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WELLS-GARDNER REPORTS SIGNIFICANTLY HIGHER SALES AND EARNINGS FOR YEAR

 CHICAGO, Feb. 25 /PRNewswire/ -- Wells-Gardner Electronics Corporation (AMEX: WGA) today reported significantly higher sales and improved earnings from continuing operations for the year ended Dec. 31, 1992. Sales from continuing operations increased 26 percent, to $48,949,000 from $38,814,000.
 Net earnings on continuing operations in 1992 amounted to $1,017,000, or 26 cents a share. The effect of tax loss carryforwards added an additional $528,000, or 14 cents a share, for total net earnings of $1,545,000, or 40 cents a share. For 1991, the Company reported a net loss of $1,464,000, or 39 cents a share.
 Fourth-quarter 1992 sales from continuing operations grew to $11,102,000, up 10 percent over the $10,054,000 recorded in the year earlier quarter. Net earnings improved to $80,000, or 2 cents a share, compared to a loss of $1,308,000, or 35 cents a share, for the fourth quarter 1991. Included in the fourth-quarter 1991 loss was a restructuring charge of $992,000, or 26 cents a share.
 There were 3,880,953 weighted average common and common equivalent shares outstanding in 1992 and 3,766,195 in 1991.
 "Many factors contributed to the Company's improved results in 1992. Demand from the video arcade game segment was up sharply over 1991. Our rapidly emerging gaming segment, including Video Lottery Terminals, experienced explosive growth, with a 150-percent sales increase over 1991, and accounted for almost 15 percent of total sales," Frank J. Myers, Chairman and Chief Executive Officer, stated.
 "Exports to the U.K., Australia, Mexico and Canada surged and now account for 20 percent of total sales. Profitability was much improved as a result of increased capacity utilization and the major restructuring completed during the second quarter," Myers said.
 "The Company remains committed to its strategy of market segment domination. Wells-Gardner was either the sole monitor source or achieved dominant market share for nine of the 10 most popular video arcade games in 1992. The Company is also the leading supplier of monitors to the rapidly growing Video Lottery Terminal market, not only in the United States but in Australia and Canada as well," commented Myers.
 "The outlook for the first quarter 1993 is mixed at this time. While the general economy appears to be strengthening, we are experiencing some softening in the video arcade segment this quarter. We also do not anticipate a significant pickup in demand from the video lottery segment until the next state or foreign jurisdiction passes legislation.
 "We have the people, production and financial capabilities to take the Company to much higher levels of business. Our balance sheet is strong with a current ratio of 2.83 to 1, we have no long-term debt and our book value has increased 10 percent during the year to $3.55 per share," Myers concluded.
 Wells-Gardner Electronics Corporation is a video products company. It designs and manufactures color and monochrome video monitors for sale to the business, industrial and computer markets. It has a customer base that is growing both domestically and internationally.
 Wells-Gardner Electronics Corporation
 Condensed Balance Sheet
 (Audited) (Audited)
 December 31, December 31,
 1992 1991
 Assets:
 Cash and Short Term Investments $ 733,000 $ 423,000
 Refundable Income Taxes 28,000 265,000
 Accounts Receivable 4,863,000 5,716,000
 Inventory 11,570,000 7,839,000
 Other Current Assets 523,000 309,000
 Total Current Assets 17,717,000 14,552,000
 Long Term Bond 25,000 25,000
 Net Properties and Equipment 2,447,000 1,970,000
 Total Assets $ 20,189,000 $ 16,547,000
 Liabilities and Shareholders' Equity:
 Current Liabilities $ 6,252,000 $ 4,188,000
 Deferred Taxes 152,000 217,000
 Shareholders' Equity 13,785,000 12,142,000
 Total Liabilities and
 Shareholders' Equity $ 20,189,000 $ 16,547,000
 Wells-Gardner Electronics Corporation
 Statement of Operations
 (Audited)
 Year Ended December 31,
 1992 1991
 Net Sales $ 48,949,000 $ 38,814,000
 Cost of Sales 42,971,000 35,087,000
 Selling and Administrative
 Expenses 4,373,000 4,371,000
 Other Income, Net (55,000) (115,000)
 Restructuring Charge ---- 992,000
 Total Cost 47,289,000 40,335,000
 Earnings (Loss) before
 Income Taxes 1,660,000 (1,521,000)
 Income Taxes (benefit) 643,000 (57,000)
 Net Earnings (Loss)
 from continuing
 operations 1,017,000 (1,464,000)
 Net Earnings form Extraordinary
 item-Tax Effect of Loss
 Carryforward 528,000 ---
 Net Earnings (Loss) $ 1,545,000 $ (1,464,000)
 Net Earnings (Loss) per
 share from Continuing
 Operations $ 0.26 $ (0.39)
 Net Earnings per share
 from Extraordinary
 item - Tax Effect of
 Loss Carryforward 0.14 ---
 Net Earnings (Loss)
 per share $ 0.40 $ (0.39)
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,880,953 3,766,195
 Wells-Gardner Electronics Corporation
 Statement of Operations
 (Audited)
 Fourth Quarter Ended December 31,
 1992 1991
 Net Sales $ 11,102,000 $ 10,054,000
 Cost of Sales 9,899,000 9,243,000
 Selling and Administrative
 Expenses 1,086,000 1,129,000
 Other Income, Net (16,000) (2,000)

 Restructuring Charge ---- 992,000
 Total Cost 10,969,000 11,362,000
 Earnings (Loss) before
 Income Taxes 133,000 (1,308,000)
 Income Taxes (benefit) 53,000 ----
 Net Earnings (Loss)
 from continuing
 operations 80,000 (1,308,000)
 Net Earnings form Extraordinary
 item-Tax Effect of Loss
 Carry forward ---- ---
 Net Earnings (Loss) $ 80,000 $ (1,308,000)
 Net Earnings (Loss) per
 share from Continuing
 Operations $ 0.02 $ (0.35)
 Net Earnings per share
 from Extraordinary
 item - Tax Effect of
 Loss Carryforward ---- ----
 Net Earnings (Loss)
 per share $ 0.02 $ (0.35)
 Weighted Average Common
 and Common Equivalent
 Shares Outstanding 3,925,371 3,766,195
 -0- 2/25/93
 /CONTACT: Rick Conquest, Chief Financial Officer, Wells-Gardner Electronics, 312-252-8220; or Gale Strenger, 708-564-5610, Bruce Marcus, 212-580-0703, Largent Parks, 214-387-4520, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for Wells-Gardner Electronics/
 (WGA)


CO: Wells-Gardner Electronics Corporation ST: Illinois IN: CPR SU: ERN

DD-SM -- DE003 -- 0294 02/25/93 10:16 EST
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Date:Feb 25, 1993
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