Moore Medical Announces Third Quarter 2003 Net Income NEW BRITAIN, Conn., Oct. 27 /PRNewswire-FirstCall/ -- Moore Medical Corp. , a leading multi-channel specialty marketer and distributor of medical, surgical and pharmaceutical products to health care professionals in non-hospital settings, today announced third quarter 2003 earnings of $0.15 per diluted share, versus earnings of $0.20 per diluted share in the third quarter of 2002. Net income for the third quarter of 2003 was $0.5 million, compared to net income of $0.6 million in the comparable period one year ago. Third quarter net sales were $38.1 million, versus $37.0 million in the previous year's third quarter. In the aggregate, sales growth fell short of the Company's original expectations; however, the Company realized sales growth in several of its specialty markets that were the focus of investments in prior quarters. The Company's gross profit margin percentage decreased to 26.8% from 27.7% in the same quarter last year, as a result of continuing external price pressures in certain markets and aggressive pricing associated with gaining entry into competitively held new accounts. Sales and marketing expenses were constant at $2.7 million for the two quarters, which represent 7.0% and 7.3% of net sales for the third quarter 2003 and 2002, respectively. The decrease in sales and marketing expenses as a percentage of net sales reflects efficiency gains and leveraging of resources in both sales and media departments. General and administrative expenses increased $0.4 million, or 6.3%, to $6.8 million in the third quarter of 2003 from $6.4 million in last year's third quarter, due to higher costs related to net periodic pension expense, professional service fees, property and casualty insurance premiums, and bad debt expense. For the nine months ended September 27, 2003, the Company's net sales increased 4.6% to $107.6 million compared with $102.9 million in last year's comparable period. Net loss for the nine months was ($0.3) million, or ($0.08) per diluted share, compared with net income of $1.1 million or $0.35 per diluted share during last year's nine-month period. "Our focused multi-channel approach has produced appreciable sales growth in select specialty markets and this resulted in new multi-year contracted business," said Linda M. Autore, president and chief executive officer. Ms. Autore concluded, "We believe that our investments will result in improved revenue growth and profitability during the remainder of fiscal 2003 and into 2004." About Moore Medical Moore Medical is an Internet-enabled multi-channel marketer and distributor of medical, surgical and pharmaceutical products to approximately 100,000 health care practices and facilities in non-hospital settings nationwide, including: physicians; emergency medical technicians; schools; correctional institutions; municipalities; occupational/industrial health doctors and nurses; and other specialty practice communities. Moore Medical also serves the medical/surgical supply needs of 30 customer community affiliates. The Company markets and serves its customers through direct mail, industry-specialized telephone support staff, field sales representatives, and the Internet. Its direct marketing and distribution business has been in operation for 55 years. More information about the Company can be found at http://www.mooremedical.com/. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press release contains statements about future events and expectations that constitute forward-looking statements under the federal securities laws. These statements are characterized by words such as "believe," "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "intent," "project," "objective," "seek," "strive," "might," "likely result," "build," "grow," "plan," "goal," "expand," "position," or similar words. Forward-looking statements involve risks and uncertainties (including factors outside our control) that may cause our actual results, performance or financial condition to differ materially from any future results implied by such forward-looking statements. Factors that could contribute to these differences include, but are not limited to: the inability to generate adequate revenues and income from our strategy to transform the Company to a multi-channel e-commerce enabled business; changes in demand for or supply of our products; online security breaches; disruptions in or cost increases for third-party services or systems; intense competition in health care product distribution; government regulation of drug and medical device distribution, the Internet and health care products and services; and changes in insurance coverage of health care products and services. Further information regarding factors that could affect our results and the statements made herein are included in our filings with the Securities and Exchange Commission. Financial Statements to Follow MOORE MEDICAL CORP. & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Third Quarter First Three Quarters (Amounts in thousands, except per share data) September 27, September 28, September 27,September 28, 2003 2002 2003 2002 Net sales $38,102 $37,032 $107,626 $102,909 Cost of products sold 27,878 26,777 78,423 74,484 Gross profit 10,224 10,255 29,203 28,425 Sales and marketing expenses 2,680 2,699 9,158 7,968 General and administrative expenses 6,750 6,437 20,323 18,508 Operating income (loss) 794 1,119 (278) 1,949 Interest expense, net 38 113 124 201 Income (loss) before income taxes 756 1,006 (402) 1,748 Income tax provision (benefit) 272 363 (145) 629 Net income (loss) $484 $643 $(257) $1,119 Basic net income (loss) per share $0.15 $0.20 $(0.08) $0.35 Diluted net income (loss) per share $0.15 $0.20 $(0.08) $0.35 Basic common shares outstanding* 3,190 3,173 3,190 3,161 Diluted common shares outstanding* 3,191 3,177 3,190 3,179 *weighted average MOORE MEDICAL CORP. & SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Amounts in thousands) September 27, December 28, 2003 2002 Unaudited ASSETS Current Assets Cash $101 $100 Accounts receivable, less allowances of $1,974 and $1,249, respectively 20,462 17,187 Inventories 12,004 11,230 Prepaid expenses and other current assets 1,249 1,216 Deferred income taxes 1,871 1,871 Total Current Assets 35,687 31,604 Noncurrent Assets Property, plant and equipment, net 5,986 6,254 Other assets 1,957 2,137 Total Noncurrent Assets 7,943 8,391 $43,630 $39,995 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $11,054 $5,794 Amounts due to customers 1,857 2,342 Accrued expenses 1,620 1,723 Cash overdraft 1,281 1,632 Current portion long term debt 3,596 - Total Current Liabilities 19,408 11,491 Deferred Income Taxes 855 855 Accrued Pension 490 233 Long Term Debt - 4,281 Total Shareholders' Equity 22,877 23,135 $43,630 $39,995 Contacts: John M. Zinzarella, CPA Moore Medical Corp. Vice President of Finance, Treasurer and Chief Financial Officer 860-826-3655 Allyne Mills Rosica Mulhern Strategic Public Relations 201-843-5600 DATASOURCE: Moore Medical Corp. CONTACT: John M. Zinzarella, CPA, Vice President of Finance, Treasurer and Chief Financial Officer, +1-860-826-3655, ; or Allyne Mills of Rosica Mulhern Strategic Public Relations, +1-201-843-5600, Web site: http://www.mooremedical.com/

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