TST/Impreso, Inc. completes discounted pre-payment of $1.6 million secured loan

Business Wire, Dec 18, 1995

COPPELL, Texas--(BUSINESS WIRE)--Dec. 18, 1995--TST/Impreso, Inc. (Nasdaq National Market:"TSTI"), a leading manufacturer and distributor of computer/fax paper and value-added business forms for commercial and home use, today announced that it has negotiated and executed the early repayment of a $1.6 million secured loan to General Electric Capital Corporation.

Earlier this month, TST/Impreso negotiated a discount with General Electric Capital Corporation which allowed the Company to extinguish a secured note with a remaining face value of $1,621,026 in exchange for a discounted payment of $1,371,026. As a result of this transaction, the Company will recognize a non-recurring pretax gain of approximately $250,000 during the quarter ended February 29, 1996.

On December 4, 1995, the Company announced that it had prepaid a $1.2 million secured loan to Foothill Capital Corporation at a discount and would recognize a non-recurring pretax gain of $213,933 in its fiscal quarter ended November 30, 1995.

"Following our prepayment of approximately $2.8 million face value of oustanding secured debt, TST/Impreso is financially well-positioned to achieve its strategic goals and aggressive growth objectives", commented Marshall Sorokwasz, President and Chief Executive Officer of TST/Impreso, Inc. "The Company's capital structure now consists of approximately $10 million in shareholders' equity and only $1.9 million in long-term debt. We believe that TST/Impreso's balance sheet is one of the strongest in our industry segment, and this should provide us with certain competitive advantages, particularly during periods of economic slowdown in the U.S.".

For the fiscal year ended August 31, 1995, TST/Impreso, Inc.'s sales increased 43% to $37.0 million, compared with $25.9 million in the previous fiscal year. Net income for the 1995 fiscal year, excluding an extraordinary gain, increased 329% to $2,480,004, versus a net profit of $577,695 in the year ended August 31, 1994. On a per-share basis, the Company earned $0.62 (excluding an extraordinary gain), compared with $0.14 in its 1994 fiscal year.

TST/Impreso, Inc. is a manufacturer and distributor of value-added paper products for commercial and home use in domestic and international markets. The Company's product lines consist of continuous computer forms, thermal facsimile paper, and cut sheet paper for use in copy machines, laser printers, ink-jet printers and plain paper facsimile machines. Customers include business forms dealers, paper merchants, office supply superstores, wholesale clubs, mass merchandisers and direct catalog companies. Headquartered in Coppell, Texas (Dallas/Ft. Worth metroplex), TST/Impreso operates three manufacturing plants and distributes its products through 45 warehouse locations.

The common stock of TST/Impreso, Inc. is traded on Nasdaq's National Market System under the symbol "TSTI".

CONTACT: Marshall Sorokwasz, President and CEO

(214) 462-0100

or

R. Jerry Falkner, Investor Relations

(800) 377-9893.