Bridgeport Machines reports third quarter results.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--January 23, 1997-- Bridgeport Machines, Inc. (Nasdaq:BPTM) today reported results for the fiscal 1997 third quarter ended December 28, 1996.

For the third quarter of fiscal 1997, net sales were $59,779,000 compared with $56,751,000 in the third quarter of fiscal 1996. Third quarter net income was $1,938,000 or $0.34 per share compared with net income in the 1996 third quarter of $2,990,000 or $0.52 per share.

For the first nine months of fiscal 1997, net sales were $173,471,000 compared with $151,329,000 in the same period last year. Net income was $6,272,000 or $1.09 per share compared with $6,704,000 or $1.17 per share in the first nine months of fiscal 1996.

As anticipated, Bridgeport's third quarter earnings were impacted by market conditions in Europe and a price promotion on manual milling machines.

The gross margin for the recent quarter was 21.2% compared with 24.5% in the year-ago quarter and 21.7% excluding the one-time refund of duty in the second quarter of this fiscal year. The year-over-year decline is mainly attributable to the change in market conditions in Europe, the effect of discounting of manual milling machines and a change in product mix. Selling, general and administrative expense as a percentage of sales was 14.9% compared with 14.6% in the same quarter last year.

The backlog as of December 28, 1996 was $45.3 million compared with $54.4 million at the end of the fiscal 1997 second quarter.

Dan L. Griffith, President and Chief Executive Officer, commented: "Our results for the third quarter were in line with our expectations. The soft conditions in Europe resulted in pricing pressure as well as cancellation of some future orders from distributors which were placed when production lead times were long. In response to the situation, we have adjusted production and focused our efforts on sales. The domestic market, which gained strength in the quarter following the slowness experienced in the summer, benefitted from strong sales of the EZ-Surf Grinder as well as sales of the new Power Path 15 lathe which was introduced in December."

In looking forward, Mr. Griffith continued, "We believe that distributors' forward orders in Europe are now adjusted to reflect market conditions and incoming orders should begin to reflect current shipping levels, although price competition will continue. Domestic margins should improve somewhat in conjunction with the end of the manual mill promotion in December and a price increase on the EZ-Surf Grinder. Sales levels in the fourth quarter of this year and the first quarter of fiscal 1998 should be approximately the same as those achieved in the third quarter."

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.

Safe harbor for forward-looking statements: Except for historical information contained herein, certain statements in this release are forward- looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Factors that could cause actual results to differ materially include, but are not limited to, the following: economic and other business conditions that may affect demand in the U.S. and European markets; the mix of products sold and the profit margins thereon; order cancellations or reduced bookings by customers or distributors; and discounting necessitated by price competition. Those and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company. -0-

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

                            QUARTER ENDED          NINE  MONTHS ENDED
                        12/28/96    12/30/95     12/28/96     12/30/95

Net Sales               $ 59,779    $ 56,751      $173,471     $151,329
Cost of Sales             47,081      42,831       134,977      114,868
Gross Profit              12,698      13,920        38,494       36,461
Selling, General &
   Administrative Expense  8,928       8,314        26,487       23,387
Operating Income           3,770       5,606        12,007       13,074
Other Income (Expense)        58         101           149          164
Interest Income (Expense)   (755)       (703)       (2,181)      (1,807)
Total Other                 (697)       (602)       (2,032)      (1,643)
Income Before Income Taxes 3,073       5,004         9,975       11,431
Provision for Income Taxes 1,135       2,014         3,703        4,727
Net Income               $ 1,938     $ 2,990       $ 6,272      $ 6,704
Primary Earnings per Share $0.34      $ 0.52        $ 1.09       $ 1.17
Weighted Average Number
 of Shares Outstanding     5,705       5,745         5,730        5,746

                   SELECTED BALANCE SHEET DATA
                          (In thousands)

                             12/28/96          3/30/96       12/30/95

Total Cash                    $4,574           $4,960         $5,578
Accounts Receivable           45,704           41,321         38,937
Inventory                     61,291           56,364         54,551
Total Current Assets         116,034          106,600        102,079
Total Assets                 138,145          129,156        124,294
Total Current Liabilities     65,825           67,452         63,750
Total Debt (long and short
 term)                        37,880           34,080         32,255
Total Liabilities             72,694           72,047         68,767
Total Stockholders' Equity    65,451           57,109         55,527

CONTACT: Dan Griffith

President & Chief Executive Officer

Walter Lazarcheck

Chief Financial Officer

[phone]

or

Morgen-Walke Associates

Investor Contact:

June Filingeri, Jennifer Miller

Media Contact: Stan Froelich

[phone]