Chyron Reports 2001 Fourth Quarter Results.

Business & Technology Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--March 12, 2002

Chyron Corporation (OTC BB: CYRO), today announced financial results for the quarter ended December 31, 2001.

Total revenue for the quarter ended December 31, 2001 was $10.9 million consisting of $4.8 million in revenue from the graphics division and $6.1 million in revenue from the signal distribution and automation division. Total revenue for the same quarter last year was $11.4 million, with $6.2 million in revenue from the graphics division and $5.2 million from the signal distribution and automation division.

The Company reported a net loss for the fourth quarter of $2.8 million, or $0.07 per share, compared to a net loss of $5.4 million, or $0.15 per share, for the comparable quarter in 2000. Included in the fourth quarter results is a one-time charge of approximately $0.6 million associated with severance for staff reductions made in the fourth quarter as part of a turnaround plan the Company implemented. Excluding the charges, the net loss for the fourth quarter of 2001 was $2.2 million, or $0.06 per share.

The Company reported total revenue of $46.2 million and a net loss of $33.7 million, or $0.85 per share for the twelve-month period ended December 31, 2001. This compares to revenue of $56.3 million and a net loss of $11.9 million, or $0.34 per share for the same period in 2000. Restructuring charges and one-time charges for 2001 were $8.9 million, compared to none in 2000.

Roger Henderson, President and C.E.O said, "In contrast to earlier expectations of growth in new sectors, the year 2001 was one of consolidation and refocusing Chyron on its core business. Against a picture of a dramatic slowdown in Internet business in the early part of the year we closed our Internet Services operation and also significantly reduced our cost base in the Interactive TV space as the anticipated roll-out of set-top boxes in the U.S. failed to materialize.

"Despite the external environment, the resources we committed to product development paid off during the year. We completed the transition of our Graphics products from our legacy iNFiNiT! line, which had dominated the real-time broadcast graphics market for so long, to the DUET/Lyric/Aprisa range and as a consequence we saw quarter to quarter improvement in our graphics sales which has continued strongly into 2002. During 2001 we launched DUET LE and DUET PCI and this will be complemented this year by further product launches which means that our Graphics business will address a far wider market range than ever before. It remains a management priority to continue spending on new products at a level which will keep the Company to the forefront in the competitive marketplace.

"Highlights for 2001 included:

-- After closing the Internet Services operation, in the last quarter
management successfully executed a restructuring program that reduced staff
levels by 26% and slashed overhead and will provide annualized cost savings of
almost $11 million. The Company lowered its cash flow breakeven to below $10
million a quarter, a sales figure well below historical sales.

-- In the fourth quarter of 2001 we completed the placement of Senior
Subordinated Convertible Notes to raise $2.21 million and increased bank
facilities by $2.5 million so that the Company ended 2001 with cash in excess
of $4.0 million and a working capital line in excess of $5.0 million.

-- Importantly Chyron ended the year with the largest backlog in recent history
for delivery throughout 2002 and early 2003. Key contracts contributing to the
order book included Automation for Turner USA and Channel 4 UK, Routers for
Telegenic UK, Graphics for Canal+ France and TV Catalunya Spain.

-- A gradual strengthening in Graphics sales took place as 2001 progressed and
this has continued into early 2002 with particular success occurring in the
European markets where the Company's performance in booking orders for delivery
in 2002 is already on a par with 2001 total sales of Graphics products into
Europe.

-- Chyron has made its first sales of Graphics Authoring and Automation product
for Interactive and Enhanced TV applications and management anticipate further
strengthening of sales in this area in 2002."

Henderson continued, "2001 was a very difficult year and Chyron's performance was substantially below expectations. However, management has reacted swiftly and appropriately and now believe we have costs in line with revenue. We have a strong product portfolio, a strong forward order book and cash in the bank. Nevertheless, 2002 is also expected to be a tough year economically. We anticipate that revenue will be relatively flat this year with an up-swing in the latter stages of the year in the USA. It is expected that the European economy will lag the US economy and may not rebound until 2003. We have prepared our plans against this backdrop and our goals are to deliver positive cash generation and to gain market share utilizing our present resources.

"We view 2002 as a turnaround year for Chyron. New products and positive financial results will form the base for longer term growth which we believe will follow as global economies strengthen."

About Chyron

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.

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

                                   Three Months Ended     Year Ended
                                       December 31,       December 31,
                                     2001      2000      2001     2000
                                     ----      ----      ----     ----

Net sales                         $10,930   $11,421   $46,182  $56,272
Gross profit                        3,994     4,964    15,011   25,928
Selling, general
 & administrative                   4,976     8,726    32,547   29,858
Research & development                978     1,569     5,635    6,862
Restructuring and other
 non-recurring charges                570               8,873
Total operating expenses            6,524    10,295    47,055   36,720
Operating loss                     (2,530)   (5,331)  (32,044) (10,792)
Gain on sales of investments                    130                607
Interest and other expense, net      (250)     (182)   (1,623)  (1,723)
Loss before provision for
 income taxes                      (2,780)   (5,383)  (33,667) (11,908)
Provision for income taxes              -         -         -        -
Net loss                           (2,780)   (5,383)  (33,667) (11,908)
Loss per common share
 - basic and diluted               $(0.07)   $(0.15)   $(0.85)  $(0.34)
Weighted average number
 of common and
  common equivalent
   shares outstanding              39,564    36,662    39,452   34,824


           Condensed Consolidated Balance Sheets (Unaudited)
                            (In thousands)


                                       December 31,        December 31,
                                              2001                2000
                                              ----                ----

Assets:
  Cash and cash equivalents                 $4,342             $15,332
  Accounts receivable                        8,029              13,365
  Inventories                                9,081              14,503
  Other current assets                         473               2,084
                                             -----               -----
     Total current assets                   21,925              45,284
     Non-current assets                     11,974              20,544
                                            ------              ------
       Total assets                        $33,899             $65,828
                                           =======              ======
Liabilities and shareholders'
 equity:
  Current liabilities                      $17,626             $14,265
  Non-current liabilities                   16,027              18,602
                                            ------              ------
    Total liabilities                       33,653              32,867
Shareholders' equity                           246              32,961
                                               ---              ------
Total liabilities and
 shareholders' equity                      $33,899             $65,828
                                           =======              ======