Chyron Reports 2001 Second Quarter Results; Banner Quarter for Duet Sales.

Business Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 6, 2001

Chyron Corporation (OTC BB: CYRO), today announced financial results for the quarter ended June 30, 2001.

Total revenue for the quarter ended June 30, 2001 was $13.2 million consisting of $5.1 million in revenue from the graphics division and $8.1 million in revenues from the signal distribution and automation division. Total revenue for the same quarter last year was $16.0 million, with $7.3 million in revenue from the graphics division and $8.7 million from the signal distribution and automation division. Revenues for the second quarter 2001 grew sequentially compared to the first quarter: total revenues increased 24%; revenues from the graphics division increased 20%; and, revenues from the signal distribution and automation division grew 30%. Revenues from Duet more than doubled in the second quarter compared to the prior quarter.

The Company reported a net loss for the second quarter of $13.5 million, or $0.34 per share, compared to a net loss of $1.9 million, or $0.05 per share, for the comparable quarter in 2000. In addition, the Company reported $8.3 million in restructuring and other non-recurring charges consisting of $7.0 million in non-cash write-downs of goodwill and fixed assets primarily related to the Company's streaming media initiative, $0.7 million in severance costs and $0.6 million of facility and other costs. Excluding the charges, the net loss for the second quarter of 2001 was $5.2 million, or $0.13 per share.

Highlights for 2Q01:

-- Increased market penetration in Europe with its DUET product line. Recent
European users of Duet include Studio Hamburg (Germany), SIC (Portugal), CTV
(Spain), BBC TV (UK) and Eurosport and The France Television Group (France 2
and France 3) in France

-- Strengthened presence in Asia Pacific Region with recent sales and
installations of the Pro-Bel product line. Recent Asian customers include CCTV
(China Central TV), SUN Satellite Television Co Ltd., RTHK (Radio Television
Hong Kong) and Meishi Broadcasting Network.

-- Signal distribution and automation division secured a $1.45 million contract
to upgrade BBC Technology's Digital Transmission Area (DTA)

-- Signal distribution and automation division completed a $0.5 million project
for a Super Duo system for Turner Broadcasting System, Inc.'s flagship
entertainment network, TBS Superstation and WTBS, Atlanta, which reach more
than 83 million U.S. homes

"During the second quarter, we saw sequential improvement in each of our divisions," said Roger Henderson, president and chief executive officer of Chyron. "We believe that our continued success stems from new customer wins, growing market acceptance of new products, and improved sales execution. Our strong brand recognition and installed customer base are proving especially beneficial in competitive selections of our DUET product line. In addition, we continue to see synergistic benefits with our existing customer base for our interactive TV initiative.

"We continue to exercise discipline and careful control over our spending. We are also beginning to realize the benefits from the cost reduction actions we have taken this year, and we expect to generate savings of approximately $1 million per quarter in operating expenses in the second half of 2001," Henderson added. "While we have seen substantial improvement in revenues over Q1, driven in part by the payoff from last quarter's NAB conference, the economic outlook in our markets is still very uncertain for the remainder of the year. The European markets in particular may well experience a downturn."

The slow pace of demand for streaming media content and the current market environment for Internet related spending has impacted the Company's ability to achieve its internal revenue targets in this sector. Consequently, the Company has discontinued its streaming services business. Commenting on this decision, Henderson said, "While we believe in the long-term potential of streaming media, it simply is not economical for us to invest further time and resources in this initiative at this time."

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, weakness in the market for digital media services, rapid technological changes, use and improvement of the Internet, 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, the viability of the OTC Bulletin Board as a trading platform, 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 interactive 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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            Condensed Consolidated Statements of Operations
                 (In thousands except per share data)

                                        Three Months Ended
                                             June 30,
                                           (Unaudited)

                                      2001              2000

Net sales                           $13,226           $16,015
Gross profit                          4,928             7,525
Operating expenses:
   Selling, general and
    administrative                    8,173             7,469
   Research and development           1,478             1,724
   Restructuring and
    non-recurring charges             8,303             _____
Total operating expenses             17,954             9,193
Operating loss                     (13,026)           (1,668)
Interest and other expense, net         499               243
Net loss                          $(13,525)          $(1,911)

Loss per common share -
 basic and diluted                   $(.34)            $(.05)

Weighted average number of
 common and common equivalent
 shares outstanding                  39,530            35,049


                 Condensed Consolidated Balance Sheets
                            (In thousands)
                                        June 30,         December 31,
                                          2001               2000
                                       (Unaudited)
Assets:
  Cash and cash equivalents            $  2,334            $15,332
  Accounts receivable                    11,403             13,365
  Inventories                            14,403             14,503
  Other current assets                    1,792              2,084
      Total current assets               29,932             45,284
      Non-current assets                 17,248             20,544
         Total assets                   $47,180            $65,828
Liabilities and shareholders' equity:
  Current liabilities                   $15,971            $14,265
  Non-current liabilities                18,166             18,602
      Total liabilities                  34,137             32,867
  Shareholders' equity                   13,043             32,961
Total liabilities and
 shareholders' equity                   $47,180            $65,828