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GRAY COMMUNICATIONS SYSTEMS REPORTS RESULTS

 ALBANY, Ga., Aug. 27 /PRNewswire/ -- Gray Communications Systems, Inc. (NASDAQ: GCOM) of Albany, reported that net income from continuing operations for the fourth quarter ended June 30 was $324,000, down $576,000 from the same quarter of the prior year.
 Earnings per share for continuing operations were $.11, down from $.29. Revenues from continuing operations for the fourth quarter of 1993 were $6,394,000, compared with $6,224,000 for the fourth quarter of 1992, an increase of 3 percent.
 The growth in revenues from continuing operations for the fourth quarter ended June 30, over the same period of the prior year, totaled $170,000, and results primarily from growth experienced in local and national advertising at WALB-TV, Albany, and in classified ads and circulation revenues at The Albany Herald newspaper. These increases were offset primarily by a decrease in revenue at the company's real estate segment resulting from the sale of pulpwood from the undeveloped farm land held by the company, in fiscal year 1992.
 The company's operating expenses from continuing operations for the quarter increased $1,035,000, or 24 percent. Approximately 60 percent of this increase was due primarily to increased professional fees incurred by the company to evaluate certain of its financial alternatives to maximize shareholder value, including the possible sale of the company or one or more of its subsidiaries. This process culminated in the decision to preserve the company in its present form. Approximately 33 percent of the additional operating expenses were incurred at the newspaper operations to improve the quality of the newspaper product. Depreciation expense from continuing operations increased $94,000 due to increased levels of purchases of depreciable assets. Interest expense decreased $139,000 from the prior year. Interest rates were 6 percent on an average outstanding balance of approximately $8,900,000, compared to approximately 7.5 percent on $20,300,000 during the same quarter of the prior year.
 Approximately 25 percent of the growth in revenues from continuing operations for the year ended June 30 resulted from increased revenues at the newspaper operations. The remaining growth in revenues occurred at the company's three television stations. Approximately 25 percent of the increase in broadcast revenues was due to political advertising. Approximately 42 percent of the increase in broadcast revenues was due to increases in local advertising.
 The company's net income for the year ended June 30 was $2,904,000, or $.95 per share, including a gain on the disposal of discontinued businesses of $1,319,000, less the applicable income tax expense of $501,000. The earnings from operations of the discontinued businesses was approximately $151,000, less the applicable income tax expense of $58,000. The company's net loss for the year ended June 30, 1992, was $(416,000) or $(.12) per share.
 The company also announced that William A. Fielder III, controller, was named vice president and chief financial officer by the board of directors' executive committee at its meeting on Aug. 25.
 FINANCIAL HIGHLIGHTS
 (In thousands of dollars and shares, except per-share data)
 4th qtr. ended June 30 1993 1992 Pct. chg.
 Revenues from continuing operations $ 6,394 $ 6,224 3
 Net income from cont. operations 324 900 (64)
 Earnings per share from cont. opers. .11 .29 (62)
 Net income (loss) 378 852 (56)
 Earnings per share .12 .27 (56)
 Dividends paid per share .02 .02 ---
 Avg. shares outstanding 3,074 3,151 (2)
 Year ended June 30 1993 1992 Pct. chg.
 Revenues from continuing operations $25,226 $23,528 7
 Net income from cont. operations 1,993 (149) N/A
 Earnings per share from cont. opers. .65 (.04) N/A
 Net income (loss) 2,904 (416) N/A
 Earnings per share .95 (.12) N/A
 Dividends paid per share .10 .09 11
 Avg. shares outstanding 3,072 3,444 (11)
 Gray Communications Systems, Inc. is a holding company located in Albany which operates three VHF, NBC-affiliated television stations -- WALB-TV located in Albany, WJHG-TV in Panama City, Fla., and KTVE in Monroe, La.; a daily newspaper, The Albany Herald, in Albany; and a fixed-base operation at the Albany airport.
 -0- 8/27/93
 /CONTACT: John Williams, president and CEO of Gray Communications Systems, 912-888-9302/
 (GCOM)


CO: Gray Communications Systems, Inc. ST: Georgia IN: PUB SU: ERN PER

BR-BN -- AT010 -- 6589 08/27/93 11:44 EDT
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Date:Aug 27, 1993
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