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R&B Reports Record 1997 Second-Quarter and Six-Month Financial Results

25 July 1997

R&B Reports Record 1997 Second-Quarter and Six-Month Financial Results

    COLMAR, Pa., July 25 -- R&B, Inc. today
announced record financial results for its second quarter and first half that
ended June 28, 1997.
    Net sales for the second quarter of 1997 increased 3.2 percent to
$41.0 million from $39.7 million for the same quarter last year.  Net income
advanced 17.2 percent to $2.3 million, or $0.28 per share, from $1.9 million,
or $0.24 per share, for the second quarter of 1996.  Gross, operating, pretax
and net margins all set new records for performance.
    For the first half of 1997, net sales advanced to $74.3 million, a
2.8 percent increase compared with $72.2 million for the corresponding period
last year.  First-half net income improved 19.7 percent to $3.2 million, or
$0.40 per share, from $2.7 million, or $0.34 per share, for the first half of
1996.
    "We are pleased that we were able to improve our bottom line performance
for the second quarter and first half given the modest net sales increase,
which was in line with our expectations and the overall growth of the
automotive aftermarket industry," stated Richard Berman, President of R&B.
"Our efforts to streamline operations continue to produce incremental returns
on sales and, in turn, better margins.  Additionally, our efficiencies and
improvements in working capital have allowed us to reduce debt by $7 million,
which is well ahead of plan for 1997 and should enhance earnings for the
second half of the year."
    Mr. Berman continued, "Despite the overall sluggishness of the automotive
aftermarket, we are confident we can remain on plan for the balance of the
year.  We continue to improve our operations to realize greater efficiencies
in every aspect of our business.  The strong momentum we established in the
first half of the year bolsters our optimistic outlook for the balance of
1997, which should be a pivotal year in our efforts to restore amore
consistent pattern of profitable growth to R&B."
    R&B, Inc. is a leading supplier of "hard-to-find" parts and fasteners for
the automotive aftermarket.  R&B's parts are marketed under more than fifty
proprietary brand names, through its Motormite and Dorman divisions, as well
as under the private labels of automobile manufacturers, parts manufacturers,
and national warehouse distributors.
    Forward looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those projected.
Readers are cautioned not to place undue reliance on these forward looking
statements which speak only as of the date hereof.  Factors that cause actual
results to differ materially include, but are not limited to, those factors
discussed in the Company's Annual Report on Form 10-K under "Business-
Investment Considerations."

                          R&B, INC. AND SUBSIDIARIES
               Consolidated Statements of Income (Unaudited)(A)
                   (in thousands, except per-share amounts)
    13 weeks ended
     (unaudited)               6/28/97        Pct.       6/29/96       Pct.
    Net sales                 $40,959        100.0      $39,678      100.0
    Cost of goods sold         25,045         61.1       24,510       61.8
    Gross profit               15,914         38.9       15,168       38.2
    Selling, general and
     administrative expenses   11,310         27.6       11,125       28.0
    Income from operations      4,604         11.3        4,043       10.2
    Interest expense, net       1,055          2.6        1,023        2.6
    Income before taxes         3,549          8.7        3,020        7.6
    Provision for taxes         1,296          3.2        1,098        2.8
    Net income                 $2,253          5.5       $1,922        4.8
    Earnings per share           $.28          ---         $.24        ---
    Average shares
     outstanding                8,026          ---        7,983        ---

    26 weeks ended
     (unaudited)              6/28/97         Pct.       6/29/96      Pct.
    Net sales                 $74,258        100.0      $72,218      100.0
    Cost of goods sold         45,039         60.7       44,292       61.3
    Gross profit               29,219         39.3       27,926       38.7
    Selling, general and
     administrative expenses   22,002         29.6       21,708       30.1
    Income from operations      7,217          9.7        6,218        8.6
    Interest expense, net       2,155          2.9        1,990        2.8
    Income before taxes         5,062          6.8        4,228        5.8
    Provision for taxes         1,848          2.5        1,543        2.1
    Net income                 $3,214          4.3       $2,685        3.7
    Earnings per share           $.40          ---         $.34        ---
    Average shares
     outstanding                8,026          ---        7,983        ---

                          R&B, INC. AND SUBSIDIARIES
                        Consolidated Balance Sheets(A)
                                (in thousands)

                                                6/28/97       12/28/96
                                              (Unaudited)
    Cash and cash equivalents                    $1,932          $923
    Accounts receivable                          36,806        35,134
    Inventories                                  37,808        41,652
    Prepaid expenses and other                    3,187         3,354
    Property & equipment                         15,024        14,567
    Intangible assets                            30,298        30,850
    Other assets                                  2,486         2,490
    Total assets                               $127,541      $128,970

    Current portion of long-term debt            $6,338        $6,066
    Accounts payable                              8,319         7,146
    Accrued expenses and other                    5,547         4,483
    Long-term debt                               49,095        56,248
    Deferred income taxes                           858           858
    Shareholders' equity                         57,384        54,169
    Total liabilities and equity               $127,541      $128,970

    (A) Totals may not add due to rounding.

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SOURCE  R&B, Inc.