MIAMI -- DRYCLEAN USA, Inc. (AMEX: DCU) today reported operating results for the first quarter ended September 30, 2002.

Revenues from continuing operations increased 7.8% for the first three months of fiscal 2003 to $3,807,075 compared to $3,532,160 for the same period of last year. Pre-tax earnings for the three months were $305,646. Net earnings, after a $122,258 provision for income taxes were $183,388 or $.03 per diluted share. This compares to a pre-tax loss of $21,417, which resulted in a net loss of $12,850 or $.00 per diluted share after an income tax benefit of $8,567 for the three months ended September 30, 2001.

"The Company continues to improve in spite of the weakened economy of the United States and Latin America," said DRYCLEAN USA, Inc. Chief Financial Officer, Venerando Indelicato. "With the sale of the telecommunications division completed in July, the Company is free to focus its resources on its commercial laundry and dry clean business and the expansion of its Green Jet dry-wetcleaning machine." He also indicated that "the economy is expected to improve during the second half of fiscal 2003, and the Company is well positioned to share in its growth."

DRYCLEAN USA, Inc. is one of the largest franchise and license operations in the dry cleaning industry, currently consisting of over 400 franchised and licensed stores in the United States, the Caribbean and Latin America. Founded in 1960, its dry cleaning and laundry machinery division is also one of the nation's leading distributors of industrial laundry, dry cleaning machines and steam boilers.

This press release contains certain information that is subject to a number of known and unknown risks and uncertainties that may cause actual results and trends to differ materially from those expressed or implied by the forward-looking statements. Information concerning such factors, are discussed in Company reports filed with the Securities and Exchange Commission.

                     DRYCLEAN USA, Inc. (AMEX: DCU)
                 Consolidated Statements of Operations

                                          Three months   Three months
                                             ended          ended
                                          September 30,  September 30,
                                             2002            2001

Revenues                                   $3,807,075      $3,532,160

Earnings (loss) before income taxes           305,646         (21,417)
Provision (benefit) for income taxes          122,258          (8,567)

Net earnings (loss) from
 continuing operations                        183,388         (12,850)
Net loss from discontinued
 operations                                                   (37,050)
Net earnings (loss)                          $183,388        $(49,900)

Basic and diluted earnings (loss) per
 share:
     Continuing operations                       $.03           $(.00)
     Discontinued operations                                    $(.01)
     Net earnings (loss) per share               $.03           $(.01)

Weighted average shares outstanding
    basic and diluted                       6,996,450       7,001,250