Cable & Co. Worldwide Inc. Reports Year End Gains in Net Sales; A Decrease in Net Operating Loss

Business Wire, April 20, 1998

EDISON, NJ--(BUSINESS WIRE)--April 20, 1998--

Company Also Implements Cost Cutting

Moves Designed To Improve Future Results

Cable & Co. Worldwide Inc. (the "company") (OTC/BB:CCWW) announced today sales and income (loss) results for the year ended Dec. 31, 1997 and that it has implemented a cost cutting program designed to improve future results.

Net sales for the year ended Dec. 31, 1997 increased to $13.9 million from $13.5 million for 1996. Net operating loss for the year ended Dec. 31, 1997 decreased to $2.5 million from $3.3 million in 1996, exclusive of non cash and non recurring items. Gross profit margins for the year rose to 32.6 percent from 24.5 percent for last year. The company had a net loss for 1997 of $5,650,695 compared to $7,458,555 for 1996.

Alan Kandall, president of the company, said, "We are generally pleased with the overall continuation of the improving trends in sales, gross margins and operating results. However, we have taken additional measures to hasten our drive to profitability. Our strategy is to achieve an increased sales volume with no increase in overhead. To accomplish this we have instituted a cost cutting program which includes a 12 percent reduction in staff, as well as other measures."

He continued, "The effect of the program is already evident. Back orders for the 1998 fall season are up 28 percent and we have added over three hundred new retail outlets to our fifteen hundred customer base. The initial reaction from retailers to our XBacco line has been very encouraging. The line has been placed with existing and new customers which sell into the much larger market which the lower priced XBacco targets. At the same time for 1998 we anticipate that sales, general & administrative expenses will be reduced to a historically low percentage of sales."

Kandall concluded, "Actually, the results for this year would have been even better had we not lost a $2.2 million barter sale which we had booked and previously included in our preliminary estimates of sales for the year."

Cable & Co. Worldwide Inc. designs, manufactures, imports and markets an upscale range of men's footwear bearing the "CABLE & CO.", "BACCO BUCCI" and "XBacco" trademark. The company markets its products to approximately 1,800 department and specialty store locations throughout the United States. -0- This press release contains statements of a forward-looking nature relating to future events. Shareholders are cautioned that such statements are predictions and that actual events or results may differ significantly.

This release is available on the KCSA Worldwide website at www.kcsa.com. -0-

                      Cable & Co. Worldwide Inc.
             Selected Consolidated Financial Information

                            For the Year Ended
                               December 31,
                         1997        %        1996      %
Net Sales             $ 13,878            $ 13,522
Gross Profit             4,530     32.6      3,311   24.5
Licensing Revenue            0                   0
Operating Expenses       7,054               6,617
Loss from Operations    (2,524)             (3,306)
Non-cash Compensatory
  Charges                1,660               2,811
Interest                   724                 578
Bridge Note Discount       ---                 738
Termination Agreements     683                 ---
Income Taxes                59                  30
Net Loss                (5,650)             (7,458)
Loss Per Share          $(0.25)             $(2.79)
Weighted Average
  Shares
  Outstanding       22,247,148           2,682,820