ST. PAUL, Minn., August 14 /PRNewswire/ --  Patterson Dental Company
(Nasdaq: PDCO) today reported the highest sales and earnings for any first
quarter in the company's history.
    "We are very enthusiastic about our first quarter financial performance,
and the growing contribution to sales and operating margin from our Colwell
division, which markets a product line of healthcare forms and office
stationery.  We are equally pleased with the progress we've made integrating
Colwell's operations into Patterson's.  Since the acquisition in October 1996,
we have been focused on training our field representatives on the Colwell
product line, which, in the past, has been exclusively sold through catalogs
and telemarketing.  Last month, our direct sales force began offering Colwell
products in selected cities, and we expect to initiate the national rollout in
the next several months," said Peter L. Frechette, president and chief
executive officer.
    "In addition to the Colwell contribution, our strong first quarter
performance was also driven by double-digit growth in sales of high-technology
equipment and consumable dental supplies.  Our efforts to expand recruiting
and training of our sales force are paying off as well.  We added 17 sales
representatives versus last year and increased consumable sales to existing
accounts by nearly 12 percent."
    For the fiscal 1998 quarter ended July 26, 1997, net income advanced 33
percent to $8.3 million, or $0.38 per share, from $6.2 million, or $0.29 per
share, last year.  Net sales for the three months rose 22 percent to $173.3
million from $142.2 million in the year-ago quarter.  Gross margin increased
1.3 percent to 36.5 percent, reflecting the continued favorable impact from
the Colwell operation, while the increase in operating expense in the first
quarter was in line with sales growth.  These improvements led to a 44 percent
increase in operating income and a 1.2 percent gain in operating margin to 7.6
percent for the three months.
    During the first quarter, the company broadened its product line by
acquiring EagleSoft Incorporated, a leading provider of dental practice
management systems with approximately $4.0 million in sales.  The acquisition
augments high-technology equipment sales as the company now has a software
system that will support digital imaging.  Since it was acquired late in the
quarter, EagleSoft had no impact on first quarter results.
    In other developments, Patterson has implemented a contingency plan for
distribution during the UPS strike.  As a result, the company's products are
being delivered to customers with only minor delays.
    "Through the first quarter, we are on track for meeting our goal of
double-digit sales and earnings growth for fiscal 1998.  We expect to begin
benefiting from the direct sale of Colwell products in the second half of the
year, and should also report a contribution from software sales as we begin
introducing the EagleSoft product line as part of Patterson's comprehensive
offering.  The strong demand we're experiencing for both our high-technology
equipment and consumable products is expected to be sustainable into the
foreseeable future.  And, as always, we will continue to pursue synergistic
acquisitions that will enable us to increase our existing market penetration
as well as to gain entry into new geographic markets," said Frechette.
    Patterson Dental Company is the largest distributor of dental products in
North America.  The company supplies more than 75,000 products to dentists,
dental laboratories, institutions, physicians and other health care providers.
These products include x-ray film, impression and restorative materials, hand
instruments, sterilization products, front office forms and stationery as well
as capital equipment.  Patterson markets its products and services through
nearly 800 direct sales representatives and equipment specialists in the
United States and Canada, and ships approximately 97 percent of its consumable
goods within 24 hours of receipt of order.
    This news release contains certain forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995, which may be
identified by the use of certain forward-looking terminology such as "may,"
"will," "expect," "anticipate," "estimate," "goal," or "continue," or
comparable terminology that involves risks and uncertainties, which may cause
the company's actual results in the future to differ materially from expected
results.  These risks include, among others:  competition within the dental
supply industry; changes in the economics of dentistry, including reduced
growth in expenditures by private dental insurance plans and the effects of
healthcare reform, which may affect future per capita expenditures for dental
services and the ability of dentists to invest in or obtain reimbursement for
the use of high-technology products; the ability of the company to maintain
satisfactory relationships with its sales force; the effects of economic
conditions; the effect of the UPS strike and the ability of the company to
ship products by alternative means; the successful integration of the Colwell
and EagleSoft operations; unforeseen operating risks; risks associated with
the dependence on manufacturers of the company's products; and the
availability of capital to finance planned growth.  These risks are qualified
in their entirety by cautionary language set forth in the company's Form
10-K report filed July 25, 1997, and other documents filed with Securities and
Exchange Commission.

                           PATTERSON DENTAL COMPANY
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             Thirteen Weeks Ended July 26, 1997 and July 27, 1996
                (In thousands, except for earnings per share)
                                 (Unaudited)


                                    First Quarter      Increase (Decrease)
                             Fiscal 1998   Fiscal 1997  Amount      %
    Net sales                  $173,311    $142,193    $31,118    21.9%
    Cost of sales               110,013      92,098     17,915    19.5%
    Gross profit                 63,298      50,095     13,203    26.4%
    Operating expenses           50,134      40,949      9,185    22.4%
    Operating income             13,164       9,146      4,018    43.9%
    Other income and expense, net   236         574       (338)  (58.9)%
    Income before taxes          13,400       9,720      3,680     37.9%
    Income taxes                  5,137       3,488      1,649     47.3%
    Net income                   $8,263      $6,232     $2,031     32.6%
    Earnings per common and
      common equivalent share     $0.38       $0.29      $0.09     31.0%
    Weighted average common and
      common equivalent shares
      outstanding                21,840      21,581         --       --
    Gross margin percent           36.5%       35.2%        --      1.3%
    Operating expenses as
      a % of sales                 28.9%       28.8%        --      0.1%
    Operating income as a
      % of sales                    7.6%        6.4%        --      1.2%
    Effective tax rate             38.3%       35.9%        --      2.4%
    Net income as a % of sales      4.8%        4.4%        --      0.4%
                           PATTERSON DENTAL COMPANY
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Dollars in thousands)

                                                  July 26,    April 26,
                                                    1997        1997
    ASSETS                                       (Unaudited)
    Current assets:
      Cash and cash equivalents                    $8,018      $9,095
      Accounts and notes receivables, net          86,017      90,897
      Inventory                                    65,457      60,335
      Prepaid expenses and deferred taxes           3,419       3,967
           Total current assets                   162,911     164,294

    Property and equipment, net                    35,231      34,532
    Long-term receivables, net                      1,407       1,344
    Intangibles and other                          43,760      44,292
           Total assets                          $243,309    $244,462

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                            $35,662     $46,597
      Other accrued liabilities                    23,356      22,983
      Current maturities of long-term debt            186         186
           Total current liabilities               59,204      69,766

    Long-term debt                                  2,897       2,790
    Deferred taxes                                  1,362       1,362
           Total liabilities                       63,463      73,918

    Deferred credits                                7,576       7,797

    Stockholders' equity                          172,270     162,747

    TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                     $243,309    $244,462

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