Gerber Scientific reports first quarter operating results.

SOUTH WINDSOR, Conn.--(BUSINESS WIRE)--Aug. 21, 1996--Gerber Scientific Inc. today reported first quarter operating results.

Consolidated sales for the first quarter ended July 31, 1996 were $85,808,000, a decrease of 3 percent from $88,191,000 for the same period last year. Consolidated net earnings were $1,603,000 for the three months ended July 31, 1996, compared with $4,493,000 in the same period last year. Net earnings per share in this year's first quarter were $.07 compared with $.19 per share last year, based on lower average shares outstanding of 23,373,000 and 23,997,000, respectively.

The company reported that it received new orders totaling $89,000,000 in the three months ended July 31, 1996, a 6 percent increase from $84,300,000 in orders for the same period last year. Backlog was $51,800,000 at July 31, 1996, compared with $49,900,000 a year earlier.

As the company had noted in an earlier press release, it expected to report lower first quarter sales and earnings, due primarily to lower results at two subsidiaries, Gerber Garment Technology Inc. and Gerber Systems Corp. Gerber Garment Technology produces high-technology automation equipment for the apparel and related industries. In this year's first quarter, Gerber Garment Technology experienced relative weakness in demand for its GERBERcutter automated cutting systems from European markets.

Gerber Systems Corp. produces high-technology imaging equipment for the printing and electronics industries. The company continues to make a significant investment in the development of its computer-to-plate imaging systems business for the printing and graphic arts industries and this ongoing investment for the future inhibited current earnings. In addition, Gerber Systems had a shortfall in sales of its Crescent/42 computer-to-plate system in the first quarter ended July 31, 1996. The company anticipates an improving sales trend in he computer-to-plate business as a result of several factors, including a reorganization of its domestic sales personnel, a new marketing agreement with Screen (USA), a subsidiary of Dainippon Screen Manufacturing Co. Ltd., Japan, the world's largest provider of pre-press equipment and systems, and two major printing industry trade shows, Seybold and GraphExpo, which will occur during the company's second quarter.

The company remained financially strong, with high liquidity and a low ratio of debt-to-equity. At July 31, 1996, shareholders' equity was $239,460,000, or $10.31 per share; cash and investments totaled $58,854,000; and total debt amounted to only $7,483,000, or 3.1 percent of shareholders' equity.

Gerber Scientific Inc. produces high technology factory automation capital equipment for a variety of industries.

                            GERBER SCIENTIFIC INC.
                      CONSOLIDATED SUMMARY OF EARNINGS

Comparison on a consolidated basis for the three months ended July
31, 1996 and 1995 follows:

First Quarter Financial Figures For Three Months Ended July 31, 1996
and 1995

                                1996               1995

Sales                           $85,808,000        $88,191,000
Earnings before income taxes    $ 2,203,000        $ 6,393,000
Provision for income taxes         (600,000)        (1,900,000)
Net earnings                    $ 1,603,000        $ 4,493,000
Net earnings per share          $       .07        $       .19
Average shares outstanding       23,373,000         23,997,000

CONTACT: Gerber Scientific

Robert D. Lipira, 860/648-8041