Infinite Group Inc (IMCI)

[jmhollen]

Infinite Group, Inc. Reports Revenue Increase for the Six Months Ending June 30, 2002

WARWICK, R.I., Aug 20, 2002 (BUSINESS WIRE) -- Infinite Group, Inc. (NASDAQ: IMCI, quote, news, chart) today reported financial results for the second quarter 2002.

Revenues for the second quarter 2002 were $3,007,700, an increase of 49% from $2,018,750 for the second quarter 2001. On a sequential basis, revenues were up 36% versus $2,207,123 reported in the first quarter. The increase in revenue was largely attributed to contract revenues earned through the Infinite Photonics subsidiary.

Net loss for the second quarter was $1,042,424, or $0.18 per share, an increase of 61% from the loss of $646,406 or $0.16 per share in the second quarter 2001. Infinite reported a loss from continuing operations of $766,904 or $.13 per share for the second quarter 2002, an increase of 14% from the loss from continuing operations of $671,658, or $0.17 per share for the second quarter 2001. The results for the second quarter 2002 were impacted by reductions in revenues at the Company's Laser Group, and the net losses realized on the sale of assets of the Company's former Plastics Group.

"We are pleased with our progress to date in our plan to restructure the company," said Clifford G. Brockmyre, President and CEO. "So far this year, we have divested businesses that were not essential to our core focus, including Express Pattern, Mound Laser, and Osley & Whitney. Going forward, we will continue to explore ways to reduce overhead and improve operating efficiencies, while we focus particular attention on the opportunities associated with our Infinite Photonics subsidiary.

Infinite Photonics, Inc. develops and markets laser diodes based on its proprietary, patented and patent pending IPI GCSEL(tm) technology platform. IPI GCSEL(tm) product applications include high power pump lasers used for EDFA and Raman amplification, tunable lasers used in optical transmitters and receivers for telecommunications, material processing and medical applications.

The unaudited consolidated selected statement of operations data and selected balance sheet data for the Company follows: Selected Statement of Operations Data Three Months Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 Revenues $3,007,700 $2,018,750 $5,214,823 $4,088,133 Net loss from continuing operations (766,904) (671,658) (1,226,712) (877,980) Gain (loss) from discontinued operations, including $275,520 and $215,154 loss on disposal in the three and six months ended June 30, 2002 (275,520) 25,252 (215,867) (147,619) Net loss $(1,042,424) $(646,406)$(1,442,579)$(1,025,599) Income (loss) per share - basic and diluted: Continuing operations $(0.13) $(0.17) $(0.21) $(0.23) Discontinued operations $(0.05) $0.01 $(0.04) $(0.04) Net loss $(0.18) $(0.16) $(0.25) $(0.27) Weighted average number of common shares outstanding - basic and diluted 5,886,792 4,067,387 5,709,693 3,789,696 Selected Balance Sheet Data June 30, 2002 2001 Cash $ 587,833 $ 130,242 Restricted funds 906,845 86,318 Accounts Receivable 1,154,581 1,498,463 Inventory 131,265 129,824 Other Current Assets 591,762 112,728 Assets of discontinued operations 631,606 2,566,674 Total Current Assets 4,003,892 4,524,249 Long-term Assets 6,689,024 6,413,754 TOTAL ASSETS $10,692,916 $10,938,003 LIABILITIES & EQUITY Current Liabilities $ 2,539,141 $ 3,223,768 Liabilities of discontinued operations 1,605,818 2,986,904 Long-term Liabilities 3,717,983 2,586,696 Total Liabilities 7,862,942 8,797,368 Equity 2,829.974 2,140,635 TOTAL LIABILITIES & EQUITY $10,692,916 $10,938,003

CONTACT: Clifford G. Brockmyre President & CEO Infinite Group, Inc. 401-738-5777 or Bruce J. Garreau Chief Financial Officer Infinite Group, Inc. 401-738-5777 or Sean McEllin Dir. Corporate Communications Infinite Group, Inc. 401-738-5777

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