Five and Under

[bobkubecka]

Rascals International, Inc. Reports First Quarter 2002 Profitability with Positive Results from New Growth and Expansion Strategy
EAST ORANGE, N.J., May 16 /PRNewswire-FirstCall/ -- Rascals International, Inc., (OTC Bulletin Board: RASC - News) operators of a growing chain of U.S. comedy clubs and the Internet site (http://www.rascalscomedyclub.com), today announced financial results for the first quarter ended March 31, 2002. The Company reported a first quarter net income of $191,849 compared to $85,020 in the first quarter of 2001, exceeding net income for the previous year first quarter by 126%.

Net sales for the first quarter 2002 were $1.28 million, a relative increase from $1.22 million for the same period a year ago. Gross profit also increased to $509,723 in Q1 2002 from $262,928 the same period in 2001. Overall gross margins increased by 40% from 21% in the first quarter of 2001. In large part this improvement reflected efforts to improve operating efficiency at the stand-alone facilities.

"Demand for comedic entertainment remains strong. Rascals experienced increased attendance in our current operations and similarly strong demand in the new hotel-based locations," stated Ed Rodriguez, Chief Executive Officer, Rascals International Inc. "We also recognized revenue through our pay-per-view and video-on-demand relationships. The forthcoming Rascals video series represents further demand for our library and another low cost outlet to grow revenues and the Rascals brand."