ThrustMaster Second Quarter Earnings

PORTLAND OR, July 22, 1996 -- ThrustMaster, Inc.(NASDAQ:TMSR) today reported second quarter 1996 revenues of $4.3 million, equal to 1995 second quarter revenues. Net income was $111,000 or $0.03 per share, compared to $307,000 or $0.07 per share, for the second quarter last year. Revenues for the six months ended June 30, 1996 were $8.8 million, an increase of 10% compared to $8.0 million for the first six months of 1995. Net income for the first half of 1996 was $212,000 or $0.05 per share, compared to $480,000 or $0.12 per share, for the same period last year. The Company attributes the decrease in earnings to a slowdown in sales of certain high margin flight products and a slight increase in operating expenses.

"We knew that matching last year's record second quarter, which contained the largest single order ever shipped by the Company, would be a challenge with today's retail climate. Revenue for the quarter was up 17% discounting that one-time order last year," said ThrustMaster CEO Stephen Aanderud. "During the second half of 1996 our growth and profitability will be propelled by the introduction of new produts for the heavy selling season. These include a lower priced full-featured driving wheel called the 'Grand Prix I', a number of state-of-the-art flight controllers, and both retail and OEM versions of our Phazer gamepad."

In the Company's first major OEM arrangement, beginning this holiday season Compaq Computer Corporation(NYSE:CPQ) will ship ThrustMaster's feature-packed advanced Phazer gamepad with Compaq's high-performance Ultimate Multimedia Presario PCs. The Phazer, jointly designed by ThrustMaster and Compaq, is the ultimate gamepad created primarily for sports and action PC games and offers a dynamic combination of advanced functions including complete programmability. It features an impressive ergonomic design, an eight-way directional pad, six buttons, analog triggers, and a throttle wheel. The Phazer's unique optic-based technology provides both digital and analog power to the game player.

"We are excited to team up with a world-class company like Compaq," said Stephen Aanderud. "This is the largest OEM arrangement yet for ThrustMaster. Our engineering talent and manufacturing capabilities have now set the stage for significant sales growth in this arena."

"We asked ThrustMaster to design a truly unique gamepad that would compliment our Ultimate Multimedia PCs," said Sean Burke, Director for Presario marketing. "ThrustMaster loaded the Phazer with featrues and technology that take game playing to a new level. It is simple to use, yet has an unbelievable array of functions."

ThrustMaster, Inc. designs, develops, manufactures and markets interactive control devices that are used with entertainment software operating on IBM-compatible and Macintosh personal computers. Their principal products include auto racing controllers and flight simulation products modeled after their counterparts in military jet aircraft. Other products include peripherals for golf and pinball simulation. For more information call (503)615-3200.

ThrustMaster, Inc. Summary Income Statements Dollars in thousands (Unaudited)
	Three Months Ended June 30,		Six Months Ended June 30,
	1996	1995	1996	1995
Revenues	$4,250	$4,277	$8,814	$7,978
Cost of Goods Sold	2,615	2,499	5,585	4,721
GROSS PROFIT	1,635	1,778	3,229	3,257
Operating Expenses:
Research & Engineering	408	471	883	850
Sales & Marketing	609	469	1,157	929
Customer Service	69	72	138	146
General & Administrative	478	406	924	747
TOTAL OPERATING EXPENSES	1,564	1,418	3,102	2,672
Income From Operations	71	360	127	585
Other Income	107	120	213	165
Income Before Income Taxes	178	480	340	750
Pro Forma Information Provision for Income Taxes	67	173	128	270
NET INCOME	$111	$307	$212	$480
NET INCOME PER SHARE	$0.03	$0.07	$0.05	$0.12
Weighted Average Shares Outstanding	4,422	4,462	4,421	3,926

ThrustMaster, Inc. Summary Balance Sheets Dollars in thousands (Unaudited)
	June 30, 1996	December 31, 1995
Cash & Cash Equivalents	$7,928	$8,090
Accounts Receivable	3,050	2,897
Inventories	1,977	2,526
Other Current Assets	441	506
Other Assets	1,172	1,083
	$14,568	$15,102
Accounts Payable	460	1,203
Other Current Liabilities	315	540
Long-Term Debt	4	10
Deferred Income Taxes	39	38
Shareholders' Equity	13,750	13,311
	$14,568	$15,102

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