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IMTEC, Inc. Announces Earnings and Sales Increases for Third Quarter

26 April 1999

IMTEC, Inc. Announces Earnings and Sales Increases for Third Quarter

    BELLOWS FALLS, Vt., April 26 -- Imtec, Inc.
announced its Third Quarter results of operations for Fiscal 1999, as of
March 31, 1999.
    Steve Anton, newly appointed President and CEO, declared, "the third
quarter shows across the board improvements over the third quarter of 1998 and
continued revenue growth on a year-to-date basis.  For the quarter, revenue
was $3,737,000, earnings were $274,000 and earnings per share were
$0.17 -- showing increases of 17.3%, 18.3%, and 21.4% respectively over the
third quarter of last year.  For the fiscal year to date, revenue is up
15.8% to $9,949,000, while earnings of $612,000, or $0.37 per share, lag the
prior year by 5.8% and 7.5%, respectively."
    Anton further commented, "fiscal year-to-date earnings trail 1998
primarily as a result of previously reported first quarter investments in
sales, marketing, and manufacturing.  However, these investments have
contributed to the performance gains in the second and third quarters and are
expected to provide a solid platform for future growth."
    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          March 31, 1999       March 31, 1998
      Sales                                 $3,737                $3,185
      Net Income                               274                   231
      Diluted EPS                            $0.17                 $0.14

    For the nine months ended           March 31, 1999       March 31, 1998
      Sales                                 $9,949                $8,589
      Net Income                               612                   649
      Diluted EPS                            $0.37                 $0.40



      Balance Sheet Summary             March 31, 1999        June 30, 1998
      Current Assets                        $5,292                $4,776
      Total Assets                          $9,376                $8,354
      Current Liabilities                   $2,331                $1,726
      Shareholders Equity                   $6,672                $6,053