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.”

Revenue
Consolidated net sales for the
fiscal year ended June 30, 2006 increased approximately $3.3 million,
or 18 percent, to $21.3 million from $18.0 million in the prior year.
The Company’s sales of color toner cartridges increased by
approximately 39 percent over the same period in 2005 while sales of
solid ink sticks increased approximately 18 percent. Sales of Media
Sciences branded products increased by 500 bp to 55 percent of revenues
and the Company’s international business increased by 200 bp to 18
percent of revenuesConsolidated net sales for the quarter ended June
30, 2006 increased approximately 25 percent to $5.96 million from $4.76
million in the prior year.Overall, net revenue growth in fiscal 2006 is
attributed to new product introductions, increased market share for
some existing products, and growth in the installed base of color
business printers for which Media Sciences manufactures supplies. The
trend toward these lower-priced, faster color printers is expected to
continue.

Gross Margin
Consolidated gross profit for the year
ended June 30, 2006 increased by $3.3 million or 45 percent to $10.8
million from $7.5 million in the prior year. In 2006, the Company’s
gross margin increased by 900 bp from 42 percent of net revenues in
2005 to 51 percent in 2006.
Media Sciences has benefited from margin
expansion due to increased efficiencies in solid ink manufacturing and
the mix of product sales. Favorable reductions in costs of goods sold
were partially offset by increased prices of certain raw materials and
their associated shipping costs. In fiscal 2007, the Company does not
expect significant additional yield improvements in solid ink
production or further product transitions that would reduce costs.
Therefore, any further increases in raw material or inbound shipping
costs may increase product costs, unless offset by other manufacturing
efficiencies.

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.