For the fiscal year ended April 30, 2005, the Company reported a loss of $5.6 million, or $0.25 per diluted share, on revenue of $517.3 million compared with earnings of $5.5 million, or $0.25 per diluted share, on revenue of $516.8 million for the year ended April 30, 2004.

Included in the operating results for the three and twelve months ended April 30, 2005 were pre-tax charges amounting to $5.6 million ($0.16 per diluted share) and $10.5 million ($0.31 per diluted share), respectively, representing inventory write-downs associated with Gerber Coburn and Spandex business re-engineering initiatives, product discontinuation costs, and other adjustments. Also included in the operating results for the three and twelve months ended April 30, 2005 were external Sarbanes-Oxley compliance costs of $2.3 million ($.07 per diluted share) and $3.4 million ($0.10 per diluted share), respectively. Included in the operating results for the three and twelve month periods ended April 30, 2004 were pre-tax charges amounting to $0.9 million ($0.03 per diluted share) and $1.4 million ($0.04 per diluted share), respectively, representing inventory write-downs associated with business re-engineering initiatives.

Foreign currency translation had the effect of increasing revenue by approximately $5.1 million and $20.3 million in the fiscal 2005 fourth quarter and full year, respectively, over the fiscal 2004 comparable periods.

Gerber Scientific president and chief executive officer, Marc T. Giles, said: "The fundamental drivers of our business were in line with our expectations for the fourth quarter. Orders, revenue, and backlog were the highest for the fiscal year. New product introductions, including the GERBER EDGE FX and GERBER SOLARA in the Sign Making and Specialty Graphics segment and the DTL Generator in the Ophthalmic Lens Processing segment, contributed to the increases. During the fourth quarter, our operating results were adversely affected by significant costs primarily associated with Sarbanes-Oxley compliance, a product discontinuation in the Sign Making and Specialty Graphics segment, and inventory write-downs related to Gerber Coburn and Spandex business re-engineering. While elements of our turnaround strategy resulted in substantial charges in fiscal 2005, we finished the consolidation of our manufacturing operations and the implementation of SAP throughout most of the Company in the year. We anticipate that these achievements and further business process improvements will result in operating leverage as traction for our new products develops."

The Company had total debt of $45.7 million at April 30, 2005 compared with total debt of $45.2 million at January 31, 2005. Within this overall debt level, the Company reduced its higher cost term debt by almost half, from $18.5 million at January 31, 2005 to $10.3 million at April 30, 2005. Based on the fourth quarter operating results and a scheduled tightening of financial covenant compliance requirements under the Company's revolving credit and term loan agreements, the Company was not in compliance with certain financial covenants in those agreements at April 30, 2005. On June 21, 2005, the lenders under the revolving credit and term loan agreements waived compliance with those covenants at April 30, 2005. The Company is currently in discussions with its lenders to amend its credit agreements going forward, which it expects to complete in the near term. The Company believes that borrowings under its revolving credit facility, operating cash flows, and cash on hand will be sufficient to support its near term working capital and other cash requirements.

For additional information, including segment and order entry information, please see our annual report on Form 10-K for the year ended April 30, 2005, to be filed with the Securities and Exchange Commission.

Forward-looking Statements:

Statements contained in this news release regarding the Company's expected financial condition, revenue, cash flow, operating results, restructuring and other charges, cost savings, operational efficiencies, debt reduction, other potential benefits of its turnaround initiatives, business strategy and other planned events and expectations are forward-looking statements that involve risks and uncertainties. Actual future results or events may differ materially from these forward-looking statements. Readers are referred to the documents filed by the Company with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the fiscal year ended April 30, 2004 and subsequently filed quarterly and current reports, for a discussion of important risks that could cause actual results to differ from those contained or implied in the forward-looking statements. These risks include, but are not limited to, delays in the Company's new product development and commercialization, intense competition in markets for each of the Company's operating segments that could affect the Company's pricing decisions and the timing of product introductions, any failure by the Company to implement its restructuring plan successfully, rapid technological advances that could cause the Company's inventory to exceed its needs or become obsolete, the Company's reliance on manufacturers or suppliers to supply inventory to the Company's specifications in a timely and cost effective manner, non-recurring orders from significant customers, delays caused by facility relocations, the elimination of apparel trade quotas, fluctuations in currency exchange rates and international economic conditions that could cause the Company's financial results to be volatile, product liability claims, regulatory changes that could increase costs, the Company's indebtedness, compliance with financial covenants associated with the Company's primary credit agreements, any failure to enhance and diversify Sign Making and Specialty Graphics segment product lines, a potential loss of market focus as the Company seeks to improve operating efficiencies, and the Company's increased focus on larger wholesale optical laboratories. The Company expressly disclaims any obligation to update any of these forward-looking statements.