Chyron Sells Pro-Bel Subsidiary

Chyron Corporation announced the sale of all of the stock in its wholly-owned subsidiary Chyron UK Holdings Limited and its operating subsidiary Pro-Bel Limited, which constituted all of the Company's signal distribution and automation business. The purchaser of the business is Oval (1883) Limited, a UK company jointly owned by LDC (the venture capital arm of Lloyds TSB Group) and certain members of the Pro-Bel management team.



Sales of Pro-Bel in 2002 were $20.3 million with an operating loss of $1.6 million. Gross proceeds were approximately $15.6 million before the required settlement of Pro-Bel bank obligations of approximately $2.8 million, resulting in net proceeds to the Company of approximately $12.8 million before transaction related costs. Net proceeds consists of approximately $12.0 million in cash paid at closing, $0.4 million held in escrow pending the parties agreement on the final valuation of the net assets sold and $0.4 million in the form of a 17-month promissory note issued by Oval (1883) Limited. The Company's preliminary estimate of gain on the sale is approximately $2.5 million to be recorded in the fourth quarter.



Michael Wellesley-Wesley, Chyron's CEO commented, "The proceeds from the sale of Pro-Bel will enable us to significantly reduce our debt. Chyron is now able to focus 100% on our core competency, the development of real-time graphics solutions for our professional video and TV broadcast customers around the world."



On a separate note, the Company expects, based on its preliminary estimate of third quarter results, that its consolidated gross revenues for the third quarter ended September 30 will be approximately 14% lower than the second quarter of this year. Graphics division gross revenues are preliminarily estimated to be approximately 25% lower, and Pro-Bel division gross revenues are preliminarily estimated to be approximately 2% lower, as compared to their second quarter gross revenues, respectively. These preliminary results are subject to changes upon completion of the quarterly review.