By Ann Levine March 2, 2004 – Presstek, Inc. (Nasdaq: PRST) today reported fourth quarter revenues of $22.5 million as compared to $22.4 million for the same period last year. Income for the fourth quarter was reported at $2.0 million or $0.06 per diluted share. For the same period last year, income was $2.4 million or $0.07 per diluted share. Revenues for the full year were $87.2 million up from $83.5 million in 2002. 2003 income was $8.1 million or $0.24 per diluted share as compared to a net loss of $8.3 million or $0.24 per diluted share. Topics of this summary: New Results Reporting Growth of New Technology Business Lasertel ProFire Excel Q & A New Results Reporting President and Chief Executive Office Ed Marino announced Presstek's fourth quarter results by two product segments, the Quickmaster DI platform Business (QMDI) and New Technology Business. The QMDI platform consists of Heidelberg Quickmaster DI press regardless of whether the products are sold by Heidelberg or other distribution channels. The New Technology Business consists of all other product lines unrelated to DI, such as Ryobi DI press products and consumables, CTP press products and consumables, and Lasertel. Growth of New Technology Business Presstek's strategy to grow this business segment was driven by the need to create a near term growth engine, to compensate for revenue shortfalls in the QMDI platform and to create an infrastructure for future growth. Overall revenue growth was 42% in 2003 over 2002. In 2003, Presstek hit a significant milestone in balancing its business mix as New Technology reached 52% of the company's overall product revenues. In 2002, New Technology was at 39% of overall product revenues. Other developments in this sector include sales traction with KPG, increased sales of Ryobi kits and presses. About 50 Dimension CTP systems were shipped in the fourth quarter. Lasertel Lasertel continued performance improvement with increased sales during the fourth quarter of $722K. Fourth quarter revenues have followed a positive trend upwards since the first quarter of 2003 when revenues were $275K. At year-end, Lasertel was generating positive operating cash. ProFire Excel Presstek's Marino repeated information from yesterday's press conference about the company's new product, ProFire Excel. ProFire a new laser-imaging platform designed to bring improved productivity, higher quality at a lower price. The ProFire is modular in design, thus allowing use in DI and CTP platforms. New Visual Beacon In recognition of the company's accomplishments over the last two years, Presstek announced a new brand/logo design that better describes the company's new image. Marino characterized the new brand and logo as a “visual beacon.” Q & A Fourth quarter revenues set the stage for Lasertel as 2004 expectations are for sustainable revenue levels and for a positive P & L by the end of 2004. EBITDA for the fourth quarter was $4.2 million, for the full year 2003 it was $16 million as compared to EBITDA for 2002 at $10.7 million (not including special charges). Depreciation and amortization expenses for the year were $8.9 million and should track about the same for 2004. Gross margins improved during the fourth quarter and GM levels are sustainable due to management improvements, increased run rates, Lasertel revenue increases and a lower cost of quality in the CTP business. Presstek's alliance with KPG is proceeding well, although far from hitting full stride. Both Presstek and Heidelberg were surprised and disappointed with the levels of inventory during 2003. Inventories were difficult to predict ahead of time because of Presstek's lack of visibility into Heidelberg. A return to traditional levels of purchasing is expected by the end of the second quarter of 2004. Presstek's relationship with Heidelberg has improved and on a different plane due to frequent visits and increased level of dialog. Consumer revenues per DI press were in the $27-28K range. Presstek cannot offer comment on the litigation on the Fuji product but has restated its confidence in the company's intellectual property position. Litigation expenses were not revealed, however, Presstek chose the German court system for the legal procedure due to speed and cost. The field performance of the Applause product is going well and Presstek is in the process of adding new customers. The company is building an inventory of the product in preparation for Drupa. The sales and marketing strategy for 2004 is to emphasize building capacity and capabilities in distribution channels. Presstek will not add significant sales resources during the year, but will focus on strengthening relationships with current partners. Geographic expansion will focus on the CTP line in Japan. Presstek is in a good position with the CTP line in North America and Europe. There are additional expansion opportunities in the Japanese market. Overall, Presstek has better performance in developed countries. Technological advancements with the new ProFire platform include a smaller spot size which enables greater resolution and an aggressive effort to integrate electronics. ProFire has also improved upon the DI plate consumables through control of the laser diode, laser assembly and overall medium. Presstek expects a wave a process-free plates to be announced at Drupa, however, the company has the superior product due to the fact that its product is fourth generation, the company has better control going into the design and its inventions are protected by intellectual property laws. Customer benefits of the new DI press include the reduced cost of ownership, and options that provide a higher level of automation.