1993 compared to $2,382,000 earned in the comparable period for 1992.
 Net income per share rose to $.42 which compares to the net income per share earned in the second quarter of 1992 of $.39, an increase of 8 percent.
 For the 26-week period ended June 26, 1993, income before cumulative effect of accounting principle changes was $5,294,000 compared to income before cumulative effect of accounting principle changes of $4,693,000 for the comparable period of 1992, an increase of 13 percent.
 Consolidated net sales for the second quarter of 1993 increased 2 percent to $76,660,000 compared to $75,442,000 for the second quarter of 1992. For the 26-week period ended June 26, 1993, consolidated net sales were $154,946,000 compared to $149,361,000 for the comparable period of 1992, an increase of 4 percent.
 Nelson G. Harris, chairman of the executive committee, stated in a letter to shareholders that in the Tastykake Division for the second quarter of 1993, gross sales were $51,323,000 compared to $50,881,000 for the comparable quarter of 1992. Net income increased to $1,549,000 compared to the second quarter of 1992 of $1,427,000, and increase of 9 percent.
 A price increase on selected family packs together with aggressive marketing and promotional programs, effective cost control measures and improved efficiencies within the bakery contributed to the improved results. Harris stated, "The Tastykake Division will continue to target breakfast products and is very pleased with the sales of two recently introduced breakfast items: `Cinnamon Swirl,' a yeast raised cinnamon bun topped with white icing, and a `Dunkin' Stix,' a cake-type donut in bar form with a sugar glaze."
 Phillips & Jacobs, Incorporated, for the second quarter of 1993, had net sales of $42,052,000, an increase of 4 percent over the comparable quarter of 1992 of $40,271,000. Net income for the second quarter increased 9 percent to $1,043,000 compared to the net income of $955,000 earned in 1992. Harris stated, "Sales were strong in printing machinery, as well as digital electronic equipment. Traditional supply sales were flat as a result of the sales increase, better gross margins from stronger machinery and electronics sales, plus continued emphasis on cost controls."
 On July 12, 1993, the company announced that the board of directors approved the distribution, in the form of a tax-free dividend, of 100 percent of the stock in its wholly owned subsidiary, Phillips & Jacobs, Incorporated to its shareholders. The distribution record date is July 21, 1993. The effective date of the spin-off is Aug. 1, 1993, and certificates representing the shares of Phillips & Jacobs, Incorporated common stock being distributed will be mailed to shareholders on Aug. 5, 1993. An Information Statement which includes the organization, business and properties, financial statements and other information relating to Phillips & Jacobs, Incorporated was mailed to shareholders on July 16, 1993.
 On July 16, 1993, the company reported that the board of directors had declared a cash dividend of $.125 per share on the outstanding shares of Tasty Baking Company and, in addition, that the board of directors of Phillips & Jacobs, Incorporated on July 15, 1993, had declared a cash dividend of $.1125 per share on the outstanding shares of Phillips & Jacobs, Incorporated. Both dividends are payable Sept. 1, 1993, to shareholders of record on Aug. 19.
 Harris continued, "The spin-off of Phillips & Jacobs, Incorporated by Tasty Baking Company is virtually complete. The actual separation date of the two companies as mentioned previously is August 1, 1993, after which date, the results of each company will be reported separately to shareholders. Phillips & Jacobs, Incorporated will be reflected as a discontinued operation of Tasty Baking Company in Tasty Baking Company's 1993 third quarter report to shareholders. In addition, the costs related to the spin-off will also be reflected in the third quarter reports of both companies."
 Harris concluded, "As stated previously, we believe that our Tastykake operation and Phillips & Jacobs, Incorporated from an operating standpoint and with their sound financial structures are well positioned for the planned spin-off of Phillips & Jacobs, Incorporated. Recognizing the difficult economy, we continue to be pleased with the operating results."
 TASTY BAKING CO. AND SUBSIDIARIES
 Consolidated Highlights of Operating Results
 (Unaudited)
 Periods ended 13 weeks 26 weeks
 6/26/93 6/27/92 6/26/93 6/27/92
 Net sales $76,659,897 $75,442,420 $154,945,869 $149,361,066
 Cost of sales 54,702,359 54,476,356 110,866,934 107,254,676
 Depreciation and
 operating
 expenses 18,178,760 17,504,292 36,260,234 35,308,734
 Interest expense and
 other (income), net (569,615) (441,376) (1,021,983) (944,959)
 Total 72,311,504 71,539,272 146,105,185 141,618,451
 Income before provision
 for income taxes 4,348,393 3,903,148 8,840,684 7,742,615
 Provision for
 income taxes (1,756,876) (1,521,606) (3,546,216) (3,049,251)
 Income before
 cumulative effect
 of accounting
 principle changes 2,591,517 2,381,542 5,294,468 4,693,364
 Cumulative effect on
 prior years of changes in
 accounting principle for:
 Income taxes --- --- 1,406,243 ---
 Retiree health care
 and life insurance --- --- (12,916,989) ---
 Net income (loss) 2,591,517 2,381,542 (6,216,278) 4,693,364
 Average number of
 shares outstanding 6,098,113 6,091,027 6,073,514 6,082,389
 Per share of common
 stock:
 Income before
 cumulative effect
 of accounting
 principle changes $.42 $.39 $.87 $.77
 Cumulative effect on
 prior years of changes in
 accounting principle for:
 Income taxes --- --- .23 ---
 Retiree health care
 and life insurance
 benefits --- --- (2.12) ---
 Net income (loss) .42 .39 (1.02) .77
 Cash dividend .20 .20 .40 .40
 TASTY BAKING CO. AND SUBSIDIARIES
 (excluding Phillips & Jacobs, Incorporated)
 Highlights of Operating Results
 (Unaudited)
 Periods ended 13 weeks 26 weeks
 6/26/93 6/27/92 6/26/93 6/27/92
 Total sales $51,323,085 $50,880,678 $102,598,549 $102,360,985
 Less discounts
 and allowances 16,715,140 15,709,440 32,299,551 31,106,824
 Net sales 34,607,945 35,171,238 70,298,998 71,254,161
 Cost of sales 20,654,627 21,474,007 41,748,592 43,281,255
 Depreciation and
 operating
 expenses 11,969,535 11,905,650 24,213,261 24,207,272
 Interest expense and
 other (income), net (669,475) (547,699) (1,237,553) (1,114,655)
 Total 31,954,687 32,831,958 64,724,300 66,373,872
 Income before provision
 for income taxes 2,653,258 2,339,280 5,574,698 4,880,289
 Provision for
 income taxes (1,104,621) (912,392) (2,279,709) (1,933,013)
 Income before
 cumulative effect
 of accounting
 principle changes 1,548,637 1,426,888 3,294,989 2,947,276
 Cumulative effect on
 prior years of changes in
 accounting principle for:
 Income taxes --- --- 1,003,507 ---
 Retiree health care
 and life insurance
 benefits --- --- (11,708,989) ---
 Net income (loss) 1,548,637 1,426,888 (7,410,493) 2,947,276
 PHILLIPS & JACOBS, INCORPORATED
 Highlights of Operating Results (Unaudited)
 Periods ended Quarters Six months
 June 30 1993 1992 1993 1992
 Net sales $42,051,952 $40,271,182 $84,646,871 $78,106,905
 Cost of sales 34,047,732 33,002,349 69,118,342 63,973,421
 Depreciation and
 operating
 expenses 6,209,225 5,598,642 12,046,973 11,101,462
 Interest expense and
 other (income), net 99,860 106,323 215,570 169,696
 Total 40,356,817 38,707,314 81,380,885 75,244,579
 Income before
 provision for
 income taxes 1,695,135 1,563,868 3,265,986 2,862,326
 Provision for
 income taxes (652,255) (609,214) (1,266,507) (1,116,238)
 Income before cumulative
 effect of accounting
 principle changes 1,042,880 954,654 1,999,479 1,746,088
 Cumulative effect on
 prior years of changes
 in accounting principle for:
 Income taxes --- --- (98,013) ---
 Retiree health care and
 life insurance
 benefits --- --- (1,208,000) ---
 Net income 1,042,880 954,654 693,466 1,746,088
 /delval/
 -0- 7/20/93
 /CONTACT: Kathleen M. Grim of Tasty Baking, 215-221-8784/
 (TBC)


CO: Tasty Baking Company; Phillips & Jacobs, Incorporated ST: Pennsylvania, New Jersey IN: FOD SU: ERN DIV

MK-LJ -- PH026 -- 3477 07/20/93 15:05 EDT
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Date:Jul 20, 1993
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