NORWICH, Conn., Feb. 17 /PRNewswire-FirstCall/ -- Gunther International Ltd. (OTC Pink Sheets: SORT), a provider of intelligent mailing systems, today announced its financial results for the third quarter of fiscal 2006 (i.e., the fiscal quarter ended December 31, 2005). Total sales for the third quarter of fiscal 2006 were $6.6 million, compared with total sales of $8.0 million for the third quarter of fiscal 2005. For the nine months ended December 31, 2005 total sales were $20.4 million, compared to total sales of $21.0 million for the nine-month period ended December 31, 2004. Net income for the third quarter of fiscal 2006 was $19,000, compared with a net income of $275,000, or $0.01 per share, for the third quarter of fiscal 2005. For the nine months ended December 31, 2005, net income was $38,000, compared to a net loss of $1,050,000, $(0.05) per share, for the comparable period last year. The Company's financial statements may be found on the Company's website (http://www.guntherintl.com/) and on the Pink Sheets' website (http://www.pinksheets.com/). Commenting on the results, Marc Perkins, President and Chief Executive Officer of the Company, stated, "Although sales were disappointing for the quarter, we are very pleased that cost-cutting initiatives allowed Gunther to be profitable at lower revenue levels." Mr. Perkins also noted that the financial strength of the Company is stronger than it may first appear. "While systems sales have declined from 2005 levels, maintenance and supply revenues have increased 13 percent and, despite the decline in total revenues, gross profit has remained at 28 percent. Net income through December 31, 2005 was $38,000 compared to a loss of $1.1 million last year primarily as a result of cost-cutting measures taken as of the beginning of the fiscal year and ongoing throughout the year." In addition, Mr. Perkins stated that the Company's new Champion mailing platform has been well received by the marketplace. He noted that, after the close of the quarter, the Company signed a contract for the largest order in its history. The order, totaling approximately $2,915,000, is from one of the nation's premier insurance companies and provides for the modernization of the customer's mailing operations with the Company's new Champion mailing platform. This order follows two additional orders for Champion systems totaling approximately $1,082,000, for a total of $3,997,000 in orders since December 31, 2005. These orders coupled with a Champion system ordered in December have resulted in a backlog as of February 16, 2006 of $4,164,000, the highest backlog Gunther has recorded since September 2000. According to Mr. Perkins, the Company has had a number of inquiries for additional Champion systems, many of which are expected to convert to contracts in the near future. Mr. Perkins said, "The Champion operating system is the first true revolution in the industry since Gunther first put bar codes on documents twenty years ago. The creation of a mailing system with a built-in database for both incoming information and for job reporting eliminates the need for many other peripheral products that tie the equipment to other parts of the mailstream. "Champion also increases throughput of the Gunther system significantly, more than 100 percent in some applications. We are very pleased at Champion's initial reception in the marketplace and look forward to our future." About Gunther International Ltd.: Gunther International Ltd. designs, develops, assembles and markets high- speed systems that automatically assemble printed documents, fold, staple or bind the documents, as required, and insert completed documents into appropriate envelopes for mailing or other distribution. The Company's systems are modular, and may be reconfigured in accordance with customer specifications, and are controlled by Company-developed Champion software. The Company, in addition to system sales, also provides maintenance and support services for customer systems on a contractual basis. A majority of the Company's customers have some form of contracted support ranging from on- site coverage, on-call support or telephone support. The Company also has a subsidiary (inc.jet, Inc.) which designs, manufactures and markets high-speed inkjet imagers under the trade name of "jet.engine" to original equipment manufacturers (OEM), who incorporate the imagers into tabletop inserters and folders, copiers, standalone printers and other applications. In connection with these sales, the Company sells ink to the end-users of the printers. Statements in this release concerning Gunther's business outlook, future financial and operating results, and overall future prospects are forward- looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those anticipated in those forward- looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the mailing industry; changes in overall technology spending; increases in competition; the timing of orders and their fulfillment; availability and cost of key parts and supplies; ability to establish and maintain relationships with customers; variations in the expected mix of products sold; changes in customer mix; customer and industry analyst perceptions of Gunther and its technology, products and future prospects; delays in scheduled product availability; market acceptance of our products and services; rapid technological and market change; adoption of regulations or standards affecting our products, services or industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; currency fluctuations; and litigation; and other factors listed in our most recent audited financial statements. All statements made in this press release are made only as of the date set forth at the beginning of this release. Gunther undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release. COMPANY CONTACT: Marc I. Perkins President and Chief Executive Officer Gunther International Ltd. One Winnenden Road Norwich, Connecticut 06360 860-823-1427 This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com/. DATASOURCE: Gunther International Ltd. CONTACT: Marc I. Perkins, President and Chief Executive Officer, Gunther International Ltd., +1-860-823-1427, Web site: http://www.guntherintl.com/

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