SOUTH WINDSOR, CT, June 24, 2004 – Gerber Scientific (NYSE: GRB) today announced plans to move most of the operations of its Gerber Coburn plant in Muskogee, Okla., to other Gerber locations, mainly in Connecticut. The company expects to close the Muskogee plant by April 2005.

Gerber Coburn’s Muskogee plant currently employs approximately 130 people. Employees affected by the closing will be eligible for severance pay and other benefits, including assistance with preparations for finding new jobs, depending on individual circumstances. Gerber Coburn will be working with local employers and the city and county of Muskogee to identify job opportunities. A small number of employees is expected to relocate to the company’s operations in Connecticut.

The move is expected to result in charges of up to $3.4 million, which will generate approximately $1.3 million of savings this fiscal year and approximately $3.0 million of annual savings thereafter for Gerber Coburn. This action will enable the company to improve service to customers by leveraging Gerber Scientific Operations—the company’s shared services unit—and third-party service providers.

"The actions we are announcing today will significantly reduce costs, while enabling us to enhance customer service at Gerber Coburn," said Marc T. Giles, president and chief executive officer of Gerber Scientific. "Though actions of this kind are always difficult, our decision to close the Muskogee plant followed an intensive and thorough study. The economic and operational advantages of this move have been clearly established and the steps we are taking are in the long-term interests of customers, the company, and our shareholders."

John R. Hancock, president of Gerber Coburn, said, "This was a tough decision for both the company and me personally, having lived in Oklahoma and been involved with the plant for the past 10 years. But competitive pressures and the need to improve profitability simply cannot be denied."

Gerber Optical acquired Coburn Optical Industries in 1998, becoming Gerber Coburn, and a consolidation of the Muskogee facility was considered at that time. The decision was made instead to concentrate manufacturing for the optical business in Oklahoma. However, changing business conditions and a strategic initiative by Gerber to revamp its cost structure raised the question of the viability of the Oklahoma operation again.

The move at the Muskogee plant is consistent with a broad range of initiatives underway throughout the Gerber organization. Gerber Scientific recently completed the second year of a three-year turnaround plan aimed at reducing and refinancing its debt, improving operations at its Spandex unit, implementing company-wide shared services in its supply chain and financial operations, and establishing systematic processes for driving technological innovation throughout the Gerber organization.

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