SCIENCE

HUNTSVILLE, AL -- Intergraph Corporation (Nasdaq: INGR) today reported operating results for its second quarter ended June 30, 2001. For the quarter, the Company reported net income of $1.8 million on revenues of $127.8 million. Net income per share was $.04. The Company reported an operating income of $1.4 million. Systems and services orders for the quarter were $127.4 million. For the first half ended June 30, the Company reported net income of $6.8 million on revenues of $271.9 million. Net income per share was $.13, including $.09 per share earned from the sale of assets. The Company reported an operating income of $4.3 million. Systems and services orders for the first half of the year were $208.6 million. Intergraph Chairman and CEO Jim Taylor said of the results, "Overall, I am pleased with the performance of the five independent business units. Each one had positive operating income. And, while overall revenues decreased $16 million over first quarter, our gross margin improved to 45%, an increase of 5% quarter-to-quarter. The improvement in gross margin is a reflection of a decrease in low-margin hardware and hardware maintenance sales. We are concerned about the decline in revenues but believe it is a reflection of the slump in the economy. We are revising our forecasts for the remainder of the year to reflect the current economic conditions. In general, we are forecasting revenues and profits for the remainder of 2001 that will be flat with second quarter." Taylor added, "Our improved financial position enabled us to reduce debt by $12 million this quarter. This is the eighth quarter in a row in which we have reduced debt, going from $72 million in September 1999 to $16 million today." For further information visit www.intergraph.com