METHUEN, Mass.--(BUSINESS WIRE)--Dec. 7, 1999--MicroTouch Systems, Inc. (NASDAQ:MTSI - news) today announced its intent to record a non-recurring charge in conjunction with its planned sale of its Factura kiosk business. As previously announced in July of this year, MicroTouch has engaged the services of a financial advisory firm to seek a buyer for the non-core Factura operation. Although a definitive purchase and sale agreement has not yet been finalized, discussions with potential buyers are ongoing. These discussions indicate that a writedown of the investment in the Factura business will be required, the exact amount being dependent upon the final outcome of these negotiations. MicroTouch intends to record the adjustment as a non-recurring charge as part of its fourth quarter 1999 results.

Also today, the Company reported that it expects its 1999 fourth quarter operating earnings, excluding any non-recurring charges, to be lower than the results for the same period last year, excluding any foreign exchange fluctuations.

Commenting on the Company's business, Geoff Clear, vice president - finance & administration said, ``a primary factor impacting expected financial performance is the Factura Division, which is anticipated to report another operating loss this quarter. This greater-than-forecasted loss, combined with lower-than-initially-projected touchscreen shipments, will most likely result in reporting less- than-forecasted revenues and operating earnings for the fourth quarter. We have recently seen softness in touchscreen sales in South America due directly to customer Y2K limitations. We believe that slower than forecast touchscreen sales in our US and European regions may also be Y2K-related as customer deployments may be delayed until the Year 2000. Despite these shortfalls, we anticipate that touchscreen revenues should increase by at least 15 percent over the same quarter last year.''

Concurrently, MicroTouch announced that its Board of Directors has authorized another Stock Repurchase Program, effective immediately, of up to $3 million of the Company's common stock. The Company had a cash and marketable security position of $22.3 million at the end of the third quarter of fiscal year 1999. The Company anticipates that the shares will be used for transactions pursuant to the Company's employee stock option and stock purchase plans and its directors stock option plan.

About MicroTouch

MicroTouch Systems, Inc., is the world's leading manufacturer of computer touchscreen display products incorporating the two most popular touch technologies -- analog capacitive and resistive membrane -- which the company applies in a variety of products, and markets under the ClearTek and TouchTek brand names. MicroTouch operates ISO 9001-certified manufacturing plants at its worldwide headquarters in Methuen, Mass. and at its European headquarters in Abingdon, England, and also maintains manufacturing facilities in Texas, Japan, Taiwan, and Australia, along with sales offices and distributors in more than 50 countries. MicroTouch also operates TouchStore.com, an Internet-based electronic commerce site devoted exclusively to the sale of touchscreen monitors and related products. Founded in 1982, MicroTouch reported sales of $144.4 million in 1998. The company's Web site is www.microtouch.com.

This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, without limitation, changes in competitive market positions, the potential for delays in the completion of design and engineering programs, and the pace of development of emerging markets. The forward-looking statements should be considered in light of these risks and uncertainties.

     MicroTouch Systems, Inc.

     Geoffrey P. Clear

     978-659-9305

     [email protected]

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Thanks Anna!