By Susan Kelly of Raine Consulting January 24, 2003 – EFI announced that for the quarter ending December 31, 2002, revenues were $90.7 million as compared to $105.6 million for the same quarter in 2001. Net income for the quarter was $.16 per diluted share, exceeded consensus expectations of $.14 per share. Topics in this summary of Q4 include: * Migration toward design licensing fuels margin growth; * Q1 2003 outlook; * Design licensing/SDSN partnership business; * Dividend discussion; * Acquisition discussion; 1. Q1 2003 Guidance: Expect continued gross margin improvements will drive strong year-over-year EPS growth. Anticipated Q1 revenues are $83 – 85M, with EPS estimate of 11 cents per share. Gross margins are up for the 8th consecutive quarter, and have recently enjoyed the highest gross margin levels in 10 years. 2. The Company enjoyed improved results in Europe, citing different business conditions there while the US is still experiencing a bouncing recovery. Japan, too, offers challenging business conditions while Asia-Pacific is strong year-over-year. The company also expects to benefit from operations in the Netherlands. 3. There is a strategic business shift to software licensing, in particular the design licensing business model which provides tremendous leverage, giving higher income on less revenue. 4. 2002 highlights include the SDSN partnership. In a deal recently signed, STSN will be rolling out printing services to 500 hotel partners. The service is very popular with hotels such as Marriott and other chains. EFI receives revenue for every page printed by a hotel guest and as this service gains popularity, it will produce sustainable, recurring revenues for the Company. 5. For 2003, the Company will continue to increase its focus on the professional printing industry, and will establish a greater presence in this market. 6. The company is willing to look at the possibility of offering a dividend to shareholders, but would look at the President’s tax package prior to making any decisions. It is not appealing unless a dividend is a tax-free transaction. 7. Acquisition opportunities are focused extensively on software opportunities. The Company has a good pipeline of opportunities and is in the process of talking to “more than a few companies.” EFI believes these types of acquisitions would drive additional value to the Company. It should be noted: The morning following this conference call, a Press Release was published by Printcafe Software, Inc. announcing receipt of an unsolicited offer from EFI to acquire all of the issued and outstanding shares of Printcafe’s common stock for $2.60 per share. At that time, no mention was made to shareholders and analysts on the conference call despite questions about EFI’s plans for acquisitions.