---

IMTEC, Inc. Announces First Quarter Results

29 October 1998

IMTEC, Inc. Announces First Quarter Results

    BELLOWS FALLS, Vt., Oct. 29 -- Imtec, Inc.
announced its First Quarter results of operations for Fiscal 1999, as of
September 30, 1998.
    The Company reported that net income fell by 43% in the first quarter over
a year ago to $114,447 or $.07 per share.  Sales increased by 9% to
$2,849,387.
    "Planned expansion of our sales and marketing and manufacturing
infrastructure detracted from our net income for the quarter.  The investments
yielded expected results.  Sales established a new record high for the First
Quarter.  The company achieved all-time record high bookings for the quarter,"
stated Rich Kalich, President and CEO.  "With the additional capital equipment
and staffing investments, we are well positioned to handle our growing
business."
    Imtec designs, manufactures, and sells high performance bar code labels
and labeling systems used in Auto ID applications

             Financial Data (in thousands, except per share data)

    For the three months ended  September 30, 1998   September 30, 1997
    Sales                          $2,849                  $2,620
    Net Income                        114                     201
    EPS                              $.07                    $.12