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COLOR SYSTEMS TECHNOLOGY INC. REPORTS PROFITABLE SECOND QUARTER

 COLOR SYSTEMS TECHNOLOGY INC. REPORTS PROFITABLE SECOND QUARTER
 LOS ANGELES, Jan. 23 /PRNewswire/ -- Color Systems Technology Inc. (AMEX: CLR) today reported a net profit of $211,000 or $0.01 per share on revenues of $1.2 million for the second fiscal quarter ended Dec. 31, 1991. This compared with a loss of $959,000 or ($0.09) per share on revenues of $662,000 for the same period last year. Loss from operations before depreciation and amortization for the quarter was $225,000. Included in the net profit for the period was an extraordinary item of $943,000 resulting from forgiveness of debt.
 For the six months ended Dec. 31, 1991 the company reported revenues of $2.3 million, a net loss of $426,000 or ($0.03) per share, this compared with revenues of $2.1 million and a net loss of $1.2 million or ($0.12) per share for the same period last year.
 Commenting on the results, Gerald Shefsky, chairman and chief executive officer stated, "The company is very pleased with the results of the last six months of calendar 1991. We have virtually transformed this company from one with very serious problems to a viable, energetic and technological state-of-the-art organization poised to take advantage of highly profitable opportunities in the future.
 "Color Systems has completely upgraded and expanded its color conversion and graphics operations from the video/analog system to an all-digital multi-format system. Capital costs, repairs and maintenance are considerably lower for the all-digital system. Once in full operation the company expects the all-digital system to increase production capacity by over 100 percent. By Dec. 31, 1991 this conversion was completed and lease obligations attributable to the old analog system were reduced by $2.75 million," Shefsky stated.
 Over the past two-and-a-half years $26.7 million in debt has been reduced to $6.3 million in debt by conversion into equity, forgiveness of debt, or restructured as to payment. The company has streamlined its production and operations and now has a total of 98 personnel as compared to 190 about two-and-a-half years ago.
 During the last quarter the first stage of a private placement providing $2.25 million in new equity capital was completed. Color Systems begins calendar 1992 with a stockholder deficiency of $2.6 million compared with a stockholder deficiency of $7.7 million at June 30, 1991, $7.9 million at June 30, 1990 and $15.3 million at June 30, 1989. Total current liabilities at Dec. 31 were $3.5 million compared to $9.3 million at June 30, 1991, $8.9 million at June 30, 1990 and $24.2 million at June 30, 1989.
 "The company is commencing 1992 with its backlog for the year virtually insured as compared to a year ago when the company only had a two-month backlog. We are now in a position to profitably provide, at competitive prices, the quality production needed to fill the increasing worldwide demand for broadcast programming," Shefsky added.
 COLOR SYSTEMS TECHNOLOGY INC.
 Statements of Operations
 (Unaudited)
 Second Quarter Ended Dec. 31,
 1991 1990
 (restated)
 Revenues $1,194,394 $662,460
 Loss before extraordinary
 item (732,040) (1,053,862)
 Extraordinary item -- gain
 for forgiveness of debt 942,875 94,835
 Net profit (loss) 210,835 (959,027)
 Net profit (loss) per share $0.01 ($0.09)
 Weighted average number of
 common shares outstanding 14,766,075 10,187,389
 Six Months Ended Dec. 31,
 1991 1990
 (restated)
 Revenues $2,314,289 $2,124,423
 Loss before extraordinary
 item (1,445,847) (1,447,378)
 Extraordinary item -- gain
 for forgiveness of debt 1,019,705 244,900
 Net profit (loss) (426,142) (1,202,478)
 Net profit (loss) per share ($0.03) ($0.12)
 Weighted average number of
 common shares outstanding 13,457,249 9,751,310
 -0- 1/23/92
 /CONTACT: Gerald Shefsky, chairman and CEO of Color Systems Technology, 310-417-3444, or Don Reynolds & Associates, 310-275-9024, for Color Systems Technology/
 (CLR) CO: Color Systems Technology ST: California IN: SU: ERN


AL -- LA027 -- 2891 01/23/92 14:32 EST
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Date:Jan 23, 1992
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