Superior Uniform Group, Inc, manufacturer of uniforms, career apparel and accessories, today announced that for the second quarter ended June 30, 2001, sales were $38,368,931 compared with 2000 second quarter sales of $44,732,763.

Net income was $1,988,796 or $.28 per share (diluted), compared with net income of $1,961,341 or $.28 per share (diluted) in the 2000 second quarter. Net income for the second quarter ended June 30, 2001 included a pre-tax gain from the resolution of outstanding vendor matters in the amount of $1,683,000.

For the six months ended June 30, 2001, sales were $77,304,546, compared with sales of $83,554,033 in the six months ended June 30, 2000. Net income for the six month period was $3,384,065 or $.47 per share (diluted), compared to net income of $3,292,686 or $.45 per share (diluted) reported in the first six months of 2000.

Gerald M. Benstock, Chairman and CEO, said: "Our sales and operating results for the quarter were well below our expectations. Our business has been significantly impacted by the sluggish economy as customers have delayed new uniform programs and reduced spending levels in general.

"While it is difficult to project when the economic outlook will improve, we are pleased with our overall financial position and the strength of our balance sheet that will help us weather this economic slowdown.

"During the first six months of 2001, we have generated approximately $14.2m of cash from operations. As a result, our debt to debt and equity ratio has improved from 29.3 per cent at December 31, 2000 to 19.3 per cent and we have reduced our long-term debt obligations by more than $13m.''

Mr. Benstock also announced today that the board of directors had declared a quarterly dividend of $.135 per share, payable August 17, 2001, to shareholders of record August 6, 2001.