SALT LAKE CITY, Sept. 30 /PRNewswire/ -- Franklin Covey Co.
(NYSE: FC) today reported sales and earnings for its fourth quarter and fiscal
year ended August 31, 1997.  Sales for the year increased 31% to $433.3
million compared to $332.0 million for fiscal 1996.  Earnings for the year
were $38.9 million, which included a fourth quarter pre-tax charge of $5.5
million or $0.14 per share for integration costs related to the merger with
Covey Leadership Center.  This represents a 14% increase over the previous
year's earnings of $34.2 million, which included a pre-tax write-off of $4.6
million or $0.14 per share associated with inventory and customer service
allowances.  Earnings per share for the fiscal 1997 year were $1.76 compared
to $1.53 per share for fiscal 1996.
    Sales for the fourth quarter ended August 31, 1997, rose to $145.1
million, a 96% increase compared to $74.1 million for the fourth quarter of
fiscal 1996.  Earnings for the quarter were $9.7 million, or $0.37 per share
compared to $2.2 million, or $0.10 per share in the comparable quarter of
fiscal 1996.
    Product sales reached a record fourth quarter level of $95.7 million, up
89% from the same quarter of fiscal 1996, including $41.6 million from
businesses acquired since August 31, 1996.  The Company noted a strong
increase in store sales, attributable in part to the 110 stores operating
during the fourth quarter as compared to 90 stores operating in the same
quarter of fiscal 1995, including seven new stores that were opened during the
quarter.  Comparable store sales grew 8% in the fourth quarter of fiscal 1997.
Training sales were $43.1 million, a 156% increase from $16.8 million for the
same quarter in fiscal 1996, and included $24.1 million from businesses
acquired since August 31, 1996.  Printing services sales were $6.3 million for
the quarter ended August 31, 1997, compared to $6.6 million for the same
quarter of fiscal 1996.
    The Company also announced that it had repurchased 750,000 shares during
the quarter at an average price of $24.00 per share.  Under the current
repurchase program the Company has 795,000 shares authorized for repurchase.
    Franklin Covey is now the leading global provider of leadership
development and productivity services and product solutions based on proven
principles.  More than 15 million students and individuals use Franklin
Covey's agendas, organizers and planners, and its training products and
related materials are printed in 28 languages throughout the world.  Franklin
Covey has more than 12 million books in print with more than 1.5 million being
sold each year.  Business Week magazine listed Franklin Covey's "The 7 Habits
of Highly Effective People" as the #1 best selling trade business book for the
year 1996.  A new title, "The 7 Habits of Highly Effective Families" is to be
released on October 1, 1997.  Franklin Covey has more than 8,000 licensed
client facilitators teaching its curriculum within their organization and
trains in excess of 750,000 participants annually in training seminars
teaching principles to help them become more effective.

                             Three Months Ended         Twelve Months Ended
                                 August 31,                  August 31,

                              1997          1996         1997          1996
                                (in thousands, except per share amounts)

    Sales                 $145,097       $74,068     $433,272      $332,006
    Income Before Tax       17,502         4,283       66,363        58,241
    Tax                      7,832         2,110       27,498        24,002
    Net Income               9,670         2,173       38,865        34,239
    Weighted Average
     Number of Common
     and Common Share
     Equivalents            26,199        21,557       22,117        22,328

    Net Income Per Share     $0.37         $0.10        $1.76         $1.53


                              FRANKLIN QUEST CO.
                 CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                   (in thousands, except per share amounts)

                            Three Months Ended         Twelve Months Ended
                                August 31,                  August 31,
                              1997          1996         1997          1996
                                (unaudited)           (unaudited)

    Sales                 $145,097       $74,068     $433,272      $332,006
    Cost of sales           55,649        35,931      175,602       146,222
    Gross margin            89,448        38,137      257,670       185,784
    Selling, general
     and administrative     56,992        30,395      164,057       116,362
    Merger integration
     expenses                5,450           ---        5,450           ---
    Depreciation and
     amortization            8,249         3,765       20,800        12,739
    Income from operations  18,757         3,977       67,363        56,683
    Interest income            347           474        1,344         2,188
    Interest expense       (1,602)         (168)      (2,344)         (630)
    Income before provision
     for income taxes       17,502         4,283       66,363        58,241
    Provision for
     income taxes            7,832         2,110       27,498        24,002
    Net income              $9,670        $2,173      $38,865       $34,239
    Net income per share     $0.37         $0.10        $1.76         $1.53
    Weighted average number
     of common and common
     equivalent shares      26,199        21,557       22,117        22,328

    Sales Detail:
      Product              $95,655       $50,628     $301,687      $236,039
      Training              43,145        16,825      107,417        70,812
      Services               6,297         6,615       24,168        25,155
    Total Sales           $145,097       $74,068     $433,272      $332,006

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