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THE RIGHT START INC. REPORTS RESULTS

 THE RIGHT START INC. REPORTS RESULTS
 WESTLAKE VILLAGE, Calif., July 15 /PRNewswire/ -- The Right Start


Inc. (NASDAQ: RTST) today reported results for its fourth quarter and fiscal year ended May 27, 1992.
 Net income for fiscal 1992 was $820,000, or $.14 per share, compared with $1,250,000, or $.26 per share, for the prior fiscal year. Revenues rose to $27.4 million from $21.1 million in fiscal 1991.
 For the fourth quarter, net income was $195,000, or $.03 per share, compared with $335,000, or $.04 per share, a year ago. Revenues for the quarter were $6.9 million compared with $7 million in the previous year's period.
 The weighted average number of common shares outstanding was 5,739,670 for fiscal 1992 and 4,804,000 for fiscal 1991.
 Lenny M. Targon, chief executive officer of the direct merchant of children's products, said the 26 percent increase in revenues for the year is attributable to an increase in the number of Right Start Catalogs distributed. During fiscal 1992 approximately 10 million catalogs were mailed as compared with 8 million the previous year. These mailings encompassed larger proprietary lists, expanded mailings to proven rental lists with the application of new statistical models, and new, untested rented lists to locate new customers.
 The decline in net income, Targon noted, reflects lower catalog response rates due to the recession and an increase in catalog production and distribution expenses associated with the larger mailings and higher postal rates.
 "The year began with a record high quarter in both revenues and net income and, believing consumer pessimism would not greatly affect spending on children's products, we decided to expand our fall holiday mailing," Targon said. "Subsequent mailings were decreased as soon as the decline in response rates became apparent, and our resumed profitability in the fourth quarter reflects this measure.
 "The improvement in our results between the third and fourth quarters of fiscal 1992 was significant, especially considering that the final quarter of fiscal 1991 was the second best in company history," he said.
 Merchandise and delivery costs for fiscal 1992 increased 34 percent, primarily due to the increase in United Parcel Service delivery rates. The company's gross profit margin, exclusive of delivery costs, remained constant with the prior fiscal year.
 General and administrative expenses were flat despite the increase in revenues. This resulted from the company's cost control measures and the impact of new incentive compensation programs for management.
 "We are closely monitoring costs in the current fiscal year, while implementing strategies such as our low-risk retail expansion program and some potential catalog acquisitions, which we expect to bear fruit in future years," Targon added.
 The company recently announced plans to open a test retail store within a Rich's department store in the Atlanta area in September 1992. The first Right Start Store, adjacent to the company's headquarters in an industrial park, achieved profitability shortly after its November 1991 opening.
 Founded in 1985, The Right Start, Inc. is a leading juvenile products catalog company, offering merchandise for infants and children up to age 4. Based in Westlake Village, the company completed its initial public offering in October 1991.
 THE RIGHT START INC.
 Statement of Income
 Fiscal year ended
 May 27, May 29,
 1992 1991
 Revenues:
 Net sales $26,522,000 $21,189,000
 Other revenues 868,000 476,000
 Total 27,390,000 21,665,000
 Costs and expenses:
 Merchandise and delivery costs 15,560,000 11,650,000
 Catalog production and
 distribution expense 5,639,000 3,909,000
 Other selling expense 3,896,000 2,875,000
 General and administrative expense 1,385,000 1,340,000
 Total 26,480,000 19,774,000
 Operating income 910,000 1,891,000
 Interest and other income 268,000 63,000
 Interest expense --- (11,000)
 Income before provision
 for income taxes 1,178,000 1,943,000
 Provision for income taxes (358,000) (693,000)
 Net income $820,000 $1,250,000
 Earnings per share $0.14 $0.26
 Weighted average common
 shares outstanding 5,739,670 4,804,000
 THE RIGHT START INC.
 Quarterly Statements of Income
 (Unaudited)
 Fiscal 1992
 (000s omitted except earnings per share)
 Quarter Quarter Quarter Quarter
 ended ended ended ended
 Aug. 28 Nov. 27 Feb. 26 May 27
 Net sales & other
 revenues $8,455 $6,548 $5,459 $6,928
 Operating income
 (loss) 626 342 (211) 153
 Income (loss) before
 provision for
 income taxes 664 410 (94) 198
 Net income (loss) 419 266 (60) 195
 Earnings (loss)
 per share $.09 $.05 ($.01) $.03
 Fiscal 1991
 (000s omitted except earnings per share)
 Quarter Quarter Quarter Quarter
 ended ended ended ended
 Aug. 29 Nov. 28 Feb. 27 May 29
 Net sales & other
 revenues $5,036 $4,563 $5,104 $6,962
 Operating income 513 450 437 491
 Income before
 provision for
 income taxes 509 457 459 518
 Net income 329 292 294 335
 Earnings per share $.08 $.07 $.07 $.04
 -0- 7/15/92
 /CONTACT: Stan Fridstein or Lenny Targon of The Right Start, 818-707-7100; or Susan Klein or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for The Right Start/
 (RTST) CO: The Right Start Inc. ST: California IN: REA SU: ERN


KJ-EH -- LA011 -- 9398 07/15/92 09:04 EDT
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