AFP Imaging reports profitable results for first quarter fiscal 1997.

ELMSFORD, N.Y.--(BUSINESS WIRE)--Nov. 12, 1996--AFP Imaging Corp. (NASDAQ: AFPC) today reported its first quarter results for the period ended Sept. 30, 1996. First quarter fiscal 1997 revenues were $8,109,942 as compared to the first quarter sales for 1996 of $8,106,512. Net income for the quarter was $117,038 or $.01 per share as compared to $92,791 or $.01 per share.

On Nov. 1, 1996, the company was advised that the AFP production facility had successfully completed the rigorous ISO 9001 Quality Certification process. The International Standard's ISO 9000 overall protocol is a European based verification and registration system which has been widely accepted as the world's most comprehensive accreditation of corporate quality management. By complying and achieving ISO 9001 status, AFP is placed in a league with other major leading medical and dental equipment manufacturers. The costs associated with reaching this milestone have been fully expensed. This certification will benefit the company in many ways in the future. In addition to manufacturing our products under these high quality standards, ISO 9000 registration is required for medical equipment sales in Europe after Jan. 1997. This could prove a significant barrier to AFP's competitors who have not yet achieved this certification.

At the end of November, the company will participate in two major annual clinical conventions where all our medical and dental imaging products will be displayed and demonstrated. The Radiological Society of North America (RSNA) is the largest radiological convention in the world, held in Chicago each year. The Greater New York Dental Meeting is one of the largest dental shows in the country. These are the best opportunities to promote the company's medical and dental products to worldwide users.

AFP Imaging designs, manufactures and markets equipment and systems to hospitals, radiologists, cardiologists, dentists and other medical specialists used to generate, record, process and view hard copy diagnostic images under the AFP, VISIPLEX, and DENT-X trademarks. The company also provides a broad line of pre-press image making equipment to the international printing and graphic arts industry under the LOGETRONICS brand. AFP products are distributed worldwide by three different dealer networks. -0-

                                          Three Months Ended
                                                Sept. 30
                                           1996         1995

Net sales                                $8,109,942   $8,106,512
Income before taxes                        $142,088     $102,791
Provision for taxes                         $25,000      $10,000
Net income                                 $117,038      $92,791
Net income per share                           $.01         $.01
Weighted average number
of shares and share equivalents
outstanding, (common, preferred,
and common stock equivalents)            $9,830,100   $7,305,760

CONTACT: AFP Imaging Corp., Elmsford

David Vozick, 914/592-6100