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ADVANCED GRAVIS COMPUTER TECHNOLOGY LTD. REPORTS NINE-MONTH OPERATING RESULTS

 ADVANCED GRAVIS COMPUTER TECHNOLOGY LTD.
 REPORTS NINE-MONTH OPERATING RESULTS
 VANCOUVER, British Columbia, Jan. 2 /PRNewswire/ -- Advanced Gravis Computer Technology Ltd. (NASDAQ, Toronto, Vancouver: AED) announced that total revenues for the nine months ending Oct. 31, 1991 were $3,564,407, an increase of $474,724 or 15.4 percent over the same period in 1990. The net loss for the nine months was $424,083, or 6 cents per share, vs. a net loss of $546,734, or 11 cents, for the same period last year.
 The operating loss for the quarter was $104,257 or 1 cent per share vs. a profit of $5,870 for the corresponding quarter in 1990. The loss was due primarily to increased costs in advertising, development, salaries and travel for new product introduction. Cost increases have resulted from the addition of personnel to both the R&D and marketing departments, which was necessary for the development of new products and the introduction of the Choices marketing program. The two-month delay in the launch of the PC GamePad resulted in cost overruns in the company's marketing effort necessary to benefit from the Christmas sales period.
 Despite both a stronger Canadian dollar and the forecast of gloomy Christmas retail sales, third quarter revenues were $1,461,654, an increase of 19.4 percent over the third quarter revenues of $1,224,492 in 1990. The revenue increase was attributable to new channel sales and increased distribution in Europe.
 New Product Development
 The company is investing heavily in research and development on new products this year.
 The first new product, the PC GamePad, began shipping in mid- November 1991. The PC GamePad represents a new and unique input device for entertainment applications on the IBM PC. The handheld control pad has a suggested list price of $30 -- 50 percent less than the existing Gravis IBM analog joystick. This new product will allow Gravis to expand its product focus from the higher priced range to the higher volume mid-range segment.
 The company also plans to ship the IBM PC version of its MouseStick in January 1992. Initial reports from our PC MouseStick beta sites have been positive on quality, performance, and consumer acceptance.
 At Comdex fall in October 1991, Gravis unveiled a first stage prototype of its new IBM PC sound card technology, called UltraSound. The demonstration unit was well received and generated considerable interest. UltraSound was clearly recognized as being superior to all existing competitive products for both price and performance.
 In late December the company received the first production run of the custom sound chip which forms the heart of the UltraSound technology. It is currently undergoing extensive testing and software refinement. So far, the company is still hopeful it can commence commercial production of UltraSound by April 1992.
 Outlook for Fourth Quarter
 To date, the fourth quarter revenues look favorable, and the company says it should be able to at least maintain our growth in revenues over last fiscal year. The company has been continually back ordered on most products this fall and has lost some business due to its limited working capital. Unfortunately the company does not expect to record a profit for this current fiscal year. However the size of the loss will be less than reported in the last two fiscal years.
 The PC GamePad has been well received and sales orders are encouraging. The PC GamePad, the IBM MouseStick, and new sales channel development should allow the company to continue its growth in revenues. The company anxiously awaits the introduction of UltraSound in spring 1992, and its return to profitability in the near future.
 -0- 1/2/92
 /CONTACT: Grant Russell, president of Advanced Gravis Computer Technology, 604-434-7274/
 (AED) CO: Advanced Gravis Computer Technology Ltd. ST: British Columbia IN: CPR SU: ERN


KJ -- LA025 -- 6294 01/02/92 16:56 EST
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Date:Jan 2, 1992
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