HARRY'S REPORTS EXPANSION OF DIVISION CAUSED LOSSES

ROSEWELL, Ga. -- Harry's Farmers Market here said expenses associated with the expansion of its Harry's in a Hurry division resulted in a loss for the third quarter and 36 weeks ended Oct. 28.

million, compared with a $4.9 million loss for the year-ago period, the company said.

For the year-to-date, the company reported a net loss of $2.3 million, compared with a loss of $5.8 million for the 36 weeks in 1997.

3RD-QUARTER RESULTS

Qtr Ended 10/28/98 10/29/97

Sales $31.9 million $32.6 million

Change - 2.2%

Comp-store N/A N/A

Net Income ($1.5 million) ($4.9 million)

Inc/Share (26 cents) (81 cents)

36 Weeks 1998 1997

Sales $99.4 million $102.4 million

Change - 3%

Comp-store N/A N/A Net

Income ($2.3 million) ($5.8 million)

Inc/Share (39 cents) (97 cents)