BUSINESS MEMO

Schnucks Markets, Inc., headquartered in St. Louis, has implemented a no-smoking policy in all of its stores.

The change in policy has been made in order to comply with Missouri's new law which restricts smoking in public places.

"Missouri law went into effect Aug. 28, and it specifically includes retail stores as public places," said Scott Schnuck, president and chief operating officer of Schnucks.

"Research has shown the great majority of customers prefer to shop in a smoke-free environment," added Schnuck. "Many feel that the food they buy is affected when tobacco smoke is present. These concerns will now be alleviated. Our associates have also indicated they prefer to work in all non-smoking environment.

Limited smoking areas will be designated for Schnucks associates.

Schnucks operates 63 supermarkets in four states, 46 of them in Missouri, including the local store at 19 S. Kingshighway in Cape Girardeau.

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Mercantile Bancorporation, Inc., headquartered in St. Louis, has announced an agreement to acquire First National Bank of Flora, a $71 million bank in Clay County, Ill., located about 90 miles east of St. Louis.

The acquisition will give Mercantile a total of four banks, with 19 offices, in Southern Illinois. Mercantile currently owns banks based in Alton, Centralia and Carlyle.

"We look forward to expanding Mercantile's presence into Flora, which serves as an important employment and industrial center for its region," said Thomas H. Jacobsen, Mercantile's chairman and chief executive officer.

Roger L. Wells, chairman and chief executive officer of first National, said the affiliation with Mercantile would be a positive move for the bank's customers, employees and shareholders. "Our bank will continue to be operated by a local management team, but we will have the strength of one of the region's most solid institutions behind us."

Under the terms of agreement, First National shareholders will receive a combination of 155,077 shares of Mercantile common stock and $3 million in cash.

Mercantile Bancorporation has assets of 9.6 billion and owns 34 banks in Missouri and Southern Illinois.

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ST. LOUIS A.G. Edwards, Inc. has announced increased earnings for the second quarter and for the first six months of its fiscal year.

Earnings for the three months ending Aug. 31 were $26,915,000, equal to 59 cents per share, on revenues of $257,290,000. For the same period a year earlier, net earnings were $23,767,000, equal to 53 cents per share on revenues of $219,112,000.

Earnings for the first six months were $54,339,000 or $1.19 per share, on revenues of $509,840,000. For the same period a year ago, net earnings were $47,503,000, or $1.07 per share on revenues of $437,981,000.

Per share earnings were based on 45,802,000 average common and common equivalent shares outstanding this year, and 44,372,000 in the prior year.

Share data and earnings per share for the prior periods have been restated to reflect a five-for-four stock split distributed April 1.

A.G. Edwards is a holding company whose primary subsidiary is the brokerage firm of A. G. Edwards & Sons, Inc., with headquartered in St. Louis. A. G. Edwards & Sons, Inc. operates 464 brokerage offices coast to coast.