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<TITLE>FORM 8-K</TITLE>
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<P ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE COMMISSION</TD>
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<P ALIGN="CENTER">WASHINGTON, D.C.  20549</TD>
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<P ALIGN="CENTER">FORM 8-K</TD>
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<P ALIGN="CENTER">CURRENT REPORT</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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<P ALIGN="CENTER">Date of Report (Date of earliest event reported):  (December 10, 2002)</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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<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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<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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<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>
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<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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<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&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>
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<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3>&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 </P>
</B>
<P>See the following press release, dated December 10, 2002, announcing the Company's fiscal 2003 second-quarter results:</P>
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<FONT FACE="Arial" SIZE=2><P>For Immediate Release</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">Contact:&nbsp;&nbsp;Shawn M. Harrington</FONT></TD>
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<FONT FACE="Arial" SIZE=2><P>December 10, 2002</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(860) 644-1551</FONT></TD>
</TR>
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<B><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER"></P>
</FONT><FONT FACE="Arial" SIZE=2>
<P ALIGN="CENTER">GERBER SCIENTIFIC ANNOUNCES FISCAL 2003 SECOND-QUARTER RESULTS </P>
<I><P ALIGN="CENTER">Steady Operating Profit and Cash Flow Generation Continued<BR>
</P>
</I></FONT>
</B><FONT FACE="Arial" SIZE=3><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported second-quarter earnings of 14 cents per diluted share on revenues of $128.8 million for the period ended
October 31, 2002, compared with year-ago earnings of 9 cents per diluted share on revenues of $131.6 million.  In the quarter, foreign currency translation added approximately $5.0 million to revenues but did not materially affect diluted earnings per share.  Net earnings in last year's second quarter included the results of a business divested in this year's first quarter amounting to $0.3 million, or 1 cent per diluted share.  <B>Note:  All prior period comparisons contained in the release are made "as restated" reflecting the previously announced restatement of the Company's historical financial statements following a review of the Company's financial reporting.</P>
</B></FONT><P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">For the six months ended October 31, 2002, the Company reported earnings of 30 cents per diluted share on revenues of $254.7 million, compared with a year-ago loss of $5.04 per diluted share on revenues of $256.5 million.  Excluding the effects of a business divested in the fiscal 2003 first-quarter and year-ago goodwill impairment charges, earnings from continuing operations for the six-months ended October 31, 2002 were 24 cents per diluted share compared with 11 cents per diluted share in the prior year period.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P>"Gerber had a good second quarter," said Marc Giles, president and chief executive officer.  "We are pleased with the Company's overall financial results and the continued progress that has been made to enhance Gerber's bottom-line results."</P>

<P ALIGN="JUSTIFY">"Gerber's second-quarter earnings performance was highlighted by strong profitability in our Apparel and Flexible Materials and Ophthalmic Lens Processing segments, driven by both increased operational efficiencies and the impact of rigorous expense controls. We also continued to generate a steady free cash flow in the quarter, enabling Gerber to increase its cash balances and reduce borrowings under its credit facility by $6.4 million."</P>
</FONT><U>
<B><P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">Second-Quarter Consolidated Results</P>
</FONT>
</B></U><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Second-quarter revenue and order entry was $128.8 million and $127.1 million, respectively, compared with $131.6 million and $126.2 million a year ago.  Segment profit (defined as earnings before interest and taxes) for the quarter increased 8% to $10.8 million, from $10.0 million in the second quarter of 2002.  Corporate expenses of $4.2 million in the second quarter were slightly lower than the prior year.  Higher current year legal and professional expenses associated with the U.S. Securities and Exchange Commission's investigation of approximately $1.0 million were offset by the effect of corporate cost-reduction actions implemented in last year's third quarter.  Net interest expense decreased to $2.1 million in the second quarter, down $1.0 million from a year ago, due to lower debt balances and lower average interest rates.  The lower debt balances were the result of steady free cash flow generation (defined as operating cash flow less capital expenditures) and proceeds from non-strategic asset sales during the year.  The consolidated tax rate from continuing operations was 29.4% for the second quarter and 26.9% for the current year versus the statutory rate of 35.0%.  This lower effective tax rate was attributable to benefits related to foreign tax planning strategies.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2><U>
<B><P ALIGN="JUSTIFY">Second-Quarter Segment Results</P>
</B></U><P ALIGN="JUSTIFY">The Apparel and Flexible Materials segment's profit increased 14%, or $0.5 million, to $3.7 million and revenues decreased 10%, or $4.4 million, in the second quarter from the comparable period last year.  Segment gross margin increased 350 basis points to 47.8% for the quarter.  Segment new order entry in the quarter was $37.0 million, an increase of 3% from last year.  Backlog decreased 3% from the beginning of the current year to $26.5 million.  The revenue decline was due largely to the continued migration of apparel and furniture production to lower cost overseas markets and the related factory automation lag in those markets.  The increases in segment gross margin and operating profit were largely the result of the cost-reduction actions that began two years ago.  A product mix favoring higher margin software and service products also provided gross margin benefits.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">The Sign Making and Specialty Graphics segment's profit decreased 8%, or $0.5 million, to $5.4 million in the second quarter and revenues were essentially unchanged from a year ago.  Foreign currency translation contributed $3.8 million to the year-over-year revenue growth.  Segment gross margin was essentially the same as last year at 29.7% for the quarter.  Excluding the effects of foreign currency translation, current year revenues were lower.  This was the result of continued soft economic conditions for this segment's capital equipment products, particularly in North America, as well as a sales shift from higher quality proprietary aftermarket supplies to lower priced, more competitive supplies.  The gross margin effect of the lower sales volume and the product mix shift was almost entirely offset by the impact of cost-reduction actions implemented over the last two years, which also benefited segment profit.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">The Ophthalmic Lens Processing segment's profit increased 97%, or $0.8 million, to $1.6 million and revenues increased $1.7 million in the second quarter from the comparable period last year.  Segment gross margin increased 80 basis points to 33.2% for the quarter.  The increased sales volume was primarily the result of strong lens finishing equipment sales to large retail customers in the United States.  This offset the effect of lower industry prescription volumes for spectacle lens  eyewear, which affected both sales of this segment's capital equipment products to wholesale lens production laboratories and aftermarket products.  The higher gross margin was the result of both the overall higher sales volume and less price discounting.  Tight operating expense control enabled the full amount of the gross margin gain to benefit segment profit on a year-over-year basis.  On July 1, 2002, the Company completed the sale of Stereo Optical Company, Inc., which was included in the Ophthalmic Lens Processing segment.  Both the gain on disposition and the discontinued company's results from operations are excluded from the Ophthalmic Lens Processing segment's operating results reported above.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2><U>
<B><P ALIGN="JUSTIFY">Financial Condition</P>
</B></U><P ALIGN="JUSTIFY">For the six months ended October 31, 2002, total debt was reduced by $12.7 million, which was the result of steady operating cash generation, continued working capital management, and curtailed capital expenditures.  At October 31, 2002, the Company had $24.7 million in cash and cash equivalents and $115.2 million in debt.  The ratio of debt to capitalization was 54% at October 31, 2002 compared with 60% at April 30, 2002.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">At October 31, 2002, the majority of the Company's debt was classified as short-term borrowings due to the credit facility being due within one year's time (August 15, 2003).  The Company is currently in discussions  to refinance its existing credit facility.  If and when an agreement is finalized, it is the Company's expectation that these short-term borrowings will be reclassified back to long-term debt.  The Company was in compliance with all covenants related to its credit facility as of October 31, 2002.  The Company expects that the refinancing currently being discussed will meet its financing requirements for the next twelve months and beyond.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2><U>
<B><P ALIGN="JUSTIFY">Outlook</P>
</B></U><P ALIGN="JUSTIFY">The current economic outlook and demand for the Company's capital equipment products remains challenging, particularly in the markets served by our Apparel and Flexible Materials and Sign Making and Specialty Graphics businesses.  Accordingly, the Company has embarked on additional cost reduction initiatives, including supply chain optimization and warehouse consolidation, to further reduce those businesses cost structures.  The Company continues to encourage and support new product development across the organization so that it is well positioned to take advantage of the opportunities created by a sustained recovery.  Enhancing the Company's geographic diversity also continues to be a priority, particularly in the Apparel and Flexible Materials segment, as evidence by the Company's increasing presence in Asia to better serve those growing markets.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2>
<P ALIGN="JUSTIFY">The weak global economy continues to make forecasting the Company's sales volume challenging.  On the basis of the cost reduction actions management has already put in place, the Company expects that its earnings will continue to increase on a year-over-year basis.</P>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2><U>
<B><P ALIGN="JUSTIFY">About Gerber Scientific, Inc.</P>
</B></U><P ALIGN="JUSTIFY">Gerber Scientific, Inc. is the world's leading supplier of sophisticated automated manufacturing systems that enable mass customization in 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>
</FONT>
<P ALIGN="JUSTIFY"></P>
<FONT FACE="Arial" SIZE=2><U><I>
<B><P ALIGN="JUSTIFY">Safe Harbor Statement:</P>
</B></I><P ALIGN="JUSTIFY">I</U>n addition to the historical information contained herein, there are matters discussed that are considered to be
&quot;forward-looking statements.&quot;  The Private Securities Litigation Reform Act of 1995 provides a
&quot;safe harbor&quot; 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 Report on Form 10-Q for the quarter ended July 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>

</FONT>

<I><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=654>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P><BR>
(Unaudited)</TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Three Months Ended<BR>
October 31,</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Six Months Ended<BR>
October 31,</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>In thousands (except per share amounts)</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2002&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2001&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2002&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2001&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>Revenue:</B></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=22>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales </TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">$114,869&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">$119,242&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">$227,096</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">$232,064&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;13,911&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;12,376&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;27,562&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;24,444&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">128,780&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">&nbsp;131,618&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">254,658&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">&nbsp;256,508&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>Costs and Expenses:</B></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">75,799&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">78,795&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">150,613&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">153,920&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of service </TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">7,145&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">6,867&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">14,337&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">13,791&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">32,417&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">32,779&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">64,130&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">64,139&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">6,516&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">7,027&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">12,792&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">14,207&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(26)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(100)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">(56)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-down of assets </TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</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;&nbsp;&nbsp;41&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">121,877&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;125,483&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">241,772&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;246,083&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Operating income</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">6,903&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">6,135&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">12,886&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">10,425&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Other income (expense)</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">(340)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(563)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(1,206)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">(691)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Interest expense</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(2,146)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(3,106)</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(4,377)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;(6,607)</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=7><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Income from continuing operations <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before&nbsp;income taxes</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
4,417&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2,466&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
7,303&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
3,127&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Provision for income taxes</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,300&nbsp;</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;660&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp; 1,964&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;720&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Income from continuing operations</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">3,117&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">1,806&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">5,339&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">2,407&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Discontinued operations:<SUP> </SUP></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations of disposed<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;business, net of tax</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
---&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
255&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
172&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
524&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of disposed business, <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net of tax</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,222&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Income before cumulative effect of <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting change</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
3,117&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2,061&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
6,733&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2,931&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Cumulative effect of accounting change</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</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;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;(114,653)</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>Net earnings (loss) </B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;3,117&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 2,061&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;6,733&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$(111,722)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">========</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>Earnings (loss) per share of common stock:</B></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Basic:</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.14&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.24&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.11&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">.01&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">.06&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">.02&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;change</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.20)</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings (loss)</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.14&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.09&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.30&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(5.07)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Diluted:</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.14&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.24&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.11&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">.01&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">.06&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">.02&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;change </TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.17)</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings (loss)</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.14&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.09&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.30&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(5.04)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>Average shares outstanding:</B></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">22,137&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">22,058&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">22,123&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">22,053&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">22,137&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">22,204&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">22,123&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P ALIGN="RIGHT">22,179&nbsp;</TD>
</TR>
</TABLE>

<SUP><FONT SIZE=2>
<P>&nbsp;</P>
</SUP></FONT><B><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED BALANCE SHEETS</P>
</B>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=619>
<TR><TD WIDTH="65%" VALIGN="TOP">
<U><P><BR>
In thousands</U></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<B><U><P ALIGN="CENTER">October 31, 2002</B></U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">April 30, 2002</B></U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Assets:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">(Unaudited)</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Current Assets:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and short-term cash investments</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;24,746&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;16,220&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of $7,782 and $7,229, respectively</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT"><BR>
85,830&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
84,539&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">61,248&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">59,351&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">12,402&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">11,951&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">6,580&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,680&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets held for sale</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,968&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;190,806&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;184,709&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Property, Plant and Equipment:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">117,489&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">116,125&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;69,097&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;64,761&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;48,392&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;51,364&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Intangible Assets:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;47,921&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;49,966&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid pension cost</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;11,557&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;11,557&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patents and other intangible assets, net of accumulated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amortization</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,784&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,918&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;66,262&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;68,441&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Deferred Income Taxes</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">2,219&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,959&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Other Assets</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,507&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,120&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">$311,186&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$311,593&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Liabilities and Shareholders' Equity:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Current Liabilities:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term line of credit</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit facility</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">109,183&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">41,929&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">41,445&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">41,756&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">17,268&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">19,136&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">22,911&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">21,071&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue </TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">9,574&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">9,511&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances on sales contracts</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;784&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;897&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">201,204&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">134,528&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Noncurrent Liabilities:</B></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">6,713&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">6,678&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;6,000&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;86,000&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;12,713&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;92,678&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Contingencies and Commitments:</B></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Shareholders' Equity:</B></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, no par value; authorized 10,000,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; no shares issued</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
---&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT"><BR>
---&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $1.00 par value; authorized 65,000,000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares; issued 22,911,259 and 22,879,425 shares</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
&nbsp;22,911&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT"><BR>
&nbsp;22,879&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in capital</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;43,927&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;44,090&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;64,986&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;58,253&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost (759,249 and 773,546 shares, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(15,612)</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT"><BR>
(15,906)</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unamortized value of restricted stock grants</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(319)</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">(411)</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) </TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(18,624)</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(24,518)</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;97,269&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;84,387&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$311,186&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">$311,593&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">=======</TD>
</TR>
</TABLE>

<FONT FACE="CG Times">
</FONT><U>
</U><B><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<U></B></U>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=614>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P ALIGN="JUSTIFY"><BR>
(Unaudited)</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Six Months Ended<BR>
October 31,</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">2002&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">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">$&nbsp;&nbsp;&nbsp;6,733&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$(111,722)</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;&nbsp;Cumulative effect of accounting change</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">114,653&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">6,751&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,010&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(100)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(56)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of disposed business, net of taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(1,222)</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;&nbsp;Write-down of assets</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">82&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">289&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,941&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash items</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">550&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">645&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&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;Receivables</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">1,360&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,341&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(380)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(308)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,903&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(4,721)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&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">&nbsp;&nbsp;(4,198)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(5,162)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=6>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   &nbsp;</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;&nbsp;&nbsp;12,686&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;12,703&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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">(900)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,844)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible and other assets</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(480)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(886)</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">3,937&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">17,183&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=19>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of disposed business</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;6,595&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=19>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Provided by Investing Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;9,152&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;13,453&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;New borrowings from credit facility</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">3,000&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">23,000&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of credit facility</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(16,673)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(56,922)</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">&nbsp;&nbsp;&nbsp;&nbsp;(205)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&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">(376)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(48)</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">---&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">32&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other common stock activity</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53&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;(32)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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">(14,201)</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(33,970)</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=22>
<P>Effect of exchange rate changes on cash</TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">889&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=22>
<P ALIGN="RIGHT">254&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=7>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Increase (Decrease) in Cash and Short-Term Cash <BR>
&nbsp;&nbsp;&nbsp;&nbsp;Investments</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
8,526&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(7,560)</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;16,220&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;20,866&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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">$24,746&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$13,306&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">======&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">======&nbsp;</TD>
</TR>
</TABLE>

<B>
<P>&nbsp;</P>
<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=638>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>(Unaudited)</TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P><BR>
<U>In thousands</U></TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Three Months Ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>October 31,</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="31%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="CENTER">Six Months Ended<BR>
<U>October 31,</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(Restated)</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Segment revenue:</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2001</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Sign Making &amp; Specialty Graphics</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;68,872&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;68,947&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$135,266&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$132,981&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Apparel &amp; Flexible Materials</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">37,806&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">42,232&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">76,484&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">83,740&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Ophthalmic Lens Processing</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;22,102&nbsp;</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;20,439&nbsp;</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;42,908&nbsp;</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;39,787&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$128,780&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$131,618&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$254,658&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$256,508&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Segment profit:</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Sign Making &amp; Specialty Graphics</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;5,431&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;5,898&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;9,920&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;10,636&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Apparel &amp; Flexible Materials</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">3,712&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">3,255&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">7,706&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">5,116&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Ophthalmic Lens Processing</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;1,626&nbsp;</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;825&nbsp;</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;2,707&nbsp;</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;1,444&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">10,769&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">9,978&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">20,333&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">17,196&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Corporate expenses, net of other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income/expense</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(4,206)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(4,406)</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(8,653)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
(7,462)</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Interest expense</TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(2,146)</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(3,106)</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;(4,377)</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;(6,607)</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<P>Income from continuing operations<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$&nbsp;&nbsp;4,417&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$&nbsp;&nbsp;2,466&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$&nbsp;&nbsp;7,303&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
$&nbsp;&nbsp;3,127&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
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<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">======</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>


<P ALIGN="JUSTIFY">Segment profit for the three and six month periods ended October 31, 2002 and 2001 included reversals of previously established restructuring reserves of $--- and $26 and $100 and $56, respectively, for the Apparel and Flexible Materials operating segment.</P>
<U><FONT FACE="Arial" SIZE=3>
</U></FONT><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>December 10, 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>
Executive 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>


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</HTML>
[{"type": "8-K", "sequence": "1", "filename": "q2fy03results8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 79244}]
{"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": "02852934"}, "business-address": {"street1": "83 GERBER RD WEST", "city": "SOUTH WINDSOR", "state": "CT", "zip": "06074", "phone": "8606441551"}, "mail-address": {"street1": "83 GERBER ROAD WEST", "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):  (December 10, 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
See the following press release, dated December 10, 2002, announcing the Company's fiscal 2003 second-quarter results:
For Immediate Release
Contact:  Shawn M. Harrington
December 10, 2002
(860) 644-1551
GERBER SCIENTIFIC ANNOUNCES FISCAL 2003 SECOND-QUARTER RESULTS
Steady Operating Profit and Cash Flow Generation Continued
SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported second-quarter earnings of 14 cents per diluted share on revenues of $128.8 million for the period ended
October 31, 2002, compared with year-ago earnings of 9 cents per diluted share on revenues of $131.6 million.  In the quarter, foreign currency translation added approximately $5.0 million to revenues but did not materially affect diluted earnings per share.  Net earnings in last year's second quarter included the results of a business divested in this year's first quarter amounting to $0.3 million, or 1 cent per diluted share.
Note:  All prior period comparisons contained in the release are made "as restated" reflecting the previously announced restatement of the Company's historical financial statements following a review of the Company's financial reporting.
For the six months ended October 31, 2002, the Company reported earnings of 30 cents per diluted share on revenues of $254.7 million, compared with a year-ago loss of $5.04 per diluted share on revenues of $256.5 million.  Excluding the effects of a business divested in the fiscal 2003 first-quarter and year-ago goodwill impairment charges, earnings from continuing operations for the six-months ended October 31, 2002 were 24 cents per diluted share compared with 11 cents per diluted share in the prior year period.
"Gerber had a good second quarter," said Marc Giles, president and chief executive officer.  "We are pleased with the Company's overall financial results and the continued progress that has been made to enhance Gerber's bottom-line results."
"Gerber's second-quarter earnings performance was highlighted by strong profitability in our Apparel and Flexible Materials and Ophthalmic Lens Processing segments, driven by both increased operational efficiencies and the impact of rigorous expense controls. We also continued to generate a steady free cash flow in the quarter, enabling Gerber to increase its cash balances and reduce borrowings under its credit facility by $6.4 million."
Second-Quarter Consolidated Results
Second-quarter revenue and order entry was $128.8 million and $127.1 million, respectively, compared with $131.6 million and $126.2 million a year ago.  Segment profit (defined as earnings before interest and taxes) for the quarter increased 8% to $10.8 million, from $10.0 million in the second quarter of 2002.  Corporate expenses of $4.2 million in the second quarter were slightly lower than the prior year.  Higher current year legal and professional expenses associated with the U.S. Securities and Exchange Commission's investigation of approximately $1.0 million were offset by the effect of corporate cost-reduction actions implemented in last year's third quarter.  Net interest expense decreased to $2.1 million in the second quarter, down $1.0 million from a year ago, due to lower debt balances and lower average interest rates.  The lower debt balances were the result of steady free cash flow generation (defined as operating cash flow less capital expenditures) and proceeds from non-strategic asset sales during the year.  The consolidated tax rate from continuing operations was 29.4% for the second quarter and 26.9% for the current year versus the statutory rate of 35.0%.  This lower effective tax rate was attributable to benefits related to foreign tax planning strategies.
Second-Quarter Segment Results
The Apparel and Flexible Materials segment's profit increased 14%, or $0.5 million, to $3.7 million and revenues decreased 10%, or $4.4 million, in the second quarter from the comparable period last year.  Segment gross margin increased 350 basis points to 47.8% for the quarter.  Segment new order entry in the quarter was $37.0 million, an increase of 3% from last year.  Backlog decreased 3% from the beginning of the current year to $26.5 million.  The revenue decline was due largely to the continued migration of apparel and furniture production to lower cost overseas markets and the related factory automation lag in those markets.  The increases in segment gross margin and operating profit were largely the result of the cost-reduction actions that began two years ago.  A product mix favoring higher margin software and service products also provided gross margin benefits.
The Sign Making and Specialty Graphics segment's profit decreased 8%, or $0.5 million, to $5.4 million in the second quarter and revenues were essentially unchanged from a year ago.  Foreign currency translation contributed $3.8 million to the year-over-year revenue growth.  Segment gross margin was essentially the same as last year at 29.7% for the quarter.  Excluding the effects of foreign currency translation, current year revenues were lower.  This was the result of continued soft economic conditions for this segment's capital equipment products, particularly in North America, as well as a sales shift from higher quality proprietary aftermarket supplies to lower priced, more competitive supplies.  The gross margin effect of the lower sales volume and the product mix shift was almost entirely offset by the impact of cost-reduction actions implemented over the last two years, which also benefited segment profit.
The Ophthalmic Lens Processing segment's profit increased 97%, or $0.8 million, to $1.6 million and revenues increased $1.7 million in the second quarter from the comparable period last year.  Segment gross margin increased 80 basis points to 33.2% for the quarter.  The increased sales volume was primarily the result of strong lens finishing equipment sales to large retail customers in the United States.  This offset the effect of lower industry prescription volumes for spectacle lens  eyewear, which affected both sales of this segment's capital equipment products to wholesale lens production laboratories and aftermarket products.  The higher gross margin was the result of both the overall higher sales volume and less price discounting.  Tight operating expense control enabled the full amount of the gross margin gain to benefit segment profit on a year-over-year basis.  On July 1, 2002, the Company completed the sale of Stereo Optical Company, Inc., which was included in the Ophthalmic Lens Processing segment.  Both the gain on disposition and the discontinued company's results from operations are excluded from the Ophthalmic Lens Processing segment's operating results reported above.
Financial Condition
For the six months ended October 31, 2002, total debt was reduced by $12.7 million, which was the result of steady operating cash generation, continued working capital management, and curtailed capital expenditures.  At October 31, 2002, the Company had $24.7 million in cash and cash equivalents and $115.2 million in debt.  The ratio of debt to capitalization was 54% at October 31, 2002 compared with 60% at April 30, 2002.
At October 31, 2002, the majority of the Company's debt was classified as short-term borrowings due to the credit facility being due within one year's time (August 15, 2003).  The Company is currently in discussions  to refinance its existing credit facility.  If and when an agreement is finalized, it is the Company's expectation that these short-term borrowings will be reclassified back to long-term debt.  The Company was in compliance with all covenants related to its credit facility as of October 31, 2002.  The Company expects that the refinancing currently being discussed will meet its financing requirements for the next twelve months and beyond.
Outlook
The current economic outlook and demand for the Company's capital equipment products remains challenging, particularly in the markets served by our Apparel and Flexible Materials and Sign Making and Specialty Graphics businesses.  Accordingly, the Company has embarked on additional cost reduction initiatives, including supply chain optimization and warehouse consolidation, to further reduce those businesses cost structures.  The Company continues to encourage and support new product development across the organization so that it is well positioned to take advantage of the opportunities created by a sustained recovery.  Enhancing the Company's geographic diversity also continues to be a priority, particularly in the Apparel and Flexible Materials segment, as evidence by the Company's increasing presence in Asia to better serve those growing markets.
The weak global economy continues to make forecasting the Company's sales volume challenging.  On the basis of the cost reduction actions management has already put in place, the Company expects that its earnings will continue to increase on a year-over-year basis.
About Gerber Scientific, Inc.
Gerber Scientific, Inc. is the world's leading supplier of sophisticated automated manufacturing systems that enable mass customization in 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:
I
n 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 Report on Form 10-Q for the quarter ended July 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.
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
October 31,
Six Months Ended
October 31,
(Restated)
(Restated)
In thousands (except per share amounts)
2002
2001
2002
2001
Revenue:
Product sales
$114,869
$119,242
$227,096
$232,064
Service
13,911
12,376
27,562
24,444
128,780
131,618
254,658
256,508
Costs and Expenses:
Cost of product sales
75,799
78,795
150,613
153,920
Cost of service
7,145
6,867
14,337
13,791
Selling, general and administrative
32,417
32,779
64,130
64,139
Research and development expenses
6,516
7,027
12,792
14,207
Restructuring charges
---
(26)
(100)
(56)
Write-down of assets
---
41
---
82
121,877
125,483
241,772
246,083
Operating income
6,903
6,135
12,886
10,425
Other income (expense)
(340)
(563)
(1,206)
(691)
Interest expense
(2,146)
(3,106)
(4,377)
(6,607)
Income from continuing operations
before income taxes
4,417
2,466
7,303
3,127
Provision for income taxes
1,300
660
1,964
720
Income from continuing operations
3,117
1,806
5,339
2,407
Discontinued operations:
Income from operations of disposed
business, net of tax
---
255
172
524
Gain on sale of disposed business,
net of tax
---
---
1,222
---
Income before cumulative effect of
accounting change
3,117
2,061
6,733
2,931
Cumulative effect of accounting change
---
---
---
(114,653)
Net earnings (loss)
$   3,117
$ 2,061
$   6,733
$(111,722)
=======
=======
======
========
Earnings (loss) per share of common stock:
Basic:
Income from continuing operations
$       .14
$        .08
$       .24
$        .11
Discontinued operations
---
.01
.06
.02
Cumulative effect of accounting
change
---
---
---
(5.20)
Net earnings (loss)
$       .14
$        .09
$       .30
$    (5.07)
=======
=======
======
=======
Diluted:
Income from continuing operations
$       .14
$        .08
$       .24
$        .11
Discontinued operations
---
.01
.06
.02
Cumulative effect of accounting
change
---
---
---
(5.17)
Net earnings (loss)
$       .14
$        .09
$       .30
$    (5.04)
=======
=======
======
=======
Dividends
$        ---
$        ---
$        ---
$        ---
Average shares outstanding:
Basic
22,137
22,058
22,123
22,053
Diluted
22,137
22,204
22,123
22,179
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
In thousands
October 31, 2002
April 30, 2002
Assets:
(Unaudited)
Current Assets:
Cash and short-term cash investments
$   24,746
$   16,220
Accounts receivable, net of allowance for doubtful accounts
of $7,782 and $7,229, respectively
85,830
84,539
Inventories
61,248
59,351
Deferred income taxes
12,402
11,951
Prepaid expenses
6,580
8,680
Net assets held for sale
---
3,968
190,806
184,709
Property, Plant and Equipment:
117,489
116,125
Less accumulated depreciation
69,097
64,761
48,392
51,364
Intangible Assets:
Goodwill
47,921
49,966
Prepaid pension cost
11,557
11,557
Patents and other intangible assets, net of accumulated         amortization
6,784
6,918
66,262
68,441
Deferred Income Taxes
2,219
2,959
Other Assets
3,507
4,120
$311,186
$311,593
=======
=======
Liabilities and Shareholders' Equity:
Current Liabilities:
Short-term line of credit
$         39
$      228
Credit facility
109,183
41,929
Accounts payable
41,445
41,756
Accrued compensation and benefits
17,268
19,136
Other accrued liabilities
22,911
21,071
Deferred revenue
9,574
9,511
Advances on sales contracts
784
897
201,204
134,528
Noncurrent Liabilities:
Other liabilities
6,713
6,678
Long-term debt
6,000
86,000
12,713
92,678
Contingencies and Commitments:
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 22,911,259 and 22,879,425 shares
22,911
22,879
Paid-in capital
43,927
44,090
Retained earnings
64,986
58,253
Treasury stock, at cost (759,249 and 773,546 shares,          respectively)
(15,612)
(15,906)
Unamortized value of restricted stock grants
(319)
(411)
Accumulated other comprehensive income (loss)
(18,624)
(24,518)
97,269
84,387
$311,186
$311,593
=======
=======
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
October 31,
(Restated)
In thousands
2002
2001
Cash Provided by (Used for):
Operating Activities:
Net earnings (loss)
$   6,733
$(111,722)
Adjustments to reconcile net earnings (loss)
to cash provided by operating activities:
Cumulative effect of accounting change
---
114,653
Depreciation and amortization
6,751
8,010
Restructuring charges
(100)
(56)
Gain on sale of disposed business, net of taxes
(1,222)
---
Write-down of assets
---
82
Deferred income taxes
289
2,941
Other non-cash items
550
645
Changes in operating accounts:
Receivables
1,360
8,341
Inventories
(380)
(308)
Prepaid expenses
2,903
(4,721)
Accounts payable and accrued expenses
(4,198)
(5,162)
Provided by Operating Activities
12,686
12,703
Investing Activities:
Additions to property, plant and equipment
(900)
(2,844)
Intangible and other assets
(480)
(886)
Proceeds from sale of assets
3,937
17,183
Proceeds from sale of disposed business
6,595
---
Provided by Investing Activities
9,152
13,453
Financing Activities:
New borrowings from credit facility
3,000
23,000
Repayments of credit facility
(16,673)
(56,922)
Net short-term financing
(205)
---
Debt issue costs
(376)
(48)
Exercise of stock options
---
32
Other common stock activity
53
(32)
(Used for) Financing Activities
(14,201)
(33,970)
Effect of exchange rate changes on cash
889
254
Increase (Decrease) in Cash and Short-Term Cash
Investments
8,526
(7,560)
Cash and Short-Term Cash Investments, Beginning of Period
16,220
20,866
Cash and Short-Term Cash Investments, End of Period
$24,746
$13,306
======
======
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
In thousands
Three Months Ended
October 31,
Six Months Ended
October 31,
(Restated)
(Restated)
Segment revenue:
2002
2001
2002
2001
Sign Making & Specialty Graphics
$ 68,872
$ 68,947
$135,266
$132,981
Apparel & Flexible Materials
37,806
42,232
76,484
83,740
Ophthalmic Lens Processing
22,102
20,439
42,908
39,787
$128,780
$131,618
$254,658
$256,508
=======
=======
=======
=======
Segment profit:
Sign Making & Specialty Graphics
$  5,431
$  5,898
$  9,920
$ 10,636
Apparel & Flexible Materials
3,712
3,255
7,706
5,116
Ophthalmic Lens Processing
1,626
825
2,707
1,444
10,769
9,978
20,333
17,196
Corporate expenses, net of other      income/expense
(4,206)
(4,406)
(8,653)
(7,462)
Interest expense
(2,146)
(3,106)
(4,377)
(6,607)
Income from continuing operations
before income taxes
$  4,417
$  2,466
$  7,303
$  3,127
======
======
======
======
Segment profit for the three and six month periods ended October 31, 2002 and 2001 included reversals of previously established restructuring reserves of $--- and $26 and $100 and $56, respectively, for the Apparel and Flexible Materials operating segment.
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:
December 10, 2002
By:
/s/ Shawn M. Harrington
Shawn M. Harrington
Executive Vice President
(Principal Financial and Accounting Officer)