Cybex Posts Q1 Loss on 9.0% Sales Increase

Cybex International, Inc. reported net sales for the quarter ended March 29, 2003 were $20,608,000, representing an increase of 9% compared to net sales for the first quarter of 2002 of $18,913,000. The 2003 sales increase was offset by unfavorable margins due to a change in product mix, manufacturing cost variances, inventory write-offs and increased warranty, selling and legal costs. This resulted in a net loss for the quarter ended March 29, 2003 of $1,787,000, or $0.20 per diluted share, compared to net income for the first quarter of 2002 of $59,000, or $0.01 per diluted share.

The Company also reported on the status of its credit arrangements. The Company has entered into a forbearance agreement with its lenders pursuant to which the lenders have agreed not to exercise their rights with respect to certain financial covenant defaults under its Credit Agreement during a forbearance period that runs through June 30, 2003, subject to extension to August 30, 2003 if certain conditions are met. UM Holdings Ltd., a principal stockholder of the Company, has continued to provide financial support, with $3,950,000 in subordinated loans outstanding as of May 9, 2003. The Company continues to pursue a refinancing of the Credit Agreement prior to its maturity date of December 31, 2003. In light of the uncertainties related to the Company’s credit arrangements and cash needs, the Company has directed its investment banker, Legg Mason, to investigate all alternatives available to the Company to retire its bank debt, including a sale of the Company.

John Aglialoro, Chairman and CEO, stated “We have achieved market acceptance of our new products, especially the Arc Trainer, and have shown the ability to produce three consecutive quarters of increased sales. The historic debt structure of the Company continues to present challenges for us. We remain optimistic in the availability of one or more alternatives which will result in the retirement of our existing bank debt.”

                     (Financial Tables to Follow)



                       CYBEX INTERNATIONAL, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (unaudited)




                                             Three Months Ended
                                       -------------------------------
                                          March 29,       March 30,
                                            2003            2002
                                        --------------  --------------

Net sales                              $       20,608  $       18,913
Cost of sales                                  13,908          11,670
                                        --------------  --------------
     Gross profit                               6,700           7,243
     As a percentage of sales                    32.5%           38.3%
Selling, general and
     administrative expenses                    7,527           6,532
                                        --------------  --------------
     Operating income (loss)                     (827)            711
Interest expense, net                           1,017             610
                                        --------------  --------------
     Income (loss) before
       income taxes                            (1,844)            101
Income tax provision (benefit)                    (57)             42
                                        --------------  --------------
     Net income (loss)                 $       (1,787) $           59