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Net sales for the quarter were $18.5 million compared to $21.1 million for the same period a year ago. The Company reported net income of $0.4 million for the quarter compared to $0.7 million a year ago. Diluted earnings per share were $.08 per share compared to $.15 per share for the same period last year.

Compared to the corresponding quarter a year ago, the Company's Core Segment sales were down 9% and OEM/Multimedia Segment sales were down 17%, resulting in an overall net sales decrease of 12% for the quarter. The Company attributed the sales decreases to the continuing difficult economy.

For the six months ended September 28, 2002, net sales decreased 11% to $36.8 million from $41.5 million in the same period a year ago, net income was approximately $0.6 million compared to $0.9 million and diluted earnings per share were $.14 per share compared to $.18 per share for the six months ended September 29, 2001.

CEO Moses Gabbay stated, "Although our sales levels for the quarter were lower than a year ago, the Company's overall gross margin continues to improve. In particular, the Core business segment gross margin reflects the continuing gains in manufacturing efficiencies and the cost tightening measures implemented last calendar year. During the second quarter, we reduced our outstanding debt by $750,000 and repurchased 194,000 shares of our common stock for approximately $2.4 million. Operating expenses have increased for both the three-month and six-month periods as anticipated due to additional product development efforts in conjunction with new business opportunities previously announced. As a result, we continue to allocate resources effectively to address opportunities in new market segments through product innovation and partnerships. The Company will be well positioned to capitalize on future opportunities to grow the top line, as overall market conditions improve."

Boston Acoustics, Inc. provides audio solutions for home entertainment, automobiles and personal computers. Founded in 1979, Boston Acoustics is located in Peabody, Massachusetts.

                                              Three Months Ended

                                          September 28,  September 29,
                                               2002           2001
Net Sales                                 $ 18,527,616   $ 21,066,609
Cost of Goods Sold                          12,826,264     14,667,942
  Gross Profit                               5,701,352      6,398,667
Selling and Marketing Expenses               2,629,624      2,645,141
General and Administrative Expenses          1,259,081      1,173,794
Engineering and Development Expenses         1,362,867      1,233,001
  Total Operating Expenses                   5,251,572      5,051,936
  Income from Operations                       449,780      1,346,731
Interest Income (Expense), net                  15,125        (36,303)
Other Income (Expense)                         134,156        (38,173)
  Income before provision for income taxes     599,061      1,272,255
Provision for Income Taxes                     241,000        536,000
  Net Income                              $    358,061   $    736,255

Basic Earnings per Share                  $        .08   $        .15
Diluted Earnings per Share                $        .08   $        .15
Weighted Average Shares Outstanding
    Basic                                    4,552,848      4,900,153
    Diluted                                  4,641,021      4,908,321


                                               Six Months Ended

                                          September 28,  September 29,
                                               2002           2001
Net Sales                                 $ 36,784,893   $ 41,509,513
Cost of Goods Sold                          25,274,708     29,600,416
  Gross Profit                              11,510,185     11,909,097
Selling and Marketing Expenses               5,256,548      5,175,187
General and Administrative Expenses          2,490,601      2,328,887
Engineering and Development Expenses         2,917,450      2,557,257
  Total Operating Expenses                  10,664,599     10,061,331
  Income from Operations                       845,586      1,847,766
Interest Income (Expense), net                  27,097       (152,590)
Other Income (Expense)                         152,987        (49,267)
  Income before provision for income taxes   1,025,670      1,645,909
Provision for Income Taxes                     391,000        739,000
  Net Income                              $    634,670   $    906,909

Basic Earnings per Share                  $        .14   $        .18
Diluted Earnings per Share                $        .14   $        .18
Weighted Average Shares Outstanding
    Basic                                    4,574,221      4,914,633
    Diluted                                  4,657,390      4,918,685



Consolidated Balance Sheets
                                            September 28,   March 30,
                                                2002          2002
Assets
Current Assets
Cash and cash equivalents                    $ 5,191,482   $ 5,134,558
Accounts receivable, net                       9,986,685    10,830,538
Inventories                                   13,928,832    14,370,308
Other current assets                           2,925,290     2,734,792
  Total current assets                        32,032,289    33,070,196
Property and Equipment, net                   12,803,727    13,919,964
Other Assets, net                              1,426,594     1,428,286
  Total assets                               $46,262,610   $48,418,446


Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable                             $ 7,397,582   $ 5,230,684
Accrued payroll & related expenses             1,259,775     1,185,529
Current maturity of line of credit               500,000     2,500,000
Other current liabilities                      1,632,670     1,485,995
  Total current liabilities                   10,790,027    10,402,208
Minority Interest in Joint Venture                33,551        18,265
Shareholders' Equity                          35,439,032    37,997,973
  Total liabilities and
   shareholders' equity                      $46,262,610   $48,418,446

Certain statements in this press release contain certain forward-looking statements concerning Boston Acoustics' operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's Annual Report on Form 10-K for the fiscal year ended March 30, 2002. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made

Contact:

     Boston Acoustics, Inc.
     Moses Gabbay, 978/538-5000
     Moses@bostona.com
     or
     Debby Ricker-Rosato, 978/538-5000
     DRicker@bostona.com