AUTOTOTE announces first quarter results.

NEW YORK--(BUSINESS WIRE)--March 5, 1996-- AUTOTOTE CORPORATION [NASDAQ/NMS:TOTE] today announced financial results for its first fiscal quarter ended January 31, 1996.

Revenues increased 39.2%, from $31.1 million in 1995 to $43.3 million in 1996. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 46.6%, from $5.2 million in 1995 to $7.6 million in 1996. The net loss for the quarter was $7.0 million, or $0.23 per share on 30.9 million shares outstanding, vs. a loss of $5.9 million, or $0.21 per share on 28.8 million shares outstanding, a year ago. The increase is primarily attributable to higher interest expense and foreign income taxes. Despite a $1.7 million increase in depreciation and amortization, the operating loss for the quarter improved to $1.8 million from $2.5 million a year ago.

A. Lorne Weil, Chairman and Chief Executive Officer, said, We made good progress in what is traditionally our seasonally weakest quarter. Revenues from equipment sales showed a very sharp year-to-year increase, suggesting that this volatile segment of our business is rebounding strongly after a long period of uncertainty. Though impacted by severe winter weather conditions that included snow storms on the East Coast and rain and flooding on the West Coast and in West Virginia, service revenues from our core North American businesses also improved. Reflecting the delivery of systems by our Tele Control lottery unit, equipment gross margins strengthened to 36.7% in the first quarter of 1996 from 30.1% in the comparable period of 1995; service gross margins decreased to 36.3% from 41.6% in the same periods. All in all, we are pleased with the results in the first quarter and optimistic about the outlook for continued improvement in revenues and EBITDA in fiscal 1996."

The strong gain in revenues in the first quarter reflected an $11.6 million increase in equipment sales, to $13.7 million from $2.1 million a year ago, including the delivery of Tele Control systems to key German lottery customers.

Reflecting the change in Tele Control's revenue mix from primarily service to primarily sales as a result of those deliveries, service revenues for the Company as a whole rose only 2%, to $29.6 million. Service revenues for the core North American pari-mutuel, simulcasting and Connecticut off-track betting (OTB) businesses increased by 8.6%, to $22.8 million, despite the impact of the severe winter weather.

The gain in service revenues in the core businesses came from Connecticut OTB, which opened its Sports Haven simulcast/multi-entertainment facility in April 1995, and simulcasting revenues, due to system efficiencies available from digital compression of simulcast signals and expanded capacity arising from the January 1995 acquisition of transponders from IDB. In North American pari-mutuel, increased revenue from existing customers and new installations was offset in large part by sales lost due to severe winter weather conditions.

The restructuring and refocusing of Autotote in fiscal 1995 continues to have a beneficial impact in fiscal 1996. While SG&A was up by 8.7% over the year-earlier period, largely because of legal and other corporate expenses, it was down 15.1% from the third quarter of fiscal 1995, when the restructuring program was implemented. As a percentage of sales, SG&A declined to 18.9% from 24.2% a year ago. EBITDA as a percentage of sales increased to 17.5% from 16.6%.

Thomas C. DeFazio, President and Chief Operating Officer, said, With the restructuring essentially behind us, we have the benefit of strong market positions in our core businesses, a lower cost structure and a positive operating environment in our industry segment." He added, The recent restructuring of our credit facility greatly reduces the amount of debt scheduled to be amortized in 1996 to $8 million from approximately $35 million under the original agreement and gives us improved flexibility in providing capital to meet the needs of our existing customers as well as for new contracts."

AUTOTOTE CORPORATION designs and manufactures computerized wagering equipment and provides facilities management for use in racetracks, off-track wagering, lotteries and legalized sports betting facilities. Autotote's systems are in use in the United States, Europe, Central and South America, Canada, Mexico, New Zealand and the Far East. -0-

                     AUTOTOTE CORPORATION AND SUBSIDIARIES
                     Consolidated Statements of Operations
                       FOR THE QUARTERS ENDED JANUARY 31,
                                  (Unaudited)
                     (In Thousands, Except Per Share Amounts)

                                   1996          1995
                                 -------       --------
Operating Revenues:
 Wagering systems              $  29,568     $  28,976
 Wagering equipment and
  other sales                     13,738         2,141
                                 --------       --------
                                  43,306        31,117

Operating expenses (exclusive
 of depreciation and
  amortization shown below):
    Wagering systems              18,847        16,925
    Wagering equipment and
     other sales                   8,698         1,496
                                 ---------     ----------
                                  27,545        18,421

    Total gross profit            15,761        12,696

Selling, general and
 administrative expenses           8,170         7,517
Depreciation and amortization      9,436         7,717

    Operating loss                (1,845)       (2,538)

Other (income) expense:
    Interest expense               3,662         2,849
    Other (income) expense           292          (108)
                                  --------      ----------
                                   3,954         2,741

    Loss before income taxes      (5,799)       (5,279)

Income taxes                       1,202           652

Net loss                       $  (7,001)    $  (5,931)

Loss per common share          $   (0.23)    $   (0.21)

Weighted average number
 of common shares outstanding     30,905        28,810

CONTACT: Gregory W. Miller

The Miller Company

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