Dawn Technologies announces six months results.

TARRYTOWN, N.Y.--(BUSINESS WIRE)--Aug 14, 1995--Dawn Technologies Inc. (NASDAQ OTC: DAWN) today announced the results for the six months and three months ended June 30, 1995. Sales for the six months were $3,980,996 in 1995 compared to $4,980,984 in 1994. Income from operations was $176,894 compared to $183,072 a year earlier.

Net income for the six months was $111,774 or $.013 per common share compared to $68,104 or $.009 per common share in 1994 on weighted average shares outstanding of 8,923,205 and 7,861,978 respectively.

Sales for the three months ended June 30, 1995 were $2,084,566 compared to $2,601,884 in 1994. Income from operations was $116,119 compared to $19,660 earlier.

Net income for the three months was $83,039 or .009 per common share in 1995 compared to $324 in 1994 or .000 per share on weighted average shares outstanding of $8,986,725 and 7,861,978 respectively.

The company has a sales backlog of approximately $7,500,000 on July 5, 1995 primarily in its manufacture and assembly business. This backlog is scheduled to be shipped over the next 18 months.

John McTigue, President stated:

"The company's short term sales have continued to be adversely affected by the reduction in requirements under its various IBM EPOM contracts. These sales typically provide the company with higher margins then our manufacturing and assembly sales. Our computer, spare and service parts backlog represent less than 10% of our total backlog.

"I am pleased however, with the results of our continued efforts to bring back our core manufacturing and assembly business as evidenced by the current backlog. Our acquisition of the "CBU" designs and our efforts at this time preparing to submit units for approval will hopefully lead to significant sales to the US Postal Service's approved source group. This core business, in sufficient volumes, provides us with a solid base on which to build the future and thereby to continue our efforts to regain strength in the computer spare and service parts as well as seek out new alliances."

Dawn Technologies Inc., is a leading manufacturer and assembler of made-to-order components which are used in various industrial products and Military Hardware, the inspection and repair of computer spare and service parts, point of sale terminals and other parts manufactured by major companies and resale of used computer hardware components and subsystems.

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           Dawn Technologies Inc. and Subsidiaries
                Consolidated Balance Sheets

                         Assets
                                          June 30,       Dec. 31,
                                            1995           1994
                                         (unaudited)
Current assets:
 Cash                                     $  36,233      $ 221,944
 Accounts receivable, less
  allowance for doubtful
  accounts of $24,000 in 1995
  and $20,000 in 1994                     1,106,831        897,732
 Inventories                                683,168        558,773
 Other current assets                        16,517         24,811
  Total current assets                    1,842,749      1,703,260

Property and equipment, less
 accumulated depreciation and
 amortization of $692,623 in 1995
 and $633,623 in 1994                       605,586        562,924
                                          2,448,335      2,266,184

           Liabilities and Stockholders' Deficit

Current liabilities:
 Short-term bank note payable             $  100,000     $    --
 Current portion of long-term
  debt                                       350,000       350,000
 Accounts payable and accrued
  expenses                                   779,289       689,624
 Accrued payroll and related
  liabilities                                389,604       359,346
 Current portion of accrued cost
  of non-compete agreement                    86,375        82,492
 Income taxes payable                         52,401        53,456
   Total current liabilities               1,757,669     1,534,918

Other liabilities:
 Long-term debt, less current portion        341,667       516,667
 Accrued cost of non-compete
  agreement, less current portion            373,328       417,508
    Total other liabilities                  714,995       934,175

Stockholders' Deficit:
 Common stock, $.001 par value,
  15,000,000 shares authorized,
  9,108,978 and 8,858,978
  shares issued and
  outstanding in 1995 and 1994, respectively   9,109         8,859
 Capital in excess of par value            2,341,911     2,307,986
 Unearned restricted common stock
  issued                                   (359,119)      (391,750)
 Accumulated deficit                     (2,016,230)    (2,128,004)
  Total stockholders' deficit               (24,329)      (202,909)

                                        $ 2,448,912    $ 2,266,184

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            Dawn Technologies Inc. and Subsidiaries
               Consolidated Statements of Income
                   and Accumulated Deficit
                          (Unaudited)

                                             Six Months Ended
                                                 June 30,
                                            1995          1994

Sales                                  $ 3,980,996    $ 4,980,984

Costs and expenses:
  Cost of sales                          3,068,925      3,657,819
  Selling, general and
   administrative expenses                 674,752      1,140,093
  Product development expenses              60,425           --
     Total costs and expenses            3,804,102      4,797,912

Income from operations                     176,894        183,072

Interest Expense                            65,120         66,568

Income before income taxes                 111,774        116,504

Income tax expense:
  Federal                                                  35,000
  State                                                    13,400
    Total income tax expense                               48,400

Net income                                  111,774        68,104

Accumulated deficit, beginning
 of period                               (2,128,004)     (339,682)

Accumulated deficit, end of period      $(2,016,230)    $(271,578)

Net income per common share                 $ 0.013       $ 0.009

Weighted average number of
  common shares outstanding               8,923,205     7,861,978

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                                             Three Months Ended
                                                 June 30,
                                            1995          1994

Sales                                  $ 2,084,566    $ 2,601,884

Costs and expenses:
  Cost of sales                          1,558,709      1,990,464
  Selling, general and
   administrative expenses                 349,313        591,760
  Product development expenses              60,425          --
     Total costs and expenses            1,968,447      2,582,224

Income from operations                     116,119         19,660

Interest Expense                            33,080         18,936

Income before income taxes                  83,039            724

Income tax expense:
  Federal
  State                                                       400
    Total income tax expense                                  400

Net income                                   83,039           324

Accumulated deficit, beginning
 of period                               (2,099,269)     (271,902)

Accumulated deficit, end of period      $(2,016,230)    $(271,578)

Net income per common share                 $ 0.009       $ 0.000

Weighted average number of
  common shares outstanding               8,986,725     7,861,978

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CONTACT: Dawn Technologies Inc., Tarrytown

John F. McTigue, President & CEO, 914/332-4505