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AMERICAN FILM TECHNOLOGIES INC. ANNOUNCES RESULTS

 LOS ANGELES, May 14 /PRNewswire/ -- American Film Technologies Inc. (NASDAQ: AFTI) reported lower revenues and a loss for the third quarter of fiscal 1993, Arthur P. Hartel Jr., president and chief executive officer announced today.
 For the three months ended March 31, 1993, revenues were $2,116,000, compared with $3,129,000 in the same period a year ago. A net loss of $1,834,000, or 17 cents per share, was recorded, as compared with net income of $156,000, or 1 cent per share, in the comparable quarter last year.
 For the nine months, revenues totaled $8,999,000, compared to $10,036,000 in the corresponding period of the prior year. A net loss of $3,033,000, or 28 cents per share, was sustained, compared to net income of $713,000, or 7 cents per share, in the first nine months of fiscal 1992.
 Hartel commented: "Management was faced with some very difficult decisions because of the amount of our backlog of film coloring business. We chose to reduce the amount of film coloring work which we produce monthly to approximately 300 minutes in order to extend the time period within which we could obtain new business or find additional financing. We have also substantially reduced our work force and are looking for other ways to reduce our costs. The reduced production of film coloring work contributed substantially to the loss incurred in the third quarter.
 "This had the further impact on certain contracts yet to be completed for which we established a reserve of $525,000 for estimated losses. We also wrote-off $234,000 as a reduction in the value of our film library and of partially completed films held for our distribution and the value of certain partially completed projects for our clients.
 "Management's action to reduce staff and other overhead costs has reduced its current cash needs. The targeted level of production for film coloring will reduce revenues and losses will continue; however, the anticipated revenues will cover the company's cash needs over the longer period of production. Fortunately, the reduction in expenses will not compromise the quality of our work in film coloring and animation."
 Hartel concluded: "While the company has not received any major film coloring contracts, it continues to obtain smaller contracts on a continuing basis from domestic and foreign customers. We are hopeful that the success of our recently completed animation projects will lead to additional animation work. We are also exploring licensing agreements for certain aspects of our technology. New business in these areas would improve the current cash outlook.
 "At the same time, we are continuing our efforts to obtain additional capital through either a new financing or by an investment from a strategic partner that can bring additional capital as well as additional business opportunities to the company."
 American Film Technologies Inc. is headquartered in Los Angeles with offices in Philadelphia and New York, and with production facilities in San Diego and Tijuana, Mexico. The company produces integrated digital animation and special effects for television and feature films. Breakthrough projects include the first animated short subject completed entirely on an all-digital computer system -- Gahan Wilson's "Diner," released by Fox Film Corp., and "Magic Paintbrush," a half-hour television special for the McDonald's Family Theater. Founded in 1985, AFTI is also the dominant supplier of film coloring services to the entertainment industry.
 AMERICAN FILM TECHNOLOGIES INC.
 Results of Operations
 (Unaudited)
 Three Months Ended March 31,
 1993 1992
 Revenues $2,116,000 $3,129,000
 Net income (loss) ($1,834,000) $156,000
 Net income (loss) per share ($.17) $.01
 Weighted average common
 shares outstanding 10,773,302 10,773,302
 Nine Months Ended March 31,
 1993 1992
 Revenues $8,999,000 $10,036,000
 Net income (loss) ($3,033,000) $713,000
 Net income (loss) per share ($.28) $.07
 Weighted average common
 shares outstanding 10,773,302 10,773,302
 -0- 5/14/93
 /CONTACT: Arthur P. Hartel Jr., president and CEO of American Film Technologies, 215-688-1322/
 (AFTI)


CO: American Film Technologies Inc. ST: California IN: ENT SU: ERN

JB-MS -- LA027 -- 8847 05/14/93 17:41 EDT
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Date:May 14, 1993
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