Astro-Med Expects Lower Results For The Third Quarter.

Business Editors & High Tech Writers

WEST WARWICK, R.I.--(BUSINESS WIRE)--Oct. 31, 2000

Astro-Med, Inc. (NASDAQ:ALOT) today reported that revenue for the third quarter ending October 28, 2000 will be below expectations and will result in a loss for the Third Quarter.

The Company expects to report sales for the Third Quarter of approximately $11.7 million, which will result in a loss of between $650,000 and $700,000, equal to 14 cents to 16 cents per share.

Commenting on the forecast, Albert W. Ondis, CEO, stated: "Compared to the corresponding quarter of the prior year, sales will be up about 7%. However, if sales from Telefactor, acquired last December, are factored out, sales are flat and this is unacceptable. The most significant cause for this poor showing is the strong dollar, which has significantly reduced export sales.

"Compared to the Second Quarter of the current fiscal year, sales will be down approximately $1.4 million. Approximately $1.2 million of this amount represents a decline in sales from the Telefactor component of the Grass-Telefactor product group. Sales from the Test and Measurement product group will be up slightly, while sales from the QuickLabel Systems product group will be down for the Third Quarter, but up for the year to date.

"We have taken a number of steps to improve results in the Fourth Quarter. Firstly, we have transferred manufacturing of Telefactor products from Pennsylvania to our Braintree, Massachusetts operation. This will reduce expenses by about $500,000 annually. We believe that additional steps being taken under the direction of Terence J. Jones, Senior Vice President, to complete the consolidation of Grass and Telefactor, will increase sales and profits of the Grass-Telefactor product group. Secondly, we have made significant adjustments to our Research and Development group in placing it under the direction of Michael J. Sullivan, Vice President. We expect improvements in new product developments through a more focused R&D Department. Thirdly, we believe that the long sales cycle for new products such as the Everest will begin to mature and sales will ramp upward. Fourthly, we are introducing new lower priced products, which will combat the strong dollar while maintaining profit margins.

"Astro-Med remains financially strong and has all the resources necessary to resume its growth.

"Final results for the Third Quarter will be released on November 15, 2000."

Additional information about Astro-Med, Inc. is available by visiting www.astromed.com.

Astro-Med, Inc. is a leading manufacturer of high tech specialty printing systems, electronic medical instrumentation, and test and measurement instruments employed around the world in a wide range of industrial, scientific, and medical applications.

Safe Harbor Statement

This news release contains forward-looking statements, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in Astro-Med's FY2000 annual report and its annual and quarterly filings with the Securities and Exchange Commission.