Autotote releases results for first quarter.

NEW YORK--(BUSINESS WIRE)--April 19, 1995--Autotote Corp. (NASDAQ/NMS:TOTE) today announced financial results for the fiscal first quarter ended Jan. 31, 1995.

Operating revenues increased 10.0%, to $31.1 million, compared with $28.3 million for the same period a year ago. Recurring wagering systems revenues increased by $7.8 million, or 37.8%, compared to the prior year, including a $1.8 million increase reflecting the first quarter acquisition of SEPMO S.A., a major supplier of totalisator systems and services in France.

Offsetting this increase in systems revenues was a $5.0 million decline in wagering equipment sales revenues, particularly international, where the prior year's first quarter included $5.8 million in sales of MAX 2000 terminals to Italy's TOTIP pool.

The company reported a loss of $5.9 million for the quarter, or 21 cents per share, on 28.8 million shares, compared to a loss of $103,000 on 28.0 million shares in the year-earlier period.

Gross margins increased by approximately 15%, or $1.7 million, in the first quarter, However, results were adversely affected by increases in depreciation and amortization; selling, general and administrative expenses; and interest expense.

The increase in these expenditures is significantly related to the ongoing investments and expenses made by the company to further secure its core business and to support acquisitions made in 1994. More than 50% of the $2.1 million increase in depreciation and amortization (after giving effect to $0.5 million attributable to SEPMO) relates to capital expenditures for key North America tote customers. Similarly, 30% of the $2.3 million increase in SG&A expense (after giving effect to $0.8 million attributable to SEPMO) relates to servicing North American tote customers. SG&A expenses also reflected substantial legal and other professional fees incurred for market development and other corporate requirements.

Net interest expense increased by $1.5 million, or 114%, principally reflecting increased borrowings to support 1994 customer capital requirements.

The company indicated that a loss for the second fiscal quarter, which ends on April 30, of roughly the same magnitude is expected. At the same time, the company announced the formation of a task force comprised of senior executives charged with devising and implementing a significant cost reduction program that is designed to return Autotote to profitability as soon as possible.

Further, based on meetings with the company's bank group, the company expects its banks to issue a waiver by the end of April with regard to compliance by the company with the covenants in its credit agreement relative to its first quarter performance. A similar waiver was granted by the bank group following the close of the company's most recent fiscal year on Oct. 31, 1994.

A. Lorne Weil, chairman and CEO, noted that the company's franchise in its core business -- supplying wagering systems and simulcasting services to the pari-mutuel industry -- is strong and that Autotote is well-positioned to take advantage of increasing demand for sophisticated wagering systems from lottery, OTB and other gaming operators worldwide.

"As our strong growth in recurring revenues clearly indicates, Autotote's business strategy is on track," Weil said. "Our immediate goal is to lower overhead and other costs that will return Autotote to profitability."

Autotote Corp. designs and manufactures computerized wagering equipment and provides facilities management for use in racetrack, off-track wagering, lotteries and legalized sports betting facilities. The company's systems are in use in the United States, Europe, Central and South America, Canada and Mexico. -0-

                     Autotote Corp. and Subsidiaries
                   Consolidated Statements of Operations
                                (unaudited)
                 (in thousands, except per share amounts)

                            Three Months Ended    Three Months Ended
                               Jan. 31, 1995        Jan. 31, 1994

Operating Revenues:
 Wagering systems                 $ 28,442              $ 20,647
 Wagering equipment
  and other sales                    2,675                 7,642
                                    31,117                28,289

Operating expenses (exclusive of
 depreciation and amortization
 shown below):
  Wagering systems                  16,719                12,070
  Inventory, equipment and
   contract adjustments                --                    112
  Wagering equipment and other
   sales                             1,524                 4,901
                                    18,243                17,083

   Total gross profit               12,874                11,206

Selling, general and administrative
 expenses                            7,695                 4,599
Write-off of investments and other     --                    467
Depreciation and amortization        7,717                 5,121

 Operating income (loss)            (2,538)                1,019

Other (income) deductions
 Interest expense, net               2,773                 1,296
 Other (income) expense                142                  (118)
                                     2,915                 1,178

Loss before income taxes
 (benefit)                          (5,453)                 (159)

Income taxes (benefit)                 652                   (56)

 Net loss                          $(5,931)                 (103)

Loss per common share               $(0.21)                $0.00
Weighted average number of common
 shares outstanding                 28,810                27,987
-0-

CONTACT: The Miller Company

Gregory W. Miller, 914/834-1868