Devon Group Announces First Quarter Earnings.

STAMFORD, Conn.--(BUSINESS WIRE)--July 24, 1995--Devon Group Inc. today announced that for its first fiscal quarter net income was $5,761,000 ($.79 per share) on sales of $59,781,000 compared to last year's same quarter results of $3,722,000 ($.51 per share) on sales of $49,222,000.

Commenting on this announcement, Marne Obernauer Jr., chairman and chief executive officer, stated, "We are pleased to report that all of our business units have begun the new fiscal year with healthy results, aggregating to sales and net income growth of 21% and 55%, respectively. At Black Dot, sales grew by 36% compared to the prior year's first quarter primarily due to the continued high level of work for our retail advertising customers. In particular, sales to Sears increased as we are now handling the print advertising needs of their Puerto Rican and Hawaiian sales territories. Devon Publishing Group reported a 12% increase in revenues this quarter with sales of Portal Publications' matted product and cards especially strong. Sales of posters, the core product line of both Portal and The Winn Devon Art Group, exceeded the prior year's first quarter with Portal posters up slightly and Winn products up more significantly. At Graftek, this quarter's revenue growth resulted from higher paper sales as revenues from value-added services continue to be affected by spotty growth in page count and industry-wide pricing pressures."

Obernauer Jr. added, "Cash and short-term investments were $19,405,000 at June 30, 1995 compared to $16,965,000 at March 31, 1995 and $36,000 at June 30, 1994. These funds are conservatively invested and generated net interest income of $150,000 this quarter which compares with net interest expense of $241,000 for the prior year's first quarter."

Devon Group Inc. is a diversified graphic arts company that provides the following services and products: advertising and editorial production, conventional and digital photography, interactive multimedia, computerized typesetting, composition, color separation, printing, binding, and related services to corporate, retail, advertising, and publishing customers, and publishing/distribution of posters, art reproductions, original art, greeting cards, notecards, calendars, and related products.

Attached is a financial summary of the three-month periods ended June 30, 1995 and 1994. -0-

                          Devon Group Inc.
                         Financial Summary
                           (Unaudited)
              (in thousands, except per share data)

                                         For the Three Months
                                            Ended June 30,
                                         1995            1994

Sales                                  $ 59,781        $ 49,222
Operating costs and expenses:
  Cost of sales                          35,872          29,846
  Selling, general, and administrative   14,745          13,002
Income from operations                    9,164           6,374

Interest income (expense), net              150            (241)
Other income, net                           368             176

Income before income taxes                9,682           6,309
Provision for income taxes                3,921           2,587

Net income                             $  5,761        $  3,722

Net income per common share            $    .79        $    .51

Average common shares outstanding         7,289           7,265

Total assets                           $137,117        $126,363

Total long-term debt                   $  2,380        $ 18,203

Total stockholders' equity             $ 92,628        $ 69,506

CONTACT: Bruce K. Koch

203/964-1444