Chyron Corporation Reports 1999 Third Quarter Results.

MELVILLE, N.Y.--(BUSINESS WIRE)--Nov. 2, 1999--

Chyron Corporation (NYSE:CHY), manufacturer of the world's premier television character generators, graphics, routing and automation systems, today announced financial results for the third quarter of 1999.

Net revenues for the quarter ended September 30, 1999 were $16.8 million, compared to $22.1 million for the same period in 1998. The net loss for the third quarter was $1 million or $.03 per share compared to a net income of $1.3 million or $.04 per share for the same period in 1998.

Net revenues for the nine months ended September 30, 1999 were $48 million compared to $64.7 million for the same period in 1998. For the nine months ended September 30, 1999, the Company reported a net loss of $28 million or $.87 per share compared to a net loss of $3.5 million or $.11 per share for the same period in 1998. These results reflect restructuring and non-recurring charges of $6.7 million and $4.0 million for the nine month periods in 1999 and 1998, respectively. Also included in the nine month 1999 results is the establishment of a $14 million deferred tax valuation allowance.

The decreases in both the three and nine month levels of sales result from the lower volume of US and international graphics and Pro-Bel product sales resulting from the industry-wide softness in equipment purchases by broadcasters.

Gross profit grew to 48.4% of net sales in the third quarter of 1999 from 47.4% in the comparable period in 1998.

Commenting on the results, Roger Henderson, President and CEO, stated "While the Company is still impacted by the state of flux in the industry, there are many positive indications that we may be turning the corner and we are optimistic over the prospects for the future.

Overall, our performance in Q3 was in line with our expectations as we met our internal revenue and earnings targets. In general, graphics sales improved both domestically and internationally over Q2 1999. In particular, shipments of our Lyric and Duet graphics products grew by 60% over the second quarter. Importantly, we have begun to recognize the benefits of the restructuring that was undertaken in Q2 1999 with reduced costs of approximately $800K in Q3 over the prior quarter.

The Company made a strong showing at IBC, the major European broadcast exhibition. We introduced a new large format router called Eclipse, we previewed a new major release of Lyric and demonstrated the enhanced Aprisa product range. All of these products were well received and we have reason to be confident of improved performance in Q1 of 2000 as these products hit the streets where they are not only price competitive but will also deliver improved margin. Equally important, we demonstrated how our products make effective use of the Internet and specifically previewed our new professional Internet coder, due for release in January.

All the news within our industry these days refers to change. At Chyron, we are embracing change as demonstrated by the broad product range we are developing. We are working hard to position the Company as a strong player in the evolving "Mediacasting" industry, whether HDTV, Interactive TV, Standard TV or Internet Multicast."

From time to time, including in this press release, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, changes in the industry, new products, research and development activities and similar matters. The Private Securities Litigation 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. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include, without limitation, the following: product concentration in a mature market, dependence on the emerging digital market and the industry's transition to DTV and HDTV, consumer acceptance of DTV and HDTV, resistance within the broadcast or cable industry to implement DTV and HDTV technology, rapid technological changes, new technologies that could render certain Chyron products to be obsolete, a highly competitive environment, competitors with significantly greater financial resources, new product introductions by competitors, seasonality, fluctuations in quarterly operating results, ability to maintain adequate levels of working capital, ability to maintain its NYSE listing, expansion into new markets and the Company's ability to successfully implement its acquisition and strategic alliance strategy.

Serving the television industry for three decades, Chyron Corporation 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 high definition television. Chyron provides a broad range of leading-edge hardware and software products, including graphics platforms, paint and animation systems, character generators, signal distribution systems, master control switchers, broadcast automation and media management. For more information about Chyron products and services, please visit the company website at www.chyron.com.

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

                         Three Months Ended          Nine Months Ended
                            September 30,              September 30,
                            1999       1998        1999        1998

Net sales                 $ 16,756    $ 22,062   $ 47,953    $ 64,683
Gross profit                 8,106      10,450     20,017      30,852
Restructuring and other
 nonrecurring charges                               6,681       3,979
Total operating expenses     8,844       9,867     34,004      35,547
Operating (loss) income       (738)        583    (13,987)     (4,695)
Gain on sale of Trilogy                  1,194                  1,194
Interest and other expense,
 net                           236         569        765       1,405
(Loss) income before
 provision for income
  taxes                       (974)      1,208    (14,752)     (4,906)
(Benefit) provision for
  income taxes                            (113)    13,250      (1,429)
Net (loss) income             (974)      1,321    (28,002)     (3,477)

(Loss) earnings per common
 share - basic and diluted  $ (.03)      $ .04     $ (.87)     $ (.11)

Weighted average number of
 common and common
  equivalent shares
   outstanding              32,087      32,072     32,083      32,072


          Condensed Consolidated Balance Sheets (Unaudited)
                            (In thousands)

                                         September 30,   December 31,
                                              1999            1998

Assets:

Current assets                               $35,127         $46,067
Total assets                                 $59,551         $83,116

Liabilities and shareholders' equity:

Current liabilities                          $13,967         $16,031
Total liabilities                             37,925          33,346
Shareholders' equity                          21,626          49,770
Total liabilities and
 shareholders' equity                        $59,551         $83,116