The sale price consists of $8 million in cash, which will be paid upon the sale of the business, and approximately $2 million of laser diodes for Presstek's future product requirements.

In addition to the sale price and the transfer of Presstek-specific inventory, SELEX will assume the current lease on the Lasertel property in Tucson, Arizona, US.

The transaction is expected to close during the first quarter of 2010.

Deal Value (US$ Million) 10
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-11-23

Deal Participants

Target (Company)   Lasertel, Inc.
Acquirer (Company) SELEX Sensors and Airborne Systems (US), Inc.
Vendor (Company)   Presstek, Inc.

Deal Rationale

The sale will allow Presstek to focus on its core business and further reduce its debt.

Lasertel develops and manufactures high-powered laser diodes for a variety of industries, including graphic arts. Presstek uses these laser diodes in its Presstek DI(R) digital offset presses and the Dimension Excel Series of computer-to-plate systems.

In addition to the sale price and the transfer of Presstek-specific inventory, SELEX S&AS will assume the current lease on the Lasertel property in Tucson, AZ. A supply agreement will also be entered into that will provide the currently utilized laser diode product to Presstek at existing prices for a two year period.

"This sale to SELEX S&AS will place Lasertel into a large organization whose core business is closely aligned with Lasertel's mission," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. At the same time, it allows Presstek to focus on its core business and further reduce its debt. While selling Lasertel has been a key objective during the past year, we needed to ensure that we received an appropriate value for Lasertel. We are pleased that we are able to accomplish that with this sale."

About SELEX Sensors and Airborne Systems (US), Inc.

SELEX Sensors and Airborne Systems (US), Inc. is headquartered in Arlington, VA, and has locations in Huntsville, AL; Stennis, MS; Fort Walton Beach, FL and Norcross, GA, among other locations. It is wholly owned by SELEX Sensors and Airborne Systems Limited.

About Lasertel

Lasertel, Inc., headquartered in Tucson, AZ, uses state-of-the-art equipment and patented processes to deliver standard and custom laser diode solutions to meet the requirements of demanding applications for a variety of industries.

About Presstek

Presstek, Inc. is the leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI(R), CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins. For more information visit www.presstek.com or call 603-595-7000 or email: info@presstek.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing of the expected closing of the sale of the Company's Lasertel subsidiary. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the timing and results of regulatory filings for the approval of the transaction in certain jurisdictions or the lapse of required waiting periods, the satisfaction of conditions precedent to the closing of the transaction, and other risks and uncertainties detailed in the Company's 2008 Annual Report on Form 10-K and the Company's other reports on file with the Securities and Exchange Commission. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "project(s)," "likely," "opportunity," expressions of optimism concerning future events or results, and similar expressions, among others, identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to update any forward-looking statements contained in this news release.

DI is a registered trademark of Presstek, Inc.

Contacts:
Investor Relations
Linda S. Lennox
203-275-6292
Email Contact

Trade Relations
Brian Wolfenden
603-594-8585, ext. 3435
Email Contact

SOURCE: Presstek, Inc.

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Improved Sequential Operating Results, Excluding $3.7 Million of Non-Routine Inventory and Restructuring Charges; New Credit Facility Expected to Be in Place by December 15; Reaffirming Positive EBITDA Expected in Q4

GREENWICH, CT -- November 9, 2009 -- Presstek, Inc. (NASDAQ: PRST), a leading manufacturer and marketer of digital offset printing business solutions, today reported financial and operating results for the third quarter ended October 3, 2009. The Company reported total revenue of $33.0 million in the third quarter of 2009, compared with $48.5 million in the third quarter of 2008, a decline of $15.5 million, or approximately 32 percent. During the third quarter of 2009, the Company incurred a loss from continuing operations of $6.6 million, or $0.18 per share, including (on a pre-tax basis) a largely non-cash inventory-related charge of $2.7 million and a restructuring charge of $1.0 million related to the $10 million cost reduction program announced in the second quarter of 2009. Excluding pre-tax non-routine charges of $3.7 million in the third quarter of 2009 and $0.4 million in the third quarter of 2008, the loss from continuing operations would have been $3.0 million, or $0.08 per share, in the third quarter of 2009, compared with income from continuing operations of $1.0 million, or $0.03 per share, in the third quarter of 2008. (See "Information Regarding Non-GAAP Measures")

Results from continuing operations exclude the Company's Lasertel subsidiary, which is currently being marketed for sale and is recorded in discontinued operations. The Company expects to reach an agreement for the sale of its Lasertel subsidiary in the fourth quarter of 2009 with a closing anticipated in the first quarter of 2010. Lasertel's results improved during the third quarter of 2009 with income from operations, net of tax, of $0.7 million, compared with a loss from operations, net of tax, of $0.4 million in the same period last year.

"Although revenues for the quarter continue to be impacted by the global economic recession, sequential quarterly revenues have stabilized and we anticipate that revenue will begin to grow," said Presstek Chairman, President and Chief Executive Officer, Jeff Jacobson. "We have successfully reduced expenses and managed cash, while staying focused on our strategic initiatives of expanding our product portfolio and distribution channels. During the third quarter, we debuted and sold our first 52DI with aqueous coating capability to Quad/Graphics, the largest privately held printer in the world, and have already accepted several additional customer orders. We also introduced Aeon, our first long-run, non-preheat thermal CTP plate, which will be available by the end of this year. In addition, we have made tremendous progress expanding our distribution channels to nearly 60 distributor locations in our Europe, Africa, Middle East and Asia Pacific regions."

Third Quarter 2009 Financial Results

Total revenue in the third quarter of 2009 was $33.0 million, compared with $48.5 million in the third quarter of 2008.

    ?Equipment revenue declined 76 percent to $3.6 million in the third
    quarter of 2009, compared with $15.2 million for the same period last year.
    Sales of equipment have been negatively impacted by the global economic
    recession that has caused credit markets to tighten and customers to delay
    major capital investment decisions.

    ?Consumables revenue totaled $22.2 million in the third quarter of 2009,
    compared with $25.1 million for the same period last year.  The decline in
    consumables revenue was primarily related to lower industry print volume,
    as well as lower sales in the Company's "traditional" portfolio of
    consumables products as customers continue to migrate from analog to
    digital solutions.  However, sequential quarterly revenue increased $1.0
    million, or 4.9 percent.

    ?Service revenue declined approximately 12 percent to $7.2 million in the
    third quarter of 2009 primarily due to a decrease in the level of
    traditional equipment service and lower print volume.

Third quarter 2009 margin was impacted by an abnormally large inventory charge of $2.7 million to Cost of Goods Sold that lowered gross margin to 23.3 percent, compared with 34.7 percent in the third quarter of 2008. Excluding this unusual charge, gross margin in the third quarter of 2009 would have been 31.5 percent. This charge, which is mostly non-cash, was driven in large part by lower production volume levels in Presstek's equipment manufacturing plant and the impact of a change in certain product strategies. In addition, during the quarter, Presstek refined the calculations and assumptions used to determine the allocation of manufacturing spending between period costs and capitalized variances. The Company is evaluating the need for actions to further enhance its manufacturing cost efficiencies.

Third quarter 2009 operating expenses declined to $13.9 million, reflecting a year-over-year improvement of $0.8 million, or 5.7 percent. Lower expenses resulted primarily from cost reduction activities. During the second quarter of 2009, the Company implemented a cost reduction program that is substantially complete and is expected to result in annualized savings of approximately $10 million. A restructuring charge of $1.0 million related to the program was recorded in the third quarter of 2009. Excluding the impact of restructuring charges in both periods, third quarter 2009 operating expenses were down $1.5 million, or 11 percent, compared with the same period last year.

"During the last two years, we have implemented business improvement initiatives that have resulted in gross profit and operating expense improvements of approximately $40 million," said Presstek Executive Vice President and Chief Financial Officer, Jeff Cook. "With the vast majority of the cost cutting initiatives complete, we have a cost structure that is appropriately aligned with our revenue base. I am optimistic that our lean cost structure combined with the positive sales prospects we are seeing will lead to positive EBITDA in the fourth quarter of 2009."

Interest expense increased to $0.5 million in the third quarter of 2009, compared with $0.1 million in the third quarter of 2008. The increase is due to higher interest rates and a $250,000 fee associated with a modification of the Company's credit agreement. The Company is in discussions concerning a new credit facility and expects to have an arrangement in place on or prior to December 15, 2009 sufficient to repay the Company's outstanding indebtedness and provide for continuing operations.

The Company's third quarter 2009 debt net of cash totaled $16.2 million, compared with $13.3 million in the third quarter of 2008. Debt net of cash is down 56 percent from its high of $37.0 million in March 2007.

"With the anticipated continued impact of the economy on our financial results, we had previously indicated that, excluding non-routine charges in both quarters, our third quarter operating loss would be in line with our second quarter loss of $3.6 million. In addition, we would be incurring costs related to Print 09, North America's largest printing trade show held during the third quarter," added Jacobson. "I am encouraged that with a third quarter operating loss of $2.4 million, absent non-routine charges, the business performed better than expected. With the talented and dedicated employees we have and the steps we have taken to ensure that we are well positioned to thrive once the economy turns around, I am confident of the Company's future success."

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides non-GAAP financial measures, including income (loss) from continuing operations, excluding non-routine charges; operating income (loss), excluding non-routine charges; gross margin, excluding non-routine charges; operating expenses, excluding the impact of restructuring charges; EBITDA from continuing operations; cash earnings from continuing operations, excluding non-routine charges; working capital, excluding short-term debt; debt net of cash and other GAAP measures adjusted for certain charges, which the Company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the financial tables below. Supplemental financial information has been provided with this release to provide additional details on the Company's performance.

Conference Call and Webcast Information

Management will discuss Presstek's third quarter 2009 results in a conference call on Monday, November 9, 2009 at 10:30 a.m. Eastern Time. Conference call information is below:

Conference Call Access:
Domestic Dial In: (888) 396-2386
International Dial In: (617) 847-8712
Passcode: 14582468

In addition, for those unable to participate at the time of the call, a rebroadcast will be available following the call from Monday, November 9, 2009 at 1:30 PM Eastern Time until Friday, November 16, 2009 Eastern Time at 11:59 PM.

Rebroadcast Access:
Domestic Dial In: 888-286-8010
International Dial In: 617-801-6888
Passcode: 30398536

An archived webcast of this conference call will also be available on the "Investor Events Calendar" page of the Company's web site, www.presstek.com.

About Presstek

Presstek, Inc. is a leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI(R), CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins. Presstek subsidiary, Lasertel, Inc., manufactures semiconductor laser diodes for Presstek's and external customers' applications. For more information visit www.presstek.com, or call 603-595-7000 or email: info@presstek.com. DI is a registered trademark of Presstek, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected revenue, gross margins, operating income (loss), EBITDA, asset impairments, expectations concerning the level of costs, the level of customer demand, the results of the Company's cost reduction measures, the Company's expectation concerning the sale of its Lasertel subsidiary, the ability of the Company to achieve its stated objectives, and the Company's expectations concerning its ability to obtain a new credit facility. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the severity and length of the current economic downturn, the impact of the economic downturn on the availability of credit for the Company's customers, the ability of the Company to continue to have access to its revolving credit facility, the ability of the Company to obtain an adequate credit facility to replace its current credit facility and provide for operations, the Company's ability to successfully market its Lasertel subsidiary for sale, market acceptance of and demand for the Company's products and resulting revenue, the ability of the Company to successfully expand into new territories, the ability of the Company to meet its stated financial and operational objectives, the Company's dependence on its partners (both manufacturing and distribution), the results of the pending formal investigation by the Securities and Exchange Commission and the impact of any civil penalty on the Company, the ability of the Company's insurer to fund certain costs associated with the SEC investigation, and other risks and uncertainties detailed in the Company's 2008 Annual Report on Form 10-K and the Company's other reports on file with the Securities and Exchange Commission. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "project(s)," "likely," "opportunity," expressions of optimism concerning future events or results, and similar expressions, among others, identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to update any forward-looking statements contained in this news release.

                              PRESSTEK, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per-share data)
                                (Unaudited)
                                 Three months ended    Nine months ended
                                 October   September   October   September
                                    3,        27,         3,        27,
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenue
 Equipment                      $   3,627  $  15,235  $  13,827  $  42,957
 Consumables                       22,150     25,053     65,170     81,807
 Service and parts                  7,229      8,246     21,979     26,170
                                ---------  ---------  ---------  ---------
  Total revenue                    33,006     48,534    100,976    150,934
                                ---------  ---------  ---------  ---------
Cost of revenue
 Equipment                          8,152     12,937     18,015     37,207
 Consumables                       11,982     12,652     35,603     41,452
 Service and parts                  5,172      6,096     16,528     19,561
                                ---------  ---------  ---------  ---------
  Total cost of revenue            25,306     31,685     70,146     98,220
                                ---------  ---------  ---------  ---------
Gross profit                        7,700     16,849     30,830     52,714
                                ---------  ---------  ---------  ---------
Operating expenses
 Research and development           1,379      1,059      3,803      3,697
 Sales, marketing and customer
  support                           6,276      7,088     19,525     22,411
 General and administrative         4,946      5,932     17,239     18,321
 Amortization of intangible
  assets                              225        258        712        823
 Restructuring and other
  charges                           1,040        374      1,162      1,569
 Goodwill impairment                    -          -     19,114          -
                                ---------  ---------  ---------  ---------
  Total operating expenses         13,866     14,711     61,555     46,821
                                ---------  ---------  ---------  ---------
Income (loss) from operations      (6,166)     2,138    (30,725)     5,893
Interest and other expense, net      (745)      (359)      (531)      (646)
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations before income taxes    (6,911)     1,779    (31,256)     5,247
Provision for income taxes           (264)     1,153     16,366      2,731
                                ---------  ---------  ---------  ---------
Income (loss) from continuing
 operations                        (6,647)       626    (47,622)     2,516
Income (loss) from discontinued
 operations, net of income
 taxes                          $     706  $    (431) $    (959) $  (1,536)
                                ---------  ---------  ---------  ---------
Net income (loss)               $  (5,941) $     195  $ (48,581) $     980
                                =========  =========  =========  =========
Earnings (loss) per share -
 basic
  Income (loss) from continuing
   operations                   $   (0.18) $    0.02  $   (1.30) $    0.07
  Income (loss) from
   discontinued operations           0.02      (0.01)     (0.02)     (0.04)
                                ---------  ---------  ---------  ---------
                                $   (0.16) $    0.01  $   (1.32) $    0.03
                                =========  =========  =========  =========
Earnings (loss) per share -
 diluted
  Income (loss) from continuing
   operations                   $   (0.18) $    0.02  $   (1.30) $    0.07
  Income (loss) from
   discontinued operations           0.02      (0.01)     (0.02)     (0.04)
                                ---------  ---------  ---------  ---------
                                $   (0.16) $    0.01  $   (1.32) $    0.03
                                =========  =========  =========  =========
Weighted average shares
 outstanding
  Weighted average shares
   outstanding - basic             36,638     36,603     36,668     36,586
  Dilutive effect of stock
   options                              -         13          -         12
                                ---------  ---------  ---------  ---------
  Weighed average shares
   outstanding - diluted           36,638     36,616     36,668     36,598
                                =========  =========  =========  =========
                              PRESSTEK, INC.
                        CONSOLIDATED BALANCE SHEETS
                              (in thousands)
                                (Unaudited)
                                                     October 3, January 3,
                                                        2009       2009
                                                      ---------  ---------
ASSETS
 Current assets
  Cash and cash equivalents                           $   7,220  $   4,738
  Accounts receivable, net                               24,609     30,759
  Inventories                                            33,134     37,607
  Assets of discontinued operations                      14,743     13,330
  Deferred income taxes                                     503      7,066
  Other current assets                                    2,693      4,095
                                                      ---------  ---------
    Total current assets                                 82,902     97,595
 Property, plant and equipment, net                      24,744     25,530
 Goodwill                                                     -     19,114
 Intangible assets, net                                   4,190      4,174
 Deferred income taxes                                      739     10,494
 Other noncurrent assets                                    497        606
                                                      ---------  ---------
    Total assets                                      $ 113,072  $ 157,513
                                                      =========  =========
LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
  Current portion of long-term debt and capital lease
   obligation                                         $     834  $   4,074
  Line of credit                                         22,612     12,415
  Accounts payable                                       10,189     12,060
  Accrued expenses                                        9,286     13,261
  Deferred revenue                                        6,818      7,300
  Liabilities of discontinued operations                  5,801      5,702
                                                      ---------  ---------
    Total current liabilities                            55,540     54,812
 Other long-term liabilities                                151        170
                                                      ---------  ---------
    Total liabilities                                    55,691     54,982
                                                      ---------  ---------
 Stockholders' equity
  Preferred stock                                             -          -
  Common stock                                              368        366
  Additional paid-in capital                            119,604    117,985
  Accumulated other comprehensive loss                   (4,144)    (5,954)
  Accumulated deficit                                   (58,447)    (9,866)
                                                      ---------  ---------
    Total stockholders' equity                           57,381    102,531
                                                      ---------  ---------
    Total liabilities and stockholders' equity        $ 113,072  $ 157,513
                                                      =========  =========
                              PRESSTEK, INC.
         CONTINUING OPERATIONS SUPPLEMENTAL FINANCIAL INFORMATION
                                  $000's
                                (Unaudited)
                     Q3 2008   Q4 2008    Q1 2009     Q2 2009     Q3 2009
                     --------  --------  ---------  ----------  ----------
Key Units
  DI Presses
   (Excludes QMDI)         37        25         13          11          12
  CtP Platesetters
   (Excludes DPM)          36        35         24          21          15
Revenue - Growth
 Portfolio
  DI Presses
   (Excludes QMDI)     12,867     7,528      3,521       3,732       2,923
  Presstek Branded
   DI Plates            4,653     4,661      4,025       4,301       4,318
                     --------  --------  ---------  ----------  ----------
  Total DI Revenue     17,520    12,189      7,546       8,033       7,241
  Presstek CtP
   Platesetters
   (Excludes DPM)       2,228     2,039      1,109       1,505       1,081
  Chemistry Free CtP
   Plates               4,064     4,402      3,426       3,678       3,745
                     --------  --------  ---------  ----------  ----------
  Total CtP Revenue     6,292     6,441      4,535       5,183       4,826
  Service Transfer       (976)   (1,176)      (601)       (603)       (596)
  Service Revenue       2,804     3,002      2,723       2,588       2,603
                     --------  --------  ---------  ----------  ----------
  Total Revenue -
   Growth Portfolio    25,640    20,456     14,203      15,201      14,074
                     ========  ========  =========  ==========  ==========
Revenue - Traditional
 Portfolio
  QMDI Platform         3,456     3,417      2,962       2,987       3,056
  Polyester CtP
   Platform             4,077     3,601      3,575       3,178       3,228
  Other DI Plates       2,059     1,693      1,295       1,128       1,438
  Conventional/Other    7,943     7,916      7,775       6,608       6,772
                     --------  --------  ---------  ----------  ----------
  Total Product
   Revenue -
   Traditional         17,535    16,627     15,607      13,901      14,494
  Service Transfer        (85)     (102)      (190)       (190)       (188)
  Service Revenue -
   Traditional          5,444     5,336      4,840       4,598       4,626
                     --------  --------  ---------  ----------  ----------
  Total Revenue -
   Traditional
   Portfolio           22,894    21,861     20,257      18,309      18,932
                     ========  ========  =========  ==========  ==========
                     --------  --------  ---------  ----------  ----------
Total Revenue          48,534    42,318     34,460      33,510      33,006
                     ========  ========  =========  ==========  ==========
Product Revenue
 Components %
  Growth                 52.8%     48.3%      41.2%       45.4%       42.6%
  Traditional            47.2%     51.7%      58.8%       54.6%       57.4%
Geographic Revenues
 (Origination)
  North America        35,244    32,374     26,715      26,076      26,810
  Europe               13,290     9,944      7,745       7,434       6,196
                     --------  --------  ---------  ----------  ----------
  Consolidated         48,534    42,318     34,460      33,510      33,006
                     ========  ========  =========  ==========  ==========
Gross Margin
  Presstek
   Equipment             15.1%     11.7%       5.9%        0.9%     -124.8%
   Consumables           49.5%     51.2%      46.7%       43.5%       45.9%
   Service               26.1%     29.7%      20.8%       25.3%       28.5%
                     --------  --------  ---------  ----------  ----------
  Consolidated           34.7%     37.9%      35.1%       32.9%       23.3%
                     ========  ========  =========  ==========  ==========
Operating Expense
 (Excluding Special
 Charges) (A)        $ 14,337  $ 16,409  $  13,851  $   14,602  $   12,826
Profitability
  Net income (loss)  $    195  $   (456) $  (1,191) $  (41,449) $   (5,941)
   Add back: Loss
    from discontinued
    operations            431     1,070         85       1,580        (706)
                     --------  --------  ---------  ----------  ----------
  Net income (loss)
   from continuing
   operations             626       614     (1,106)    (39,869)     (6,647)
   Add back:
     Interest             147       121         56         110         491
     Other (income)
      expense             212    (1,705)      (516)        136         254
     Tax charge
      (benefit)         1,153        49       (275)     16,905        (264)
     Impairment /
      Other charges         -         -          -      19,114       2,700
     Non cash portion
      of equity
      compensation
      (2006 forward
      123R related)       498       482        457         505         389
     Restructuring
      and Other
      charges             374       539         84          38       1,040
                     --------  --------  ---------  ----------  ----------
  Operating income
   (loss) from
   continuing
   operations           3,010       100     (1,300)     (3,061)     (2,037)
   Add back:
     Depreciation
      and
      amortization      1,379     1,172      1,191       1,150       1,231
     Other income
      (expense)          (212)    1,705        516        (136)       (745)
                     --------  --------  ---------  ----------  ----------
  EBITDA From
   Continuing
   Operations (A)    $  4,177  $  2,977  $     407  $   (2,047) $   (1,551)
                     ========  ========  =========  ==========  ==========
                      Q3 2008   Q4 2008    Q1 2009     Q2 2009     Q3 2009
                     --------  --------  ---------  ----------  ----------
Cash Earnings From
 Continuing
 Operations
  Income (loss) from
   continuing
   operations             626       614     (1,106)    (39,869)     (6,647)
   Add back:
     Restructuring
      and Other
      charges             374       539         84          38       1,040
     Impairment /
      Other charges         -         -          -      19,114       2,700
     Depreciation
      and
      amortization      1,379     1,172      1,191       1,150       1,231
     Non cash portion
      of equity
      compensation
      (2006 forward
      123R related)       498       482        457         505         389
     Non cash portion
      of taxes            749        36       (454)     17,071        (299)
                     --------  --------  ---------  ----------  ----------
     Cash Earnings
      From
      Continuing
      Operations (A)    3,626     2,843        172      (1,991)     (1,586)
                     ========  ========  =========  ==========  ==========
Working Capital
  Current assets
   (excluding net
   assets of
   discontinued
   operations)       $ 93,152  $ 84,263  $  83,850  $   73,994  $   68,159
                     --------  --------  ---------  ----------  ----------
  Current
   liabilities
   Short-term debt     15,130    16,489     14,941      17,592      23,446
   All other current
    liabilities        37,163    32,575     33,847      31,345      26,293
                     --------  --------  ---------  ----------  ----------
     Current
      liabilities      52,293    49,064     48,788      48,937      49,739
                     --------  --------  ---------  ----------  ----------
     Working capital   40,859    35,199     35,062      25,057      18,420
  Add back
   short-term debt     15,130    16,489     14,941      17,592      23,446
                     --------  --------  ---------  ----------  ----------
     Working capital,
      excluding
      short-term
      debt (A)       $ 55,989  $ 51,688  $  50,003  $   42,649  $   41,866
                     ========  ========  =========  ==========  ==========
Debt net of cash (A)
  Calculation of
   total debt:
   Current portion
    of long-term
    debt             $  3,240  $  4,074  $   2,454  $    1,644  $      834
   Line of credit      11,890    12,415     12,487      15,948      22,612
   Long-term debt,
    net of current
    portion               834         -          -           -           -
                     --------  --------  ---------  ----------  ----------
     Total debt        15,964    16,489     14,941      17,592      23,446
  Cash                  2,634     4,738      5,262       4,453       7,220
                     --------  --------  ---------  ----------  ----------
     Debt net of
      cash           $ 13,330  $ 11,751  $   9,679  $   13,139  $   16,226
                     ========  ========  =========  ==========  ==========
Days Sales
 Outstanding               60        69         74          69          66
Days Inventory
 Outstanding               87        87        100         105          99
Capital Expenditures $    437  $    831  $     180  $      238  $      257
Employees                 622       608        612         608         553

A. Operating expenses, excluding special charges and EBITDA from continuing operations [earnings before interest, taxes, depreciation, amortization and restructuring and merger-related charges (credits)]; Working capital, excluding short-term debt; Debt net of cash; and Cash earning from continuing operations are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Presstek's management believes that EBITDA provides meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Cash earnings from continuing operations provide meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Working capital, excluding short-term debt, provides meaningful supplemental information regarding Presstek's ability to meet its current liability obligations. Presstek's management believes that Debt net of cash provides meaningful information on Presstek's debt relative to its cash position. Presstek believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Presstek's ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management's internal comparisons to Presstek's historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included in the tables above.

** Certain amounts may be subject to reclassification to conform to current presentation.

Reconciliation of GAAP amounts to Non-GAAP amounts
(Dollar amounts in thousands)
                      Three months ended           Three months ended
                       October 3, 2009             September 27, 2008
                ----------------------------  ----------------------------
                GAAP       Adjust-  Non-GAAP  GAAP      Adjust-   Non-GAAP
                amounts    ments    amounts   amounts   ments     amounts
                --------  --------- --------  --------  --------  --------
Revenue         $ 33,006  $       - $ 33,006  $ 48,534  $      -  $ 48,534
Gross profit       7,700      2,700   10,400    16,849         -    16,849
                    23.3%               31.5%     34.7%               34.7%
Operating
 expenses         13,866      1,040   12,826    14,711       374    14,337
Operating
 income           (6,166)     3,740   (2,426)    2,138       374     2,512
Income before
 income taxes     (6,911)     3,740   (3,171)    1,779       374     2,153
Provision for
 income taxes       (264)       127     (137)    1,153       (34)    1,119
Income (loss)
 from
 continuing
 operations       (6,647)     3,613   (3,034)      626       408     1,034
Loss from
 discontinued
 operations,
 net of income
 taxes               706                 706      (431)               (431)
Net income        (5,941)             (2,328)      195                 603
Earnings (loss)
 per share from
 continuing
 operations     $  (0.18) $    0.10 $  (0.08) $   0.02  $   0.01  $   0.03
                     Three months ended           Three months ended
                      October 3, 2009                 July 4, 2009
                ----------------------------  ----------------------------
                GAAP       Adjust-  Non-GAAP  GAAP      Adjust-   Non-GAAP
                amounts    ments    amounts   amounts   ments     amounts
                --------  --------- --------  --------  --------- --------
Revenue         $ 33,006  $       - $ 33,006  $ 33,510  $       - $ 33,510
Gross profit       7,700      2,700   10,400    11,036          -   11,036
Operating
 expenses         13,866      1,040   12,826    33,754     19,152   14,602
Operating loss
 excluding
 non-routine
 charges          (6,166)     3,740   (2,426)  (22,718)    19,152   (3,566)
Adjustments represent non-routine charges for non-cash inventory
write-downs and restructuring charges in Q309, restructuring charges in
Q308, goodwill impairment and restructuring charges in Q209.

CONTACTS:
Investor Relations
Linda Lennox
(203) 275-6292
Email Contact

Trade Relations
Brian Wolfenden
(603) 594-8585, ext. 3435
Email Contact

SOURCE: Presstek, Inc.

http://www2.marketwire.com/mw/emailprcntct?id=16A0A8CB2DF17E70
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Mr. Cook brings significant financial leadership to Presstek, which he joined in February 2007 as Senior Vice President and Chief Financial Officer. He was appointed Executive Vice President in February 2008. Previously, Mr. Cook held financial leadership roles at various General Electric businesses, Moore Inc., and Kodak Polychrome Graphics, a joint venture between Kodak and Sun Chemical Corp., where he was Senior Vice President and Chief Financial Officer.

"We are very pleased to welcome Stan and Jeff to our Board," said Presstek President, Chief Executive Officer and Chairman of the Board, Jeffrey Jacobson. "Stan brings a wealth of knowledge and industry experience to Presstek's Board and will make a tremendous contribution toward shaping Presstek's digital and international growth strategy. Jeff is a seasoned financial executive who has already significantly contributed to making Presstek a stronger company financially. His strategic leadership and financial expertise will be invaluable at the Board level."

"Presstek is an innovative company with a highly accomplished management team," said Freimuth. "I am excited to join Presstek's Board and look forward to actively contributing to shaping the company's vision and helping drive future growth."

The Company also announced that Frank D. Steenburgh has resigned from the Board so that he can devote more time to new business activities that will prevent him from dedicating the time necessary to fully perform his duties as a member of the Board.

"On behalf of the entire Board of Directors and management team, I would like to thank Frank for his service to our Board," said Jacobson. "Frank's leadership and experience in the graphic arts industry have helped advance Presstek's digital growth business and we will miss his vision and guidance. We wish him all the best."

"As excited as I was to join the Presstek Board of Directors, I now reluctantly step down as I will be focusing primarily on my full-time responsibilities as the Chief Marketing Officer of ColorCentric Corp.," said Steenburgh. "I am excited about Presstek's future and I have told Jeff and his team that I am always available to them."

About Presstek

Presstek, Inc. is the leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI(R), CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins. Presstek subsidiary, Lasertel, Inc., manufactures semiconductor laser diodes for Presstek's and external customers' applications. For more information visit www.presstek.com, or call 603-595-7000 or email: info@presstek.com.

DI is a registered trademark of Presstek, Inc.

Contacts:

Investor Relations
Linda S. Lennox
Investor Relations Consultant
203-275-6292
Email Contact

Trade Relations
Brian Wolfenden
Director of Marketing Communications
603-594-8585, ext. 3435
Email Contact

SOURCE: Presstek, Inc.

http://www2.marketwire.com/mw/emailprcntct?id=5D1734C54E82BE92
http://www2.marketwire.com/mw/emailprcntct?id=031942DA8B41D501