Evans & Sutherland Reports Second Quarter 2009 Results

SALT LAKE CITY, UTAH, July 30, 2009, Evans & Sutherland Computer Corporation (E&S) (OTC: ESCC) today reported financial results in its Form 10-Q filing for the second quarter ended June 26, 2009.

Sales for the second quarter were $6.1 million, compared to sales of $9.8 million for the second quarter 2008. Net loss for the quarter was $2.3 million or $0.21 per share compared to a net loss for the second quarter 2008 of $1.4 million or $0.13 per share. Backlog as of June 26, 2009 was $17.5 million compared to backlog of $20.4 million as of December 31, 2008.

The Company will conduct a teleconference to discuss its 2009 second quarter results beginning at 11 AM, EDT, Friday, July 31, 2009. The call is being webcast by Vcall and can be accessed at Evans & Sutherland's website at www.es.com or Investors can also access the webcast at www.InvestorCalendar.com. Live participant dial in for analysts and institutional investors is 877-407-8031 (Domestic) and 201-689-8031 (International). The webcast will be available for replay through August 14, 2009 at 877-660-6853 (Domestic) and 201-612-7415 (International) using Account: 286 and Conference ID: 329108.

Comments from David H. Bateman, President and Chief Executive Officer: "The second quarter of 2009 reflected a modest improvement in revenue and gross profit for our digital theater and dome products compared to the first 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 second quarter of 2009, excluding pension expense, were reduced by 24% 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 through 2009.

In June 2009, we introduced the first of our new laser projectors at the InfoComm exhibition. We had a very positive reaction to this new projector along with the stunning 3D content displayed by the projector. We have a number of follow up actions 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 for the success of the business in 2009 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.