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SULCUS COMPUTER CORPORATION REAFFIRMS "INTEGRITY OF FINANCIAL STATEMENTS"

 SULCUS COMPUTER CORPORATION REAFFIRMS
 "INTEGRITY OF FINANCIAL STATEMENTS"
 GREENSBURG, Pa., April 23 /PRNewswire/ -- Sulcus Computer Corporation (NASDAQ: SULC) "stands behind the accuracy of all accounting procedures and all reported numbers, despite flagrant slanderous and libelous statements created by and circulated by a group of short sellers interested in driving down the share price of our company, an effort in which they have been successful," according to Jeffrey S. Ratner, chairman and chief executive officer of the company.
 Ratner said that "we stand completely behind the validity of our numbers, and the methodology used in establishing those numbers. We at all times meet all FASB requirements, and are indeed conservative in our treatment of capitalized software costs.
 "In response to questions raised by readers of our 1991 financial reports with regards to Research and Development costs and quality of earnings, the company and its auditors wish to make the readers aware of the changes in the format of our presentations to better facilitate analysis.
 "In the financial statements issued as part of Form 10Q for the second and third quarters of 1991, the company reflected research and development expense on a departmental basis which included direct and indirect Research and Development expense. Consistent with its policy of capitalizing only direct software development costs (as opposed to capitalizing all related costs), the company reflected only direct expenses in its disclosure of research and development expense in the year-end financial statements included in its annual report on Form 10K. Had such expenses been reflected in its annual report on Form 10K on the same format with the prior quarters, Research and Development Expense would have been $841,323 greater or $1,043,784 for 1991 and Selling, General and Administrative Expenses would have been $841,323 lower for 1991. This change during the fourth quarter had no effect on earnings reported for 1991 and no effect on the amount of capitalized Research and Development Costs for 1991. Further, to make its presentation more concise, the company adopted a condensed format of the Statement of Operations which combined Research and Development Expense into Selling, General and Administrative Expenses.
 "It is the company's policy to capitalize direct costs of producing product masters after technological feasibility has been established. Costs capitalized during 1991 relate to products introduced in 1991 or that will be introduced during 1992."
 -0- 4/23/92
 /CONTACT: Jeffrey S. Ratner, chairman & CEO, or John W. Ryba, general counsel of Sulcus Computer, 412-836-2000/
 (SULC) CO: Sulcus Computer Corporation ST: Pennsylvania IN: CPR SU:


SM-HM -- NY113 -- 2054 04/23/92 15:41 EDT
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Date:Apr 23, 1992
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