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RECOGNITION ANNOUNCES 1993 NET INCOME INCREASE OF 64 PERCENT

 DALLAS, Dec. 6 /PRNewswire/ -- Recognition International Inc. (NYSE: REC) (Recognition) today reported net income for its fiscal year ended Oct. 31, 1993, of $7,936,000, or 55 cents per share of common stock, compared to net income of $4,836,000, or 38 cents per share of common stock, for fiscal year 1992. Fiscal 1992 net income included a gain of $2,421,000, or 19 cents per share, on settlement of litigation, a restructuring charge of $2,257,000, or 18 cents per share, in connection with Recognition's purchase of the Lundy Financial Systems Division of TransTechnology Corporation, and an extraordinary gain of $784,000, or 6 cents per share, related to the early extinguishment of debt. Net income for 1993 included no restructuring charges or extraordinary items.
 Revenues for the year ended Oct. 31, 1993, were $230,578,000 compared to $199,186,000, an increase of 16 percent. The increase in 1993 revenues is due primarily to the inclusion of the operations of Lundy for the full year in 1993 compared to eight months in 1992, to increased shipments of integrated network products in Canada and increased sales of Plexus software products.
 Operating income increased 25 percent to $15,111,000 for 1993 as compared to $12,130,000 for the year ended Oct. 31, 1992.
 Net income for the quarter ended Oct. 31, 1993, increased 139 percent to $3,694,000, or 23 cents per share of common stock, compared to $1,545,000, or 12 cents per share of common stock, for the fourth quarter of 1992, excluding the gain of $2,421,000, or 19 cents per share, from the litigation settlement. Revenues for the quarter increased 5 percent to $60,390,000, compared to $57,470,000 in 1992. The revenue increase for the quarter was primarily due to increased sales of remittance products and Plexus software products.
 "We made substantial progress in 1993 in return on stockholders' equity, return on assets, debt to equity ratio and our other operating goals," said Bob Vanourek, president and chief executive officer of Recognition. "Financial improvements and gains in the marketplace made during 1993 will establish a firm base for future years. All of our business units grew and we look forward to 1994."
 At Oct. 31, 1993, the company's total backlog of orders believed to be firm increased to $49,289,000, compared to $47,652,000 at Oct. 31, 1992. The increase is due primarily to orders received for integrated network products by Recognition's Canadian subsidiary, and an order for high-performance power encoding transports.
 Recognition, headquartered in Dallas, is a leading international open systems supplier of high-performance document recognition systems, image and workflow software, and related customer services.
 RECOGNITION INTERNATIONAL INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 For the three months ended Oct. 31 (Unaudited):
 1993 1992
 Revenues $ 60,390,000 $ 57,470,000
 Income before income taxes 3,672,000 5,129,000
 Benefit from (provision for)
 income taxes 22,000 (1,163,000)
 Net income $ 3,694,000 $ 3,966,000
 Earnings per share $ .23 $ .31
 For the 12 months ended Oct. 31 (Audited):
 1993 1992
 Revenues $230,578,000 $199,186,000
 Income before income taxes 11,828,000 9,323,000
 Provision for income taxes (3,892,000) (5,271,000)
 Income before extraordinary item 7,936,000 4,052,000
 Extraordinary item:
 Gain on early extinguishment of
 debt, net of income taxes
 of $16,000 -- 784,000
 Net income $ 7,936,000 $ 4,836,000
 Earnings per share:
 Income before extraordinary item $ .55 $ .32
 Extraordinary item -- .06
 Net income $ .55 $ .38
 RECOGNITION INTERNATIONAL INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (thousands, except per share)
 Three Months Ended Twelve Months Ended
 Oct. 31, Oct. 31,
 1993 1992 1993 1992
 (Unaudited) (Audited)
 Revenues:
 Product $ 31,597 $ 27,347 $115,375 $ 91,321
 Customer service 28,793 30,123 115,203 107,865
 Total 60,390 57,470 230,578 199,186
 Cost of revenues:
 Product 17,022 16,257 65,343 52,412
 Customer service 19,900 20,140 81,309 75,595
 Total 36,922 36,397 146,652 128,007
 Gross profit 23,468 21,073 83,926 71,179
 Operating expenses:
 Research and development 3,751 2,780 12,369 10,673
 Marketing 9,147 7,949 34,710 28,394
 General and administrative 3,395 1,345 13,548 11,200
 Restructuring -- -- -- 2,257
 Other operating 2,555 1,870 8,188 6,525
 Operating income 4,620 7,129 15,111 12,130
 Interest income 714 773 2,676 3,902
 Interest expense (1,212) (1,650) (5,340) (5,610)
 Foreign exchange losses (101) (767) (91) (1,031)
 Other expense (349) (356) (528) (68)
 Income before income taxes 3,672 5,129 11,828 9,323
 Benefit from (provision for)
 income taxes 22 (1,163) (3,892) (5,271)
 Income before extraordinary 3,694 3,966 7,936 4,052
 item
 Extraordinary item:
 Gain on early extinguishment of
 debt, net of income
 taxes of $16,000 -- -- -- 784
 Net income $3,694 $ 3,966 $ 7,936 $ 4,836
 Earnings per share:
 Income before extraordinary
 item $ .23 $ .31 $ .55 $ .32
 Extraordinary item -- -- -- .06
 Net income $ .23 $ .31 $ .55 $ .38
 Weighted average shares
 outstanding 15,810 12,732 14,496 12,649
 -0- 12/6/93
 /CONTACT: Larry H. Lattig of Recognition International Inc., 214-579-6314/
 (REC)


CO: Recognition International Inc. ST: Texas IN: CPR SU: ERN

GK-PS -- NY068 -- 0842 12/06/93 13:35 EST
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Date:Dec 6, 1993
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