Scitex Corporation Ltd. Reports Results For Third Quarter 2000

Growth across key performance indicators

Highlights:

• Strong revenue growth in Scitex's inkjet-based, digital printing companies
• Continued pursuit of investment opportunities in digital printing and digital imaging
• Creo Products Inc. reported $173 million revenues in the quarter
• Increased financial disclosure

Herzlia, Israel, November 16, 2000 - Scitex Corporation Ltd. (NASDAQ: SCIX) today reported its results for the quarter ended September 30, 2000.

The third quarter showed strong revenue growth in Scitex's inkjet-based, digital printing companies. Both Scitex Digital Printing (SDP) and Scitex Vision (formerly Scitex Wide Format Printing) achieved strong results for the quarter. Creo Products Inc., a 28% affiliate, also reported strong performance, strengthening its position as a leader in the graphic arts industry. The Company continued to pursue investment opportunities in the fields of digital printing and digital imaging.

Consolidated Results
In the third quarter, Scitex recorded revenue of $58.3 million, which includes SDP's revenue of $37.8 million (compared with $34.0 million in the third quarter of 1999, an increase of 11%) and Scitex Vision's revenue of $20.5 million (compared with $11.5 million last year, an increase of 79%).

The operating income of $4.2 million before amortization of goodwill includes $3.6 million for SDP (compared with $3.3 million last year) and $2.2 million for Scitex Vision (compared with $0.5 million last year).

Other expenses of $2.6 million include a $2.2 million loss from dilution of the holding in Creo due to exercise of options for Creo shares.

The equity loss of $16.0 million includes $9.2 million loss related to our investment in Creo and $6.8 million reflecting our share in the continuing investment in Vio, Karat and SciDel. The loss related to Creo is the result of Scitex's share in Creo's net results (as reported by Creo the adjusted earnings of $16 million less $19.6 million of amortization of intangibles and business integration costs, that resulted in their reported net loss of $3.6 million), adjustments to US GAAP and amortization of goodwill and other intangible assets generated during the purchase of Creo shares.

Net loss in the third quarter totaled $16.7 million or $0.39 per share on a diluted basis.

As stated in the second quarter 2000 earnings press release, since Scitex's involvement in the digital preprint business has changed from full ownership during the first quarter of 2000 to an equity investment in Creo Products Inc. beginning in the second quarter of 2000, direct comparison of the Company's consolidated results for the third quarter of 2000 with those for the third quarter of 1999 is not meaningful.

In December 1999, the United States Securities and Exchange Commission ("SEC") issued SAB 101, 'Revenue Recognition in Financial Statements', which summarizes certain of the SEC staff views in applying generally accepted accounting principles to revenue recognition in financial statements. The Company adopted SAB 101 in the financial information retroactively from January 1, 2000 after giving retroactively accumulated effect to previous years at the beginning of the year. As a result of the above the capital gain reported in the second quarter from the Creo transaction was restated.

Yoav Z. Chelouche, President and Chief Executive Officer of Scitex, said, "In early April, Scitex announced its new corporate strategy to dedicate itself to building a network of leading and innovative companies that are focused on combining digital imaging technologies with the power of the Internet. This strategy is based on the following business objectives:

• Enhance and highlight the value of its existing activities and network companies;
• Invest in specialized technology companies that are revolutionizing their industries;
• Leverage the complementary strengths of the existing network of companies that Scitex Corporation either owns or in which it has an interest; and
• Add managerial depth and market knowledge to this network of companies.

"We are pleased with our third quarter achievements. We continue to see strong progress and double digit growth in inkjet-based digital printing activities and, as previously announced, we continue to invest in this domain."

Chelouche concluded: "It is pleasing to note that even with the sale of the digital preprint business to Creo and the change of strategy, we have shown a healthy performance in the year-to-date."

Scitex Network Companies
Further to its previously declared intention of providing the investment community with financial information concerning its various businesses, Scitex today provides further disclosure of its network of businesses for the period ended September 30, 2000. It is anticipated that similar information will be disclosed on a regular basis following the end of each quarterly reporting period.

I - Operating Subsidiaries (see attached table)

Scitex Digital Printing (SDP)
- SDP's revenues increased by 11% to $37.8 million compared with $34.0 million in the third quarter of 1999. The strong performance during the quarter is attributed to the renewed growth in the US and continued contribution of the Scitex VersaMark product line. Profitability in this business also improved this quarter, with operating income before amortization of goodwill increasing to 9.5%.

SDP had a very successful showing at the Graph Expo trade show in Chicago where it introduced a wide range of digital process, color printing products, and demonstrated a significant increase in the printing speeds for the entire Scitex VersaMark product line. SDP also had an excellent showing at the recent Xplor trade show, making its debut in the American market place with full color, variable information solutions for the transactional printing market, such as telephone bills, credit card statements and direct mail. After the end of the quarter, SDP won an important multiple system contract to supply British Telecommunications plc, an extension of the deal announced in February 1999. The latest order involves upgrading the Scitex VersaMark digital printing systems to spot color.

In a separate release issued today, Scitex announced the upcoming retirement of Dwight T. Johnson, Executive Vice President of Scitex and President of SDP. He will be succeeded by Nachum (Homi) Shamir, SDP's Chief Operating Officer.

Scitex Vision (formerly Scitex Wide Format Printing) continued to show very strong growth, with revenue increasing by 79% from $11.5 million in the third quarter of 1999 to $20.5 million in the latest quarter. Operating income before amortization of goodwill was $2.2 million, giving a margin of 10.8%. The quarter's moderate profitability is mainly attributed to the cost of forming stand-alone distribution units in Europe and America, the cost of launching 'Scitex Printers' World', and the higher share of indirect sales this quarter (mainly in Asia Pacific).

'Scitex Printers' World', which was launched in September, provides customers with a one-stop shop for a variety of consumables consistent with its printers and inks.

The IPO of Scitex Vision on Germany's Neuer Markt, which was originally scheduled for October 2000, was postponed due to volatile market conditions.

II - Equity Investments (see attached table)

Creo Products Inc., in which Scitex has an equity interest of approximately 28% (on a non-diluted basis), reported revenues of $173.3 million in its fourth quarter of 2000, and adjusted earnings (before amortization of goodwill and other intangible and business integration costs) of $16.0 million ($0.32 per share). In its fiscal year-end announcement, Creo noted the success of its four-day-long Graph Expo trade show, the largest graphic arts trade show in North America, in which it received orders and letters of intent for products and services in the amount of $30 million.

Vio Worldwide Limited, an applications service provider (ASP) for the graphic arts industry, is Scitex's 50/50 joint venture with British Telecommunications plc. During the quarter, Vio's file transfer application was heavily used during the summer Olympic games in Sydney. With the development of an ASP model, the company is increasing the offerings of applications on its network.

Karat Digital Press recognized revenue on six 74 Karat machines in the quarter (revenue on five sales having been recognized in the previous quarter), all of them in Europe. At the Graph Expo trade show Karat received five orders from US-based customers. Recognizing the significant growth opportunities for Karat in this market, especially due to the strong US dollar which would generate better margins, the company established a US subsidiary in New Jersey during the period under review.

III - Other Investments (see attached table)

Objet Geometries Ltd. In which Scitex holds 17.1% develops and manufactures printers for three-dimensional model creation. During the third quarter of 2000, David Ofek, former managing director of Scitex Europe, was appointed Chief Executive Officer of Objet. Beta testing of Objet's products is planned for the first quarter of 2001.

RTimage Ltd., in which Scitex holds a 15% equity stake, develops technology for real-time, on-line, remote viewing of large graphic files. The company recently announced a licensing agreement with the Health Imaging Division of Eastman Kodak Company, the company's second largest business unit and a leading provider of health imaging products and services.

Conference Call
Investors will have the opportunity to listen to a live simulcast of the analyst conference call in connection with Scitex's third quarter earnings scheduled for 1000h EST (0700h Pacific, 1600h GMT, 1700h Israel) on November 16, 2000. You can connect online through www.streetfusion.com and/or www.scitex.com.

A replay of the conference call will be available during the following seven days on the following numbers:

The replay will be available until midnight on Thursday November 23, 2000.

- End -

About Scitex Corporation Ltd.
Scitex Corporation Ltd., a world leader in digital imaging solutions, is building a network of leading, innovative companies focused on combining digital imaging technologies with the power of the Internet to create a world of visually rich business communications. Scitex shares trade on NASDAQ under the symbol SCIX. For more information, please visit our Web site at www.scitex.com.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements that are based on various assumptions (some of which are beyond the Company's control) may be identified by the use of forward-looking terminology, such as "may", "can be", "will", "expects", "anticipates", "intends", "believes", "projects", "potential", and similar words and phrases. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, (1) risks in product and technology development, (2) market acceptance of new products and continuing product demand, (3) the impact of competitive products and pricing, (4) changes in domestic and foreign economic and market conditions, (5) timely development and release of new products by strategic suppliers, (6) the impact of the Company's accounting policies, and (7) the other risk factors detailed in the Company's most recent annual report and other filings with the US Securities and Exchange Commission. Except as may be required by law, the Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such forward-looking statements.

Scitex and the Scitex logo are registered trademarks and service marks of Scitex Corporation Ltd. Creo and CreoScitex are trademarks or registered trademarks of Creo Products Inc. Scitex Vision is a trademark of Scitex Vision Ltd. Scitex VersaMark is a registered trademark of Scitex Digital Printing, Inc. Karat and 74 Karat are trademarks of Karat Digital Press B.V., and may be registered in certain jurisdictions. Vio is a registered trademark and service mark of Vio Worldwide Limited.

Contacts

(Tables to Follow)

SCITEX CORPORATION LTD. (AN ISRAELI CORPORATION) AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. Dollars in thousands, except per share data )

(*) The results of the quarter ended September 30, 1999 and the nine months ended September 30, 2000 and 1999 include the results of operations through March 31, 2000 of the preprint business that was transferred to Creo Products Inc. (**) Note: In December 1999, the United States Securities and Exchange Commission ("SEC") issued SAB 101, "Revenue Recognition in Financial Statements", which summarizes certain of the SEC staff views in applying generally accepted accounting principles to revenue recognition in financial statements. The Company adopted SAB 101 in the financial information retroactively from January 1, 2000 after giving retroactively accumulated effect to previous years at the beginning of the year. As a result of the above capital gain reported in the second quarter from the Creo transaction was restated.

I - Operating Subsidiaries

Note: Divisional information on a carved out basis, see below

Note: The accompanying financial information includes the operations of the subsidiaries as part of Scitex (on a carved out basis). The divisional financial information of operations have been derived from the historical books and records of Scitex after giving retroactive effect to the application of SAB 101 from January 1, 2000, see below.

The divisional information of operations includes all revenues and expenses directly related to the division's products, as well as charges for shared facilities, functions, and services used by the division, and allocations of certain Scitex corporate headquarters' expenses related to the divisions. These allocations are based on the ratios of the division's revenues and operating expenses to the parent company's revenues and operating expenses. Management believes these allocations are reasonable. However, the cost of these services charged to the division is not necessarily indicative of the costs that would have been incurred if the division had performed these functions as an unaffiliated entity during these periods.

The financial information included herein may not necessarily reflect the results of operations of the division's in the future or what they would have been had it been a separate, unaffiliated entity, during the periods presented.

Note: The accompanying financial information includes the operations of the subsidiaries as part of Scitex (on a carved out basis). The divisional financial information of operations have been derived from the historical books and records of Scitex after giving retroactive effect to the application of SAB 101 from January 1, 2000, see below.

The divisional information of operations includes all revenues and expenses directly related to the division's products, as well as charges for shared facilities, functions, and services used by the division, and allocations of certain Scitex corporate headquarters' expenses related to the divisions. These allocations are based on the ratios of the division's revenues and operating expenses to the parent company's revenues and operating expenses. Management believes these allocations are reasonable. However, the cost of these services charged to the division is not necessarily indicative of the costs that would have been incurred if the division had performed these functions as an unaffiliated entity during these periods.

The financial information included herein may not necessarily reflect the results of operations of the division's in the future or what they would have been had it been a separate, unaffiliated entity, during the periods presented.

II - Investments

Note:
(1) Scitex has also provided a guarantee to a bank facility for up to $17.5 million.