Presstek Reports Record Consumable Sales in the Second Quarter 2004

Presstek Reports Record Consumable Sales in the Second Quarter
2004
Company Enters Third Quarter with Strong Equipment Backlog 


HUDSON, N.H., July 29  /PRNewswire-FirstCall/ -- Presstek, Inc. (NASDAQ: PRST),
a leading provider of direct digital imaging technology, today announced
financial results for the second quarter ended July 3, 2004.

Presstek's President and Chief Executive Officer Edward J. Marino said, "This
is the eighth consecutive profitable quarter for the company, with strong cash
flows. Growth of 66% in our New Technology consumable products from the same
period last year drove consumable sales to record levels at $14.1 million. In
addition, the company has a very healthy equipment backlog of approximately
$11.0 million, $9.0 million of which is shippable in the third quarter of 2004.
This is the highest equipment backlog Presstek has had since the start of our
transformation more than two years ago."

Marino continued, "Framing the second quarter results were investments in the
company's future through additional Drupa-related marketing and product
development expenses. In addition, we also experienced the traditional
reduction in customer equipment spending in advance of the Drupa trade show.
Viewed in light of the above, we are very pleased with the quarter's results."

The company reported consolidated net income for the second quarter of 2004 of
$1.4 million, or $0.04 per basic and diluted share, compared to consolidated
net income of $1.8 million, or $0.05 per basic and diluted share, for the
corresponding period in the prior year, and consolidated net income of $1.9
million, or $0.06 per basic and $0.05 per diluted share, in the first quarter
of 2004. As planned, second quarter 2004 consolidated net income included
expenses of $450,000 related to the Drupa trade show held in May. Second
quarter 2003 net income included special charges of $550,000 related to the
company's workforce reduction in April 2003.

The company reported consolidated revenue of $22.7 million in the second
quarter of 2004, compared to $22.5 million in the same period a year ago, and
$23.3 million in the first quarter of 2004. Consumable revenue for the second
quarter of 2004 was a record $14.1 million, compared to $13.6 million in the
corresponding period in the prior year, and $13.0 million in the first quarter
of 2004. Equipment revenue for the second quarter of 2004 totaled $8.1 million,
compared to $8.0 million in the same period a year ago, and $9.7 million in the
previous quarter.

Chief Financial Officer Moosa E. Moosa said, "As expected, revenue from
Presstek's New Technology Business, which consists of all business other than
the Quickmaster DI platform products, was down slightly from the first quarter
of 2004 as the result of the traditional pre-Drupa slowdown in equipment
spending, but up 15% from the corresponding quarter in the prior year. New
Technology equipment revenue for the second quarter of 2004 was down 3%
compared to the same period last year, and down 19% from the prior quarter. The
pre-Drupa slowdown did not affect New Technology consumable revenue, however,
which was up significantly at 66% compared to the same period last year, and up
14% compared to the first quarter of 2004."

Moosa continued, "The company furthered its objectives at its Lasertel
subsidiary in the second quarter of 2004 by increasing external sales, growing
its customer base and by narrowing its operating loss."

Lasertel recorded $573,000 in revenue from sales to external commercial
customers in the second quarter of 2004, up from $328,000 in the second quarter
of 2003, and up from $540,000 in the previous quarter. The company reported an
operating loss of $944,000 at Lasertel in the second quarter of 2004, compared
to an operating loss of $1.2 million in the same period a year ago, and an
operating loss of $1.4 million in the first quarter of 2004. The operating loss
for the same period last year included $79,000 in special charges related to
the workforce reduction in April 2003.

Consolidated gross margins for the second quarter of 2004 were 40%, compared to
43% in the second quarter of 2003, and 38% in the first quarter of 2004. This
was primarily the result of product mix and increased contributions from
Lasertel.

Operating expenses (being the sum of research & development and sales, general
& administrative expenses) were $7.6 million in the second quarter of 2004, up
from $7.2 million in the same period last year, and $7.1 million in the first
quarter of 2004. The current quarter includes the $450,000 expense related to
the Drupa trade show.

Commenting on the balance sheet, Moosa said, "Our cash position continues to be
very strong, ending the year at $34.2 million. The company generated $3.6
million in cash from earnings and depreciation & amortization in the second
quarter of 2004. Total debt at the end of the quarter was down $536,000 from
the previous quarter."

Marino concluded, "As we have described in the past, Presstek has put all of
the elements in place for the next phase of our transformation. We believe the
company will begin to show both organic and strategic growth in the second half
of 2004. Our business fundamentals are sound and our strong backlog gives us a
good platform for organic growth in our core businesses. With our pending
acquisition of Precision Lithograining and our proposed acquisition of
A.B.Dick, we are preparing to expand the company's served markets and business
prospects through strategic growth. Presstek's management team is ready for
these changes and looks forward to the next several quarters with
anticipation."

Conference Call

Presstek's second quarter conference call is scheduled to take place at 11:00
a.m. (Eastern) on Thursday, July 29, 2004. In the call, the company intends to
discuss its financial results, quarterly highlights and current expectations of
future performance, as well as the company's acquisition strategy.

To participate in the call, dial [phone], access code 50411985. To
listen to a live web cast of the call, click on http://phx.corporate-/
ir.net/phoenix.zhtml?c=72101&p=IROL-eventDetails&EventId=918805 or visit the
Events Calendar in the Investor section of Presstek's website,
http://www.presstek.com/, fifteen minutes prior to start time. The webcast will
be archived and available for replay until midnight on August 5, 2004. You may
also listen to a telephone replay of the call from 1:00 p.m. on July 29, 2004
until midnight on August 5, 2004, by dialing [phone], access code
34771751.

Presstek, Inc. is a leading manufacturer and marketer of environmentally
responsible high tech digital imaging solutions to the graphic arts and laser
imaging markets. Presstek's patented DI(R), CTP and plate products provide a
streamlined workflow and eliminate photographic darkrooms, film and toxic
processing chemicals, thereby reducing printing cycle time and lowering
production costs. Presstek solutions are designed to make it easier for
printers to cost effectively meet increasing customer demand for shorter print
runs and faster turnaround while providing improved profit margins. The
company's subsidiary, Lasertel, Inc., supplies Presstek and external customers
with the valuable laser diodes necessary for laser imaging applications. For
more information on Presstek, visit http://www.presstek.com/, call 603-595-7000
or email: .

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Certain statements contained in this News Release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding the expected
organic and strategic growth; the expected expansion of its served markets; the
expected effects and benefits of its product backlog; the expected effects and
benefits of the next phase of its transformation; the expected effects and
benefits of its new product introductions; the expected effects and benefits of
the Company's pending and proposed acquisitions of Precision Lithograining and
A.B.Dick Company, if successful; the Company's expectations regarding the sale
of products in general; the ability of the Company to achieve its stated
objectives; the strength of the Company's relationships with its partners (both
on manufacturing and distribution); expectations for the Company's Lasertel
subsidiary including its ability to improve results and develop additional
external commercial customers for its products; and expectations regarding
future growth and profitability. Such forward-looking statements involve a
number of known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
but are not limited to, negative reactions to the pending and proposed
acquisitions from customers and partners; the ability to achieve the intended
benefit of the pending and proposed acquisitions; the ability to successfully
integrate the acquired Companies; the ability of Presstek to maintain its
financing; the ability of Presstek to meet its stated financial objectives,
including its ability to manage the acquisitions successfully; the ability of
A.B.Dick to maintain sufficient debtor-in-possession financing to fund its
operation and the expenses of the Chapter 11 process; the outcome and timing of
the Companies efforts to close definitive agreements; the Companies' ability to
obtain court approval with respect to motions in the Chapter 11 proceeding; the
ability of A.B.Dick to obtain and maintain normal terms with its vendors and
dealers; the ability of A.B.Dick to maintain contracts that are critical to its
operations; the potential adverse impact of the Chapter 11 proceeding on
A.B.Dick's liquidity or results of operations; the ability of A.B.Dick to
attract, motivate and/or retain key executives and employees; the ability of
A.B.Dick to attract and retain vendors and customers; Presstek's dependency on
its strategic partners (both on manufacturing and distribution); the
introduction of competitive products into the marketplace; shortages of
critical or sole-source component supplies; the availability and quality of
Lasertel's laser diodes; manufacturing constraints or difficulties (as well as
manufacturing difficulties experienced by our sub-manufacturing partners and
their capacity constraints); the impact of general market factors in the print
industry generally and the economy as a whole; market acceptance of and demand
for Presstek's products and resulting revenues; and other risks detailed in
Presstek's Annual Report on Form 10-K and Presstek's other reports on file with
the Securities and Exchange Commission. The words "looking forward," "looking
ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "likely,"
"opportunity," and similar expressions, among others, identify forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date the statement was
made. Presstek undertakes no obligation to update any forward- looking
statements contained in this news release.

  CONTACTS:
   Moosa E. Moosa
   Chief Financial Officer
   [phone]

   Jane Miller
   Corporate Relations Manager
   [phone] ext. 3346
   Email: 


                              PRESSTEK, INC.
                         STATEMENTS OF OPERATIONS
                        FOR THE THREE MONTHS ENDED
                  (In thousands, except per share data)
                                (unaudited)

                                                    July 3,       June 28,
                                                     2004           2003
  REVENUE:
   Product sales                                   $22,585        $22,043
   Royalties and fees from licensees                   112            476
    Total revenue                                   22,697         22,519

  COSTS AND EXPENSES:
   Cost of products sold                            13,553         12,890
   Research and product development                  1,645          1,874
   Selling, general and administrative               5,991          5,281
   Special charges                                       -            550
    Total costs and expenses                        21,189         20,595

  INCOME FROM OPERATIONS                             1,508          1,924

  INTEREST, NET                                       (61)           (99)

  INCOME FROM OPERATIONS BEFORE INCOME TAXES         1,447          1,825
  PROVISION FOR INCOME TAXES                             -              -
  NET INCOME                                        $1,447         $1,825

  EARNINGS PER SHARE - BASIC                         $0.04          $0.05

  EARNINGS PER SHARE - DILUTED                       $0.04          $0.05

  WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING - BASIC                              34,438         34,156
  WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING - DILUTED                            35,364         34,283


                              PRESSTEK, INC.
                         STATEMENTS OF OPERATIONS
                         FOR THE SIX MONTHS ENDED
                  (In thousands, except per share data)
                                (unaudited)

                                                    July 3,       June 28,
                                                     2004           2003
  REVENUE:
   Product sales                                   $45,698        $43,332
   Royalties and fees from licensees                   313          1,629
    Total revenue                                   46,011         44,961

  COSTS AND EXPENSES:
   Cost of products sold                            28,085         25,842
   Research and product development                  3,321          3,824
   Selling, general and administrative              11,397         10,879
   Special charges                                   (296)            550
    Total costs and expenses                        42,507         41,095

  INCOME FROM OPERATIONS                             3,504          3,866

  INTEREST, NET                                      (158)          (251)

  INCOME FROM OPERATIONS BEFORE INCOME TAXES         3,346          3,615
  PROVISION FOR INCOME TAXES                             -              -
  NET INCOME                                        $3,346         $3,615

  EARNINGS PER SHARE - BASIC                         $0.10          $0.11

  EARNINGS PER SHARE - DILUTED                       $0.09          $0.11

  WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING - BASIC                              34,352         34,149
  WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING - DILUTED                            35,258         34,211


                              PRESSTEK, INC.
                              BALANCE SHEETS
                              (In thousands)
                                                   July 3,      January 3,
                                                    2004           2004
                                                (unaudited)
  ASSETS

  CURRENT ASSETS:
   Cash and cash equivalents                       $34,194        $28,196
   Accounts receivable, net                         16,051         14,922
   Inventories                                      13,007         12,354
   Other current assets                              2,557          1,064
    Total current assets                            65,809         56,536

  PROPERTY, PLANT AND EQUIPMENT, NET                42,418         45,732

  OTHER ASSETS, NET                                  4,397          4,260

  TOTAL ASSETS                                   $ 112,624       $106,528

  LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
   Current portion of long-term debt                $2,143         $2,143
   Accounts payable                                  6,725          4,750
   Accrued expenses                                  6,175          7,131
    Total current liabilities                       15,043         14,024

  LONG-TERM DEBT, NET OF CURRENT PORTION            11,250         12,321

  STOCKHOLDERS' EQUITY:
   Common stock                                        346            342
   Additional paid-in capital                      100,567         97,769
   Comprehensive loss                                 (47)           (47)
   Accumulated deficit                            (14,535)       (17,881)
    Total stockholders' equity                      86,331         80,183

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $ 112,624       $106,528


DATASOURCE: Presstek, Inc.



CONTACT: Moosa E. Moosa, Chief Financial Officer, [phone], or

Jane Miller, Corporate Relations Manager, [phone] ext. 3346,

, both of Presstek, Inc.



Web site:  http://www.presstek.com/

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