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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):  May 31, 2001</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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<U><P ALIGN="CENTER">CONNECTICUT</U></TD>
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<U><P ALIGN="CENTER">1-5865</U></TD>
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<U><P ALIGN="CENTER">06-0640743</U></TD>
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<P ALIGN="CENTER">(State or other jurisdiction of incorporation or organization)</TD>
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<P ALIGN="CENTER">(Commission File No.)</TD>
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<P>(I.R.S. Employer Identification No.)</TD>
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<U><P ALIGN="CENTER">83 Gerber Road West, South Windsor, Connecticut</U></TD>
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<U><P ALIGN="CENTER">06074</U></TD>
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<P>Registrant's Telephone Number, including area code:</TD>
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<U><P ALIGN="CENTER">(860-644-1551)</U></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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<P>&nbsp;</P>
<B><P>Item 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure</P>
</B>
<P>See the following press release, dated May 31, 2001, announcing the Company's fourth quarter results, strategic actions and outlook:</P>

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<P>For Immediate Release</TD>
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<P ALIGN="RIGHT">Contact:  Gary K. Bennett</TD>
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<P>May 31, 2001</TD>
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<P ALIGN="RIGHT">(860-648-8004)</TD>
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<U><P ALIGN="CENTER">Gerber Scientific, Inc. Reports Fourth Quarter Results <BR>
</P>
</U><P ALIGN="JUSTIFY">SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported financial results for the fourth quarter and fiscal year ended April 30, 2001.  The Company highlighted the following:</P>
<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Results</P>

<UL>
</B></U><P ALIGN="JUSTIFY"><LI>Weaker economic conditions and a sustained strong dollar led to lower sales and a fourth quarter loss of $.04 per share before restructuring and other special charges;</LI></UL>


<UL>
<P ALIGN="JUSTIFY"><LI>Cash flow from operations improved to $36.7 million for the fiscal year despite the lower operating results;</LI></P>
<P ALIGN="JUSTIFY"><LI>Debt reduced by $25.0 million in the fiscal year to $169.9 million.</LI></P></UL>

<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Strategic Actions</P>

<UL>
</B></U><P ALIGN="JUSTIFY"><LI>Major fourth quarter restructuring taken; Company recorded restructuring and other special charges of $26.9 million pre-tax, $18.3 million after tax, or $.83 per share; annualized savings of $30 to $35 million expected.</LI>
</UL>

<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Outlook</P>

<UL>
</B></U><P ALIGN="JUSTIFY"><LI>Modest revenue growth expected in fiscal year 2002 to $560 to $565 million; improved earnings in range of $.45 to $.50 per share.</LI></UL>

<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Fourth Quarter Impacted by Global Economic Uncertainty, Strong Dollar</P>
</B></U>
<P ALIGN="JUSTIFY">Before restructuring and other special charges, the Company reported a loss of $.04 per diluted share for the fourth quarter ended April 30, 2001 on sales of $137.5 million compared with earnings of $.26 per share for the fourth
quarter of last year on sales of $162.9 million. The net loss in this year's fourth quarter was $0.8 million before restructuring and other special charges, compared with net earnings of $5.8 million for the same period last year.  The restructuring and
other special charges in this year's fourth quarter amounted to $18.3 million after taxes, or $.83 per share and resulted in a net loss per share for the quarter of $.87.  Last year's fourth quarter included a charge for $4.1 million after taxes, or $.18
per share, and resulted in net earnings per share for that quarter of $.08.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the fiscal year, the Company reported a loss per share of $.11 before restructuring and other special charges on sales of $553.0 million.  After these charges, the net loss per share for the year ended April 30, 2001 was $1.07
(note that this amount also includes a first quarter special charge).  These results compared with earnings of $1.34 per diluted share before a special charge for last year on sales of $610.7 million.  Diluted earnings per share for last year were $1.16
after the charge.  The net loss in this fiscal year was $2.5 million before the restructuring and other special charges and $23.6 million after the charges.  Net earnings were $30.0 million for last year before special charges and $25.9 million after.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Commenting on the fourth quarter results, Michael J. Cheshire, Chairman and Chief Executive Officer, said, "Fourth quarter results reflect the weakness in demand for capital equipment in each of our business segments, especially in
North America.  Substantial cost reductions helped narrow the loss to $.04 per share (before restructuring and other special charges) in the quarter from a $.17 per share loss in the third quarter.  Working capital continued to come down and we generated
over $11.0 million in cash flow in the quarter.  Debt reduction continues to be a top priority.  Although we remain cautious about the near term outlook for our markets and the continued strength of the dollar, the restructuring initiatives will enable
Gerber Scientific to return to profitability as a leaner, more focused company."</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Actions to Reduce Debt</P>
</B></U>
<P ALIGN="JUSTIFY">The Company reported that asset sales and improved working capital management in the fiscal year generated improved cash flow, despite lower operating results.  Cash flow from operations amounted to $36.7 million for fiscal year 2001
compared with $27.1 million in the prior year.  Reductions in the Company's working capital, particularly accounts receivable and inventory, contributed to this improvement.  Asset sales added to cash generation, including approximately $12.0 million
received from a sale/leaseback transaction involving the Bristol, UK facility of the Company's Spandex PLC subsidiary.  The Company has reduced its debt by $25.0 million since the beginning of fiscal year 2001 and is focused on generating additional cash
flow to further reduce its debt level.  The Company remains committed to selling certain idle facilities and is negotiating an additional sale/leaseback transaction involving its principal South Windsor, Connecticut campus. The Company also announced on
February 23, 2001 that its Board of Directors voted to suspend the $.08 quarterly dividend after the February 28, 2001 payment.  Suspension of the dividend will provide the Company with an additional $7.0 million per year of cash flow to be used toward
lowering debt.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Weaker Foreign Currencies Lower Results</P>
</B></U>
<P ALIGN="JUSTIFY">As in previous periods, weaker year-to-year foreign currency exchange rates affected the Company's results in the fourth quarter and fiscal year ended April 30, 2001.  Revenue for this year's fourth quarter of $137.5 million reflected
a $6.2 million adverse impact from foreign currency translation rates on a year-to-year basis.  Holding currency values constant with the prior year, the 2001 fiscal year's revenue of $553.0 million would have been $32.5 million higher, or $585.5 million.
Earnings per share were $.01 lower in this year's fourth quarter due to weaker currency translation rates and were $.23 lower in the fiscal year.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Profit Margins Impacted by Lower Revenue and Sales Mix</P>
<P ALIGN="JUSTIFY"></P>
</B></U><P ALIGN="JUSTIFY">Profitability continued to be impacted by top-line weakness in the Company's three core businesses.  Each segment realized lower year-to-year sales in both the fourth quarter and fiscal year with the most significant declines
in the Apparel and Flexible Materials segment.  Profitability was off substantially on a year-to-year basis in the Company's two largest operating segments, Sign Making and Specialty Graphics and Apparel and Flexible Materials, and to a lesser extent in
the Optical Lens Processing segment.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">As was the case in prior quarters, profitability in this year's fourth quarter was also impacted by lower gross profit margins.  The weaker foreign currency values lowered gross profit margins as did changes in the sales mix, which
favored higher margin products last year.  Additionally, the geographic shift of sales this year to international markets had an adverse impact on margins, as the Company generally sells through distributors and agents in those markets.</P>
<B><U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Orders Dampened by Market Weakness and Currency Effect on Competitiveness</P>
<P ALIGN="JUSTIFY"></P>
</B></U><P ALIGN="JUSTIFY">New orders totaled $136.2 million for the three months ended April 30, 2001, compared with $148.3 million last year.  For the fiscal year, new orders amounted to $548.2 million compared with $605.1 million last year.  Each of
the Company's operating segments reported lower orders in the current year, with shortfalls occurring in both the European and North American markets throughout the year.  In addition, orders from other international markets declined in the fourth
quarter.  The relative strength of the U.S. dollar offered the Company's European competitors pricing advantages, particularly in that geographic market.  Weakening economic conditions in North American markets also resulted in fewer orders, particularly
for equipment. Currency weakness in certain international markets (including Turkey, Brazil, and Australia) slowed orders from those markets in the fourth quarter.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Backlog at the end of this fiscal year was $40.5 million compared with $45.2 million at the beginning of the year, with the decrease occurring primarily in the Sign Making and Specialty Graphics segment.  Order entry in this segment
was dampened by previously reported problems experienced in the introduction of the Gerber MAXX&trade;, a new wide-format thermal imaging system.  The Company has re-introduced MAXX units to the field in "beta" testing and has received satisfactory
reports on the units' performance.  However, the MAXX has not yet been released for full production and remains on technical hold.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Company Restructures Operations, Takes Charges</P>
<P ALIGN="JUSTIFY"></P>
</B></U><P ALIGN="JUSTIFY">In the fourth quarter, the Company implemented plans to reduce worldwide employment by approximately 350 employees (13 percent of its workforce), discontinue product lines, and consolidate facilities as part of its overall
strategic initiative to restructure operations and reduce costs.  These actions were principally in the Apparel and Flexible Materials, and Sign Making and Specialty Graphics segments, although each of the Company's operating segments was affected.  These
plans were the result of difficult U.S. economic conditions, general global economic uncertainty, the prolonged weakness of the Euro currency, and problems experienced in the rollout of new products.  The aggregate pre-tax restructuring and other special
charges were $26.9 million: $1.1 million was included in revenue (as a write-off of receivables), $10.9 million in the cost of sales, $1.8 million in selling, general and administrative expenses,  and $13.1 million as restructuring charges in the
consolidated statement of earnings.  The aggregate charge is comprised of employee separation costs, facility exit costs, inventory write-downs, impairments of long-lived assets (principally facilities), and other charges.  The goal of the restructuring
actions is to reduce operating costs by $30 to $35 million on an annual basis by fiscal year 2003.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Completed Review of Strategic Alternatives for Optical Business</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The Company previously reported that it completed its review of strategic alternatives for its optical lens processing unit, Gerber Coburn.  Based on an extensive review and discussions with potential strategic and financial parties,
Gerber Scientific, Inc. determined that Gerber Coburn will remain a business segment of the Company.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><P ALIGN="JUSTIFY">Outlook:  Uncertain Global Economic Environment; Results Expected to Improve in New Fiscal Year</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Given current economic conditions, the Company anticipates limited top line growth in its new fiscal year 2002, which began May 1, 2001.  As previously noted, the Company currently expects sales in the range of $560 to $565 million for
fiscal year 2002, a modest increase from $553 million for the fiscal year just ended.  Based largely on benefits derived from the cost reduction actions taken in fiscal year 2001, the Company currently anticipates earnings per share in the range of $.45
to $.50 next fiscal year.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Gerber Scientific, Inc. (<U><FONT SIZE=2>http://www.gerberscientific.com</U></FONT>) 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>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">In addition to the historical information contained herein, there are matters discussed that are considered to be "forward looking statements."  The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for
forward-looking statements.  These forward looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, and
services, that could significantly affect results in the future.  For a discussion of other risk factors relating to the Company's business, see the Company's Quarterly Reports on Form 10-Q for the quarters ended July 31, 2000, October 31, 2000, and
January 31, 2001 and its Annual Report on Form 10-K for the year ended April 30, 2000, as filed with the Securities and Exchange Commission.  The forward-looking statements contained in this release are made as of the date of this release, and the Company
assumes no obligation to update or revise any forward-looking statements contained in this release.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<I><FONT SIZE=2><P ALIGN="JUSTIFY">Maxx is a trademark of Gerber Scientific Products</P>
</I></FONT><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
<FONT FACE="CG Times">CONSOLIDATED ANALYSIS OF EARNINGS</P>
</U></FONT><P ALIGN="JUSTIFY"></P>
<P>Comparison on a consolidated basis for the three months and fiscal years ended April 30, 2001 and 2000 follows:</P>

<P>FINANCIAL FIGURES FOR THREE MONTHS AND FISCAL YEARS ENDED APRIL 30, 2001 AND 2000</P>

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<U><FONT SIZE=2><P ALIGN="CENTER">Fourth Quarter</U></FONT></TD>
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<U><FONT SIZE=2><P ALIGN="CENTER">Fiscal Year</U></FONT></TD>
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<U><FONT SIZE=2><P ALIGN="CENTER">2001</U></FONT></TD>
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<U><FONT SIZE=2><P ALIGN="CENTER">2000</U></FONT></TD>
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<U><FONT SIZE=2><P ALIGN="CENTER">2001</U></FONT></TD>
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<U><FONT SIZE=2><P ALIGN="CENTER">2000</U></FONT></TD>
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<FONT SIZE=2><P>Sales</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$137,471,000&nbsp;</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$162,854,000&nbsp;</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;552,960,000&nbsp;</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$610,726,000&nbsp;</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
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<FONT SIZE=2><P>Earnings (loss) before charges </FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(1,350,000)</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;8,618,000&nbsp;</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;(1,121,000)</FONT></TD>
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<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;45,175,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Restructuring and other special charges <SUP>(1) (2)</SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(26,891,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(6,200,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(31,310,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(6,200,000)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Earnings (loss) before income taxes</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(28,241,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;2,418,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;(32,431,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;38,975,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Taxes on earnings before charges <SUP>(3)</SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(500,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;2,800,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;1,400,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;15,200,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Tax benefit of charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(8,600,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,100,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(10,200,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,100,000)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Provision (benefit) for income taxes</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(9,100,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;700,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(8,800,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;13,100,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Net earnings (loss) before charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(850,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;5,818,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;(2,521,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$29,975,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Restructuring and other special charges,<BR>
&nbsp;&nbsp;&nbsp; net of taxes <SUP>(1)(2)</SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(18,291,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(4,100,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(21,110,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(4,100,000)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Net earnings (loss) </FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(19,141,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;1,718,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$(23,631,000)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$25,875,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Per share of common stock:<SUP> </SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Basic <SUP>(4)</SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.04)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.26&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.11)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other special charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.83)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.18)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.96)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.18)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.87)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.07)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted <SUP>(4)</SUP></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.04)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.26&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.11)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other special charges</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.83)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.18)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.96)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(.18)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.87)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.07)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Average shares outstanding:</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,038,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,059,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,017,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,140,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,038,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,209,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,017,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">22,390,000&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;</P>
<P>See notes on next page.</P>

</FONT><SUP><P>(1)</SUP> Included in the fiscal year ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived
assets, and other charges.  These charges, recorded in the first and fourth quarters of the fiscal year, amounted to $31,310,000 before income taxes and $21,110,000 after taxes ($.96 per diluted share).  Included in the first quarter ended July 31, 2000
were restructuring charges that amounted to $4,419,000 before income taxes and $2,819,000 after taxes ($.13 per diluted share) and in the fourth quarter ended April 30, 2001 restructuring and other special charges that amounted to $26,891,000 before
income taxes and $18,291,000 after taxes ($.83 per diluted share).<BR>
</P>
<SUP><P>(2)  </SUP>Included in the three and twelve months ended April 30, 2000 was a charge recorded for excess costs caused by cost overruns and inefficiencies realized in the initial production runs of products introduced in that year.  This charge
was included in the cost of product sales and amounted to $6,200,000 before income taxes and $4,100,000 after taxes ($.18 per diluted share).<SUP>  </P>
</SUP>
<SUP><P>(3)</SUP> The income tax expense associated with the loss before charges in the fiscal year ended April 30, 2001 arose principally from the non-deductibility of goodwill amortization.<BR>
</P>
<SUP><P>(4) </SUP>Earnings per share information was computed separately for each period.  Therefore, the sum of such quarterly share amounts may differ from the total for the year.</P>
<FONT FACE="CG Times">
<P>&nbsp;</P>
<P>&nbsp;</P>
<B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF EARNINGS</P>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=595>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Three Months Ended<BR>
April 30,</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<U><P>In thousands (except per share amounts)</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2001&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2000&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Revenue:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$125,914&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$149,534&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;11,557&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">13,320&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;137,471&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">162,854&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Costs and Expenses:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">93,075&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">100,194&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of service </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">9,426&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">7,146&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">37,693&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">39,633&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;6,746&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,138&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;2,230&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,286&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charge </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;13,120&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;162,290&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">157,397&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Operating income (loss)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(24,819)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">5,457&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Other income (expense)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;(201)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(26)</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Interest expense</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,221)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,013)</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Earnings (loss) before income taxes<SUP><FONT FACE="Courier,Courier New">(1)</SUP></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(28,241)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">2,418&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Provision (benefit) for income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(9,100)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">700&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Net earnings (loss)</B><SUP> (1)</SUP></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$(19,141)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;1,718&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Per share of common stock:</B><SUP> (1)</SUP></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.87)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.87)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.08&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Average shares outstanding:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,038&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,059&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,038&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,209&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=1>
<SUP><P>(1)</SUP>  Included in the fourth quarter ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived
assets, and other charges.  These charges amounted to $26,891,000 before income taxes and $18,291,000 after taxes ($.83 per diluted share).  </P>
</FONT>
<B><FONT FACE="CG Times"><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF EARNINGS</P>
</FONT></B>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=595>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Fiscal Year Ended<BR>
April 30,</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<U><P>In thousands (except per share amounts)</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2001&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2000&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Revenue:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$504,391&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$556,985&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;48,569&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">53,741&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;552,960&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">610,726&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Costs and Expenses:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">336,406&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">340,143&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of service</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">33,761&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">28,719&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">146,399&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">151,701&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">29,272&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">33,022&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,943&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">8,639&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">17,539&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;572,320&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">562,224&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Operating income (loss)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(19,360)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">48,502&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Other income</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;194&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">1,090&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Interest expense</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(13,265)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(10,617)</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Earnings (loss) before income taxes<SUP>(1)</SUP></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(32,431)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">38,975&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>Provision (benefit) for income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(8,800)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">13,100&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Net earnings (loss)</B><SUP> (1)</SUP></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;(23,631)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;25,875&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Per share of common stock:</B><SUP> (1)</SUP></TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(1.07)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(1.07)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.32&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.32&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<B><P>Average shares outstanding:</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="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,017&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,140&nbsp;</TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,017&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,390&nbsp;</TD>
</TR>
</TABLE>

<SUP><FONT SIZE=1>
<P>(1)</SUP> Included in the fiscal year ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived assets, and
other charges.  These charges, recorded in the first and fourth quarters of the fiscal year,  amounted to $31,310,000 before income taxes and $21,110,000 after taxes ($.96 per share on a diluted basis.)  Included in the first quarter ended July 31, 2001
were restructuring charges that amounted to $4,419,000 before income taxes and $2,819,000 after taxes ($.13 per diluted share) and in the fourth quarter ended April 30, 2001 restructuring and other special charges that amounted to $26,891,000 before
income taxes and $18,291,000 after taxes ($.83 per diluted share).  </P>
</FONT><B><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
<FONT FACE="CG Times">CONSOLIDATED BALANCE SHEETS</P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"></P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=614>
<TR><TD WIDTH="399" VALIGN="TOP">
<U><P><BR>
In thousands</U></TD>
<TD WIDTH="94" VALIGN="TOP">
<B><U><P ALIGN="CENTER">April 30, 2001</B></U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<B><U><P ALIGN="CENTER">April 30, 2000</B></U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Assets:</B></TD>
<TD WIDTH="94" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Current Assets:</B></TD>
<TD WIDTH="94" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and short-term cash investments</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">$20,866&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;22,954&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">98,159&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">121,494&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">69,441&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">86,472&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">18,965&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">21,042&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets held for sale</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">21,369&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="94" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="95" VALIGN="TOP" HEIGHT=13>
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">228,800&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">251,962&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Property, Plant and Equipment:</B></TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">112,572&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">165,341&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">53,022&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">66,121&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">59,550&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">99,220&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Intangible Assets:</B></TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">243,669&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">245,797&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated amortization</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">36,112&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">27,419&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">207,557&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">218,378&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Deferred Income Taxes:</B></TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">793&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Other Assets:</B></TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">4,493&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">3,276&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">$501,193&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">$572,836&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Liabilities and Shareholders' Equity:</B></TD>
<TD WIDTH="94" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Current Liabilities:</B></TD>
<TD WIDTH="94" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;---&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">48,520&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">58,043&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">18,576&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">16,646&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">25,749&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">26,689&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue </TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">13,129&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">8,436&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances on sales contracts</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">1,562&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">2,610&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">107,536&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">112,424&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<B><P>Noncurrent Liabilities:</B></TD>
<TD WIDTH="94" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">8,608&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">169,914&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">194,892&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<P ALIGN="RIGHT">169,914&nbsp;</TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<P ALIGN="RIGHT">203,500&nbsp;</TD>
</TR>
<TR><TD WIDTH="399" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="94" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="18" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="95" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
</TABLE>


<P>&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=614>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Contingencies and Commitments:</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">
<B><P>Shareholders' Equity:</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;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">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" 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 22,828,742 and 22,779,651 shares</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
&nbsp;22,829&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
22,780&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in capital</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;43,835&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">43,615&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">&nbsp;180,082&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">210,749&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost (784,837 and 797,444 shares, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively)</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(16,138)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(16,397)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unamortized value of restricted stock grants</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(439)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(557)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(6,426)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,278)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">223,743&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">256,912&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$501,193&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$572,836&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">=======</TD>
</TR>
</TABLE>

<FONT FACE="CG Times" SIZE=2>
</FONT><FONT SIZE=2><P>&nbsp;</P>
</FONT><B><U><P ALIGN="CENTER">GERBER SCIENTIFIC, INC. AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<P ALIGN="CENTER"></P></B></U>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=614>
<TR><TD WIDTH="66%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Fiscal Year Ended<BR>
April 30,</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<U><P>In thousands</U></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2001&nbsp;</U></TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><P ALIGN="RIGHT">2000&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">$(23,631)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$25,875&nbsp;</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;Depreciation and amortization</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">27,228&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">25,622&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special charges</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">31,310&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(9,401)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(1,613)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash items</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">533&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">460&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating accounts, net of<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effects of business acquisitions:</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">22,319&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(13,980)</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">6,205&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(8,463)</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">&nbsp;1,963&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">6,044&nbsp;</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">
<P ALIGN="RIGHT">(19,796)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(6,855)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Provided by Operating Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">36,730&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">27,090&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></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">(14,757)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(22,313)</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">13,721&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">---&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions</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">(14,744)</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">(1,982)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(189)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,148)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(4,491)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>(Used for) Investing Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(6,166)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(41,737)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></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;Purchase of common stock</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">(4,701)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions of long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">47,000&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">74,566&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of long-term debt</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(71,978)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(53,205)</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;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(1,798)</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">(751)</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;Proceeds from issuance of stock </TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">113&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">3,305&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on common stock</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(7,036)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(7,089)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Provided by (Used for) Financing Activities</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(32,652)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">11,078&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>(Decrease) in Cash and Short-Term Cash Investments</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,088)</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,569)</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>Cash and Short-Term Cash Investments, Beginning of Year</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">22,954&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">26,523&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT SIZE=2><P ALIGN="RIGHT">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Cash and Short-Term Cash Investments, End of Year</B></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$20,866&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT">$22,954&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">======</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">======</TD>
</TR>
</TABLE>


<P>&nbsp;</P>
<P>&nbsp;</P>
<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>May 31, 2001</U></TD>
<TD WIDTH="8%" VALIGN="TOP">
<P>By:</TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=3>
<U><P>/s/ Gary K. Bennett</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>Gary K. Bennett<BR>
Senior Vice President, Finance<BR>
(Principal Financial and Accounting Officer)</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
</TR>
</TABLE>

</BODY>
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{"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": "1651325"}, "business-address": {"street1": "83 GERBER RD WEST", "city": "SOUTH WINDSOR", "state": "CT", "zip": "06074", "phone": "8606441551"}, "mail-address": {"street1": "83 GERBER ROAD WESTS", "city": "SOUTH WINDSOR", "state": "CT", "zip": "06074"}, "former-company": {"former-conformed-name": "GERBER SCIENTIFIC INSTRUMENT CO", "date-changed": "19781210"}}
GERBER SCIENTIFIC, INC.
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):  May 31, 2001
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 9.     Regulation FD Disclosure
See the following press release, dated May 31, 2001, announcing the Company's fourth quarter results, strategic actions and outlook:
For Immediate Release
Contact:  Gary K. Bennett
May 31, 2001
(860-648-8004)
Gerber Scientific, Inc. Reports Fourth Quarter Results
SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported financial results for the fourth quarter and fiscal year ended April 30, 2001.  The Company highlighted the following:
Results
Weaker economic conditions and a sustained strong dollar led to lower sales and a fourth quarter loss of $.04 per share before restructuring and other special charges;
Cash flow from operations improved to $36.7 million for the fiscal year despite the lower operating results;
Debt reduced by $25.0 million in the fiscal year to $169.9 million.
Strategic Actions
Major fourth quarter restructuring taken; Company recorded restructuring and other special charges of $26.9 million pre-tax, $18.3 million after tax, or $.83 per share; annualized savings of $30 to $35 million expected.
Outlook
Modest revenue growth expected in fiscal year 2002 to $560 to $565 million; improved earnings in range of $.45 to $.50 per share.
Fourth Quarter Impacted by Global Economic Uncertainty, Strong Dollar
Before restructuring and other special charges, the Company reported a loss of $.04 per diluted share for the fourth quarter ended April 30, 2001 on sales of $137.5 million compared with earnings of $.26 per share for the fourth
quarter of last year on sales of $162.9 million. The net loss in this year's fourth quarter was $0.8 million before restructuring and other special charges, compared with net earnings of $5.8 million for the same period last year.  The restructuring and
other special charges in this year's fourth quarter amounted to $18.3 million after taxes, or $.83 per share and resulted in a net loss per share for the quarter of $.87.  Last year's fourth quarter included a charge for $4.1 million after taxes, or $.18
per share, and resulted in net earnings per share for that quarter of $.08.
For the fiscal year, the Company reported a loss per share of $.11 before restructuring and other special charges on sales of $553.0 million.  After these charges, the net loss per share for the year ended April 30, 2001 was $1.07
(note that this amount also includes a first quarter special charge).  These results compared with earnings of $1.34 per diluted share before a special charge for last year on sales of $610.7 million.  Diluted earnings per share for last year were $1.16
after the charge.  The net loss in this fiscal year was $2.5 million before the restructuring and other special charges and $23.6 million after the charges.  Net earnings were $30.0 million for last year before special charges and $25.9 million after.
Commenting on the fourth quarter results, Michael J. Cheshire, Chairman and Chief Executive Officer, said, "Fourth quarter results reflect the weakness in demand for capital equipment in each of our business segments, especially in
North America.  Substantial cost reductions helped narrow the loss to $.04 per share (before restructuring and other special charges) in the quarter from a $.17 per share loss in the third quarter.  Working capital continued to come down and we generated
over $11.0 million in cash flow in the quarter.  Debt reduction continues to be a top priority.  Although we remain cautious about the near term outlook for our markets and the continued strength of the dollar, the restructuring initiatives will enable
Gerber Scientific to return to profitability as a leaner, more focused company."
Actions to Reduce Debt
The Company reported that asset sales and improved working capital management in the fiscal year generated improved cash flow, despite lower operating results.  Cash flow from operations amounted to $36.7 million for fiscal year 2001
compared with $27.1 million in the prior year.  Reductions in the Company's working capital, particularly accounts receivable and inventory, contributed to this improvement.  Asset sales added to cash generation, including approximately $12.0 million
received from a sale/leaseback transaction involving the Bristol, UK facility of the Company's Spandex PLC subsidiary.  The Company has reduced its debt by $25.0 million since the beginning of fiscal year 2001 and is focused on generating additional cash
flow to further reduce its debt level.  The Company remains committed to selling certain idle facilities and is negotiating an additional sale/leaseback transaction involving its principal South Windsor, Connecticut campus. The Company also announced on
February 23, 2001 that its Board of Directors voted to suspend the $.08 quarterly dividend after the February 28, 2001 payment.  Suspension of the dividend will provide the Company with an additional $7.0 million per year of cash flow to be used toward
lowering debt.
Weaker Foreign Currencies Lower Results
As in previous periods, weaker year-to-year foreign currency exchange rates affected the Company's results in the fourth quarter and fiscal year ended April 30, 2001.  Revenue for this year's fourth quarter of $137.5 million reflected
a $6.2 million adverse impact from foreign currency translation rates on a year-to-year basis.  Holding currency values constant with the prior year, the 2001 fiscal year's revenue of $553.0 million would have been $32.5 million higher, or $585.5 million.
Earnings per share were $.01 lower in this year's fourth quarter due to weaker currency translation rates and were $.23 lower in the fiscal year.
Profit Margins Impacted by Lower Revenue and Sales Mix
Profitability continued to be impacted by top-line weakness in the Company's three core businesses.  Each segment realized lower year-to-year sales in both the fourth quarter and fiscal year with the most significant declines
in the Apparel and Flexible Materials segment.  Profitability was off substantially on a year-to-year basis in the Company's two largest operating segments, Sign Making and Specialty Graphics and Apparel and Flexible Materials, and to a lesser extent in
the Optical Lens Processing segment.
As was the case in prior quarters, profitability in this year's fourth quarter was also impacted by lower gross profit margins.  The weaker foreign currency values lowered gross profit margins as did changes in the sales mix, which
favored higher margin products last year.  Additionally, the geographic shift of sales this year to international markets had an adverse impact on margins, as the Company generally sells through distributors and agents in those markets.
Orders Dampened by Market Weakness and Currency Effect on Competitiveness
New orders totaled $136.2 million for the three months ended April 30, 2001, compared with $148.3 million last year.  For the fiscal year, new orders amounted to $548.2 million compared with $605.1 million last year.  Each of
the Company's operating segments reported lower orders in the current year, with shortfalls occurring in both the European and North American markets throughout the year.  In addition, orders from other international markets declined in the fourth
quarter.  The relative strength of the U.S. dollar offered the Company's European competitors pricing advantages, particularly in that geographic market.  Weakening economic conditions in North American markets also resulted in fewer orders, particularly
for equipment. Currency weakness in certain international markets (including Turkey, Brazil, and Australia) slowed orders from those markets in the fourth quarter.
Backlog at the end of this fiscal year was $40.5 million compared with $45.2 million at the beginning of the year, with the decrease occurring primarily in the Sign Making and Specialty Graphics segment.  Order entry in this segment
was dampened by previously reported problems experienced in the introduction of the Gerber MAXX™, a new wide-format thermal imaging system.  The Company has re-introduced MAXX units to the field in "beta" testing and has received satisfactory
reports on the units' performance.  However, the MAXX has not yet been released for full production and remains on technical hold.
Company Restructures Operations, Takes Charges
In the fourth quarter, the Company implemented plans to reduce worldwide employment by approximately 350 employees (13 percent of its workforce), discontinue product lines, and consolidate facilities as part of its overall
strategic initiative to restructure operations and reduce costs.  These actions were principally in the Apparel and Flexible Materials, and Sign Making and Specialty Graphics segments, although each of the Company's operating segments was affected.  These
plans were the result of difficult U.S. economic conditions, general global economic uncertainty, the prolonged weakness of the Euro currency, and problems experienced in the rollout of new products.  The aggregate pre-tax restructuring and other special
charges were $26.9 million: $1.1 million was included in revenue (as a write-off of receivables), $10.9 million in the cost of sales, $1.8 million in selling, general and administrative expenses,  and $13.1 million as restructuring charges in the
consolidated statement of earnings.  The aggregate charge is comprised of employee separation costs, facility exit costs, inventory write-downs, impairments of long-lived assets (principally facilities), and other charges.  The goal of the restructuring
actions is to reduce operating costs by $30 to $35 million on an annual basis by fiscal year 2003.
Completed Review of Strategic Alternatives for Optical Business
The Company previously reported that it completed its review of strategic alternatives for its optical lens processing unit, Gerber Coburn.  Based on an extensive review and discussions with potential strategic and financial parties,
Gerber Scientific, Inc. determined that Gerber Coburn will remain a business segment of the Company.
Outlook:  Uncertain Global Economic Environment; Results Expected to Improve in New Fiscal Year
Given current economic conditions, the Company anticipates limited top line growth in its new fiscal year 2002, which began May 1, 2001.  As previously noted, the Company currently expects sales in the range of $560 to $565 million for
fiscal year 2002, a modest increase from $553 million for the fiscal year just ended.  Based largely on benefits derived from the cost reduction actions taken in fiscal year 2001, the Company currently anticipates earnings per share in the range of $.45
to $.50 next fiscal year.
Gerber Scientific, Inc. (
http://www.gerberscientific.com
) 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.
In addition to the historical information contained herein, there are matters discussed that are considered to be "forward looking statements."  The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for
forward-looking statements.  These forward looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, and
services, that could significantly affect results in the future.  For a discussion of other risk factors relating to the Company's business, see the Company's Quarterly Reports on Form 10-Q for the quarters ended July 31, 2000, October 31, 2000, and
January 31, 2001 and its Annual Report on Form 10-K for the year ended April 30, 2000, as filed with the Securities and Exchange Commission.  The forward-looking statements contained in this release are made as of the date of this release, and the Company
assumes no obligation to update or revise any forward-looking statements contained in this release.
Maxx is a trademark of Gerber Scientific Products
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED ANALYSIS OF EARNINGS
Comparison on a consolidated basis for the three months and fiscal years ended April 30, 2001 and 2000 follows:
FINANCIAL FIGURES FOR THREE MONTHS AND FISCAL YEARS ENDED APRIL 30, 2001 AND 2000
Fourth Quarter
Fiscal Year
2001
2000
2001
2000
Sales
$137,471,000
$162,854,000
$ 552,960,000
$610,726,000
==========
==========
==========
==========
Earnings (loss) before charges
$  (1,350,000)
$    8,618,000
$   (1,121,000)
$ 45,175,000
Restructuring and other special charges
(1) (2)
(26,891,000)
(6,200,000)
(31,310,000)
(6,200,000)
Earnings (loss) before income taxes
$(28,241,000)
$    2,418,000
$ (32,431,000)
$ 38,975,000
Taxes on earnings before charges
(3)
$     (500,000)
$    2,800,000
$    1,400,000
$ 15,200,000
Tax benefit of charges
(8,600,000)
(2,100,000)
(10,200,000)
(2,100,000)
Provision (benefit) for income taxes
$  (9,100,000)
$       700,000
$  (8,800,000)
$ 13,100,000
Net earnings (loss) before charges
$     (850,000)
$   5,818,000
$  (2,521,000)
$29,975,000
Restructuring and other special charges,
net of taxes
(1)(2)
(18,291,000)
(4,100,000)
(21,110,000)
(4,100,000)
Net earnings (loss)
$(19,141,000)
$   1,718,000
$(23,631,000)
$25,875,000
==========
==========
==========
==========
Per share of common stock:
Basic
(4)
Before charges
$             (.04)
$             .26
$             (.11)
$           1.35
Restructuring and other special charges
(.83)
(.18)
(.96)
(.18)
$             (.87)
$             .08
$           (1.07)
$           1.17
==========
==========
==========
==========
Diluted
(4)
Before charges
$             (.04)
$             .26
$             (.11)
$           1.34
Restructuring and other special charges
(.83)
(.18)
(.96)
(.18)
$             (.87)
$             .08
$           (1.07)
$           1.16
==========
==========
==========
==========
Average shares outstanding:
Basic
22,038,000
22,059,000
22,017,000
22,140,000
==========
==========
==========
==========
Diluted
22,038,000
22,209,000
22,017,000
22,390,000
==========
==========
==========
==========
See notes on next page.
(1) Included in the fiscal year ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived
assets, and other charges.  These charges, recorded in the first and fourth quarters of the fiscal year, amounted to $31,310,000 before income taxes and $21,110,000 after taxes ($.96 per diluted share).  Included in the first quarter ended July 31, 2000
were restructuring charges that amounted to $4,419,000 before income taxes and $2,819,000 after taxes ($.13 per diluted share) and in the fourth quarter ended April 30, 2001 restructuring and other special charges that amounted to $26,891,000 before
income taxes and $18,291,000 after taxes ($.83 per diluted share).
(2)  Included in the three and twelve months ended April 30, 2000 was a charge recorded for excess costs caused by cost overruns and inefficiencies realized in the initial production runs of products introduced in that year.  This charge
was included in the cost of product sales and amounted to $6,200,000 before income taxes and $4,100,000 after taxes ($.18 per diluted share).
(3) The income tax expense associated with the loss before charges in the fiscal year ended April 30, 2001 arose principally from the non-deductibility of goodwill amortization.
(4) Earnings per share information was computed separately for each period.  Therefore, the sum of such quarterly share amounts may differ from the total for the year.
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended
April 30,
In thousands (except per share amounts)
2001
2000
Revenue:
Product sales
$125,914
$149,534
Service
11,557
13,320
137,471
162,854
Costs and Expenses:
Cost of product sales
93,075
100,194
Cost of service
9,426
7,146
Selling, general and administrative
37,693
39,633
Research and development expenses
6,746
8,138
Goodwill amortization
2,230
2,286
Restructuring charge
13,120
---
162,290
157,397
Operating income (loss)
(24,819)
5,457
Other income (expense)
(201)
(26)
Interest expense
(3,221)
(3,013)
Earnings (loss) before income taxes
(1)
(28,241)
2,418
Provision (benefit) for income taxes
(9,100)
700
Net earnings (loss)
(1)
$(19,141)
$    1,718
=======
=======
Per share of common stock:
(1)
Basic
$     (.87)
$        .08
Diluted
$     (.87)
$        .08
Dividends
$      .08
$        .08
Average shares outstanding:
Basic
22,038
22,059
Diluted
22,038
22,209
(1)  Included in the fourth quarter ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived
assets, and other charges.  These charges amounted to $26,891,000 before income taxes and $18,291,000 after taxes ($.83 per diluted share).
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Fiscal Year Ended
April 30,
In thousands (except per share amounts)
2001
2000
Revenue:
Product sales
$504,391
$556,985
Service
48,569
53,741
552,960
610,726
Costs and Expenses:
Cost of product sales
336,406
340,143
Cost of service
33,761
28,719
Selling, general and administrative
146,399
151,701
Research and development expenses
29,272
33,022
Goodwill amortization
8,943
8,639
Restructuring charges
17,539
---
572,320
562,224
Operating income (loss)
(19,360)
48,502
Other income
194
1,090
Interest expense
(13,265)
(10,617)
Earnings (loss) before income taxes
(1)
(32,431)
38,975
Provision (benefit) for income taxes
(8,800)
13,100
Net earnings (loss)
(1)
$ (23,631)
$  25,875
=======
=======
Per share of common stock:
(1)
Basic
$    (1.07)
$      1.17
Diluted
$    (1.07)
$      1.16
Dividends
$       .32
$        .32
Average shares outstanding:
Basic
22,017
22,140
Diluted
22,017
22,390
(1) Included in the fiscal year ended April 30, 2001 were restructuring and other special charges related to reductions in workforce, provisions for losses on the sale of facilities, inventory write-downs, impairments of long-lived assets, and
other charges.  These charges, recorded in the first and fourth quarters of the fiscal year,  amounted to $31,310,000 before income taxes and $21,110,000 after taxes ($.96 per share on a diluted basis.)  Included in the first quarter ended July 31, 2001
were restructuring charges that amounted to $4,419,000 before income taxes and $2,819,000 after taxes ($.13 per diluted share) and in the fourth quarter ended April 30, 2001 restructuring and other special charges that amounted to $26,891,000 before
income taxes and $18,291,000 after taxes ($.83 per diluted share).
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
In thousands
April 30, 2001
April 30, 2000
Assets:
Current Assets:
Cash and short-term cash investments
$20,866
$  22,954
Accounts receivable
98,159
121,494
Inventories
69,441
86,472
Prepaid expenses
18,965
21,042
Net assets held for sale
21,369
---
228,800
251,962
Property, Plant and Equipment:
112,572
165,341
Less accumulated depreciation
53,022
66,121
59,550
99,220
Intangible Assets:
243,669
245,797
Less accumulated amortization
36,112
27,419
207,557
218,378
Deferred Income Taxes:
793
---
Other Assets:
4,493
3,276
$501,193
$572,836
=======
=======
Liabilities and Shareholders' Equity:
Current Liabilities:
Notes payable
$        ---
$        ---
Accounts payable
48,520
58,043
Accrued compensation and benefits
18,576
16,646
Other accrued liabilities
25,749
26,689
Deferred revenue
13,129
8,436
Advances on sales contracts
1,562
2,610
107,536
112,424
Noncurrent Liabilities:
Deferred income taxes
---
8,608
Long-term debt
169,914
194,892
169,914
203,500
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 22,828,742 and 22,779,651 shares
22,829
22,780
Paid-in capital
43,835
43,615
Retained earnings
180,082
210,749
Treasury stock, at cost (784,837 and 797,444 shares,          respectively)
(16,138)
(16,397)
Unamortized value of restricted stock grants
(439)
(557)
Accumulated other comprehensive income (loss)
(6,426)
(3,278)
223,743
256,912
$501,193
$572,836
=======
=======
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Fiscal Year Ended
April 30,
In thousands
2001
2000
Cash Provided by (Used for):
Operating Activities:
Net earnings (loss)
$(23,631)
$25,875
Adjustments to reconcile net earnings (loss)
to cash provided by operating activities:
Depreciation and amortization
27,228
25,622
Special charges
31,310
---
Deferred income taxes
(9,401)
(1,613)
Other non-cash items
533
460
Changes in operating accounts, net of
effects of business acquisitions:
Receivables
22,319
(13,980)
Inventories
6,205
(8,463)
Prepaid expenses
1,963
6,044
Accounts payable and accrued expenses
(19,796)
(6,855)
Provided by Operating Activities
36,730
27,090
Investing Activities:
Additions to property, plant and equipment
(14,757)
(22,313)
Proceeds from sale of assets
13,721
---
Business acquisitions
---
(14,744)
Intangible and other assets
(1,982)
(189)
Other, net
(3,148)
(4,491)
(Used for) Investing Activities
(6,166)
(41,737)
Financing Activities:
Purchase of common stock
---
(4,701)
Additions of long-term debt
47,000
74,566
Repayments of long-term debt
(71,978)
(53,205)
Net short-term financing
---
(1,798)
Debt issue costs
(751)
---
Proceeds from issuance of stock
113
3,305
Dividends on common stock
(7,036)
(7,089)
Provided by (Used for) Financing Activities
(32,652)
11,078
(Decrease) in Cash and Short-Term Cash Investments
(2,088)
(3,569)
Cash and Short-Term Cash Investments, Beginning of Year
22,954
26,523
Cash and Short-Term Cash Investments, End of Year
$20,866
$22,954
======
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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:
May 31, 2001
By:
/s/ Gary K. Bennett
Gary K. Bennett
Senior Vice President, Finance
(Principal Financial and Accounting Officer)