MATTHEWS, N.C., Aug. 21 /PRNewswire/ PCA International, Inc.
(Nasdaq-NNM: PCAI) today reported a 17 percent increase in net income and a
9 percent increase in sales for the quarter ended July 28, 1996.  For the
second quarter, PCA earned $232,297, or $.03 per share, on sales of $31.1
million.  This compares to net income of $198,502, or $.02 per share, on sales
of $28.6 million in the year-ago quarter.
    Net income for the first six months increased 31 percent to $1.4 million,
or $.17 per share, compared to $1.0 million, or $.13 per share, in the
corresponding period one year ago.  Consolidated sales were $67.2 million, a
10 percent increase over the $61.2 million reported last year.
    PCA, one of the largest providers of  professional portrait services in
North America, noted highlights of the current quarter and first half were:
(1) continued improvements in U.S. Kmart studio operating profit margins; (2)
on-going diversification into new markets with the opening of 53 new PETsMART
studios; and, (3) expanded relationship with Wal-Mart Stores, Inc., both in
Canada and the United States.
    "We are pleased with the progress achieved in the quarter to diversify our
market opportunities through strategic partnerships with PETsMART and Wal-
Mart," said John Grosso, PCA President and Chief Executive Officer. "During
the second quarter, we invested a portion of our operating profits in support
of this diversification strategy, principally for the start-up and development
of these new business partnerships."
    During the period, the Company opened six new Wal-Mart studios for a total
of 50 Wal-Mart studios at quarter-end compared to 95 Canadian Kmart studios
operating during the comparable year-ago quarter.  The Company plans to open
additional Canadian Wal-Mart studios before the end of this fiscal year.
    PCA continued its diversification into new markets with the opening of  53
PETsMART studios in the second quarter, with 75 studios operational at
quarter-end.  The Company plans to open approximately 40 additional PETsMART
studios for a year-end total of 115 locations.
    On August 15, 1996, the Company reported that it has entered into an
agreement with Wal-Mart Stores, Inc., to operate permanent portrait studios in
15 Wal-Mart stores in Denver, Phoenix, and Salt Lake City markets.  The
agreement provides for the studio openings to be completed prior to the start
of this year's Christmas season.
    The Company's Board of Directors also announced a regular quarterly
dividend of $.07 per share, payable October 4, 1996, to shareholders of record
as of September 13, 1996.
    PCA International, Inc., is one of the largest providers of professional
portrait services throughout the United States, Canada, Puerto Rico, and the
Virgin Islands.

                   PCA INTERNATIONAL, INC., AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                              July 28,            January 28,
    ASSETS:                                     1996                  1996
    Current Assets:
      Cash and Cash Equivalents             $   416,310           $ 3,914,513
      Other current assets                   18,147,415            13,189,367


      Total Current Assets                   18,563,725            17,103,880
    Net Property and Equipment               43,522,629            42,752,368

    Other Assets                              1,493,641                28,228

      TOTAL ASSETS                           63,579,995            59,884,476

    LIABILITIES AND SHAREHOLDERS' EQUITY:
    Current Liabilities:
      Short-term borrowings                 $ 4,419,048           $         -
      Accounts payable-trade                 10,161,065             9,178,213
      Other current liabilities              10,347,307            11,803,489

      Total Current Liabilities              24,927,420            20,981,702

    Deferred Income Taxes                     4,862,539             4,562,570

    Other Liabilities                         3,035,804             3,105,595

    Shareholders' Equity                     30,754,232            31,234,609

      TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                 $63,579,995           $59,884,476


                   PCA INTERNATIONAL, INC., AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

                                  Three Months Ended       Six Months Ended
                                July 28,     July 30,    July 28,     July 30,
                                 1996        1995         1996         1995

    SALES                   $31,116,836  $28,629,613  $67,204,822  $61,238,244

    COSTS AND EXPENSES:
      Advertising and
       promotional costs      3,430,743   3,301,889     7,064,532    6,933,418
      Costs of photographic
       sales                 11,346,407  10,161,151    23,250,809   20,926,906
      Store commissions and
       selling costs         10,565,958   9,386,383    22,313,324   19,761,622
      General and administrative
       expenses               5,373,681   5,227,037    12,164,921   11,545,000
      Total costs and
       expenses              30,716,789  28,076,460    64,793,586   59,166,946

    INCOME FROM OPERATIONS      400,047     553,153     2,411,236    2,071,298

      Interest expense, net      16,760     211,584        35,307      265,545




    INCOME BEFORE INCOME TAXES  383,287     341,569     2,375,929    1,805,753

    INCOME TAX PROVISION        150,990     143,067     1,004,854      756,250

    NET INCOME                 $232,297    $198,502    $1,371,075   $1,049,503

    WEIGHTED AVERAGE NUMBER OF
     COMMON SHARES:

      Primary                 8,058,625   7,942,103     7,963,550    8,211,481
      Fully Diluted           8,069,996   8,063,348     8,127,361    8,384,172

    PRIMARY AND FULLY DILUTED
     EARNINGS PER COMMON SHARE:

      Net Income                  $0.03       $0.02         $0.17        $0.13

    CASH DIVIDENDS PER
     COMMON SHARE                 $0.07       $0.07         $0.14        $0.14

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