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UST POSTS 23 PERCENT INCREASE IN FIRST QUARTER 1993 EARNINGS PER SHARE

 GREENWICH, Conn., April 19 /PRNewswire/ -- UST today announced that first quarter 1993 primary earnings per share increased 23 percent to 38 cents per share, compared with 31 cents per share for the corresponding period in 1992.
 Net earnings for the first three months of 1993 were $83.7 million, a 20 percent increase over $69.9 million for the similar period in 1992.
 Net sales for the three-month period ended March 31, 1993 increased by 13 percent to $266.2 million, compared with $235.6 million for the similar period in 1992.
 The Tobacco, Wine and Other segments posted sales gains for the first quarter. Moist smokeless tobacco sales were primarily responsible for the increase in the Tobacco segment. Domestic unit volume for moist smokeless tobacco for the first quarter increased 1.0 percent to 141.2 million cans, compared with the first quarter of 1992. The company believes that unit volume for the first quarter of 1993 was adversely affected as a result of an initial inventory adjustment by distributors due to a change in the company's shipping procedures effective Jan. 1, 1993 and by poor weather conditions in key market areas.
 On March 31, 1993 the company completed the sale of its distribution rights for Zig-Zag cigarette papers and related products. The transaction resulted in an after-tax gain of $22 million, amounting to 10 cents per share.
 This gain was offset by the cumulative effect of accounting changes as a result of mandatory adoption in the first quarter of 1993 of Statement of Financial Accounting Standards (SFAS) No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes." As a result of adopting SFAS No. 106 the company recorded a one-time charge to net earnings of $32.7 million. The adoption of SFAS No. 109 resulted in an increase to net earnings of $12.8 million. The cumulative effect of accounting changes reduced primary earnings per share by 9 cents.
 UST reached number 355 in sales in Fortune magazine's 1992 listing of the 500 largest industrial corporations, based on 1992 performance, moving up seven positions from 1991. The company maintained the ranking of number one in profits as a percent of assets and reached number two in profits as a percent of sales.
 UST, through its subsidiaries, is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Skoal Long Cut and Skoal Bandits. Other consumer products marketed by UST subsidiaries include premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries.
 Copenhagen, Skoal, Skoal Long Cut, Skoal Bandits, Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden are registered trademarks of UST subsidiaries.
 UST INC
 Consolidated Sales and Earnings
 (In thousands, except per share data, unaudited)
 First quarter 1993 1992 Pct. Change
 Net sales $266,233 $235,554 +13
 Costs and Expenses:
 Cost of products sold 62,668 54,317 +15
 Selling, advertising and
 administrative expenses 73,622 69,180 + 6
 Total costs and expenses 136,290 123,497 +10
 Operating income the disposal of
 product line (A) 35,029 -- --
 Earnings before income taxes
 and cumulative effect of
 accounting changes 165,127 112,516 +47
 Income taxes 61,572 42,658 +44
 Earnings before cumulative effect
 of accounting changes 103,555 69,858 +48
 Cumulative effect of accounting
 changes(B):
 Postretirement benefits other
 than pensions (net of income tax
 benefit of $18,115) (32,690) -- --
 Income taxes 12,844 -- --
 Net earnings 83,709 69,858 +20
 Earnings per share:
 Primary earnings before cumulative
 effect of accounting changes .47 .31 +52
 Cumulative effect of accounting
 changes(B) (.09) -- --
 Net earnings per share:
 Primary .38 .31 +23
 Fully diluted .38 .31 +23
 Cash dividends per common share .24 .20 +20
 Average number of common and
 common equivalent shares
 outstanding during the three-
 month period:
 Primary 218,067 223,896
 Fully diluted 218,067 223,896
 (A) Gain recorded on the sale of a tobacco related business resulting in an after-tax gain of $22 million or 10 cents per share.
 (B) Reflects the adoption of FASB 109 "Accounting for Income Taxes" and FASB 106 "Postretirement Benefits Other Than Pensions."
 -0- 4/19/93
 /CONTACT: Alan Kaiser, 203-622-3549, or David Schutzman, 203-622-3479, both of UST Inc/
 (UST)


CO: UST Inc ST: Connecticut IN: TOB SU: ERN

AH-OS -- NY064 -- 7329 04/19/93 11:14 EDT
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Date:Apr 19, 1993
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