Devon Group reports financial results.

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 24, 1995--Devon Group Inc. (NASDAQ:DEVN) today announced that for its second fiscal quarter net income was $7,402,000 ($1.01 per share) on sales of $63,449,000.

These results exceeded last year's second quarter net income of $5,920,000 (81 cents per share) on sales of $58,584,000.

For the six months ended Sept. 30, 1995, net income was $13,163,000 ($1.80 per share) on sales of $123,230,000 vs. prior year net income of $9,642,000 ($1.32 per share) on sales of $107,806,000.

Commenting on this announcement, Marne Obernauer Jr., Chairman and Chief Executive Officer stated, "Once again, each of our major subsidiaries contributed positively to this quarter's results. At Black Dot Group, where sales grew by 11% in the quarter the continued increase in creative, design, and photographic work for our retail advertising customers more than offset a decline from last year's unusually high level of text-book revision work. In this its peak selling season, Devon Publishing Group's sales grow by 8% this quarter vs. the comparable prior year period. Sales of Portal Publication's cards were very strong, in particular its Christmas line, as well as its boxed and blank offerings, which are now complemented by a new stationery line. Sales of Portal matted product in all sizes continued to exceed the prior year and our expectations. Sales of posters, the core product line of both Portal and The Winn Devon Art Group, exceeded those of the prior year's second quarter. At Graftek, this quarter's modest revenue growth continued to be primarily the result of higher levels of paper sales as growth in value-added sales remained hampered by minimal increases in page count."

Obernauer Jr., added, "We continued to invest excess cash conservatively. Unlike the prior year's second quarter when cash was used principally to reduce debut, cash was used during this quarter to fund working capital and acquisition requirements. Interest income for the quarter of $155,000 compared to interest expense of $216,000 in the same quarter last year."

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.

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

                     For the Three Months      For the Six Months
                        Ended Sept. 30,          Ended Sept. 30,
                        1995        1994         1995       1994

Sales                $ 63,449    $ 58,584     $123,230    $107,806
Operating costs and
 expenses:
  Cost of sales        35,314      33,654       71,186      63,500
  Selling, general,
   and administrative  16,267      14,864       31,012      27,866
Income from operations 11,868      10,066       21,032      16,440
Interest income
 (expense), net           155        (216)         305        (457)
Other income              418         184          786         360
Income before
 income taxes          12,441      10,034       22,123      16,343
Provision for
 income taxes           5,039       4,114        8,960       6,701
Net income            $ 7,402     $ 5,920      $13,163     $ 9,642
Net income per
 common share           $1.01       $0.81        $1.80       $1.32
Average common shares
 outstanding            7,317       7,293        7,303       7,279

                                 As of Sept. 30,
                               1995            1994

Total assets                $ 144,602       $ 129,556
Total long-term debt            2,361          11,201
Total stockholders' equity  $ 100,697       $  75,787

CONTACT: Devon Group Inc.

Bruce K. Koch, 203/964-1444