ALS announces record sales and profits and changes its name to ARC Capital.

MEDFORD, Ore.--(BUSINESS WIRE)--Nov. 3, 1995--Applied Laser Systems (ALS) (NASDAQ: LZZRA) announced record sales and profits for its third quarter ended Sept. 30, 1995.

Sales from continuing operations for the three months ended Sept. 30, 1995, increased 95% to a record $6,548,000, up from $3,351,000 during the same period a year ago.

Net income from continuing operations was a record $617,000, or $.07 per share, as compared to a loss of $2,124,000, or $.21 per share, in the same quarter of the prior year. The 1994 loss included restructuring costs of $1,268,000, or $.13 per share. Including discontinued operations, net income in the current year's third quarter was $564,000, or $.06 per share, compared to a loss of $3,755,000, or $.37 per share, in the comparable quarter last year.

Subsequent to Sept. 30, 1995, ALS sold its laser diode operation, which is treated as a discontinued business for financial reporting purposes.

Sales from continuing operations for the nine months ended Sept. 30, 1995, increased 68% to a record $14,252,000 up from $8,485,000 during the same period in the prior year, which prior period included only eight months of sales from the Feb. 2, 1994, acquisition of SRC Vision.

Net income from continuing operations was a record $915,000, or $.09 per share, as compared to a net loss of $4,494,000, or $.46 per share, for the same period in 1994. Net income in 1995 includes a $732,000, or $.08 per share, gain on recission of stock compensation.

The loss in 1994 included $1,916,000, or $.20 per share, of non-recurring restructuring and acquisition related expenses. Including discontinued operations, net income for the first nine months of 1995 was $893,000, or $.09 per share, as compared to a loss of $6,579,000, or $.68 per share, in the same period of the prior year.

ALS chairman, William J. Young, stated "The continuing penetration of our machine vision systems into plastics, pulpwood, food and non-food agricultural markets has driven this year's growth and profitability. Our primary goal is to build on our technology base in these industries."

Young also pointed out that, due to the sale of the Applied Laser Systems laser diode operation, the name of the company would be changed to ARC Capital effective Nov. 15, 1995. -0-

    On that date, ARC's ticker symbols will be changed as follows:

                                  Old Symbol     New Symbol
                                  ----------     ----------

 Class A Common Stock                LZZRA         ARCCA
 Class A Warrants                    LZZRW         ARCCW
 Class B Warrants                    LZZRZ         ARCCZ
 Units                               LZZRU         ARCCU

ALS' business currently consists of SRC Vision (formerly Simco/Ramic Corp.), a leading manufacturer of computer aided vision sorting and defect removal equipment. -0-

                       Summary Operating Results
                (in thousands, except per share amounts)

                                Quarter Ended       Nine Mos. Ended
                                   Sep 30            Ended Sep 30
                                1995     1994        1995     1994

Sales                        $  6,548  $  3,351    $ 14,252 $  8,485
Net income (loss):
 Continuing operations       $    617  $ (2,124)   $    915 $ (4,494)
 Discontinued operations          (53)   (1,631)        (22)  (2,085)
  Total                      $    564  $ (3,755)   $    893 $ (6,579)
Net income (loss) per share:
 Continuing operations          $ .07    $ (.21)      $ .09   $ (.46)
 Discontinued operations         (.01)     (.16)         --     (.22)
  Total                         $ .06    $ (.37)      $ .09   $ (.68)

Average shares outstanding      9,362    10,025       9,468    9,696

CONTACT: ARC Capital

Alan Steel, 503/776-7700

or

OTC Communications

Geoff Eiten, 617/444-6100