Chyron Announces New Financing and Increase in Bank Loans.

Business/Technology Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 7, 2002

Chyron Corporation (OTC BB: CYRO), manufacturer of the world's premier television character generators, graphics, routing and automation systems, announced today the completion of a private placement of Senior Subordinated Convertible Notes of $2,200,000, which closed on December 31, 2001.

The Senior Subordinated Convertible Notes have a conversion price of $0.35 and mature on December 31, 2003. These notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The A and B Convertible Debentures have extended their maturity date to December 31, 2004.

Chyron also announced an increase in its bank facilities in excess of $2,500,000 from its US and UK lenders. In conjunction with these steps, Chyron has completed a broad restructuring of its operations, reducing overhead by eliminating 26 percent of its staff and materially reducing fixed expenses. The costs associated with staff severance and professional fees incurred in these financings will approximate $1,000,000, which will be charged to earnings in Q4, 2001.

Commenting on these announcements, Roger Henderson, Chief Executive Officer said, "The achievement of this financing and the expanded banking arrangements signal a strong vote of confidence in our continued operations and future prospects. Last year was a transition year for Chyron. We have seen our Graphics division migrate from the once dominant Infinit product to the new and highly competitive Lyric/DUET products, which now account for nearly 100% of our Character Generator sales. We have faced the current economic realities head on and we have completed a corporate-wide restructuring. We believe that these changes, together with focussed expense control will mean that our cash break-even level in Q1will be substantially below our current sales run rate. Our sales have been holding steady and we have a strong future order book. Despite the uncertain economic outlook for the early part of this year we believe that we are now positioned to continue to compete effectively and deliver the market-leading, quality products and service that our customers expect."

About Chyron Corporation

Serving the television industry for three decades, Chyron Corporation (OTC BB: CYRO) has established itself as a leading innovator in the development of television graphics and distribution systems, including products to meet the demands of digital and interactive television. Chyron provides a broad range of leading-edge hardware and software products, including on- and off-line content creation software, character generators, clip and still store products, signal distribution systems, master control switchers, broadcast automation and media management. For more information about Chyron products and services, please visit the company web site at www.chyron.com.

Certain of these statements contained in this press release may be deemed forward-looking statements. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from these statements and matters are the risks and other factors detailed, from time to time, in the Company's reports with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

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