Bridgeport Machines reports second quarter and first half results.

Machines, Inc. (Nasdaq:BPTM) today reported results for the fiscal 1996 second quarter and six months ended September 30, 1995.

Net sales in the second quarter of fiscal 1996 rose 49.4% to $47,305,000 compared with $31,665,000 in the second quarter of fiscal 1995. Net income increased 59.9% to $1,764,000, compared with $1,103,000 in the fiscal 1995 second quarter. On a per share basis, net income was $0.31 per share versus $0.27 in the same quarter last year, on 37.6% more average shares outstanding in the latest period due to the Company's initial public offering in November 1994.

For the first six months of fiscal 1996, net sales were $94,578,000, an increase of 44.6% compared with $65,419,000 in the same six months of fiscal 1995. Net income increased 37.1% to $3,714,000 versus $2,708,000 in the comparable period a year ago. Earnings per share were $0.65 on 38.1% more average shares outstanding, compared with earnings per share of $0.65 in the same six months last year.

The Company's growth in the second quarter was driven primarily by strong sales worldwide of vertical machining centers. Domestic sales continued to benefit from demand for the TorqCut 22 machining center, introduced in the the first quarter of fiscal 1996, higher sales of the VMC 760, as well as strong sales of the EZ-PATH lathe. Strong European demand brought international sales to 41% of total sales in the quarter compared with 33% for fiscal 1995.

The gross margin in the second quarter was impacted by a shift in sales toward vertical machining centers and the increased sales of the EZ-PATH lathe. In addition, the gross margin was reduced by costs incurred in ramping up the Kempten, Germany manufacturing facility acquired in June 1995. The ramp up at Kempten will continue through the fiscal third quarter, although the facility is now contributing positively to earnings. SG&A as a percentage of sales declined to 15.4% in the second quarter versus 18.9% in the comparable period last year as higher sales absorbed more fixed expenses.

The Company also noted its backlog increased to approximately $76.8 million compared with $67.0 million as of the end of the fiscal first quarter. Dan L. Griffith, President and Chief Executive Officer, commented: "Our continued success in vertical machining centers and our lathes are an important achievement in our growth strategy. While gross margins on these products are lower than on our core products, the additional revenues result in improved operating income margin as we leverage our operating expenses. The growth in second quarter backlog primarily reflects the strong demand for vertical machining centers. The U.K. expansion and the near-completed ramp up at Kempten should enable us to decrease our backlog in the future. We also plan to increase production of the TorqCut 22 in the U.S. Acceptance of our new products this year has been exceptional and we expect to make new product introductions by the end of this fiscal year."

Bridgeport Machines, Inc., founded in 1939, is a leading manufacturer of manual and computer numerically controlled (CNC) metal cutting machine tools in the United States and United Kingdom. The Company primarily focuses on standardized, general-purpose machine tools for small-to-medium sized machine shops throughout the United States and in 60 countries world-wide. The Company also manufactures and sells surface grinders under the Harig brand name and sells manual and CNC lathes under the ROMI and EZ-PATH brand names. -0-

                       BRIDGEPORT MACHINES,  INC.
                            STATEMENT OF INCOME
                 (Amounts in thousands, except per share)

                     QUARTER ENDED             SIX MONTHS ENDED
                   9/30/95  10/01/94          9/30/95  10/01/94

Net Sales         $ 47,305  $ 31,665         $ 94,578  $ 65,419
Cost of Sales       36,191    23,688           72,037    48,539
Gross Profit        11,114     7,977           22,541    16,880
Selling, General &
Administrative
 Expense             7,285     5,978           14,764    11,845
Operating Income     3,829     1,999            7,777     5,035
Other Income
  (Expense)           (12)       197            (246)       312
Interest Income
 (Expense)           (693)     (377)          (1,104)     (879)
Total Other          (705)     (180)          (1,350)     (567)
Income Before Income
 Taxes               3,124     1,819            6,427     4,468
Provision for
  Income Taxes       1,360       716            2,713     1,760
Net Income        $  1,764 $   1,103         $  3,714  $  2,708
Primary Earnings
  per Share      $    0.31 $    0.27         $   0.65  $   0.65
Weighted Average
Number of Shares
 Outstanding        5,727      4,161            5,747     4,161

                       SELECTED BALANCE SHEET DATA
                             (In thousands)

                             9/30/95         04/01/95

Total Current Assets        $ 93,328         $ 77,774
Total Assets                 114,886           88,394
Total Current
   Liabilities                59,059           34,964
Total Liabilities             61,854           38,185
Total Stockholders'
   Equity                     53,032           50,209

CONTACT: Bridgeport Machines, Inc., Bridgeport

Dan Griffith, [phone]

or

Morgen-Walke Associates, New York

June Filingeri, Jennifer Miller

Media Contact: Stan Froelich

[phone]