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General Scanning Announces Preliminary Q4 and Year Results

9 February 1999

General Scanning Announces Preliminary Fourth Quarter and Year Results

    WATERTOWN, Mass., Feb. 9 -- General Scanning Inc.
today announced preliminary, unaudited results for the fourth
quarter and year ended December 31, 1998.
    For the three months ended December 31, 1998, General Scanning's sales
were approximately $40 million.  Income from operations was approximately
$1 million, before restructuring charges of approximately $1.9 million, as
previously announced in November.  Including the restructuring charges and
merger-related expenses of approximately $900 thousand, net loss after tax was
approximately $1 million.
    For the year ended December 31, 1998, General Scanning's sales totaled
approximately $181 million.  Income from operations was approximately
$6 million, excluding restructuring, litigation and other charges previously
disclosed.  Including restructuring, litigation and other charges and merger-
related expenses, net loss after tax was approximately $2 million.
    Backlog at December 31, 1998 was approximately $30 million compared to
$44 million at December 31, 1997 and $35 million at the end of the third
quarter of 1998.  The decline in backlog is related to previously disclosed
slowdown in systems sales into the semiconductor and electronics markets,
particularly Asia.
    To the extent this news release discusses financial projections,
information or expectations about General Scanning's products or markets, or
otherwise makes statements about the future, such statements are forward
looking and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from the statements made.  These
factors include the fact that the Company's sales have been, and are expected
to continue to be, dependent upon customer capital equipment expenditures
which are, in turn, affected by business cycles in the markets served by those
customers. Other factors include continued volatility in the semiconductor
industry, the risk of order delays and cancellations, the risk of delays by
customers in introducing their new products and market acceptance of products
incorporating subsystems supplied by the Company, similar risks to the Company
in delays in its new product introductions and market acceptance of new
products, and other risks detailed in the Company's Annual Report on Form 10-K
with respect to the 1997 fiscal year and the Quarterly Report on Form 1O-Q
with respect to the fiscal third quarter 1998.
    General Scanning Inc., headquartered in Watertown, Massachusetts, develops
and manufactures a broad line of laser systems for a wide range of
applications in the medical, semiconductor, electronics and aircraft
industries.  In addition, the Company produces a line of laser subsystems and
components which are used in the Company's own systems as well as sold to
other manufacturers of laser systems. General Scanning also designs and
manufactures under ISO 9001 certification a line of thermal printers for
leading medical instrument companies.
    A conference call is scheduled for 5 p.m. Eastern time, today, Tuesday,
February 9, 1999.  To participate, call 1-800-621-5346 no later than 4:55 p.m.
Eastern time and identify yourself to the operator.