ARC Capital expects record profits for the fourth quarter 1996.

MEDFORD, Ore.--(BUSINESS WIRE)--Jan. 15, 1997--ARC Capital (NASDAQ:ARCCA) announced that it expects to report a record profit for the fourth quarter of fiscal year ending Dec. 31, 1996.

Sales for the quarter are expected to be approximately $10,000,000 resulting in a net profit ranging from $1,200,000 to $1,400,000. The company also reported that its consolidated gross margins in the fourth quarter were above 50 percent.

The company stated that profits during the quarter benefitted from outstanding performance of the company's SRC VISION subsidiary which generated record sales and gross margins exceeding 56 percent.

The company will make a formal announcement of earnings upon completion of its annual audit in February.

ARC's operations are comprised of three wholly-owned subsidiaries, SRC VISION, Pulsarr and Ventek, which design, manufacture and distribute automated machine vision systems used in sorting and defect identification and removal processes.

CONTACT: ARC Capital

Alan Steel, 541/776-7700

or

The Wall Street Group Inc.

Ronald Stabiner, 212/888-4848