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<TITLE>FORM 8-K</TITLE>
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<TR><TD VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
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<TR><TD VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
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<TR><TD VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
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<P ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE COMMISSION</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P ALIGN="CENTER">WASHINGTON, D.C.  20549</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P ALIGN="CENTER">FORM 8-K</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P ALIGN="CENTER">CURRENT REPORT</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P ALIGN="CENTER">PURSUANT TO SECTION 13 OR 15 (d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P ALIGN="CENTER">Date of Report (Date of earliest event reported):  (August 28, 2002)</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<U><P ALIGN="CENTER">GERBER SCIENTIFIC, INC.</U><BR>
(Exact name of Registrant as specified in its charter)</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<U><P ALIGN="CENTER">CONNECTICUT</U></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=4>
<U><P ALIGN="CENTER">1-5865</U></TD>
<TD WIDTH="25%" VALIGN="TOP">
<U><P ALIGN="CENTER">06-0640743</U></TD>
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<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(State or other jurisdiction of incorporation or organization)</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="CENTER">(Commission File No.)</TD>
<TD WIDTH="25%" VALIGN="TOP">
<P>(I.R.S. Employer Identification No.)</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
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<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<U><P ALIGN="CENTER">83 Gerber Road West, South Windsor, Connecticut</U></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="CENTER">06074</U></TD>
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<P ALIGN="CENTER">(Address of principal executive offices)</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(Zip Code)</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P>Registrant's Telephone Number, including area code:</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="CENTER">(860-644-1551)</U></TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<U><P ALIGN="CENTER">Not Applicable</U></TD>
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<P ALIGN="CENTER">(Former name or former address, if changes since last report)</TD>
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<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<B><P>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events and Regulation FD Disclosure</P>
</B>
<P>See the following press release, dated August 28, 2002, announcing the Company's fourth quarter and fiscal year end results:</P>

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<P>For Immediate Release</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="RIGHT">Contact:  Shawn M. Harrington</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>August 28, 2002</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="RIGHT">(860) 644-1551</TD>
</TR>
</TABLE>


<B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. REPORTS FISCAL FOURTH-QUARTER</P>
<P ALIGN="CENTER">AND FULL-YEAR 2002 RESULTS</P>
<U><P ALIGN="CENTER"></P>
</B></U><I><P ALIGN="CENTER">Company Completes Independent Review of Its Financial Statements</P>
</I><U><P ALIGN="JUSTIFY"></P>
</U><B><P ALIGN="JUSTIFY">SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) </B>today reported a fourth-quarter loss of 19 cents per diluted share in the fiscal period ended April 30, 2002, compared with a year-ago loss of 82 cents per diluted share.  Excluding charges in the current quarter, and year-ago charges and goodwill amortization, fiscal fourth-quarter earnings were 17 cents per diluted share, compared with earnings of 10 cents per diluted share a year ago.  <B>Note:  All prior period comparisons embodied in this release are made "as restated."  </P>
</B><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the full fiscal year, Gerber Scientific reported a loss of $5.42 per diluted share, compared with a loss of $1.06 per diluted share a year ago.  Adjusting the results of both years for restructuring and other charges, and excluding the effect of the company's adoption of Statement of Financial Accounting Standards (SFAS) No. 142 in fiscal year 2002, full-year earnings were 31 cents per diluted share, compared with earnings of 27 cents per diluted share a year ago.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The company also stated that it completed its previously announced review of its financial reporting under the direction of the Audit and Finance Committee of the company's board of directors.  As a result, Gerber Scientific has filed with the U.S. Securities and Exchange Commission (SEC) its annual report on Form 10K, which includes a restatement of prior annual financial statements.  The cumulative impact of the restatement on shareholders' equity as of January 31, 2002, the last period reported, amounted to a decrease of approximately $1.5 million.  The company said that it is continuing to cooperate fully with the SEC as it works to complete its investigation.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the fiscal year ended April 30, 2000, Gerber Scientific reported restated earnings of $1.15 per diluted share, versus $1.16 per diluted share as previously reported; for the fiscal year ended April 30, 2001, the company reported a restated loss of $1.06 per diluted share, versus a loss of $1.07 as previously reported.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">"While it's been a difficult year for Gerber Scientific, we are taking aggressive and constructive actions to get this outstanding company back on track," said Marc T. Giles, president and chief executive officer of Gerber Scientific, Inc.  "Our results adjusted for the effects of the charges and the change in accounting for goodwill speak to the progress we are making, which included a reduction in our debt of $42.0 million in fiscal 2002, as well as a marked improvement in the combined profitability of our operating segments, despite continued volume declines.  Driven by a dramatic performance improvement in our Apparel &amp; Flexible Materials segment, fiscal year 2002 total segment profit increased by $7.1 million, or 24%, to $36.7 million in spite of a 10% decline in revenue when compared with fiscal year 2001 after adjusting for charges and the adoption of SFAS No. 142."</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">"Though there are still no clear signs of a recovery in capital spending, we firmly believe in the fundamental strengths of our core markets.  The decline in sales of our capital equipment products appears to have stabilized, overall economic indicators seem to be improving and foreign<FONT COLOR="#ff0000"> </FONT>exchange rates are currently more favorable.  By implementing our planned shared services initiatives to optimize our supply chain and improve the efficiency of various support functions, we remain committed to executing our near-term strategy of leveraging our cost structure to generate solid operating results and cash flows going forward," said Giles.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Fiscal Fourth-Quarter Results</P>
</B></U><P ALIGN="JUSTIFY">In the fiscal fourth quarter ended April 30, 2002, the company reported a loss of 19 cents per diluted share, compared with a loss of 82 cents per diluted share a year ago.  The loss in the current year included inventory write-downs and other charges of 36 cents per share, related primarily to the Sign Making &amp; Specialty Graphics segment.  The year-ago loss included restructuring and other charges of 82 cents per diluted share and goodwill amortization of 9 cents per share.  Adjusted for current and year-ago charges, and the amortization of goodwill last year, earnings in the current quarter were 17 cents per diluted share, compared with earnings of 10<FONT COLOR="#ff0000"> </FONT>cents per diluted share a year ago.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Fourth-quarter revenue was $126.7 million, compared with $138.7 million a year ago.  The impact of foreign exchange suppressed revenue by $1.2 million in the quarter, compared with the year-ago period.  New orders in the fourth quarter totaled $125.8 million, versus $137.3 million a year ago.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Cost Reduction Actions Show Results</P>
</B></U><P ALIGN="JUSTIFY">While revenue in the Sign Making &amp; Specialty Graphics and Apparel &amp; Flexible Materials segments continues to be affected by softness in demand for industrial capital equipment and continued weakness in apparel markets, the company implemented aggressive cost-reduction programs and shared services initiatives, which have resulted in improved profitability.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In the Sign Making &amp; Specialty Graphics segment, the company reported 2002 fourth quarter revenue of $65.3 million, versus revenue of $70.4 million a year ago; segment loss was $6.8 million, versus a loss of $5.7 million in the year-ago period.  In the Apparel &amp; Flexible Materials segment, fourth quarter revenue was $36.9 million, compared with revenue of $43.5 million; segment profit increased to $4.0 million from a loss of $14.1 million last year.  Fourth quarter Ophthalmic Lens Processing segment revenue was $24.5 million, versus $24.8 million; segment profit for the quarter was $2.0 million, versus a segment loss of $0.5 million reported in the same period last year.  Total segment loss for the fourth quarter was $0.8 million, versus a total segment loss of $20.3 million in the year-ago period.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Fourth-Quarter Write-Downs and Other Charges</P>
</B></U><P ALIGN="JUSTIFY">Gerber Scientific recorded $12.6 million of pre-tax charges in the Sign Making &amp; Specialty Graphics operating segment in the fourth quarter.  The charges consisted of $6.8 million of inventory write-downs and SG&amp;A expenses primarily due to changing market conditions and production delays associated with the company's MAXX<SUP>&trade;</SUP> thermal digital imaging system; $0.7 million of inventory write-downs and product-return liabilities related to technical problems associated with products sold on an O.E.M. basis; and $5.0 million of other charges for asset write-downs, contractual obligations, and employee costs related to the company's Spandex PLC subsidiary.</P>
<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Results for Fiscal Full-Year 2002</P>
</B></U><P ALIGN="JUSTIFY">For the fiscal year ended April 30, 2002, Gerber Scientific reported a loss of $5.42 per diluted share, compared with a loss of $1.06 per diluted share a year ago.  The fiscal-year 2002 loss included third-quarter restructuring and other charges related to employee separations and asset impairments of 18 cents per share, fourth-quarter inventory write-downs and other charges of 36 cents per share related primarily to the Sign Making &amp; Specialty Graphics segment, and goodwill-impairment charges of $5.20 per share, which resulted from the company's required adoption of SFAS No. 142 at the beginning of the fiscal year.  Last year's loss reflected first and fourth-quarter restructuring and other charges of 95 cents per share related to employee separations, inventory write-downs, asset impairments, and other charges.  Last year's loss also included amortization of goodwill of 37 cents per share, which was not included in this year's results because of the company's adoption of SFAS No. 142.  Adjusting both years for the restructuring and other charges, and last year for the effect of not amortizing goodwill this year, earnings per diluted share were 31 cents, compared with 27 cents last year.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Softness in Industrial Capital Equipment Markets Held Down Revenues for the Year</P>
</B></U><P ALIGN="JUSTIFY">Revenue for the full fiscal year was $502.7 million, versus $558.2 million in the prior year.  The impact of foreign exchange suppressed revenue by $7.8 million for the full year, compared with the year ago.  New orders were $494.9 million for the full fiscal year, compared with $553.4 million a year ago.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the full fiscal year, each of Gerber Scientific's operating and geographic segments reported lower revenue and orders compared with the prior year, particularly for capital equipment in the Apparel &amp; Flexible Materials segment.  Lower revenues for the segment reflected the weak global market for apparel and the continued migration of apparel production from North American and European markets to lower cost labor markets in Asia, Latin America, and Eastern Europe.  The historically slower adoption of automation in these emerging markets, combined with the current weak economic conditions, further dampened demand for the Apparel &amp; Flexible Materials segment's products.  Despite lower revenues in each of the company's operating segments, segment profit improved dramatically in the 2002 fiscal year.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In the Sign Making &amp; Specialty Graphics segment, the company reported fiscal year 2002 revenue of $257.4 million, versus revenue of $275.7 million last year; segment profit increased to $6.1 million, versus a profit of $3.5 million in the year-ago period.  In the Apparel &amp; Flexible Materials segment, fiscal year 2002 revenue was $158.1 million, versus revenue of $188.3 million; segment profit rose significantly to $10.5 million from a loss of $12.3 million in fiscal year 2001. Fiscal year 2002 Ophthalmic Lens Processing segment revenue was $87.2 million, versus $94.1 million; segment profit for the year was $5.3 million, an increase of 92% over a segment profit of $2.8 million reported a year ago.  For the 2002 fiscal year, total segment profit increased significantly to $22.0 million, versus a loss of $6.1 million reported in the same period in 2001.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gerber Scientific generated $26.6 million in cash from operations this fiscal year, compared with $36.7 million last year.  The company's steady cash-flow generation was the result of incremental operating earnings driven by restructuring and cost-reduction actions. Operating cash flow, reduced capital expenditures, and the proceeds from the second-quarter sale and leaseback of certain facilities enabled the company to reduce total debt by $42.0 million to $127.9 million at April 30, 2002, from $169.9 million at the beginning of the fiscal year.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">About Gerber Scientific, Inc.</P>
</B></U><P ALIGN="JUSTIFY">Gerber Scientific (<U>http://www.gerberscientific.com</U>) is the world's leading supplier of sophisticated automated manufacturing systems for sign making and specialty graphics, apparel and flexible goods, and optical lens processing.  Headquartered in South Windsor, Connecticut, the Company operates through four wholly owned subsidiaries: Gerber Scientific Products and Spandex PLC, Gerber Technology, and Gerber Coburn.</P>
<P ALIGN="JUSTIFY"></P>
<B><I><U><P ALIGN="JUSTIFY">Safe Harbor Statement:</P>
</B></I></U><P ALIGN="JUSTIFY">In addition to the historical information contained herein, there are matters discussed that are considered to be "forward-looking statements."  The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.  These forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, and services, that could significantly affect results in the future.  For a discussion of other risk factors relating to the Company's business, see the Company's Quarterly Reports on Form 10-Q for the quarters ended July 31, 2001, October 31, 2001, and January 31, 2002 and its Annual Report on Form 10-K for the year ended April 30, 2002, as filed with the Securities and Exchange Commission.  The forward-looking statements contained in this release are made as of the date of this release, and the Company assumes no obligation to update or revise any forward- looking statements contained in this release.</P>
<P ALIGN="JUSTIFY"></P>
<U><P>&nbsp;</P>
</U><I><FONT SIZE=2><P>Maxx is a registered trademark of Gerber Scientific Products.</P>

<P>&nbsp;</P>
</I></FONT><B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF OPERATIONS</P>
</B>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=4 WIDTH=746>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="171" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Months Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;April 30,</FONT></TD>
<TD WIDTH="179" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal Year Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;April 30,</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(Restated)</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(Restated)</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<U><FONT SIZE=2><P>In thousands (except per share amounts)</U></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">2002&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">2001&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">2002&nbsp;</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">2001&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="77" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="64" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="81" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="67" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<B><FONT SIZE=2><P>Revenue:</B></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales </FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$115,003&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$127,093&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$454,872&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$509,595&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;11,717&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;11,557&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;47,852&nbsp;</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;48,569&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;126,720&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;138,650&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;502,724&nbsp;</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;558,164&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<B><FONT SIZE=2><P>Costs and Expenses:</B></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">81,675&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">94,077&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">305,868&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">341,621&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of service </FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,559&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">9,426&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">26,756&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">33,761&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">35,847&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">39,326&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">131,845&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">150,066&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,827&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,745&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">27,491&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">29,272&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization </FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">---&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;2,014&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">---&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,182&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges </FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(844)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;7,824&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,115&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,265&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down of assets</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;510&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,608&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;861&nbsp;</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,016&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;130,574&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;163,020&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">496,936&nbsp;</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;578,183&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Operating income (loss)</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,854)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(24,370)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">5,788&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(20,019)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="77" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="64" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="81" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="67" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Other income (expense)</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,665)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">232&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,410)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">755&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Interest expense</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(2,931)</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,221)</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(12,640)</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;(13,265)</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="77" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="64" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="81" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="67" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Earnings (loss) before income taxes and cumulative effect of<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting change <SUP>(1), (2)</SUP></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(8,450)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(27,359)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(9,262)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(32,529)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Provision (benefit) for income taxes</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(4,300)</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(9,300)</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">(4,300)</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(9,300)</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Earnings (loss) before cumulative effect of accounting  change <SUP>(1), (2)</SUP></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(4,150)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(18,059)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(4,962)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(23,229)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>Cumulative effect of accounting change <SUP>(3)</SUP></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(114,653)</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<B><FONT SIZE=2><P>Net earnings (loss) </B><SUP>(1), (2)</SUP></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(4,150)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(18,059)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(119,615)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(23,229)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<B><FONT SIZE=2><P>Per share of common stock:</B></FONT></TD>
<TD WIDTH="77" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic before cumulative effect of accounting change <SUP>(1), (2)</SUP></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.19)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.82)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.22)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.06)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change <SUP>(3)</SUP></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.20)</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.19)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.82)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.42)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.06)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted before cumulative effect of accounting change<SUP>(1),(2)</SUP></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.19)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.82)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.22)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.06)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change <SUP>(3)</SUP></TD>
<TD WIDTH="77" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.20)</U></FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.19)</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.82)</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.42)</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.06)</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.32&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<B><P>Average shares outstanding:</B></TD>
<TD WIDTH="77" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,101&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,038&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,072&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,017&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD WIDTH="77" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,101&nbsp;</FONT></TD>
<TD WIDTH="14" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,038&nbsp;</FONT></TD>
<TD WIDTH="81" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,072&nbsp;</FONT></TD>
<TD WIDTH="15" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="67" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,017&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="372" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="77" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="64" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="81" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="67" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
</TABLE>

<SUP><FONT SIZE=1><P ALIGN="JUSTIFY">(1)</SUP>  Included in the fourth quarter and year ended April 30, 2002 were restructuring and other charges related to a reduction in workforce, inventory and asset write-downs, and other charges.  These charges amounted to $11,796 before income taxes and $7,896 after taxes ($.36 per diluted share) and $16,755 before income taxes and $11,755 after taxes ($.53 per diluted share) for the fourth quarter and year end, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<SUP><P ALIGN="JUSTIFY">(2)  </SUP>Included in the fourth quarter and year ended April 30, 2001 were restructuring and other charges related to a reduction in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived assets, and other charges.  These charges amounted to $26,760 before income taxes and $18,160 after taxes ($.82 per diluted share) and $30,997 before income taxes and $20,897 after taxes ($.95 per diluted share) for the fourth quarter and year, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<SUP><P>(3)</SUP>  In accordance with the new accounting statement for goodwill and other intangible assets, the Company recorded a charge for goodwill impairment in its Ophthalmic Lens Processing segment of $21,700 and its Sign Making and Specialty Graphics segment of $92,953.  These charges were recorded retroactively to the beginning of the fiscal year (May 1, 2001).</P>

</FONT><B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED BALANCE SHEETS</P>
<FONT SIZE=2><P ALIGN="CENTER"></P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=614>
<TR><TD WIDTH="66%" VALIGN="TOP">
<U><FONT SIZE=2><P><BR>
<BR>
In thousands (except share amounts)</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="CENTER"><BR>
April 30,<BR>
2002</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="CENTER">April 30,<BR>
Restated<BR>
 2001</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Assets:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Current Assets:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and short-term cash investments</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;16,220&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;20,866&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$7,229 in 2002 and $7,045 in 2001.</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
84,539&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
98,002&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">59,351&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">70,021&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">11,951&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">9,453&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,680&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,928&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets held for sale</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,968&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;21,369&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;184,709&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;226,639&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Property, Plant and Equipment:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">116,125&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">112,572&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;64,761&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;53,022&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;51,364&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;59,550&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Intangible Assets:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill, net of accumulated amortization in 2001</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">49,966&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">163,620&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid pension cost</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">11,557&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">16,762&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patents and other intangible assets, net of accumulated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amortization</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,918&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,344&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,441&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;187,726&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Deferred Income Taxes</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2,959&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">---&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Other Assets</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,120&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,493&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$311,593&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$478,408&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Liabilities and Shareholders' Equity:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Current Liabilities:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term line of credit</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">41,929&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">---&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">41,756&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">48,682&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">19,136&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">20,036&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,071&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">21,318&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">9,511&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">9,706&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances on sales contracts</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;897&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,563&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;134,528&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;101,305&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Noncurrent Liabilities:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">---&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">288&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,678&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,422&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;86,000&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;169,914&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;92,678&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;173,624&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><FONT SIZE=2><P>Shareholders' Equity:</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, no par value; authorized 10,000,000 shares; no &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares issued</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
---&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
---&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $1.00 par value; authorized 65,000,000 shares; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued 22,879,425 and 22,828,742 shares</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
22,879&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
22,829&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in capital</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">44,090&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">43,835&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">58,253&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">177,868&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost (773,546 and 784,837 shares, respectively)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(15,906)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(16,138)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unamortized value of restricted stock grants</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(411)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(439)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(24,518)</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(24,476)</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;84,387&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;203,479&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$311,593&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$478,408&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">=======</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
</FONT><U><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
</U>
<P>&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=614>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal Year Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;April 30,</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<U><P>In thousands</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=24>
<B><P>Cash Provided by (Used for):</B></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=24><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Operating Activities:</B></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings (loss)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$(119,615)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;(23,229)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net earnings (loss) <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to cash provided by operating activities:</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">114,653&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">15,191&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">26,468&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">16,755&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">24,981&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down of assets</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">861&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">6,016&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(5,158)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(13,845)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash items</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,324&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">561&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating accounts:</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">13,820&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,479&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">3,242&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">5,104&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,993)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">7,110&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(12,439)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(18,915)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Provided by Operating Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;26,641&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;36,730&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Investing Activities:</B></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to property, plant and equipment</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(4,526)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(14,757)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of assets</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">17,183&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">13,721&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible and other assets</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;(1,954)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;(1,982)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Provided by (Used for) Investing Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">10,703&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;(3,018)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Financing Activities:</B></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions of long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">41,500&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">47,000&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(83,618)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(71,978)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">106&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net short-term financing</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">228&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt issue costs</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(563)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(751)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other common stock activity</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(49)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">113&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on common stock</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(7,036)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>(Used for) Financing Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(42,396)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(32,652)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>Effect of exchange rate changes on cash</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">406&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,148)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>(Decrease) in Cash and Short-Term Cash Investments</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(4,646)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,088)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>Cash and Short-Term Cash Investments, Beginning of Period</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;20,866&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;22,954&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Cash and Short-Term Cash Investments, End of Period</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$16,220&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$20,866&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">======</TD>
</TR>
</TABLE>


<P>&nbsp;</P>
<P>&nbsp;</P>
<B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
SEGMENT INFORMATION</P>
</B><P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=652>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P><BR>
<U>In thousands</U></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Three Months Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>April 30</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">Fiscal Year Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>April 30</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Segment revenue:</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001</U></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Sign Making &amp; Specialty Graphics</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;65,255&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;70,415&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$257,355&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$275,739&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Apparel &amp; Flexible Materials</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">36,917&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">43,484&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">158,134&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">188,292&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Ophthalmic Lens Processing</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;24,548&nbsp;</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;24,751&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;87,235&nbsp;</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;94,133&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$126,720&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$138,650&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$502,724&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$558,164&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Segment profit:</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Sign Making &amp; Specialty Graphics</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$(6,806)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;(5,737)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;6,114&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;3,498&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Apparel &amp; Flexible Materials</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">3,991&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(14,052)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">10,544&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(12,319)</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Ophthalmic Lens Processing</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;1,992&nbsp;</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(478)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;5,323&nbsp;</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,767&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(823)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(20,267)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">21,981&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(6,054)</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Corporate expenses, net of other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income/expense</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(4,696)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(3,871)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(18,603)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(13,210)</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Interest expense</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(2,931)</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(3,221)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(12,640)</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(13,265)</U></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">
<P>Earnings (loss) before income taxes and &nbsp;&nbsp;&nbsp;cumulative effect of accounting change</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$(8,450)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$(27,359)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$(9,262)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$(32,529)</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>


<P ALIGN="JUSTIFY">Segment profit (loss) for the three months and fiscal year ended April 30, 2001 included goodwill amortization of $1.3 million and $5.2 million, respectively, for the Sign Making and Specialty Graphics operating segment; $0.2 million and $1.0 million for the Apparel and Flexible Materials operating segment; and $0.5 million and $2.0 million for the Ophthalmic Lens Processing operating segment.  Goodwill amortization was not incurred for the three months and fiscal year ended April 30, 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Segment profit (loss) for the three months and fiscal year ended April 30, 2002 included restructuring and other charges of $12.6 million and $13.6 million, respectively, for the Sign Making and Specialty Graphics operating segment; $(0.6) million and $0.8 million, respectively, for the Apparel and Flexible Materials operating segment; and $--- and $0.3 million, respectively, for the Ophthalmic Lens Processing operating segment.  Net corporate expenses for the three months and fiscal year ended April 30, 2002 included restructuring and other charges of $(0.2) million and $2.1 million, respectively.</P>
<P ALIGN="JUSTIFY"></P>
<P>Segment profit (loss) for the three months and fiscal year ended April 30, 2001 included restructuring and other charges of $10.0 million and $10.6 million, respectively, for the Sign Making and Specialty Graphics operating segment; $13.4 million and $14.4 million, respectively, for the Apparel and Flexible Materials operating segment; and $2.5 million and $2.5 million, respectively, for the Ophthalmic Lens Processing operating segment.  Net corporate expenses for the fiscal year ended April 30, 2001 included charges of $0.9 million and $3.5 million, respectively.</P>

<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="CENTER">SIGNATURES</P>

<P>&nbsp;</P>
<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P>&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>
<U><P>GERBER SCIENTIFIC, INC.</U></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">(Registrant)</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<P>Date:</TD>
<TD WIDTH="28%" VALIGN="TOP">
<U><P>August 28, 2002</U></TD>
<TD WIDTH="8%" VALIGN="TOP">
<P>By:</TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=3>
<U><P>/s/ Shawn M. Harrington</U></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=3>
<P>Shawn M. Harrington<BR>
Senior Vice President<BR>
(Principal Financial and Accounting Officer)</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
</TR>
</TABLE>

</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "fy02results8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 83681}]
{"company-data": {"conformed-name": "GERBER SCIENTIFIC INC", "cik": "0000041133", "assigned-sic": "3559", "irs-number": "060640743", "state-of-incorporation": "CT", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-05865", "film-number": "02750553"}, "business-address": {"street1": "83 GERBER RD WEST", "city": "SOUTH WINDSOR", "state": "CT", "zip": "06074", "phone": "8606441551"}, "mail-address": {"street1": "83 GERBER ROAD WESTS", "city": "SOUTH WINDSOR", "state": "CT", "zip": "06074"}, "former-company": {"former-conformed-name": "GERBER SCIENTIFIC INSTRUMENT CO", "date-changed": "19781210"}}
FORM 8-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):  (August 28, 2002)
GERBER SCIENTIFIC, INC.
(Exact name of Registrant as specified in its charter)
CONNECTICUT
1-5865
06-0640743
(State or other jurisdiction of incorporation or organization)
(Commission File No.)
(I.R.S. Employer Identification No.)
83 Gerber Road West, South Windsor, Connecticut
06074
(Address of principal executive offices)
(Zip Code)
Registrant's Telephone Number, including area code:
(860-644-1551)
Not Applicable
(Former name or former address, if changes since last report)
Item 5.     Other Events and Regulation FD Disclosure
See the following press release, dated August 28, 2002, announcing the Company's fourth quarter and fiscal year end results:
For Immediate Release
Contact:  Shawn M. Harrington
August 28, 2002
(860) 644-1551
GERBER SCIENTIFIC, INC. REPORTS FISCAL FOURTH-QUARTER
AND FULL-YEAR 2002 RESULTS
Company Completes Independent Review of Its Financial Statements
SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB)
today reported a fourth-quarter loss of 19 cents per diluted share in the fiscal period ended April 30, 2002, compared with a year-ago loss of 82 cents per diluted share.  Excluding charges in the current quarter, and year-ago charges and goodwill amortization, fiscal fourth-quarter earnings were 17 cents per diluted share, compared with earnings of 10 cents per diluted share a year ago.
Note:  All prior period comparisons embodied in this release are made "as restated."
For the full fiscal year, Gerber Scientific reported a loss of $5.42 per diluted share, compared with a loss of $1.06 per diluted share a year ago.  Adjusting the results of both years for restructuring and other charges, and excluding the effect of the company's adoption of Statement of Financial Accounting Standards (SFAS) No. 142 in fiscal year 2002, full-year earnings were 31 cents per diluted share, compared with earnings of 27 cents per diluted share a year ago.
The company also stated that it completed its previously announced review of its financial reporting under the direction of the Audit and Finance Committee of the company's board of directors.  As a result, Gerber Scientific has filed with the U.S. Securities and Exchange Commission (SEC) its annual report on Form 10K, which includes a restatement of prior annual financial statements.  The cumulative impact of the restatement on shareholders' equity as of January 31, 2002, the last period reported, amounted to a decrease of approximately $1.5 million.  The company said that it is continuing to cooperate fully with the SEC as it works to complete its investigation.
For the fiscal year ended April 30, 2000, Gerber Scientific reported restated earnings of $1.15 per diluted share, versus $1.16 per diluted share as previously reported; for the fiscal year ended April 30, 2001, the company reported a restated loss of $1.06 per diluted share, versus a loss of $1.07 as previously reported.
"While it's been a difficult year for Gerber Scientific, we are taking aggressive and constructive actions to get this outstanding company back on track," said Marc T. Giles, president and chief executive officer of Gerber Scientific, Inc.  "Our results adjusted for the effects of the charges and the change in accounting for goodwill speak to the progress we are making, which included a reduction in our debt of $42.0 million in fiscal 2002, as well as a marked improvement in the combined profitability of our operating segments, despite continued volume declines.  Driven by a dramatic performance improvement in our Apparel & Flexible Materials segment, fiscal year 2002 total segment profit increased by $7.1 million, or 24%, to $36.7 million in spite of a 10% decline in revenue when compared with fiscal year 2001 after adjusting for charges and the adoption of SFAS No. 142."
"Though there are still no clear signs of a recovery in capital spending, we firmly believe in the fundamental strengths of our core markets.  The decline in sales of our capital equipment products appears to have stabilized, overall economic indicators seem to be improving and foreign
exchange rates are currently more favorable.  By implementing our planned shared services initiatives to optimize our supply chain and improve the efficiency of various support functions, we remain committed to executing our near-term strategy of leveraging our cost structure to generate solid operating results and cash flows going forward," said Giles.
Fiscal Fourth-Quarter Results
In the fiscal fourth quarter ended April 30, 2002, the company reported a loss of 19 cents per diluted share, compared with a loss of 82 cents per diluted share a year ago.  The loss in the current year included inventory write-downs and other charges of 36 cents per share, related primarily to the Sign Making & Specialty Graphics segment.  The year-ago loss included restructuring and other charges of 82 cents per diluted share and goodwill amortization of 9 cents per share.  Adjusted for current and year-ago charges, and the amortization of goodwill last year, earnings in the current quarter were 17 cents per diluted share, compared with earnings of 10
cents per diluted share a year ago.
Fourth-quarter revenue was $126.7 million, compared with $138.7 million a year ago.  The impact of foreign exchange suppressed revenue by $1.2 million in the quarter, compared with the year-ago period.  New orders in the fourth quarter totaled $125.8 million, versus $137.3 million a year ago.
Cost Reduction Actions Show Results
While revenue in the Sign Making & Specialty Graphics and Apparel & Flexible Materials segments continues to be affected by softness in demand for industrial capital equipment and continued weakness in apparel markets, the company implemented aggressive cost-reduction programs and shared services initiatives, which have resulted in improved profitability.
In the Sign Making & Specialty Graphics segment, the company reported 2002 fourth quarter revenue of $65.3 million, versus revenue of $70.4 million a year ago; segment loss was $6.8 million, versus a loss of $5.7 million in the year-ago period.  In the Apparel & Flexible Materials segment, fourth quarter revenue was $36.9 million, compared with revenue of $43.5 million; segment profit increased to $4.0 million from a loss of $14.1 million last year.  Fourth quarter Ophthalmic Lens Processing segment revenue was $24.5 million, versus $24.8 million; segment profit for the quarter was $2.0 million, versus a segment loss of $0.5 million reported in the same period last year.  Total segment loss for the fourth quarter was $0.8 million, versus a total segment loss of $20.3 million in the year-ago period.
Fourth-Quarter Write-Downs and Other Charges
Gerber Scientific recorded $12.6 million of pre-tax charges in the Sign Making & Specialty Graphics operating segment in the fourth quarter.  The charges consisted of $6.8 million of inventory write-downs and SG&A expenses primarily due to changing market conditions and production delays associated with the company's MAXX
™
thermal digital imaging system; $0.7 million of inventory write-downs and product-return liabilities related to technical problems associated with products sold on an O.E.M. basis; and $5.0 million of other charges for asset write-downs, contractual obligations, and employee costs related to the company's Spandex PLC subsidiary.
Results for Fiscal Full-Year 2002
For the fiscal year ended April 30, 2002, Gerber Scientific reported a loss of $5.42 per diluted share, compared with a loss of $1.06 per diluted share a year ago.  The fiscal-year 2002 loss included third-quarter restructuring and other charges related to employee separations and asset impairments of 18 cents per share, fourth-quarter inventory write-downs and other charges of 36 cents per share related primarily to the Sign Making & Specialty Graphics segment, and goodwill-impairment charges of $5.20 per share, which resulted from the company's required adoption of SFAS No. 142 at the beginning of the fiscal year.  Last year's loss reflected first and fourth-quarter restructuring and other charges of 95 cents per share related to employee separations, inventory write-downs, asset impairments, and other charges.  Last year's loss also included amortization of goodwill of 37 cents per share, which was not included in this year's results because of the company's adoption of SFAS No. 142.  Adjusting both years for the restructuring and other charges, and last year for the effect of not amortizing goodwill this year, earnings per diluted share were 31 cents, compared with 27 cents last year.
Softness in Industrial Capital Equipment Markets Held Down Revenues for the Year
Revenue for the full fiscal year was $502.7 million, versus $558.2 million in the prior year.  The impact of foreign exchange suppressed revenue by $7.8 million for the full year, compared with the year ago.  New orders were $494.9 million for the full fiscal year, compared with $553.4 million a year ago.
For the full fiscal year, each of Gerber Scientific's operating and geographic segments reported lower revenue and orders compared with the prior year, particularly for capital equipment in the Apparel & Flexible Materials segment.  Lower revenues for the segment reflected the weak global market for apparel and the continued migration of apparel production from North American and European markets to lower cost labor markets in Asia, Latin America, and Eastern Europe.  The historically slower adoption of automation in these emerging markets, combined with the current weak economic conditions, further dampened demand for the Apparel & Flexible Materials segment's products.  Despite lower revenues in each of the company's operating segments, segment profit improved dramatically in the 2002 fiscal year.
In the Sign Making & Specialty Graphics segment, the company reported fiscal year 2002 revenue of $257.4 million, versus revenue of $275.7 million last year; segment profit increased to $6.1 million, versus a profit of $3.5 million in the year-ago period.  In the Apparel & Flexible Materials segment, fiscal year 2002 revenue was $158.1 million, versus revenue of $188.3 million; segment profit rose significantly to $10.5 million from a loss of $12.3 million in fiscal year 2001. Fiscal year 2002 Ophthalmic Lens Processing segment revenue was $87.2 million, versus $94.1 million; segment profit for the year was $5.3 million, an increase of 92% over a segment profit of $2.8 million reported a year ago.  For the 2002 fiscal year, total segment profit increased significantly to $22.0 million, versus a loss of $6.1 million reported in the same period in 2001.
Gerber Scientific generated $26.6 million in cash from operations this fiscal year, compared with $36.7 million last year.  The company's steady cash-flow generation was the result of incremental operating earnings driven by restructuring and cost-reduction actions. Operating cash flow, reduced capital expenditures, and the proceeds from the second-quarter sale and leaseback of certain facilities enabled the company to reduce total debt by $42.0 million to $127.9 million at April 30, 2002, from $169.9 million at the beginning of the fiscal year.
About Gerber Scientific, Inc.
Gerber Scientific (
http://www.gerberscientific.com
) is the world's leading supplier of sophisticated automated manufacturing systems for sign making and specialty graphics, apparel and flexible goods, and optical lens processing.  Headquartered in South Windsor, Connecticut, the Company operates through four wholly owned subsidiaries: Gerber Scientific Products and Spandex PLC, Gerber Technology, and Gerber Coburn.
Safe Harbor Statement:
In addition to the historical information contained herein, there are matters discussed that are considered to be "forward-looking statements."  The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.  These forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, and services, that could significantly affect results in the future.  For a discussion of other risk factors relating to the Company's business, see the Company's Quarterly Reports on Form 10-Q for the quarters ended July 31, 2001, October 31, 2001, and January 31, 2002 and its Annual Report on Form 10-K for the year ended April 30, 2002, as filed with the Securities and Exchange Commission.  The forward-looking statements contained in this release are made as of the date of this release, and the Company assumes no obligation to update or revise any forward- looking statements contained in this release.
Maxx is a registered trademark of Gerber Scientific Products.
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
April 30,
Fiscal Year Ended
April 30,
(Restated)
(Restated)
In thousands (except per share amounts)
2002
2001
2002
2001
Revenue:
Product sales
$115,003
$127,093
$454,872
$509,595
Service
11,717
11,557
47,852
48,569
126,720
138,650
502,724
558,164
Costs and Expenses:
Cost of product sales
81,675
94,077
305,868
341,621
Cost of service
6,559
9,426
26,756
33,761
Selling, general and administrative
35,847
39,326
131,845
150,066
Research and development expenses
6,827
6,745
27,491
29,272
Goodwill amortization
---
2,014
---
8,182
Restructuring charges
(844)
7,824
4,115
9,265
Write-down of assets
510
3,608
861
6,016
130,574
163,020
496,936
578,183
Operating income (loss)
(3,854)
(24,370)
5,788
(20,019)
Other income (expense)
(1,665)
232
(2,410)
755
Interest expense
(2,931)
(3,221)
(12,640)
(13,265)
Earnings (loss) before income taxes and cumulative effect of
accounting change
(1), (2)
(8,450)
(27,359)
(9,262)
(32,529)
Provision (benefit) for income taxes
(4,300)
(9,300)
(4,300)
(9,300)
Earnings (loss) before cumulative effect of accounting  change
(1), (2)
(4,150)
(18,059)
(4,962)
(23,229)
Cumulative effect of accounting change
(3)
---
---
(114,653)
---
Net earnings (loss)
(1), (2)
$  (4,150)
$ (18,059)
$(119,615)
$ (23,229)
=======
=======
========
=======
Per share of common stock:
Basic before cumulative effect of accounting change
(1), (2)
$       (.19)
$       (.82)
$         (.22)
$     (1.06)
Cumulative effect of accounting change
(3)
---
---
(5.20)
---
Basic
$       (.19)
$       (.82)
$       (5.42)
$     (1.06)
=======
=======
========
=======
Diluted before cumulative effect of accounting change
(1),(2)
$       (.19)
$       (.82)
$         (.22)
$     (1.06)
Cumulative effect of accounting change
(3)
---
---
(5.20)
---
Diluted
$       (.19)
$       (.82)
$       (5.42)
$     (1.06)
=======
=======
========
=======
Dividends
$          ---
$         .08
$            ---
$         .32
=======
=======
========
=======
Average shares outstanding:
Basic
22,101
22,038
22,072
22,017
Diluted
22,101
22,038
22,072
22,017
(1)  Included in the fourth quarter and year ended April 30, 2002 were restructuring and other charges related to a reduction in workforce, inventory and asset write-downs, and other charges.  These charges amounted to $11,796 before income taxes and $7,896 after taxes ($.36 per diluted share) and $16,755 before income taxes and $11,755 after taxes ($.53 per diluted share) for the fourth quarter and year end, respectively.
(2)  Included in the fourth quarter and year ended April 30, 2001 were restructuring and other charges related to a reduction in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived assets, and other charges.  These charges amounted to $26,760 before income taxes and $18,160 after taxes ($.82 per diluted share) and $30,997 before income taxes and $20,897 after taxes ($.95 per diluted share) for the fourth quarter and year, respectively.
(3)  In accordance with the new accounting statement for goodwill and other intangible assets, the Company recorded a charge for goodwill impairment in its Ophthalmic Lens Processing segment of $21,700 and its Sign Making and Specialty Graphics segment of $92,953.  These charges were recorded retroactively to the beginning of the fiscal year (May 1, 2001).
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
In thousands (except share amounts)
April 30,
2002
April 30,
Restated
2001
Assets:
Current Assets:
Cash and short-term cash investments
$  16,220
$  20,866
Accounts receivable, net of allowance for doubtful accounts of         $7,229 in 2002 and $7,045 in 2001.
84,539
98,002
Inventories
59,351
70,021
Deferred income taxes
11,951
9,453
Prepaid expenses
8,680
6,928
Net assets held for sale
3,968
21,369
184,709
226,639
Property, Plant and Equipment:
116,125
112,572
Less accumulated depreciation
64,761
53,022
51,364
59,550
Intangible Assets:
Goodwill, net of accumulated amortization in 2001
49,966
163,620
Prepaid pension cost
11,557
16,762
Patents and other intangible assets, net of accumulated         amortization
6,918
7,344
68,441
187,726
Deferred Income Taxes
2,959
---
Other Assets
4,120
4,493
$311,593
$478,408
=======
=======
Liabilities and Shareholders' Equity:
Current Liabilities:
Short-term line of credit
$       228
$         ---
Current maturities of long-term debt
41,929
---
Accounts payable
41,756
48,682
Accrued compensation and benefits
19,136
20,036
Other accrued liabilities
21,071
21,318
Deferred revenue
9,511
9,706
Advances on sales contracts
897
1,563
134,528
101,305
Noncurrent Liabilities:
Deferred income taxes
---
288
Other liabilities
6,678
3,422
Long-term debt
86,000
169,914
92,678
173,624
Shareholders' Equity:
Preferred stock, no par value; authorized 10,000,000 shares; no           shares issued
---
---
Common stock, $1.00 par value; authorized 65,000,000 shares;           issued 22,879,425 and 22,828,742 shares
22,879
22,829
Paid-in capital
44,090
43,835
Retained earnings
58,253
177,868
Treasury stock, at cost (773,546 and 784,837 shares, respectively)
(15,906)
(16,138)
Unamortized value of restricted stock grants
(411)
(439)
Accumulated other comprehensive income (loss)
(24,518)
(24,476)
84,387
203,479
$311,593
$478,408
=======
=======
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year Ended
April 30,
(Restated)
In thousands
2002
2001
Cash Provided by (Used for):
Operating Activities:
Net earnings (loss)
$(119,615)
$  (23,229)
Adjustments to reconcile net earnings (loss)
to cash provided by operating activities:
Cumulative effect of accounting change
114,653
---
Depreciation and amortization
15,191
26,468
Restructuring and other charges
16,755
24,981
Write-down of assets
861
6,016
Deferred income taxes
(5,158)
(13,845)
Other non-cash items
2,324
561
Changes in operating accounts:
Receivables
13,820
22,479
Inventories
3,242
5,104
Prepaid expenses
(2,993)
7,110
Accounts payable and accrued expenses
(12,439)
(18,915)
Provided by Operating Activities
26,641
36,730
Investing Activities:
Additions to property, plant and equipment
(4,526)
(14,757)
Proceeds from sale of assets
17,183
13,721
Intangible and other assets
(1,954)
(1,982)
Provided by (Used for) Investing Activities
10,703
(3,018)
Financing Activities:
Additions of long-term debt
41,500
47,000
Repayments of long-term debt
(83,618)
(71,978)
Exercise of stock options
106
---
Net short-term financing
228
---
Debt issue costs
(563)
(751)
Other common stock activity
(49)
113
Dividends on common stock
---
(7,036)
(Used for) Financing Activities
(42,396)
(32,652)
Effect of exchange rate changes on cash
406
(3,148)
(Decrease) in Cash and Short-Term Cash Investments
(4,646)
(2,088)
Cash and Short-Term Cash Investments, Beginning of Period
20,866
22,954
Cash and Short-Term Cash Investments, End of Period
$16,220
$20,866
=======
======
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
In thousands
Three Months Ended
April 30
Fiscal Year Ended
April 30
(Restated)
(Restated)
Segment revenue:
2002
2001
2002
2001
Sign Making & Specialty Graphics
$ 65,255
$ 70,415
$257,355
$275,739
Apparel & Flexible Materials
36,917
43,484
158,134
188,292
Ophthalmic Lens Processing
24,548
24,751
87,235
94,133
$126,720
$138,650
$502,724
$558,164
=======
=======
=======
=======
Segment profit:
Sign Making & Specialty Graphics
$(6,806)
$  (5,737)
$  6,114
$   3,498
Apparel & Flexible Materials
3,991
(14,052)
10,544
(12,319)
Ophthalmic Lens Processing
1,992
(478)
5,323
2,767
(823)
(20,267)
21,981
(6,054)
Corporate expenses, net of other      income/expense
(4,696)
(3,871)
(18,603)
(13,210)
Interest expense
(2,931)
(3,221)
(12,640)
(13,265)
Earnings (loss) before income taxes and    cumulative effect of accounting change
$(8,450)
$(27,359)
$(9,262)
$(32,529)
======
=======
======
=======
Segment profit (loss) for the three months and fiscal year ended April 30, 2001 included goodwill amortization of $1.3 million and $5.2 million, respectively, for the Sign Making and Specialty Graphics operating segment; $0.2 million and $1.0 million for the Apparel and Flexible Materials operating segment; and $0.5 million and $2.0 million for the Ophthalmic Lens Processing operating segment.  Goodwill amortization was not incurred for the three months and fiscal year ended April 30, 2002.
Segment profit (loss) for the three months and fiscal year ended April 30, 2002 included restructuring and other charges of $12.6 million and $13.6 million, respectively, for the Sign Making and Specialty Graphics operating segment; $(0.6) million and $0.8 million, respectively, for the Apparel and Flexible Materials operating segment; and $--- and $0.3 million, respectively, for the Ophthalmic Lens Processing operating segment.  Net corporate expenses for the three months and fiscal year ended April 30, 2002 included restructuring and other charges of $(0.2) million and $2.1 million, respectively.
Segment profit (loss) for the three months and fiscal year ended April 30, 2001 included restructuring and other charges of $10.0 million and $10.6 million, respectively, for the Sign Making and Specialty Graphics operating segment; $13.4 million and $14.4 million, respectively, for the Apparel and Flexible Materials operating segment; and $2.5 million and $2.5 million, respectively, for the Ophthalmic Lens Processing operating segment.  Net corporate expenses for the fiscal year ended April 30, 2001 included charges of $0.9 million and $3.5 million, respectively.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GERBER SCIENTIFIC, INC.
(Registrant)
Date:
August 28, 2002
By:
/s/ Shawn M. Harrington
Shawn M. Harrington
Senior Vice President
(Principal Financial and Accounting Officer)