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BUSINESS ANALYSIS DECADAL
: KTEL markets and distributes consumer entertainment and convenience products through retail stores and by directresponse marketing. KTEL products include albums, compact discs, cassettes, housewares, automotive accessories & otherdevices. For the 6 months ended 12/31/99, sales fell 13% to$34.5M. Net income totalled $931K vs. a loss of $5.1M. Revenues reflect a decline in European music sales. Net income reflects a $4.3M gain on the sale of a subsidiary.