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DATASOUTH COMPUTER CORPORATION ANNOUNCES RESULTS

 CHARLOTTE, N.C., July 23 /PRNewswire/ -- Today, Datasouth Computer Corporation (NASDAQ-NMS: DSCC) announced a net loss totaling $(403,000) or $(.07) per share for the quarter ended June 30, 1993 compared to a net loss of $(27,000) for the same period last year. Revenue for the second quarter totaled $4,092,000 representing a 16 percent increase from the same period last year.
 For the six months ended June 30, 1993, the net loss totaled $(753,000) or $(.13) per share compared to a net income totaling $391,000 or $.07 per share in 1992. Revenue for the first six months in 1993 total $7,059,000, a 10 percent decrease from the same period in 1992.
 Jim Busby, president of Datasouth, commented on the results saying: "Although the loss generated in the first six months of the year is abnormally high, it was not entirely unexpected due to the significant development and marketing costs associated with the introduction of our new Documax printer family in April. These nonrecurring costs have been substantially absorbed by the end of our second quarter, and we expect our operating costs to decrease in the last six months of the year."
 Commenting further, Busby added: "We are very encouraged by several developments in the second quarter which have built a solid foundation for growth in revenue and profitability. First, and most importantly, our new Documax printer was introduced, generating a great deal of excitement among our existing customers and creating opportunities with new prospects. Second, our shareholders approved our reincorporation in the state of Delaware, which led to the sale of 43.6 percent of Datasouth stock to Bull Run Corporation (NASDAQ-NMS: BULL). Bull Run's management team provides us with an extensive amount of proactive, successful business development experience. Third, Datasouth and Bull Run have combined forces to acquire approximately 26 percent of Gray Communications Systems, Inc. (NASDAQ: GCOM) common stock. Based in Albany, Ga., Gray owns three VHF NBC-affiliated television stations, a daily newspaper and a fixed-base operation at the Albany airport. Datasouth will effectively own 647,140 shares, which is approximately 21 percent of the stock, at a cost of $17 per share, principally funded by Datasouth's idle cash and investments. We are excited about maximizing the utilization of our excess working capital and the diversification of our business activities."
 Reflecting on the future, Busby added: "We will continue to strive for growth of our computer printer operations. Demand for our Documax products has been encouraging, and will be reflected in our revenue and operating profits over the last six months of 1993. With the introduction of a new product family behind us, we will be able to significantly reduce our operating expenses in the second half of the year."
 Datasouth designs, manufactures and markets heavy-duty printers used primarily with multi-user micro, mini and mainframe computers for heavy-duty, print intensive applications. The company sells its products worldwide through distributors and value-added resellers, and directly to large volume major accounts.
 DATASOUTH COMPUTER CORPORATION
 Comparative Financial Results
 (in thousands, except per share amounts)
 Quarter Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenue $4,092 $3,530 $7,059 $7,866
 Cost of goods sold 2,975 2,563 5,165 5,565
 Gross profit 1,117 967 1,894 2,301
 Operating expenses:
 Research and development 545 377 1,007 764
 Selling, general and
 administrative 1,062 752 1,859 1,448
 Income (loss) from operations (490) (162) (972) 89
 Other income, net 87 135 219 302
 Income (loss) before
 income taxes (403) (27) (753) 391
 Income tax provision --- --- --- ---
 Net income (loss) $(403) $ (27) $(753) $ 391
 Earnings (loss) per share $(.07) $ --- $(.13) $ .07
 Weighted average shares
 outstanding 5,690 5,691 5,690 5,691
 COMPARATIVE BALANCE SHEETS
 (In thousands)
 June 30, Dec. 31,
 1993 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $ 713 $4,258
 Marketable securities 1,000 6,451
 Accounts receivable 2,141 1,806
 Inventory 2,018 1,706
 Other 81 127
 Total current assets 5,953 14,348
 Property and equipment, net 2,620 2,125
 Deposit on stock purchase 8,001 ---
 Other assets 287 460
 Total $16,861 $16,933
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $1,058 $ 651
 Accrued and other liabilities 653 374
 Total current liabilities 1,711 1,025
 Stockholders' equity 15,150 15,908
 Total $16,861 $16,933
 -0- 7/23/93
 /CONTACT: Investor Relations, Datasouth Computer Corporation, 704-523-8500/
 (DSCC BULL GCOM)


CO: Datasouth Computer Corporation; Bull Run Corporation; Gray
 Communications Systems, Inc. ST: North Carolina, Delaware IN: CPR SU: ERN


SB-CM -- CH010 -- 5308 07/23/93 16:46 EDT
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Date:Jul 23, 1993
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