AM International Inc. reports profitable third quarter.

MOUNT PROSPECT, Ill.--(BUSINESS WIRE)--May 28, 1997--AM International Inc. (ASE:AM) Wednesday reported third-quarter results for the fiscal quarter ended May 3, 1997.

For the quarter, the company reported net income of $300,000 (4 cents per common share), which improved by $500,000 over the prior-year comparable quarter (when the prior year is adjusted for a $2.8 million favorable adjustment for the resolution of legal disputes).

Year to date, for the nine months ended May 3, 1997, the company has lost $70,000, as compared with a net loss of $8.1 million in the prior-year comparable period (adjusted for the previously described item).

Revenues of $20.9 million for the third quarter were $23.5 million below the comparable prior-year period. The revenue decrease was attributable largely to divested foreign subsidiaries in Japan and Canada and the discontinuance of manufactured-machine sales, which collectively accounted for $18 million of the decline.

For the nine months, revenues of $69.3 million decreased $58.9 million from the prior-year comparable nine-month period, with $48.6 million of the decline attributable to the previously described divestitures and discountenances.

Thomas D. Rooney, president of Multigraphics, stated: ``The improved operating results have resulted from higher gross-margin rates and lower expense levels as the company has improved its productivity and efficiency. We are pleased with our progress over the course of this fiscal year.''

The stock of AM International, which has corporate headquarters in Mount Prospect, is traded on the American Stock Exchange under the ticker symbol ``AM.'' The stockholders of AM International will vote on a proposal to change the name of the company to Multigraphics Inc. (ticker symbol ``MTI'') at the annual meeting of stockholders, which will be held Wednesday, May 28. -0-

                       AM INTERNATIONAL INC.
          Condensed Consolidated Statement of Operations
          (Dollars in thousands, except per-share data)

                            Three months ended     Nine months ended
                             May 3,    April 27,   May 3,    April 27,
                              1997       1996       1997       1996

Revenues                   $20,869    $44,340    $69,335   $128,220
Gross margins                6,277     11,321     19,081     31,610
%                            30.1%      25.5%      27.5%      24.7%
Selling, general and
 administrative              5,794     11,038     20,389     37,351
Miscellaneous (income)/
 expense                       (50)    (2,930)      (115)    (3,107)
Unusual items, net              --         --     (2,095)        --
Operating income (loss)        533      3,213        902     (2,634)
Nonoperating (expense):
 Interest                     (265)      (894)    (1,092)    (2,577)
 Other                          --        174        120        (85)
Income (loss) before taxes     268      2,493        (70)    (5,296)
Income-tax (expense)
 benefit                        --         --         --         --
Net income (loss) before
 discontinued operations,
 net of tax                     --     (1,163)        --     (5,874)
Net income (loss)          $   268    $ 1,330    $   (70)  $(11,170)
Per share of common stock:
 Income (loss) from
  continuing operations    4 cents   36 cents    (1 cent) (76 cents)
 Income (loss) from
  discontinued operations       --  (17 cents)        --  (84 cents)
 Net income (loss) per
  common share             4 cents   19 cents    (1 cent)  $  (1.59)
Weighted average shares
 of common stock and
 common-stock equivalents
 outstanding (in thousands)  7,013      7,009      7,010      7,009

CONTACT: AM International Inc., Mount Prospect

Thomas D. Rooney, 847/375-1800