Record revenue of $10.0 million for 2Q08, up 30% over prior year

Net Income of $1.1 million for 2Q08, up 76% over prior year

MELVILLE, N.Y.–(EMWNews)–Chyron (AMEX: CGS), a leading provider of broadcast-quality digital

graphics solutions for television stations and networks and for online,

out of home and mobile applications, today announced its financial

results for the second quarter and six months ended June 30, 2008.

Key Financial Highlights:

• Revenue of $10.0 million for 2Q08, up 30% over prior year; and

  $18.3 million for the six months, up 28% over prior year;

• Net Income of $1.1 million for 2Q08, up 76% over prior year; and

  $1.4 million for the six months, up 102% over prior year; and

• Adjusted EBITDA of $1.6 million for 2Q08, up 92% over prior year;

  and $2.4 million for the six months, up 127% over prior year.

For the second quarter ended June 30, 2008, revenues were $10.0 million,

an increase of 30% from revenues of $7.8 million in the second quarter

of 2007. Operating income for the quarter was $1.2 million, nearly

double the second quarter of 2007. Net income for the quarter was $1.1

million, or $0.07 per share, an increase of 76% from net income of $0.6

million, or $0.04 per share, in the second quarter of 2007. Adjusted

EBITDA increased to $1.6 million, nearly double the second quarter of

2007. The Company defines Adjusted EBITDA as GAAP net income plus

interest, income tax expense, depreciation, amortization and non-cash

stock option expense. An explanation of management’s use of this measure

of results and a reconciliation of Adjusted EBITDA to the most directly

comparable GAAP measure of net income is set forth at the end of this

press release.

For the six months ended June 30, 2008, revenues were $18.3 million, an

increase of 28% from revenues of $14.3 million in the prior year period.

Operating income for the six months was $1.3 million, more than double

the prior year period. Net income for the six months was $1.4 million,

also more than double the prior year period. Adjusted EBITDA for the six

months increased to $2.4 million from $1.1 million in the prior year

period.

Michael Wellesley-Wesley, Chyron President and CEO, commented, “We

achieved record levels of revenue for the second quarter, as well as

record gross profit margin of 72%. Despite increasing our R&D

expenditure by 32% over the prior year quarter, and raising our sales

and marketing investment in our new AXIS web-based services, we achieved

an operating profit that was close to double that of the prior year

period. We continue to experience substantial increase in demand across

our product lines and services, especially for our high-end HDTV

broadcast graphics systems, and remain on track with our growth plan for

2008.”

“Later this week, Chyron’s brand new Lyric 7.0 software will be deployed

across multiple high-end Chyron graphics systems that we expect will

play a central role in NBC’s wall to wall Olympics coverage,” Mr.

Wellesley-Wesley added. “We expect that NBC Olympics graphics will be

created primarily through the use of Chyron’s products. We also expect

that a number of other international broadcasters will use our products

for their Olympics coverage, and so for the next few weeks, we will

truly be ‘The Company the Whole World Watches.'”

In addition, Mr. Wellesley-Wesley added, “We recently announced the

adoption of our AXIS services by the Gannett Broadcasting Group across

all 23 Gannett owned stations. This publicity has resulted in a great

deal of interest in AXIS, and we believe that this platform has an

exciting future in both our core broadcast market as well as new online

markets such as newspapers and radio. We are working to integrate AXIS

functionality across the entire Chyron product line very soon, and we

have already connected the AXIS content creation environment with our

ChyTV and ChyTV.Net digital signage solution in an enterprise level beta

test.”

Conference Call and Webcast: Second Quarter Financial Results:

Chyron Corporation management will host a conference call on Wednesday,

August 6, 2008, at 10:00 AM eastern time, to review the second quarter

and six month results. Participants using the telephone should dial

(888) 679-8034 (U.S. and Canada) or (617) 213-4847 (International) and

refer to passcode 77899508. Web participants are encouraged to go to

either www.chyron.com or www.earnings.com

at least 15 minutes prior to the start of the call to register,

download, and install any necessary audio software. The replay numbers

and passcode are (888) 286-8010 (U.S. and Canada) or (617) 801-6888

(International) and refer to passcode 96004024. The online archives will

be available on both sites shortly after the conclusion of the call.

Each replay will continue for seven days, through August 13, 2008.

About Chyron

Chyron continues to define the world of digital and broadcast graphics

with newsroom, Web, Mobile, HD, and 3D integration solutions. Winner of

numerous awards, including two Emmys, Chyron has proven itself as a

leader in the industry with sophisticated graphics offerings that

include Online, Chyron’s AXIS Graphics online content creation software,

HD/SD switchable on-air graphics systems, clip servers, channel branding

and telestration systems, graphic asset management and XMP integration

solutions, and the award-winning WAPSTR mobile phone newsgathering

application, as well as digital signage. For more information about

Chyron’s products and services, please visit the Company’s websites at www.chyron.com,

www.chytv.com and www.axisgraphics.tv

(AMEX: CGS).

Special Note Regarding Forward-looking Statements

This press release contains “forward-looking statements” within the

meaning of the Private Securities Litigation Reform Act of 1995,

including statements relating to (i) continued substantial increases in

demand across the Company’s product lines and services and the Company’s

progress on its growth plans for 2008, (ii) the expected use of the

Company’s products by NBC and other broadcasters in their Olympics

coverage, (iii) the potential for AXIS to have an exciting future in the

Company’s markets, and (iv) the Company’s plans to integrate AXIS into

its ChyTV and ChyTV.net solutions. These forward-looking statements are

based on management’s current expectations and are subject to certain

risks and uncertainties that could cause actual results to differ

materially from those set forth in or implied by such forward-looking

statements. These risks and uncertainties include, but are not limited

to, product concentration in a mature market, dependence on the emerging

digital market and the industry’s transition to digital television

(“DTV”) and high definition television (“HDTV”), Chyron’s ability to

integrate its AXIS online graphics creation solution into its product

offerings and to generate profits from AXIS, consumer acceptance of DTV

and HDTV, resistance within the broadcast or cable industry to implement

DTV and HDTV technology, rapid technological changes, continued growth,

use and improvement of the Internet, new technologies that could render

certain Chyron products to be obsolete, competitors with significantly

greater financial resources, new product introductions by competitors,

seasonality, ability to maintain adequate levels of working capital,

Chyron’s ability to successfully maintain the level of operating costs,

expansion into new markets and other factors discussed under the heading

“Risk Factors” contained in Item 1A in Chyron’s Annual Report on Form

10-K for the year ended December 31, 2007, which has been filed with the

Securities and Exchange Commission, as well as any updates to those risk

factors filed from time to time. All information in this press release

is as of the date of the release, and Chyron undertakes no duty to

update this information unless required by law.

CHYRON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2008		2007		2008		2007
Net sales		$10,043		$ 7,755		$18,347		$14,284
Gross profit		7,280		5,348		13,140		9,756
Operating expenses:
Selling, general and administrative		4,440		3,457		8,610		6,719
Research and development		1,688		1,274		3,203		2,404
Total operating expenses		6,128		4,731		11,813		9,123
Operating income		1,152		617		1,327		633
Interest and other income (expense), net		(3)		39		77		67
Income before taxes		1,149		656		1,404		700
Income taxes		40		25		40		25
Net income		$1,109		$ 631		$1,364		$ 675
Net income per common share –
Basic		$0.07		$0.04		$0.09		$0.04
Diluted		$0.07		$0.04		$0.08		$0.04
Weighted average number of common and
common equivalent shares outstanding:
Basic		15,567		15,221		15,528		15,219
Diluted		16,726		15,872		16,662		15,939

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands)
		June 30,		December 31,
		2008		2007
Assets:
Cash and cash equivalents		$4,207		$ 6,290
Accounts receivable, net		6,931		5,909
Inventories, net		3,134		2,796
Deferred taxes		686		686
Other current assets		617		441
Total current assets		15,575		16,122
Non-current assets		6,497		3,355
Total assets		$22,072		$19,477
Liabilities and shareholders’ equity:
Current liabilities		$7,661		$7,675
Non-current liabilities		1,187		1,666
Total liabilities		8,848		9,341
Shareholders’ equity		13,224		10,136
Total liabilities and shareholders’ equity		$22,072		$19,477

The Company defines Adjusted EBITDA as GAAP net income plus net

interest, income tax expense, depreciation, amortization and non-cash

stock option expense. These results are provided as a complement to

results provided in accordance with GAAP because management believes

this non-GAAP financial measure is a good indication of the Company’s

ability to generate cash that is or will be used in the business.

Adjusted EBITDA is not a measurement of financial performance under GAAP

and should not be considered a substitute for net income as a measure of

performance.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited)
(in thousands)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2008		2007		2008		2007
Net income		$1,109		$631		$1,364		$675
Interest, net		15		(31)		8		(43)
Income taxes		40		25		40		25
Depreciation		186		123		354		231
Amortization		30		0		62		0
EBITDA		$1,380		$748		$1,828		$888
Stock Option Expense		233		94		553		162
Adjusted EBITDA		$1,613		$842		$2,381		$1,050

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