HUDSON, N.H., Presstek, Inc. (Nasdaq: PRST), a leading provider of direct digital imaging technologies to the printing and publishing industry, today reported third quarter earnings of $.05 per basic and diluted share. Net income rose to $1.7 million or $.05 per basic and diluted share in the third quarter of 2000, compared to a net loss of $12.8 million or $.40 per basic and diluted share (including a loss from discontinued operations of $11.1 million or $.34 per basic and diluted share) for the third quarter of 1999. Revenues from continuing operations for the third quarter of 2000 were $22.0 million, up 56% from $14.2 million for the same period last year. "After four consecutive positive quarters, we believe we are well- positioned to capitalize on the rapid growth opportunities being independently projected for DI technology", said President and Chief Executive Officer Robert Hallman. Revenues from continuing operations for the nine months ended September 30, 2000 were $62.3 million, up 64% from $37.9 million for the corresponding period in 1999. Net income for the nine months ended September 30, 2000 increased to $2.6 million or $.08 per basic and diluted share, versus a loss of $18.8 million or $.58 per basic and diluted share (including a loss from discontinued operations of $10.9 million or $.34 per basic and diluted share) in the same period a year ago. Total plate media revenues rose 26% in the third quarter of 2000 to $11.6 million, compared to $9.3 million in the third quarter of 1999. Revenues from equipment sales to Heidelberger Druckmaschinen, A.G. for the third quarter 2000 were $8.3 million, compared to $1.1 million in the third quarter of 1999. Total Heidelberg revenues were $13.5 million and $5.0 million, respectively. Hallman continued, "Drupa2000 and GraphExpo2000 demonstrated the widespread adoption of direct imaging on-press technology, which was further confirmed by the recent announcements of our partnerships with Ryobi and Xerox Corporation. The entry of Xerox into the ink-on-paper arena with the internal cylinder designed DocuColor DI series of presses is expected to expand the short run color market to which DI contributes a high level of value." "We are encouraged by the response to the recent commercial releases of our new Dimension platesetter series and Anthem plate," said Hallman. "These new products represent an area of exciting revenue potential. The Dimension, using the same ProFire DI technology used in our DI presses, in combination with the chemistry-free, highly consistent Anthem plate provide a unique opportunity in the expanding computer-to-plate market. Initial shipments of Dimension and Anthem commenced in the third quarter of 2000, and we expect volume increases in the fourth quarter and beyond." Looking forward to the fourth quarter of 2000, the company anticipates continued sequential revenue and earnings growth, subject to the risks set forth below. The company is presently focused on meeting the production challenges that come with these projected additional revenues. In addition, due to the increased industry acceptance of Presstek's technology, there is potential for accelerated revenue growth in the fourth quarter of 2000. There is uncertainty about the precise level of Docucolor 400 DI units that will ship in that quarter, but the company believes that any units not shipped in the fourth quarter will be shipped in the first quarter of 2001. Looking ahead to 2001, the company projects that first quarter 2001 revenues will be in the same range as fourth quarter 2000. Overall, the company anticipates 2001 revenues to increase by more than 50% over fiscal 2000 revenues, with strongest growth in the second half of the year.