Electronic Retailing Systems International reports first quarter results.

WILTON, Conn.--(BUSINESS WIRE)--April 30, 1996--Electronic Retailing Systems International, Inc. (NASDAQ:ERSI) today reported financial results for the quarter ended March 31, 1996.

Total revenues for the first quarter of 1996 were $1,221,000 compared to $526,000 reported for the corresponding 1995 quarter, an increase of 132%. Net loss for the quarter was reduced to $2,327,000, or $.22 per share, compared to a net loss of $2,787,000, or $.24 per share, for the same period last year. Per share amounts do not reflect common stock equivalents that are anti-dilutive.

Commenting on the results, Bruce F. Failing, Jr., ERS's president and chief executive officer stated, "We are extremely pleased by the consistent growth of our business as evidenced by this third consecutive quarter of record revenues -- revenues which in this quarter surpass any previously publicly reported by any North American electronic shelf label company. This increases our confidence that the improvements in revenues and income that we reported at the end of 1995 will continue."

Failing went on to say, "We are proceeding in our program to obtain additional financing. We are working to implement these arrangements by mid year. Successful completion of these arrangements will address our liquidity needs and substantially strengthen our equity base."

Based on publicly reported quarterly revenues, ERS has a substantially larger revenue base from sales of electronic shelf labeling systems than any other North American electronic shelf label supplier. The ERS ShelfNet(TM) system assists retailers in providing accurate pricing by linking a store's central computer both to its check-out scanner and to the ERS electronic liquid crystal display shelf labels at the shelf edge. The ERS system allows for pricing information to be automatically changed on the electronic shelf labels when prices in the point-of-sale scanner are changed. This system eliminates the need for paper price tags, which require labor-intensive servicing and do not provide the level of pricing accuracy provided by electronic shelf label systems. ERS's system also includes patented software applications that are intended to provide additional merchandising, space management, and inventory management benefits to retailers through the ability to communicate additional product information to and from the aisle. -0-

             Electronic Retailing Systems International, Inc.
             Condensed Consolidated Statement of Operations
                 (In thousands, except per share amounts)

                                     Three Months Ended
                                         March 31,
                                      1996       1995

Revenues
  Product sales                    $  1,048    $  495
  Maintenance                           173        31
     Total revenues                   1,221       526

Cost of goods sold                    1,444       693

     Gross profit (loss)               (223)     (167)

Operating expenses

Selling, general and
 administrative                       1,685     1,645
Research and development                313       897
Depreciation and amortization            42        27
Stock option expense                     11        27
     Total operating expenses         2,051     2,596

Loss from operations                 (2,274)   (2,763)

Other income (expense), net             (53)      (24)

Net loss                           $ (2,327) $ (2,787)

Earnings per share

     Weighted average common
      shares outstanding             11,767    11,729
     Net loss per common share     $  (0.22) $  (0.24)

-0-

           Electronic Retailing Systems International, Inc.
                Condensed Consolidated Balance Sheet
                          (In thousands)

                                    March 31,  December 31,
                                      1996       1995

     Assets
Current assets                     $  5,653   $ 7,049
Property, plant and equipment, net      640       682
Other non-current assets                776       585

Total assets                       $  7,069   $ 8,316

Liabilities and Stockholders'
 Equity

Current liabilities                $  1,183   $ 1,766
Long-term debt                        4,985     3,335
Stockholders' equity                    901     3,215
Total liabilities and stockholders'
 equity                            $  7,069   $ 8,316

CONTACT: Electronic Retailing Systems International, Inc.

Bruce F. Failing, Jr.

President and CEO 

203/761-7900