Electronics for Imaging
Announces Record Revenue and Earnings for
the Third Quarter of 1996

SAN MATEO, Calif. --- (OCTOBER 10, 1996) --- Electronics for Imaging, Inc. (NASDAQ:EFII), announced record financial results for its third quarter of 1996. Revenue for the third quarter was a record $75.1 million, up 55% from $48.5 million recorded in the third quarter last year, and up 9% from the second quarter of 1996. Net income increased 60% to a record $15.6 million or $0.57 per share for the third quarter of 1996, compared to $9.7 million, or $0.36 per share for the same period last year.

For the nine months ended September 30, 1996, revenue was $207.8 million compared to $133.7 million in the nine month period a year earlier, a 55% increase. Net income for the nine months ended September 30, 1996 increased 67% to $42.1 million, or $1.54 per share, compared to $25.2 million and $0.95 per share for the same period in 1995.

The company's balance sheet was further strengthened with cash and short term investments totaling $180.8 million, up $36.8 million from December 31, 1995. Total assets stood at $262.2 million.

"This is our twenty-first consecutive quarter of revenue growth, due in large part to the Company's continued leadership in the short-run color printing marketplace," said Dan Avida, President and Chief Executive Officer. "I am very pleased with our performance in the last quarter, as we continued to successfully execute our stated strategy of leveraging Fiery® technology to broader markets. These include our announcements of the Fiery XJ-W™ color server for wide format color inkjet printers, and the Fiery Driven™ Ricoh Aficio 2000 Series, the world's first digital color copier with a Fiery XJe™ embedded controller."

About Electronics for Imaging

Electronics for Imaging, Inc. is the industry pioneer and market leader in products that enable high-quality color printing in short production runs. Fiery Color Servers incorporate hardware and software technologies that transform digital color copiers from all leading copier manufacturers into fast, high-quality networked color printers. Fiery XJe Controllers leverage these same technologies to increase the output speed and improve the print quality of Fiery Driven™ desktop color laser printers.

Fiery Color Servers are installed around the world in leading corporations, advertising agencies, graphic design studios and print- for-pay businesses. Founded in 1989, the company has its headquarters in San Mateo, Calif. EFI employs approximately 330 people and has 23 worldwide sales offices. Its stock is traded on the NASDAQ national market system under the symbol EFII.

More information regarding Electronics for Imaging may be obtained by calling the company directly at (415) 286-8600, or through public sources, including the company's SEC filings. Electronics for Imaging may also be reached on the World Wide Web at http://www.efi.com.

EFI, the EFI logo, Fiery and the Fiery Signature are registered in the U.S. Patent and Trademark Office. Fiery XJ, Fiery Color Server, Fiery XJ Color Server, Fiery XJ+, Fiery XJ+ Color Server, Fiery XJe, Fiery Driven, Fiery XJ-W, XJ RipChips, Rip-While-Print, Continuous Print, STARR Compression, Memory Multiplier, Fiery Scan, Fiery Print Calibrator, Fiery XJ Downloader, Fiery XJ Scan, Fiery XJ Spooler, and Command Workstation are trademarks of Electronics for Imaging, Inc. All other terms and product names may be trademarks or registered trademarks of their respective owners, and are hereby acknowledged.

Electronics for Imaging, Inc.

Consolidated Statements of Income

(in thousands, except per share data - unaudited)

	Three Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	1996	1995	1996	1995
Revenue	$ 75,121	$ 48,502	$ 207,816	$ 133,664
Cost of Revenue	36,422	24,269	104,220	67,058
	38,699	24,233	103,596	66,606
Operating Expenses
Research and development	5,806	3,243	15,052	8,983
Sales and marketing	7,695	5,425	20,538	16,930
General and administrative	2,634	1,839	7,387	5,200
	16,135	10,507	42,977	31,113
Income from operations	22,564	13,726	60,619	35,493
Other income	1,738	1,463	5,087	3,853
Income before income taxes	24,302	15,189	65,706	39,346
Provision for income taxes	(8,749)	(5,468)	(23,655)	(14,164)
Net income	$ 15,553	$ 9,721	$ 42,051	$ 25,182
Net income per share	$ 0.57	$ 0.36	$ 1.54	$ 0.95
Weighted average common shares and equivalents	27,514	26,662	27,324	26,386

Electronics for Imaging, Inc.

Consolidated Balance Sheets

(in thousands - unaudited)

	September 30,	December 31,
	1996	1995
ASSETS
Current assets:
Cash and cash equivalents	$ 39,328	$ 46,006
Short-term investments	141,483	98,012
Accounts receivable	39,602	27,588
Inventories	13,446	7,809
Other current assets	16,452	8,173
Total current assets	250,311	187,588
Property and equipment, net	10,238	5,469
Other assets	1,617	1,412
	$ 262,166	$ 194,469
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 14,448	$ 10,630
Accrued and other liabilities	19,980	12,023
Income taxes payable	17,088	7,876
Total current liabilities	51,516	30,529
Stockholders' equity:
Common stock	255	250
Additional paid-in-capital	94,333	89,679
Retained earnings	116,062	74,011
Total stockholders' equity	210,650	163,940
Total liabilities and stockholders' equity	$ 262,166	$ 194,469

EFI, the EFI logo, Fiery, the Fiery logo, the Fiery Driven logo, Fiery XJ and Fiery XJe are trademarks of Electronics for Imaging, Inc. Fiery and EFI are registered with the U.S. Patent and Trademark Office. All other terms and product names may be trademarks or registered trademarks of their respective owners, and are hereby acknowledged.

For more information contact:

Dave Warner

VP, Finance

Electronics for Imaging

(415) 286-7221

For questions or inquiries, see contact information

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