QMS INTRODUCES WORLD'S FIRST COLOR LASER PRINTER PRICED UNDER $5,000

Company Discusses Business Affects of Breakthrough Introduction

March 13, 1995 -- Mobile, Alabama -- QMS, Inc. (NYSE - AQM) announced
earlier today its new QMS magicolor LX color laser print system. The 12MB
RAM model provides 600x600 dots-per-inch (dpi) print resolution in
black-and-white (b&w) and 300x300 dpi in color and is reference priced at
$4,999 in the U.S. The 24MB RAM model provides 600x600 dpi b&w/600x600 dpi
color and is reference priced at $5,699 in the U.S. Both models print at
12 pages-per-minute (ppm) in b&w and 3 to 6 ppm in color. Previously,
comparable prices of similar type color laser print systems ranged from
about $8,000 to nearly $10,000.

A color copier option for the QMS magicolor LX systems will be available
this summer. A flat-bed desktop scanner for copier input is utilized to
produce multiple copies of color originals at up to 3 copies-per-minute.
The copier option is attached to the printer through the standard SCSI
interface.

James L. Busby, QMS President and Chief Executive Officer, commented, "We
are very excited about breaking through the $5,000 price barrier. Since
our market introduction of the world's first desktop color laser printer
in 1993, color laser printers have been our fastest growing product line.
We anticipate the growth rate of color laser printer sales to quickly
accelerate given the significantly lower prices.

"This action should affect our overall business in several ways. Our color
laser printer sales are anticipated to significantly increase and should
help increase total sales. In addition, the very likely prospect of
increasing our high-margin consumable and service revenues, which act as a
profitable annuity stream as our installed base of color laser printers
increase, was an important factor in our decision to reduce the price on
our color laser printers to $4,999 and aggressively seek to expand the
growing color laser market.

"Recently, we have been able to successfully negotiate improved prices on
our color laser print engines due to the anticipated increase in future
sales. Gross margins, however, are likely to decline in the current
quarter and third quarter due to the lower prices of our color laser
printer line. The improved purchasing power we are likely to realize on
color laser print engines, together with improved total sales and
increased high margin consumables and service, will partially offset the
near term reduced profitability due to the price reduction. While results
in the second and third quarters are likely to be negatively affected by
the price reduction, improvements due to higher unit and consumables sales
should result in improving profitability by the fourth quarter and
beyond.

"Operating expenses may increase in the current quarter due to increased
expenses associated with the new product rollout. At the same time, we are
actively reviewing the business to find improved efficiencies and other
methods to reduce our cost structure."

Busby concluded, "We continue to view the prospects in our two strategic
markets, color laser and higher-end network printing, very positively and
as the two fastest growing segments of the printer industry. Introducing
the world's first color laser printer priced below $5,000 is consistent
with our efforts to increase our leadership in the growing color laser
printer market."

QMS is a leading producer of print systems and integrated office systems
with products sold through direct, reseller, and distributors in 68
countries. The Company's print systems fit seamlessly into a wide variety
of computer networks and include color and monochrome laser and color
thermal transfer printers.

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
