Hurco Reports Strong Second Quarter Results - Sales up 15% and Record Orders.

INDIANAPOLIS -- Hurco Companies, Inc., (Nasdaq:HURC) today reported net income of $4,680,000, or $.73 per share, for its second fiscal quarter, which ended April 30, 2007, compared to $3,929,000, or $.62 per share, for the corresponding period in 2006. For the first six months of fiscal 2007, Hurco recorded net income of $10,075,000, or $1.57 per share, compared to $6,962,000, or $1.09 per share, for the corresponding period in 2006.

Sales and service fees for the second quarter of fiscal 2007 were $42,494,000, an increase of $5,633,000, or 15%, from the amount for the prior year period. Approximately 8% of the year-over-year increase reflects the effect of a weaker U.S. dollar when translating foreign sales to U.S. dollars for financial reporting purposes. These results reflect a significant improvement in demand, primarily in European markets. Sales and service fees for the six months ended April 30, 2007 totaled $89,372,000, an increase of $20,617,000, or 30%, over the corresponding period in 2006.

New orders booked during the second quarter of fiscal 2007 totaled $48,474,000, an increase of $11,484,000, or 31%, over the amount recorded in the second quarter of fiscal 2006. During the latest quarter, orders increased in Europe and Asia by 50% and 23%, respectively, compared to the second quarter of 2006. North American orders decreased by 1%. The impact of currency translation on new orders booked was consistent with the impact on sales and service fees. For the six months ended April 30, 2007, new orders totaled $95,569,000, an increase of $20,848,000, or 28%, over the corresponding period in 2006.

Gross margin for the second quarter of fiscal 2007 was 39% compared to 36% for the prior year period, as a result of higher volume and favorable mix. Selling, general and administrative expenses were $9,405,000, an increase from the $7,140,000 reported in the prior year period. The increase was due to the effects of foreign currency translation of foreign operating expenses and incremental variable expenses related to market expansion, commissions and compensation expense.

Hurco's debt balance was eliminated as the $3,967,000 mortgage for the Indianapolis facility was fully repaid in April.

Michael Doar, Chairman and Chief Executive Officer, stated, "Although the U.S. machine tool market softened during the second quarter, our global strategy minimized the impact. The world market remains strong and our diverse markets in Europe and Asia are offsetting the slowdown in the U.S.

Continued and timely product development is an important part of our global strategy. The second quarter was particularly positive in terms of new products. We successfully launched our WinMax control software in the United States as scheduled and finalized introduction of the largest vertical machining center Hurco has ever developed--the VMX84. This vertical machining center will extend our flagship VMX product line so we can meet the needs of existing customers and it will also attract new customers worldwide because of the large size parts it can produce."

Hurco Companies, Inc., is an industrial technology company that designs and produces interactive computer controls, software and computerized machine tools for the worldwide metal cutting and metal forming industry. The end market for the Company's products consists primarily of independent job shops and short-run manufacturing operations within large corporations in industries such as the aerospace, defense, medical equipment, energy, transportation and computer equipment. The Company is based in Indianapolis, Indiana, and has sales, application engineering and service subsidiaries in High Wycombe, England; Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and Singapore, along with manufacturing operations in Taiwan and China. Products are sold through independent agents and distributors in the United States, Europe and Asia. The Company also has direct sales forces in the United Kingdom, Germany, France, Italy, and Asia.

Web Site: www.hurco.com

This news release contains forward looking statements which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, changes in general economic and business conditions that affect demand for computerized machine systems, computer numerical control systems and software products, changes in manufacturing markets, innovations by competitors, our ability to protect our intellectual property, fluctuations in exchange rates, fluctuations in prices of raw materials, changes in market demands, quality and delivery performance by our contract manufacturers and governmental actions and initiatives including import and export restrictions and tariffs.

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