POWELL, Ohio, June 17 (Reuters) -
                        Drug Emporium, Inc.
         CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (In thousands except per-share data)
                             Three Months Ended
                          May 29, 1999   May 30, 1998
 Net sales                     $226,212      $209,172
 Cost of sales                  177,421       165,543
                                 48,791        43,629
 Selling, administrative
 and Occupancy expenses          46,694        40,762
 Operating income before
 special charges (credits)        2,097         2,867
 Special charges (credits)           --            --
 Interest expense, net            1,724         1,566
 Income before income taxes         373         1,301
 Provision for income taxes         149           573
 Net income                         224           728
 Earnings per common share
  (basic and diluted)              0.02          0.06
 Weighted average number of
  Common shares outstanding
  (basic)                        13,189        13,180
 Weighted average number
  of Common shares outstanding   13,387        13,189
   (diluted)                     ======        ======
 Supplementary information:
 LIFO provision included
  in cost of sales                  720           650