CalComp Reports First-Quarter Financial Results, Reflecting Transition Period to New Product Generation; Company Completes First Customer Shipment of CrystalJet Printers.

ANAHEIM, Calif.--(BUSINESS WIRE)--May 11, 1998--Reflecting its plan to reduce sales of certain product lines and introduce a new generation of products, CalComp Technology Inc. (Nasdaq:CLCP) Monday reported financial results for the first fiscal quarter ended March 29, 1998.

Net sales for the 1998 three-month period were $37.8 million, compared with $60.5 million a year earlier. The company sustained a net loss of $18.3 million, equal to $0.39 per share, for the first quarter, compared with a net loss of $9.5 million, equal to $0.20 per share, for the corresponding period last year.

John C. Batterton, president and chief executive officer, said sales for the quarter reflect lower demand for traditional products and planned discontinuances of certain older product lines in order to make way for new printers featuring the company's proprietary CrystalJet inkjet technology.

Batterton said the loss, which was in line with the company's expectations, was attributable to costs associated with new product development, marketing and manufacturing launch costs of new products and margin erosion from lower sales volumes.

"We have made excellent progress with the launch of our printers with CrystalJet technology. With commercial production and shipments to customers underway, we anticipate that our financial results will become more favorable as the year unfolds and we begin to realize the benefits of our recently established customer and strategic relationships," Batterton said.

The company's new digital inkjet printing system, featuring CrystalJet technology, provides a new level of performance for commercial and industrial printing applications, offering faster print speeds, lower costs of operation, and flexibility in the types of inks that are used for printing. CalComp develops and manufactures CrystalJet inkjet print heads, printers, and inks, and markets the products on a worldwide basis under CalComp and private label brands.

During the quarter, CalComp and the Eastman Kodak Co. (NYSE:EK) entered into a 5-year patent license and joint development agreement under which Kodak will contribute up to $36 million, $20 million of which has already been paid, to combine CalComp's CrystalJet technology with Kodak imaging science and color management technology to create a new line of piezo inkjet products for commercial applications.

Also during the quarter, CalComp signed an agreement with Ilford Imaging, one of the largest resellers in the professional photographic processing products market, under which Ilford will market the new line of CalComp-branded printers.

"Our teaming agreement with Kodak, perhaps the world's best known imaging company, brings us a unique opportunity to expand CrystalJet technology in major commercial, digital printing markets," Batterton said. "The agreement with Ilford, one of the industry's largest companies in the photo lab market, will enable us to quickly extend our CrystalJet family to yet another significant and growing market segment."

Subsequent to the close of the first quarter, CalComp and Artios Corp., a leading Irvine, Calif.-based supplier of packing design systems, signed an OEM agreement under which Artios will incorporate CrystalJet piezo inkjet technology into its products, establishing a new, high level of productivity and lower overall costs for package designers.

CalComp Technology is a leading developer and manufacturer of computer graphics peripherals and supplies, for personal, business and professional applications. Corporate offices are located in Anaheim. For more information, visit the CalComp Web site at www.calcomp.com, or call 800/CALCOMP (800/225-2667). -0-

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 related to CalComp Technology's ability to successfully develop and introduce new products which incorporate the company's new CrystalJet inkjet technology, attain additional OEM relationships, and other matters. Actual results may differ materially from those indicated by such statements as a result of various factors, including those discussed in the company's periodic reports filed with the Securities and Exchange Commission. -0-

                       CALCOMP TECHNOLOGY INC.
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
        (Dollars in Thousands, Except Share and Per-Share Data)
                             (Unaudited)

                                              Three Months Ended
                                             March 29,    March 30,
                                               1998         1997

Net Sales                                 $   37,834   $   60,523
Cost of Sales                                 36,137       48,596
Gross Profit (Loss)                            1,697       11,927
Operating Expenses                            18,418       19,958
Loss from Operations                         (16,721)      (8,031)
Other (Expense) Income, Net                   (1,730)      (1,165)
Loss Before Taxes                            (18,451)      (9,196)
Provision (Benefit) for Taxes                   (172)         293

Net Loss                                    ($18,279)     ($9,489)

Net Loss Per Common Share                     ($0.39)      ($0.20)

Weighted Average Shares Outstanding       47,087,946   46,898,650


                 CONDENSED CONSOLIDATED BALANCE SHEET
                        (Dollars in Thousands)

                                            March 29,     Dec. 28,
                                               1998         1997
Assets:
Cash                                       $   4,764   $    6,494
Accounts Receivable, net                      26,522       30,636
Receivable under Joint Development Agreement  20,000           --
Inventories, net                              40,446       43,069
Other Current Assets                           4,676        4,783
   Total Current Assets                       96,408       84,982
Plant and Equipment                           29,518       29,048
Goodwill                                      78,485       79,994
Other Assets                                  15,805       15,433

   Total Assets                          $   220,216   $  209,457

Liabilities and Stockholders' Equity:
Accounts Payable                          $   17,162   $   19,986
Deferred Revenue                              22,066        6,828
Other Current Liabilities                     39,545       39,014
Line of Credit with Majority Shareholder      70,145           --
     Total Current Liabilities               148,918       65,828
Line of Credit with Majority Shareholder          --       59,525
Other Long-Term Liabilities                    8,495        8,371
Stockholders' Equity                          62,803       75,733

     Total Liabilities and Stockholders'
      Equity                             $   220,216  $   209,457

CONTACT: CalComp Technology Inc., Anaheim

John J. Millerick, 714/821-2000