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ORANGE COUNTY EARNINGS

June 04, 1997

Krause's Furniture Inc.: The Brea manufacturer and retailer of custom-crafted furniture said its net loss for the first quarter of fiscal 1997 narrowed to $1.6 million, or 8 cents a share, from $3.6 million, or 88 cents a share, for the comparable period last year. Sales for the quarter ended May 4 declined 7%, to $27.6 million from $29.6 million.

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