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ADVANCED GRAVIS COMPUTER TECHNOLOGY LTD. ANNOUNCES SECOND QUARTER RESULTS FISCAL 1994

 VANCOUVER, British Columbia, Sept. 3 /PRNewswire/ -- Advanced Gravis Computer Technology Ltd. announces total revenues for the quarter ended July 31, 1993, were $3,747,594 vs. $2,126,175 for the same period last year, an increase of 76 percent over the same quarter a year ago. The net loss for the quarter was $734,588, or 5 cents per share vs. a loss of 127,874, or 1 cent per share in the same period last year.
 Total revenues for the six months ended July 31, 1993 were $8,146,402 vs. $4,774,314 for the same period in fiscal 1993, an increase of 71 percent. The net loss for the period was $726,239, or 5 cents per share vs. a net profit of $42,674, or 1 cent per share last year.
 The majority of the revenue increase was attributable to sales of UltraSound, which was not available in the prior periods, UltraSound accounted for approximately 30 percent of the company's business in the six month period. Sales of UltraSound slowed in the first quarter during the transition to Version 2 of the software. Related to this upgrade, the company experienced returns of Version 1 in the second quarter from its retailers and distributors. Consequently, UltraSound sales were significantly less than management's expectations.
 In Europe, UltraSound has been well received and sales of this product are increasing steadily. However, in the United States, the company is effectively relaunching UltraSound with a major marketing effort. This reintroduction has created a delay in the sales momentum of UltraSound in the United States. It is early in the transition to Version 2 of UltraSound and recovery of sales momentum in the United States is expected in the company's third and fourth quarters.
 Sales of the company's core joystick products increased by 42 percent and 19 percent respectively for the quarter and year-to-date over sales for the comparable periods in the previous year.
 The second quarter is historically the company's weakest quarter. However the magnitude of the loss was greater than the seasonal factor would dictate due to the increased overhead related to UltraSound and returns of Version 1. The company believes that the UltraSound transition related problems are now behind it.
 The company relocated to a new manufacturing plant effective May 1, 1993, in order to increase its capacity to meet customer demands. The move and transition to the new facility caused inefficiencies in operation which also contributed to the loss. For the above reasons the company's results for the first half should not be interpreted as being indicative of what should be expected for the full fiscal year.
 The marketing effort for the relaunch of UltraSound is designed to educate the consumer to the benefits of UltraSound. The company's core joystick business is also expected to show continued growth. International sales should continue their upward trend. The $5.8 million special warrant financing concluded in early July has supplemented the company's working capital position. Therefore management feels that further revenue growth and a return to profitability is achievable in the second half of the fiscal year.
 Advanced Gravis is a leading designer and manufacturer of high- quality entertainment devices for personal computers, including joysticks, PC GamePads, MouseSticks, and UltraSound.
 -0- 9/3/93
 /CONTACT: Grant Russell, President or Tim Zier, CFO, 604-431-5020/
 (AED. Toronto and Vancouver, OTC BBS: GRVSF)


CO: Advanced Gravis Computer Technology Ltd. ST: British Columbia IN: CPR SU: ERN

MF -- LA035 -- 9021 09/03/93 21:19 EDT
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Publication:PR Newswire
Date:Sep 3, 1993
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