Evans & Sutherland Reports First Quarter 2008 Results

SALT LAKE CITY, UTAH, May 6, 2008, Evans & Sutherland Computer Corporation (E&S) (NASDAQ: ESCC) today reported financial results in its Form 10-Q filing for the first quarter ended March 28, 2008.

Sales for the first quarter were $8.2 million, compared to sales of $4.4 million for the first quarter 2007. Net loss from continuing operations for the quarter was $1.2 million or $0.10 per share compared to a net loss from continuing operations for the first quarter 2007 of $2.9 million or $0.26 per share. Backlog as of March 28, 2008 was $27.9 million compared to backlog of $28.5 million as of December 31, 2007.

Comments from David H. Bateman, President and Chief Executive Officer: "The first quarter of 2008 continued the positive progress for E&S. In 2007 we began to see the benefits from successful realization of the planned synergies of Spitz activities with our digital theater activities. We see this synergy continuing to show improved performance throughout 2008. We continued to make significant progress in our advanced display development efforts with the implementation of improvements in our laser projector product and we expect to achieve additional customer acceptances for our Digistar 3 Laser systems in coming quarters.

Results for the first quarter were improved over the first quarter in 2007 and generally followed the results we had in the fourth quarter of 2007. Throughout the rest of 2008, we expect increased revenues, improved operating efficiencies, and increased new orders. We continue to incorporate improved laser components which we expect will facilitate completion and acceptance of our undelivered customer systems as well as achieving acceptances for previously delivered systems. The incorporation of these improvements in new systems is underway and retrofits of existing systems are expected soon. As anticipated, operating expenses increased from the fourth quarter of 2007 to the first quarter of 2008 due to additional expenses associated with a new development agreement as well as the timing of some other general expenses. As a result, our loss for the first quarter of 2008 was somewhat more than the loss reported for the fourth quarter of 2007.

For 2008 as a whole, we expect continuing profit growth from our digital theater and dome products, with orders and revenue remaining strong and operating efficiencies improving further. In advanced display product development, we will continue the positive efforts we have underway to further improve our current products as well as significantly advance the development of new laser based products for both current and new markets. These steps will bring us closer to realizing the benefits of our considerable investment in laser display technology and products.

With the continuing positive trends we are experiencing in all areas of our business, we expect further significant improvements in financial performance over the course of 2008 and beyond."

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)

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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.