Evans & Sutherland Reports Fourth Quarter and Year-End Results

Sales for the 2001 fiscal year were $145.3 million, down 13.0% from sales of $167.0 million in 2000. Net income for the fourth quarter of 2001 was $0.1 million, or $0.01 per share, compared to a net loss of $14.6 million, or $1.55 per share, in 2000.

SALT LAKE CITY, UTAH, FEBRUARY 28, 2002—Evans & Sutherland Computer Corporation (E&S®) (NASDAQ: ESCC) today reported financial results for the fourth quarter and year ended December 31, 2001.

Sales for the 2001 fiscal year were $145.3 million, down 13.0% from sales of $167.0 million in 2000. Net loss for 2001 was $27.5 million, or $2.70 per share, compared to the net loss of $69.8 million, or $7.45 per share, in 2000. For the fourth quarter ended December 31, 2001, sales were $27.9 million, compared to sales of $47.3 million for the fourth quarter of 2000. Net income for the fourth quarter of 2001 was $0.1 million, or $0.01 per share, compared to a net loss of $14.6 million, or $1.55 per share, in 2000.

Comments from James R. Oyler, President and Chief Executive Officer

"The fourth quarter was as expected, with a small net income, positive cash flow, and an increase in backlog. For the fourth quarter and the full year, revenue declined primarily because of program delays and the disposal of several business units.

"Our results continue to be heavily influenced by several large fixed price defense contracts which have incurred high costs to complete and produced operating losses. Delays in these programs caused revenue reductions during the fourth quarter and the full year. In total, these programs are now over 90% complete, with several systems already in service and others entering service in 2002.

"We have taken a number of measures to reduce operating costs and excess assets, dispose of unprofitable operations, and focus on our core strategy of visual systems and visual databases for simulation and closely related applications. We expect these actions, together with the completion of programs in loss positions, to produce improvement in operating results during 2002."

Evans & Sutherland produces hardware and software to create highly realistic 3D images. E&S business units deliver high-quality visual systems and visual databases for simulation and training in defense and commercial applications; digital theaters; and related applications throughout the world. Visit the E&S Web site at http://www.es.com/.

Statements in this press release that are not historical, including statements regarding E&S's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements that loss programs are over 90% complete overall, that additional systems will enter service in 2002, that operational improvements and completion of loss programs will take place in 2002, and that operating results should improve in 2002. It is important to note that E&S's actual results could differ materially from those in any such forward-looking statements. Various factors could cause actual results to differ materially, such as the risk factors listed from time to time in E&S's SEC reports, including but not limited to, the annual report on Form 10-K for the year ended December 31, 2001.

E&S is a registered trademark of Evans & Sutherland Computer Corporation.

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Contacts:

Financial:
William Thomas
Chief Financial Officer
Tel: (801) 588-1508
email: bthomas@es.com

Media:
Joan Mitchell
Public Relations Manager
Tel: (801) 588-1453
email: jmitchel@es.com