Evans & Sutherland Reports Third Quarter 2009 Results

SALT LAKE CITY, UTAH, October 30, 2009, Evans & Sutherland Computer Corporation (E&S) (OTC: ESCC) today reported financial results in its Form 10-Q filing for the third quarter ended September 25, 2009.

Sales for the third quarter were $6.0 million, compared to sales of $8.0 million for the third quarter 2008. Net loss for the quarter was $1.3 million or $0.11 per share compared to a net loss for the third quarter 2008 of $1.1 million or $0.10 per share. Backlog as of September 25, 2009 was $16.3 million compared to backlog of $20.4 million as of December 31, 2008.

Comments from David H. Bateman, President and Chief Executive Officer: "The third quarter of 2009 reflected revenue and gross profit for our digital theater and dome products comparable to the second quarter of 2009. Although the revenue backlog decreased, bidding and selling activities for all of our products remain high with reasonable optimism for increasing orders for the remainder of 2009. Operating expenses for the third quarter of 2009, excluding pension expense, were reduced by 31% from the comparable period in 2008. We continue to closely monitor our business to determine the effects of the current unsettled global economic situation. We have seen some delays in customer plans along with some funding reductions. However, we also see signs of government stimulus spending aiding our sales prospects coupled with strong international demand for our products particularly in China and India. We continue to pursue actions in an effort to ensure we have sufficient financial capacity to sustain our business operations.

On October 19, 2009, we entered into a purchase and sale agreement for our facilities in Salt Lake City for a purchase price of $2.5 million. Conditions of the sale include E&S entering into a sublease whereby E&S will lease back the buildings for a term of five years as well as a repurchase option agreement granting E&S the right to purchase the buildings during the five years following closing. This transaction is expected to close in November and to be accounted for as a financing which will provide approximately $2.3 million of cash after transaction expense and a lease deposit. Additional information is contained in our third quarter Form 10-Q.

In June 2009, we introduced the first of our new laser projectors at the InfoComm exhibition. We are pursuing a number of follow up activities with potential customers and are scheduling visits and demonstrations with a goal of securing orders later this year. We continue to incorporate improved laser components which we expect will facilitate completion and acceptance of customer systems as well as achieving acceptances for previously delivered systems. For the remainder of 2009, we expect continuing profits from our digital theater and dome products, with orders and quarterly revenue improving during the rest of the year.

We remain positive about the potential of our digital theater business and our advanced display technology."

Statements in this press release which are not historical, including statements regarding E&S' or management's intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation except as required by law to update the forward-looking statements contained in this press release as a result of new information or future events or developments. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "should," "plan," "goal," "believe," "confident" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance together with the negative of such expressions. Among the factors that could cause actual results to differ materially are the following: the ability of the Company to successfully integrate the Spitz business; the ability to complete production models of its laser projectors without further delays or higher costs; the Company's ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; results of the Board's evaluation of alternatives available to enhance value for shareholders; and market and general economic conditions. A further list and description of these risks, uncertainties and other matters can be found in the Company's reports filed with the Securities and Exchange Commission.

Consolidated Statements of Operations (XLS)

# # #

Contact:
David H. Bateman
President and CEO
Evans & Sutherland
770 Komas Drive, Salt Lake City, UT 84108
801-588-1674

E&S is a registered trademark of Evans & Sutherland Computer Corporation.