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VIE DE FRANCE CORPORATION REPORTS FIRST QUARTER RESULTS

    MCLEAN, Va., Oct. 27 /PRNewswire/ -- Vie de France Corporation (NASDAQ-NMS: VDEF) announced today its fiscal 1994 first quarter results, which ended Sept. 18, 1993.
    The company's consolidated sales for the quarter decreased 6 percent to $7,796,000 from $8,288,000 in the first quarter of the previous year. The company posted a net loss of $311,000 (-2 cents per share) vs. net income of $19,000 (fractional cent per share) for the first quarter of 1993.
    Stanislas Vilgrain, chief executive officer, noted that culinary sales continue to increase over the prior year, but total company sales are down from the prior year primarily due to anticipated declines in the restaurant division.  As a result, the lower sales led to an expected temporary decline in operating results.
    The company's loss from operations amounted to $462,000 for fiscal 1994 compared to $162,000 for fiscal 1993.  The loss sustained in the first quarter is due to losses in both divisions.  The culinary division moved closer to break-even as a result of the growth in sales, with fixed costs remaining stable in comparison to the prior year.
    Culinary division sales were $2,110,000 for the first quarter of fiscal 1994, representing a 21 percent increase over 1993's same quarter, with sous vide sales up 32 percent over the previous year's comparable quarter.  Vilgrain added that sales orders, from both new and existing accounts, increased significantly at the end of the quarter. In fact, sous vide sales for the first period of the second quarter exceeded $1,100,000, which enabled the culinary division to post a profit for the period.
    The restaurant division experienced an 8 percent decline in comparable store revenues vs. the previous year's first quarter. Vilgrain explained that one unit in Chicago, along with the temporary closures of South Coast Plaza, accounted for nearly all of the 8 percentage point decrease.  All other comparable units were off only 1 percent for the prior year.  Due to closing units, total division sales decreased by 13 percent to $5,686,000 in the first quarter of fiscal 1994 from $6,498,000 for the same quarter of fiscal 1993.
    Vilgrain stated that sales at South Coast Plaza are now up 15 percent since re-opening.  He added that new menu items have recently been introduced into all of the Fast & Fresh locations, and most importantly, he noted that as a result of the above, along with the seasonal upswing generally experienced in September, sales at the beginning of the second quarter for comparable stores are exceeding the prior year.
    The company's invested cash balance remains strong at approximately $8.2 million.  Non-operating income, primarily interest income, amounted to $151,000 and $181,000 for the first quarter of the current and previous years.  Increased capital spending reduced the company's invested cash balance, which, in turn lowered interest income.  The operating losses, offset partially by the interest income, resulted in a consolidated net loss for the quarter.
    Vilgrain concluded by stating that sales comparisons to the prior year are strengthening, and with improvement anticipated in the second quarter, Vilgrain reaffirmed his optimism in the profitability of Vie de France Corporation for this fiscal year.
                      VIE DE FRANCE CORPORATION
                        Results of Operations
                                             First Quarter Ended
                                        Sept. 18,            Sept. 19,
                                          1993                 1992
    Sales
     Restaurant Division              $ 5,685,536          $ 6,544,129
     Culinary Division                  2,110,244            1,746,191
      Total                             7,795,780            8,290,320
     Less intersegment transfers                0               (1,864)
      Net sales                       $ 7,795,780          $ 8,288,456
    Loss from operations                ($462,096)           ($161,840)
    Income (loss) before taxes          ($310,865)             $19,069
    Net income (loss)                   ($310,865)             $19,069
    Net income (loss) per share            ($0.02)               $0.00
    Average shares outstanding         13,573,265           13,567,793
    -0-             10/27/93
    CONTACT:  Stanislas Vilgrain of Vie de France, 703-442-9600
    (VDEF) CO:  VIE DE FRANCE CORPORATION SU:  ERN ST:  VA


-- DC006 -- X420 10/27/93
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Date:Oct 27, 1993
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