X-Rite Reports Record First-Quarter Sales

20 April 2000

X-Rite Reports Record First-Quarter Sales

    GRANDVILLE, Mich.--April 20, 2000--X-Rite, Incorporated (Nasdaq:XRIT) announced its financial results for the first quarter ended April 1, 2000.
    The Grandville, Michigan-based manufacturer of quality control instruments reported first quarter net sales of $26.1 million, a 10.1 percent increase over last year's $23.7 million. Net income was reported at $3.6 million, 20.0 percent over last year's $3.0 million, and Earnings Per Share equaled 17 cents, a 21.4 percent increase from the 14 cents per share reported for the same period last year.
    X-Rite President and Chief Executive Officer Rich Cook said, "I am very pleased to announce our first-quarter results have met consensus analyst expectations. We are now experiencing double-digit growth on a consistent basis. For the last three quarters our quarter-over-quarter sales growth has been 10.7 percent, 11.8 percent, and this quarter a 10.1 percent increase. Certainly there will be many challenges in the future, but we are confident that our marketing and technological competencies will continue to deliver increasing value to our shareholders."
    "Our customer base is broadening across all product lines and geographical locations, with particular success this quarter in Asia. In May, X-Rite will participate in Drupa, the world's largest print and imaging tradeshow held every five years in Dusseldorf. This venue provides us with an international targeted audience to show our hardware and software solutions to make color management easier for our customers to implement and use. Through innovative products, aggressive marketing and strategic partnerships, X-Rite remains the premier color solution provider solving problems and exceeding customers expectations," Cook added.
    This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, due to a variety of factors, some of which may be beyond the control of the Company.
    X-Rite, Incorporated (Nasdaq:XRIT), headquartered in Michigan, along with Labsphere, its wholly owned New Hampshire subsidiary, maintains offices in Massachusetts, Germany, England, Hong Kong, the Czech Republic, France and Japan.
    X-Rite, Incorporated is the world's leading provider of technically sophisticated instrumentation and user-friendly software solutions for a wide variety of color-critical applications including corporate branding, medical diagnostics, consumer products and on-line commerce.



                   Consolidated Earnings Highlights
               (unaudited - $ in thousands except EPS)

Three-Months Ended   April 1,   Jan. 1,    Oct. 2,   July 3,  April 3,
------------------     2000      2000       1999      1999      1999
                       ----      ----       ----      ----      ----
Net Sales          $  26,134  $ 28,426   $ 23,764  $ 24,331  $ 23,688

Gross Profit          17,123    18,609     15,420    16,107    15,855

Gross Profit Percent    65.5      65.5       64.9      66.2      66.9

Operating Expense     11,864    12,301     10,807    11,151    11,479

Other Income             233       234        181       181       231

Pre-Tax Income         5,492     6,542      4,794     5,137     4,607

Net Income          $  3,556  $  4,236    $ 3,104   $ 3,326   $ 2,983

Earnings Per Share
 Basic              $   0.17  $   0.20    $   .15   $   .16   $   .14
 Diluted            $   0.17  $   0.19    $   .14   $   .15   $   .14

Avg. Number of Shares
Outstanding (000)
       Basic          20,997    20,982     20,952    20,943    20,930
       Diluted        21,032    22,385     22,111    22,107    21,852