Accent Color Sciences, Inc. Reports Reduced Net Loss and Sales for First Quarter as Production Starts for Year 2000.

Business Editors

EAST HARTFORD, Conn.--(BUSINESS WIRE)--May 16, 2000

Accent Color Sciences, Inc. (OTC Bulletin Board: ACLR), a leading provider of high-speed highlight color printing systems, today reported lower net sales and a reduced net loss for the quarter ended March 31, 2000, as the company prepared for shipments of its cost-reduced printer.

For the quarter, net sales were $1.15 million versus $2.25 million for the year-earlier quarter. The net loss was $1.6 million, or $0.07 per diluted share, compared to $1.7 million, or $0.12 per diluted share, for the first quarter of 1999. The lower net sales were anticipated as the company completed the testing of its cost-reduced printer and began building systems for shipment starting in April. At the end of the quarter, the company had orders and contractual commitments in excess of $10 million.

Accent Color has begun shipping the first production printers based on its new cost-reduced platform to both OEM customers. Shipments in April of printers, spare parts and consumables totaled over $1 million, nearly equaling its first quarter revenue. Through the first quarter, Accent Color shipped pre-production printers for final evaluation and test along with spare parts and consumables for support of field installs.

Charles E. Buchheit, president and chief executive officer, said: "We are excited to be shipping the product that can take Accent Color to profitability. We are anticipating a strong remainder of the year and are working toward a positive cash flow position."

One OEM customer, Xerox Corporation, has informed Accent Color that although Xerox will honor its purchase commitments for the year 2000, additional potential volume ordered by Xerox will not materialize this year because Xerox's launch schedule is later than originally planned. Since Accent Color had never included those potential purchases in its backlog, the revenue projection is unchanged. Xerox continues to work toward market availability of its new systems, which include Accent Color's printer, and has planned demonstrations at DRUPA, one of the world's largest printing trade fairs, being held May 18-31, 2000, in Dusseldorf, Germany, as well as displays in other regional commercial events.

Accent Color Sciences, Inc. designs, manufactures and sells innovative, high-speed highlight color printing systems -- Truecolor(TM) Systems -- for the transaction printing and production publishing segments of the printing industry. Truecolor(TM) Systems, when integrated with high-speed, digital, monochrome printers, create a system that prints or highlights critical information in multiple colors for large-volume applications. Such applications include billing statements, account statements, invoices, legal notices, brochures, financial reports and short-run, on-demand publications.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Those risks and uncertainties include, but are not limited to: (i) the level of customer acceptance of the Company's products; (ii) the ability of the Company to raise capital sufficient to support its business plan; (iii) the rights of certain customers of the Company to modify or cancel orders under the terms of related product purchase agreements, as amended; (iv) the dependence of the Company on third-party suppliers for certain key technology elements, (v) the dependence of the Company on third party marketing, distribution and support, including the control by the Company's OEM customers over the timing of the introduction of its products and the need for the Company to complete and satisfy extensive testing requirements of its products on a timely basis; and (vi) the potential fluctuations in the Company's quarterly results of operations. Further information on factors that could cause actual results to differ from those anticipated is detailed in the Company's annual report on Form 10-K for 1999, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission.

NOTE: Press releases and other information are available on Accent Color Sciences' World Wide Web site at http://www.accentcolor.com.

                      ACCENT COLOR SCIENCES, INC.
                  CONDENSED STATEMENTS OF OPERATIONS
                              (Unaudited)

                                        Three months ended March 31,
                                       2000                      1999


Revenue                           $1,146,026                $2,249,498
Costs and expenses:
    Costs of production            1,253,598                 2,144,306
    Research and development         682,329                   951,830
    Marketing, general
     and administrative              734,674                   723,241
                                   2,670,601                 3,819,377
Other (income) expense:
     Interest expense                 97,199                    97,814
     Interest income                 (25,461)                  (5,262)
                                      71,738                    92,552
Net loss                          (1,596,313)              (1,662,431)
Net loss applicable to
 common stock                   $ (1,596,313)            $ (1,662,431)
Net loss (basic and diluted)
 per common share:              $       (.07)            $       (.12)
Weighted average common
 shares outstanding               21,816,455                13,759,120

                      ACCENT COLOR SCIENCES, INC.
                       CONDENSED BALANCE SHEETS

                                       March 31,          December 31,
                                        2000                  1999
                                    (unaudited)
Assets
Current assets:
     Cash and cash equivalents       $ 1,140,968        $   2,573,764
     Accounts receivable                 116,100               64,544
     Inventories                       2,434,286            1,863,850
     Prepaid expenses and other
      current assets                     110,500              111,262
          Total current assets         3,801,854            4,613,420

Fixed assets, net                      1,016,153            1,156,189
Other assets, net                         78,248               78,446
          Total assets              $  4,896,255         $  5,848,055

Liabilities and
 Shareholders' Equity (Deficit)
Current liabilities:
     Obligations under capital leases     $9,419       $       23,116
     Short-term debt, net of discount  2,400,847            2,367,797
     Accounts payable                  1,166,804              516,429
     Accrued expenses                    685,848              758,139
     Customer advances and deposits    1,000,000              755,000
     Deferred revenue                    661,000              874,000
          Total current liabilities    5,923,918            5,294,481
Obligations under capital leases           8,625                    -
Other long-term liabilities              415,509              390,708
          Total non-current liabilities  424,134              390,708
          Total liabilities            6,348,052            5,685,189
Mandatorily redeemable convertible
 preferred stock                       3,880,641            4,313,367
Shareholders' equity  (deficit)
Common stock, no
  par value, 50,000,000 and
  35,000,000 shares authorized,
  22,390,858 and 21,072,578 shares
  issued and outstanding              49,562,318           49,147,942
     Accumulated deficit             (54,894,756)         (53,298,443)
Total shareholders' equity (deficit)  (5,332,438)          (4,150,501)
Total liabilities, convertible
 preferred stock and
 shareholders' equity (deficit)    $   4,896,255        $   5,848,055