Devon Group announces financial results.

STAMFORD, Conn.--(BUSINESS WIRE)--May 8, 1997--Devon Group Inc., (NASDAQ-DEVN), today announced that for its fourth fiscal quarter ended March 31, 1997, net income was $4,163,000 ($.57 per share) on sales of $63,398,000 compared to last year's same quarter results of $4,520,000 ($.61 per share) on sales of $59,631,000.

For the fiscal year ended March 31, 1997, net income was $21,328,000 ($2.90 per share) on sales of $264,388,000 compared to net income of $24,031,000 ($3.27 per share) on sales of $248,973,000 in the prior year.

Commenting on this announcement, Marne Obernauer, Jr., Chairman and Chief Executive Officer, stated, "Sales for the current quarter were up 6% mostly due to Devon Publishing Group's ongoing efforts to expand its reach into mass market retailers and Black Dot Group's ability to expand its customer base to include more retail advertisers. Net income for the current quarter was down 8%, reflecting operating investments made to expand our revenue base as well as the effects of pricing concessions made to secure long-term contracts."

Obernauer, Jr. continued, "At Black Dot Group sales this quarter approximated the prior year. The addition of creative pre-press work for new retail advertising customers more than offset the price-related declines for its two major retail accounts and, combined with incremental sales at Nobart, made up for the decline in sales to textbook publishers. Devon Publishing Group's sales grew by 30% this quarter due mostly to Portal Publications and, to a lesser extent, The Winn Devon Art Group. At Portal further penetration of mass market merchants coupled with the continuing success of Geddes imagery contributed to significant gains in its card lines as well as increased T-shirt revenues. Sales of new products such as die-cut postcards and cards in hanger packs also added to the growth in card sales. At Winn, print sales remained strong. At Graftek Press, while total sales were down 4%, value-added sales (which exclude paper) were up slightly due primarily to increased commercial printing revenues."

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 for the three- and 12-month periods ended March 31, 1997 and 1996. -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,
                               1997       1996      1997      1996
                               (Unaudited)

Sales                       $ 63,398   $ 59,631   $264,388  $248,973
Operating costs and expenses:
Cost of sales                 40,887     37,329    165,239   148,997
Selling, general, and
 administrative               16,717     15,522     66,465    62,011
Income from operations         5,794      6,780     32,684    37,965
Interest income (expense),
  net                            549        278      1,197       752
Other income, net                228        202      1,298     1,335
Income before income taxes     6,571      7,260     35,179    40,052
Provision for income taxes     2,408      2,740     13,851    16,021
Net income                  $  4,163    $ 4,520    $21,328   $24,031
Net income per common share $    .57    $   .61    $  2.90   $  3.27
Average common shares
 outstanding                   7,282      7,379      7,360     7,340

                                            As of March 31,
                                          1997          1996

Total assets                            $172,860     $156,426
Total long-term debt                    $  2,008     $  2,113
Total stockholders' equity              $131,081     $112,958

CONTACT: Devon Group Inc.

Bruce K. Koch, 203/964-1444