Scitex Announces Fourth Quarter and Full Year 1999 Results

Record quarterly sales

• Record high for Digital Preprint revenues in the quarter
• Scitex Wide Format Printing more than doubles its revenues in Q4 (year-on-year)
• Major contract awarded to Scitex Digital Printing
• 74 Karat digital offset press installed at six beta sites during the last quarter of 1999
• Vio Worldwide enjoying user base growth following expanded access via the Internet

Herzlia, Israel - February 2, 2000
Scitex Corporation Ltd. (Nasdaq: SCIX) today announced net income for the fourth quarter of 1999 of $12.8 million or $0.30 per share (diluted), compared to $6.4 million or $0.15 per share for the fourth quarter of 1998. Fourth quarter 1999 results include the reduction of $2 million in reserves associated with the Company's sale of the digital video business in 1998. Excluding this item, net income from continuing operations for the fourth quarter of 1999 was $10.8 million or $0.25 per share.

Revenues for the fourth quarter of 1999 were $196 million, up 11% from the $177 million recorded in the fourth quarter of 1998.

Gross profit for the fourth quarter of 1999 was $84.8 million (43.2% of sales), compared with $77.4 million (43.7% of sales) in the same period last year. Operating income for the fourth quarter of 1999 was $18.2 million, compared to $14.1 million recorded in the fourth quarter of 1998.

Commenting on the results, Yoav Z. Chelouche, President and Chief Executive Officer, said: "The results are very strong. Fourth quarter revenues were the highest in Scitex's history and operating profits reached a five year high. The quarter saw the completion of our turnaround of the preprint business, returning it to growth and profitability. This was followed by the recently announced agreement to merge this business with Creo Products Inc. The results are a further significant milestone in the pursuit of our strategy to achieve market leadership for our businesses."

Net income for the full year of 1999 was $31 million or $0.71 per share (diluted) compared to a loss of $111 million or ($2.58) per share in 1998. Full year 1999 results include $7 million reduction in reserves associated with the sale of the digital video business in 1998. Excluding this item net income from continuing operations was $24 million or $0.55 per share (diluted) compared to net income of $10 million or $0.23 per share in 1998 (excluding $44.3 million in-process R&D writeoff associated with the acquisition of Idanit).

For the full year of 1999, operating income was $50 million, up 142% compared to 1998 operating income of $20 million (excluding $44.3 million charges for in-process R&D associated with the acquisition of Idanit). Revenues for the full year were $690 million, an increase of 8% over the $640 million achieved in 1998.

In the fourth quarter of 1999, revenues from the Americas were $90 million compared to $81 million for the fourth quarter of 1998. Revenues from Europe were $73 million compared to $70 million for the fourth quarter last year. Japan recorded revenues of $14 million for the quarter compared to $15 million for the fourth quarter last year, while Asia Pacific and other regions recorded $19 million in revenues compared to $11 million for the fourth quarter of 1998.

Chelouche continued: "Digital Preprint revenues for the fourth quarter of 1999 were a record $135 million compared with $119 million in the fourth quarter of 1998. Sales of our industry-leading Lotem™ computer-to-plate system grew rapidly in all geographical regions."

Revenues from Scitex Digital Printing in the fourth quarter of 1999 were $39 million, compared to the $42 million recorded in the same period last year. In 1999 SDP introduced the Scitex VersaMark™ technology platform which is the basis for new products and applications. The Scitex VersaMark accounted for over 40% of SDP's equipment sales in this quarter.

In a separate announcement issued today, SDP reported that it has won a major contract to supply eight Scitex VersaMark digital printing systems to British Telecom. This is a strategic account for SDP. The equipment will enable British Telecom's billing centers to print over one billion pages per annum.

Scitex Wide Format Printing recorded strong growth in the quarter with revenues of $17.4 million, compared to $7.8 million in the fourth quarter of 1998. The successful integration of Idanit and Matan during the year, together with the breadth of the product line, enabled Scitex Wide Format Printing to become the leading player in the sector. The new Scitex Pressjet™ wide format printer, designed to provide digital solutions to the silk screen printing market has entered beta testing. It is the world's fastest wide format inkjet printer.

The 50/50 joint venture with KBA, Karat Digital Press, which develops and manufactures the highly innovative 74 Karat™ short-run, color, digital offset press, expanded its beta testing program in the final quarter of 1999, with units installed at six test sites by the year end.

Vio Worldwide Limited, Scitex's 50/50 joint venture with British Telecom, is pioneering Internet and telecom services for the printing industry. During Q4 1999, it expanded access to its services via the Internet. Vio Worldwide is enjoying a growing user base, including Internet users.

After the close of the quarter, Scitex announced that following its investment in RTimage Ltd., it will hold approximately 13% of the company's shares (fully diluted). RTimage is a leading provider of professional Internet-based imaging products and services for the graphic arts and medical communities.

Eyal Desheh, Corporate Vice President and Chief Financial Officer, said: "Scitex's financial results in the last quarter of 1999 demonstrate management's commitment to the turnaround of the business and position Scitex for strong organic growth in the future. Closing the year with a healthy balance sheet, we have the flexibility to pursue strategic add-ons to our core digital printing business."

As detailed in the press release issued on January 18, Scitex's strategy will continue to be:

• To achieve market leadership in digital printing and ink-jet technologies
• To pursue emerging opportunities offered by the Internet in the imaging and media sectors
• To exploit synergies between Scitex's operating units

Scitex and the Scitex logo are registered trademarks and service marks of Scitex Corporation Ltd. and Scitex Europe S.A. Lotem is a trademark of Scitex Corporation Ltd. Idanit and Scitex Pressjet are trademarks of Scitex Wide Format Printing Ltd. Scitex VersaMark is a 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.

Notes

Scitex Corporation Ltd., a world leader in digital imaging solutions for graphics communications, designs, develops, manufactures, markets and supports products, systems and devices primarily for the digital preprint and digital printing markets. Digital preprint includes image capture, output, proofing, and telecommunication solutions. Digital printing includes Scitex Digital Printing's very high-speed inkjet printers for variable long-run printing, wide format inkjet printers from Scitex Wide Format Printing, digital offset presses from Karat Digital Press, and the Company's print-on-demand digital front ends. A worldwide network of direct sales and service offices, dealers, resellers and OEM partners provide global sales and customer support. Scitex shares trade on NASDAQ under the symbol SCIX. For more information, visit the company's Internet site: www.scitex.com

Except for the historical information herein, the matters discussed in the news release include forward-looking statements within the meaning of the 'safe harbor' provisions of the US Private Securities Litigation Reform Act of 1995, that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions both here and abroad, timely development and release of new products by strategic suppliers and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission, as well as the effect of the company's accounting policies.

The Scitex fourth quarter conference call will be broadcast live over the Internet on February 3rd at 10:00am (ET) at www.streetfusion.com or on www.scitex.com

SCITEX CORPORATION LTD. (AN ISRAELI CORPORATION) AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

* Includes 44,264 acquired in-process R&D

SCITEX CORPORATION LTD. (AN ISRAELI CORPORATION) AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)