Cybex International, Inc. Announces Third Quarter 1998 Results; Quarterly EPS of $0.04 Versus $0.03 In Prior Year's Quarter.

MEDWAY, Mass.--(BUSINESS WIRE)--Nov. 5, 1998--Cybex International, Inc. (AMEX: CYB), a leading strength and cardiovascular equipment company, today announced results for its third quarter and nine months ended September 26, 1998.

For the quarter ended September 26, 1998, net income was $328,000, or $0.04 per share on a diluted basis, compared to a net income of $292,000, or $0.03 per share on a diluted basis for the comparable 1997 quarter.

Net sales for the three months ended September 26, 1998 were $32,089,000 compared to $26,480,000 for the comparable quarter last year. The increase in net sales is primarily attributable to the inclusion of revenue from Tectrix Fitness Equipment Inc. ("Tectrix") acquired on May 21, 1998, partially offset by 1997 sales of the company's isokinetics product line, which was sold on September 30, 1997. Operating income for the quarter increased 91% to $1,252,000. Gross profit for the quarter was $11,967,000, up from $11,601,000 for the three months ended September 27, 1997. The principal components of the increase in gross profit are the inclusion of Tectrix results offset by higher warranty costs primarily related to cardiovascular products and the inclusion of the isokinetics product line during the 1997 period. Selling, general and administrative expenses declined to $10,715,000 for the quarter from $10,947,000 for the comparable prior year quarter mainly as a result of the sale of the isokinetics business, partially offset by the Tectrix acquisition and higher bad debt expense.

Net sales for the nine months ended September 26, 1998 were $88,594,000 compared to $57,373,000 for the comparable period last year. The increase in net sales is principally due to inclusion of Tectrix commencing May 21, 1998 and the inclusion of the results of Cybex sales for the entire period in 1998 as compared to only four months during the 1997 period. On May 23, 1997, a wholly owned subsidiary of Cybex merged with Trotter Inc. with Trotter deemed to be the acquiring company for accounting purposes. Accordingly, the Company's financial statements include the combined results of Cybex and Trotter after the May 23, 1997 acquisition date versus the historical stand-alone results of Trotter prior to that date.

Operating income for the nine months ended September 26, 1998 increased 51% after the exclusion of unusual items from both periods. Net income for the same period excluding nonrecurring charges, was $2,025,000 or $0.23 per share on a diluted basis, compared to net income, excluding nonrecurring charges, of $1,449,000 or $0.22 per share on a diluted basis (based on the then outstanding 6,446,000 shares) for the comparable 1997 period. Pre-tax nonrecurring charges for the nine months ended September 26, 1998 (incurred in the second quarter of 1998) totaled $3,570,000 and primarily related to the acquisition and integration of Tectrix and the elimination of the Reactor product line. Pre-tax, nonrecurring charges for the nine months ended September 27, 1997 (incurred in the second quarter of 1997) totaled $12,208,000, reflecting plant closures, acquired research and development and other costs considered unusual or a direct result of the Cybex/Trotter Merger. Including the nonrecurring charges, the Company's year- to-date 1998 net loss was $46,000, or $0.01 per share compared to a net loss of $6,993,000, or $1.10 per share for the comparable period in 1997.

Peter Haines, President and Chief Executive Officer, said, "While we are pleased with the Tectrix acquisition and the progress we are making, particularly with the synergies being realized in the selling, general and administrative expense area, our margins in the third quarter are lower than targeted principally due to warranty expenses in our cardiovascular line. It is our goal to improve margins in the fourth quarter and our expectations going forward remain positive."

Mr. Haines, continued, "On the new product front, we recently launched two new products at Cybex University, our annual dealer training session. These products are targeted towards the retail consumer: one, a moderately priced, high- quality treadmill, and the other, a full function multi-gym, both scheduled to ship during the current quarter. Both products are backed by an innovative advertising campaign. With our arsenal of strategic products, we look forward to expanding our presence in the consumer market by leveraging our strong position within the commercial premium exercise equipment market, thus increasing our overall market share."

Cybex International, Inc. is a strength and cardiovascular equipment company which develops, manufactures and markets premium performance, professional quality, human performance products for the commercial and consumer markets. This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, competitive factors, technological and product developments, market demand, and uncertainties relating to the consolidation of the merged and acquired companies businesses. Further information on these and other factors which could affect the Company's financial results can be found in the Company's previously filed Reports on Form 10-K, and 10-Q, its proxy statement dated April 3, 1998, and it's Report on Form 8-K filed on June 2, 1998. -0-

                       CYBEX INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (unaudited)

                           Three Months Ended      Nine Months Ended
                         Sept. 26,  Sept. 27,   Sept. 26,    Sept. 27,
                          1998(1)    1997(2)     1998(1)       1997(2)

 Net sales                $ 32,089   $ 26,480   $ 88,594   $ 57,373
 Cost of sales              20,122     14,879     54,706(a)  35,594(c)
   Gross profit             11,967     11,601     33,888     21,779
Selling, general and
 administrative expenses    10,715     10,947     29,943     25,702(d)
 Nonrecurring charges            -          -      2,898(b)   5,234(e)
  Operating income (loss)    1,252        654      1,047     (9,157)
 Interest expense, net        (687)      (176)    (1,125)      (552)
Income (loss) before
 income taxes                  565        478        (78)    (9,709)
 Income tax provision
        (benefit)              237        186        (32)    (2,716)
 Net income (loss)           $ 328     $  292    $   (46)   $(6,993)
Basic and diluted net
 income (loss) per share     $ .04     $  .03    $  (.01)   $ (1.10)
Weighted average shares
 outstanding                 8,665      8,655      8,666      6,360

Diluted shares               8,698      8,745       N/A       N/A

(1)  1998 results include the results of Tectrix from the May 21, 1998
     acquisition date.

(2)  1997 results are that of Trotter plus the results of Cybex from
     the May 23, 1997 acquisition date.

(a)  Includes $300 of costs related to the Cybex bike and $372 of
     costs related to the elimination of the Reactor product line.

(b)  Includes $1,435 of costs related to the Cybex bike, $952 of costs
     related to the elimination of the Reactor product line and $511
     of other non-recurring costs considered unusual or a direct
     result of the Tectrix acquisition.

(c)  Includes $2,375 of costs considered unusual, or a direct result
     of the Cybex/Trotter merger.

(d)  Includes $4,599 of costs considered unusual, or a direct result
     of the Cybex/Trotter merger.

(e)  Includes $2,734 of costs related to the Sharpsville plant closure
     and a $2,500 charge for acquired research and development related
     to Cybex/Trotter merger.


                      CYBEX INTERNATIONAL, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                       (in thousands of dollars)

                                       September 26, December 31,
                                           1998        1997
                                               (unaudited)

ASSETS
Current Assets:
  Cash and cash equivalents              $ 5,749     $ 6,689

  Accounts receivable, net                23,278      21,906
  Inventories                             10,286       6,980
  Lease receivables                        2,146       1,200
  Other current assets                    10,068      10,130

     Total current assets                 51,527      46,905
Property and equipment, net               16,639      13,103
Goodwill, net                             31,269      10,785
Other assets                               8,497       7,932

                                        $107,932    $ 78,725

LIABILITIES AND STOCKHOLDERS'  EQUITY
Current Liabilities:
  Current maturities of long-term debt  $ 2,492      $ 2,954

  Accounts payable                         8,282       5,192
  Other current liabilities               17,080      19,746
     Total current liabilities            27,854      27,892
Long-term debt                            39,987      10,685
Other liabilities                          1,266       1,240
Stockholders' equity                      38,825      38,908

                                       $ 107,932    $ 78,725