Chyron Corporation Reports 1997 Fourth Quarter and Year End Results.

MELVILLE, N.Y.--(BUSINESS WIRE)--February 3, 1998--

Chyron Profitable for Second Consecutive Quarter

Chyron Corporation (NYSE:CHY) today announced financial results for the fourth quarter and year ended December 31, 1997 (see attached table).

Net sales for the year ended December 31, 1997 increased to $86,774,000 from $82,608,000 last year. Gross product development expenses for 1997 increased to $8,328,000, or $.26 per share, from $5,713,000, or $.18 per share, in 1996. Operating income for 1997 decreased to $264,000 from $15,065,000 last year, and includes previously announced non-recurring charges of $3,082,000 related to the Company's new market positioning strategy in response to the recently adopted Federal Communication Commission Digital Television Standard, as well as costs associated with the termination of a planned secondary offering of the Company's common stock. The net loss for 1997 was $760,000, or $.02 per share, versus net income of $8,654,000, or $.27 per share, for 1996. 1996 results include Pro-Bel results only from the date of acquisition, April 12,1996.

Net sales for the three months ended December 31, 1997 were $23,153,000 versus $25,719,000 for the same period last year. This decline was primarily a result of a $6.2 million (or 39%) decline in graphic sales as broadcasters deferred purchases awaiting the arrival of digital and HDTV products. This decline was partially offset by a $3.6 million (or 37%) improvement in routing and animation sales by Pro-Bel, Chyron's U.K. based subsidiary. Operating income for the 1997 fourth quarter declined to $1,054,000 from $5,164,000 for the same period last year. Management noted that operating income totaled $3,435,000 for the third and fourth quarters of 1997, which represented a significant improvement from total operating losses of $3,171,000 (inclusive of the previously announced non-recurring charges) for the first six months of 1997. Thus, the Company reversed the trend of losses incurred earlier this year and posted its second consecutive profitable quarter. Gross product development expenses, which the Company views as an investment in its future growth, increased to $2,532,000, or $.08 per share, from $1,821,000, or $.06 per share, for the same period last year. Net income for the fourth quarter was $632,000, or $.02 per share, versus net income of $3,031,000, or $.09 per share, for the comparable prior year period.

Commenting on the Company's performance, Chyron's President and Chief Executive Officer Edward Grebow stated, "Despite continued weak sales of higher margin graphics products and an increase in engineering expenses relating to new product development, Chyron was profitable for a second consecutive quarter. Chyron's Pro-Bel line of routing and automation systems showed strong sales growth during the fourth quarter, growing from $9.8 million to $13.4 million in 1997. Broadcasters continue to defer capital expenditures while they await the widespread introduction of digital television. This has produced what is generally being regarded as a very soft and challenging time for our industry. During this transition, we remain focused on continuing our product development efforts, controlling our operating and overhead expenses and improving our margins as we strategically position ourselves for the future.

"We are beginning to see the results of our accelerated engineering efforts during the first quarter of 1998 as three new products begin shipping to customers. Freeway, a line of cost-effective, high performance digital audio and video routers designed for smaller facilities began shipping in the U.S. in January. CLYPS, an iNFiNiT! upgrade that permits seamless integration of full frame video clips or animation with a complete range of Chyron graphic effects, will ship to customers this quarter as will Concerto, our new PC-based video compositing system. We are optimistic about these and other new products in the pipeline."

Mr. Grebow continued, "In April, the National Association of Broadcasters convention will focus strongly on the conversion to digital television and HDTV. Chyron will demonstrate a full range of digital and high definition television routing and graphics products, including a HDTV router as well as new and exciting standard definition and HDTV graphic systems. These high performance systems will support the full range of television graphics' functions, including character generation, paint box, and still store. They will also render and display 3D objects in real-time."

In conclusion, Mr. Grebow stated, "The conversion to digital television over the next 8 years will result in the replacement of virtually all professional television equipment in the U.S. We are confident that Chyron is well positioned to benefit in a significant way from this conversion."

The statements contained in this release may contain forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities, and similar matters. The Private Securities Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. These risks and uncertainties are detailed in the Company's Form 10K for the period ended December 31, 1996 and are incorporated herewith by reference.

Chyron Corporation develops, manufactures, markets and supports a broad range of equipment; software and systems that facilitate the production and enhance the presentation of live and pre-recorded video, audio and other data. Chyron's products enable users to (i) create and manipulate text, logos and other graphic images using special effects such as 3D transforming, compositing and painting; (ii) manage, monitor and distribute video, audio transforming, compositing and painting; (iii) manage and distribute video, audio and other data signals; and (iv) control edit processes and automate broadcast equipment. -0-

                            CHYRON CORPORATION
              Condensed Consolidated Statements of Operations
                   (In thousands, except per share data)

                              Three Months Ended     Year Ended
                                December 31,        December 31,
                               1997     1996       1997      1996

Net Sales                    $23,153   $25,719    $86,774  $82,608
Gross Profit                  10,826    12,665     39,830   42,667

Non-recurring Charges              -         -      3,082        -
Total Operating Expenses       9,772     7,501     39,566   27,602

Operating Income               1,054     5,164        264   15,065
Interest and Other Expense, Net   67       794      1,242    1,666
Income (Loss) Before Taxes       987     4,370       (978)  13,399
Income Taxes/Equivalent
 Provision (Benefit)             355     1,339       (218)   4,745

Net Income (Loss)               $632    $3,031      $(760)  $8,654


Earnings Per Common Share -
  Basic and Diluted            $ .02      $.09      $(.02)  $  .27

Weighted Average Number
  of Common Shares
  Outstanding                 32,600    32,379     32,538   31,825

Weighted Average Number
 of Common and Common
 Equivalent Shares
 Outstanding                  32,600    32,632     32,538   32,327


                   CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)

                                 December 31, 1997   December 31, 1996

Current Assets                       $57,114               $61,593
Total Assets                         $94,080               $91,403

Current Liabilities                  $18,159               $19,230
Total Liabilities                     40,118                37,457

Total Shareholders' Equity            53,962                53,946

Total Liabilities and Shareholders'
 Equity                              $94,080               $91,403
-0-

CONTACT: Chyron Corporation

Edward Grebow, President & Chief Executive Officer

[phone]

Patricia Lampe, Chief Financial Officer & Treasurer

[phone]

or

CHYRON'S INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Devin Sullivan [phone]

Robert Goldstein [phone]