DRYCLEAN USA, Inc. Reports Third Quarter Results

Business Wire,  May 10, 2002  

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Business Editors

MIAMI--(BUSINESS WIRE)--May 10, 2002

DRYCLEAN USA, Inc. (AMEX:DCU), today reported results of operations for the third quarter of fiscal 2002.

Revenues for the third quarter of fiscal 2002 were $3,782,462 compared to $4,733,415 for the same period of last year. However, for this period net income increased to $128,178 or $.02 per diluted share from $82,771 or $.01 per diluted share for the third quarter of fiscal 2001. For the nine month period ended March 31, 2002, revenues were $11,911,572 compared to $14,205,950 for the same period of fiscal 2001. Net income decreased to $262,604 or $.04 per diluted share compared to net income of $425,179 or $.06 per diluted share.

"Sales continue to be negatively impacted by the current recession affecting the dry cleaning and laundry segment and severely affecting the telecom segment," said Venerando Indelicato, Chief Financial Officer of DRYCLEAN USA, Inc. "However, we have been able to reduce operating expenses and, coupled with increased sales of the new environmentally safe Green Jet dry-wet cleaning machine, profits have increased during the last two quarters over the same periods of last year." Mr. Indelicato also stated that the Company has moved its telecom manufacturing into smaller quarters to further attempt to bring costs in line with reduced sales.

DRYCLEAN USA, Inc. is one of the largest franchise and license operations in the dry cleaning industry, currently consisting of over 400 franchised and licensed stores in the United States, the Caribbean and Latin America. Founded in 1960, its dry cleaning and laundry machinery division is also one of the nation's leading distributors of industrial laundry, dry cleaning machines and steam boilers.

In addition to its wholesale and retail dry cleaning operations, DRYCLEAN USA, Inc., through its Metro Tel division, also manufactures telecommunications test equipment and peripheral telephone products.

This press release contains certain information that is subject to a number of known and unknown risks and uncertainties that may cause actual results and trends to differ materially from those expressed or implied by the forward-looking statements. Information concerning such factors are discussed in Company reports filed with the Securities and Exchange Commission.

                     DRYCLEAN USA, Inc. (AMEX:DCU)
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                      Nine months ended           Three months ended
                          March 31,                    March 31,
                     2002          2001           2002          2001

Revenues         $11,911,572   $14,205,950   $ 3,782,462   $ 4,733,415

Earnings before
 income taxes        437,672       708,632       213,629       137,952

Provision for
 income taxes        175,068       283,453        85,451        55,181

Net earnings     $   262,604   $   425,179   $   128,178   $    82,771

Earnings per
 share
  Basic          $       .04   $       .06   $       .02   $       .01
  Diluted        $       .04   $       .06   $       .02   $       .01

Weighted average
 number of
 outstanding
 shares
  Basic            6,999,334     7,001,250     6,996,450     7,001,250
  Diluted          6,999,334     7,170,335     6,996,450     7,049,881

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