Devon Group Announces Fiscal Year '95 Results.

STAMFORD, Conn.--(BUSINESS WIRE)--May 4, 1995--Devon Group Inc. (NASDAQ-DEVN), today announced that for its fiscal year ended March 31, 1995, income from continuing operations was $19,301,000 ($2.64 per share) on sales of $225,682,000.

These results compare to income from continuing operations of $13,210,000 ($1.83 per share) on sales of $190,840,000 in the prior fiscal year.

The current year's fourth quarter income from continuing operations was $3,918,000 ($.54 per share) on sales of $56,371,000, compared to income from continuing operations of $3,407,000 ($.47 per share) on sales of $50,293,000 in the prior year's fourth quarter.

The current fiscal year and fourth quarter also include net income of $2,206,000 ($.30 per share) from discontinued operations related to the favorable resolution of certain liabilities that were recorded at the time operations were discontinued.

Commenting on this announcement, Marne Obernauer Jr., chairman and chief executive officer, stated, "The fourth quarter's results were again quite strong with sales and income from continuing operations increasing by 12% and 15%, respectively. These results were especially noteworthy as each of our subsidiaries contributed to the Company's positive performance."

Obernauer, added, "At Black Dot, sales grew by 8% compared to last year's fourth quarter despite last year's extraordinary level of textbook work, primarily because of the continued high level of work for retail advertising customers which was augmented this quarter by increased sales to the magazine sector. Devon Publishing Group reported a 16% increase in revenues this quarter with sales of Portal Publications' matted prints, cards, and framed prints leading the way. The continued resurgence in sales of Portal T-shirts as well as a sizable increase in sales of The Winn Devon Art Group's upscale posters also contributed to D.P.G.'s success this quarter. At Graftek, sales grew by 16% compared with the prior year's fourth quarter due primarily to new magazines added this fiscal year and special work for both new and existing customers, as the growth in pages remains minimal and industry-wide pricing pressures continue."

Obernauer concluded, "As a result of the Company's positive performance this fiscal year, we were able to repay bank debt sooner than expected. Consequently, at March 31, 1995, cash and short-term investments totaled $16,965,000, and net interest income amounted to $71,000 for the fourth quarter compared to net interest expense of $164,000 for the prior year's fourth 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, note cards, calendars, and related products.

Attached is a financial summary of the three- and twelve-month periods ended March 31, 1995 and 1994. -0-

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

                            For the three months  For the twelve months
                              ended March 31,       ended March 31,
                              1995       1994      1995       1994
                                (Unaudited)

Sales                       $ 56,371   $ 50,293   $225,682  $190,840
Operating costs and expenses:
Cost of sales                 35,436     32,298    135,842   118,289
Selling, general, and
 administrative               14,750     12,194     57,228    49,935
Income from operations         6,185      5,801     32,612    22,616
Interest income                  131          7        163        18
Interest expense                 (60)      (171)      (676)     (869)
Other income                     385        141        615       575
Income before income taxes     6,641      5,778     32,714    22,340
Provision for income taxes     2,723      2,371     13,413     9,130
Income from continuing
 operations                    3,918      3,407     19,301    13,210
Income from discontinued
 operations                    2,206          -      2,206         -
Net income                  $  6,124    $ 3,407    $21,507   $13,210
Income per common share:
 Continuing operations      $   0.54    $  0.47    $  2.64   $  1.83
 Discontinued operations    $   0.30          -       0.30         -
 Net income                 $   0.84    $  0.47    $  2.94   $  1.83
Average common shares
 outstanding                   7,329      7,237      7,303     7,210

                                           As of March 31,
                                          1995          1994

Total assets                            $133,436     $122,556
Total long-term debt                    $  2,402     $ 13,923
Total stockholders' equity              $ 88,153     $ 65,587

CONTACT: Bruce K. Koch

203/964-1444