Ramtek 1525 Atteberry Lane San Jose, CA 95131 4081954-2700 Company contact FAX: 408/954-0118 James A. Swanson President and CEO Ramtek Corporation (408) 954-2700 Agency contacts: William Orrange Janis Ulevich Ulevich & Orrange, Inc. (415) 329-1590 FOR IMMEDIATE RELEASE RAMTEK ANNOUNCES ITS EMERGENCE FROM CHAPTER 11 AND PROFITS FOR SECOND QUARTER ENDED DECEMBER 31, 1989 SAN JOSE, Calif., Feb. 7, 1990 -- Ramtek Corporation today announced that its net revenues for the second quarter ended December 31, 1989, were $4,287,000 as compared to $3,630,000 for the comparable period in fiscal year 1989. The Company reported income (before other income (expense) and extraordinary items) of $41,000, or $0.01 per share, for the second quarter as compared to a loss of $(856,000), or $(0.21) per share, for the comparable period in fiscal year 1989. The second quarter net income was $11,795,000, or $2.84 per share, which included an extraordinary gain on pre-petition settlements of $12,091,000, or $2.91 per share, associated with the Company's emergence from Chapter 11. The Company had a net loss of $(37,000), or $(0.01) per share, for the comparable period in fiscal year 1989. For the six months ended December 31, 1989, net revenues were $8,899,000 as compared to $8,540,000 for the comparable period in fiscal year 1989. The Company reported income (before other income (expense) and extraordinary items) of $419,000, or $0.10 per share, for the first six months of fiscal year 1990 as compared to a loss of $(774,000), or $(0.19) per share, for the comparable period in fiscal year 1989. Net income for the first six months of fiscal year 1990 was $12,186,000 as compared to a loss of $(1,404,000) for the comparable period in fiscal year 1989. Jim Swanson, President, said the second quarter was a significant milestone for Ramtek Corporation. While the Company experienced 18 percent growth in product sales and service revenue over the prior year's comparable quarter, the Company's objective continues to be profitability and positive cash flow. Equally important, the Company devoted approximately 32 percent of its product sales revenue to development of a new product which it believes will significantly strengthen Ramtek's future sales base. Finally, the Company's Plan of Reorganization was confirmed on November 30, and the Company officially emerged from Chapter 11 on December 18, 1989. Ramtek Corporation, headquartered in San Jose, California, designs and manufactures high-performance imaging and graphics display systems and peripherals. RAMTEK CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1989 1988 1989 1988 Revenue: Product sales........................$ 3,498 $ 2,977 $ 7,181 $ 5,462 Service and other revenue............ 789 653 1,718 1,578 Sale of Technology................... 1,500 Net revenue.......................... 4,287 3,630 8,899 8,540 Costs and expenses: Cost of sales...................... 2,037 2,152 4,444 4,658 Product development................ 1,123 971 1,934 1,977 Selling, general and administrative 1,086 1,363 2,102 2,679 Total costs and expenses........... 4,246 4,486 8,480 9,314 41 (856) 419 (774 Other income (expense): Interest, net...................... 58 (56) 81 (432) Gain on write-off of building lease obligation. 875 875 Write-off of deferred issuance costs. (1,073) Other............................... (405) (405) Total other income (expense)........ (347) 819 (324) (630) Income (loss) before income tax expense and extraordinary credits........... (306) (37) 95 (1,404) (Provision) credit for income taxes 55 (85) Income (loss) before extraordinary credits(251) (37) 10 (1,404) Extraordinary credits: Gain on pre-petition settlements..... 12,091 12,091 Impact of net operating loss carryforwards (45) 85 Net income (loss).......................$ 11,795 $ (37) 12,186 $ (1,404) Net income (loss) per share: Income (loss) before extraordinary credits $ (0.06)$ (O.Ol) $ 0.00 $ (0.34) Extraordinary credits................ 2.90 2.95 Net income (1088) per share .............$ 2.84 $ (0.01) $ 2.95 $ (0.34) Weighted average common shares outstanding........ 4,160 4,099 4,129 4,099