Media Sciences Reports 38% Increase in Net Income on Record Revenues
OAKLAND,
N.J., Feb. 07 — Media Sciences International, Inc., the leading
independent manufacturer of color toner cartridges and solid ink sticks
for color business printers, today announced its second quarter
financial results for the period ended December 31, 2006. The Company
will host a conference call tomorrow morning at 8:45 a.m. ET to discuss
its quarterly results.

The year-over-year increase in
net revenues is attributed primarily to recurring sales from the
Company’s growing portfolio of color business printer supply products.
To a lesser extent, some of the noted growth is also attributed to the
general growth and increased market acceptance of color business
printers and an increase in market share for some of our existing
products.in October 2006, Media Sciences began shipping toner
cartridges for use in the Oki(R) C3100 and C3200 color business
printers, with an installed base that is now the fourth largest in our
portfolio of products. The European market comprises more than 80% of
the estimated total installed base.In late December 2006, Media
Sciences began shipping high capacity toner cartridges for use in the
Dell(R) 3000cn and 3100cn color business printers, Standard capacity
versions for use in the Dell 3000cn, 3010cn, 3100cn and color toner
cartridges for use in the Epson(R) AcuLaser(R) CX11N, CX11NF, and C1100
color business printers are expected to be available for shipment later
this month. In total, this product launch represents the largest single
installed base in the Company’s portfolio of products.Consolidated net
revenues for the three months ended December 31, 2006 compared to that
of the prior quarter ended September 30, 2006, increased sequentially
by $0.5 million, or 8% to $6.1 million, from $5.6 million. Much of this
sequential growth is attributed to contributions from these two new
toner-based product introductions as well as continued growth of the
Company’s solid ink business.

Media Sciences Reports Record Revenues, Earnings and Cash Flow for Fiscal 2006
OAKLAND, N.J., Sept. 06 Media Sciences International, Inc. GFX, the leading independent manufacturer of color toner cartridges and solid ink sticks for business color printers, today announced its financial results for the year ended June 30, 2006, which included record revenues, earnings and cash flows. The Company will host a conference call Wednesday, September 13, 2006, at 8:45 a.m. ET to discuss its fiscal 2006 annual results, its strategic objectives for the current 2007 fiscal year, and the status of its patent litigation with Xerox.
Financial highlights for the fiscal 2006 year include: — Net revenue increase of 18% year over year — Gross margin improvement of 900 bp over the prior year — Full year EPS of $0.19 per share basic and $0.18 per share diluted — 4th Quarter EPS of $0.07 per share basic and $0.06 per share diluted — Effective tax rate reduction of 500 bp on continuing operations — EBITDA of $4.0 million, up $2.7 million or 203% over the prior year
Michael W. Levin, President and Chairman of Media Sciences International, Inc. commented on the year’s success, “We are very pleased with our 2006 results. The execution by our recently expanded, exceptional team of professionals included strong product launches, significant manufacturing efficiencies and the implementation of processes and controls required to scale Media Sciences’ business. These efforts translated into significant margin enhancement and strong earnings and cash flow, and set the stage for our continued and accelerated growth and profitability.”

Cash Flow
For the fiscal year, cash flows from operating activities were $3.4 million, a $3.24 million increase over the prior year of $0.16 million. The $3.4 million of operating cash flows generated in 2006 resulted from $2.1 million of income from operations and the add-back of non-cash expenses totaling $1.3 million

Media Sciences Reports Record Revenues, Earnings, and Cash Flow Generated by Operations
OAKLAND,
N.J., May 06 — Media Sciences International, Inc. , the leading
independent manufacturer of solid ink sticks and color toner cartridges
for office color printers, today announced its third quarter financial
results for the period ended March 31, 2006. The Company will host a
conference call tomorrow morning at 8:45 a.m. ET to discuss the
Company’s quarterly results.Highlights of the Company’s third quarter
include: — Net revenue increase of 32% over the same quarter last year
and 5% over the prior quarter. — Gross margin was 57% of net revenues,
an increase of 700 bp over the same period last year and in line with
the prior quarter. — EPS of $0.05 basic, $0.04 diluted. For the nine
months EPS was $0.13 basic, $0.12 diluted. — EBITDA of $1.0 million,
up 279% over the same quarter last year, exclusive of non-recurring
charges. EBITDA increased 8% over the prior quarter.

Revenue
Consolidated
net revenues for the quarter ended March 31, 2006 increased
approximately 32% to $5.4 million from $4.1 million for the same period
in the prior year. In the Company’s third quarter, color toner
cartridge sales increased by 68% and solid ink sales increased by 23%.
Consolidated net revenues for the nine-month period ended March 31,
2006 increased approximately 16% to $15.2 million from $13.1 million
for the same period in the prior year. For comparison, the quarter
ended March 31, 2005, was impacted by distractions resulting from the
Company’s relocation to a larger facility.