VERNON HILLS, Ill., Feb. 12 /PRNewswire-FirstCall/ -- Zebra Technologies Corporation (Nasdaq: ZBRA) today announced 33.3% growth in net income for the fourth quarter of 2002, increasing to $20,328,000, or $0.65 per diluted share, from $15,246,000, or $0.49 per diluted share, for the fourth quarter of 2001. Net sales for the three months that ended December 31, 2002, were $126,324,000 versus $111,611,000 for the fourth quarter of 2001, an increase of 13.2% and exceeding the company's previously forecasted range. For the fourth quarter of 2002, the company had EBITDA of $34,547,000, compared with $27,972,000 for the fourth quarter of 2001.

Quarterly sales growth for Zebra occurred in all geographic territories, with higher growth occurring in international territories. Compared with the fourth quarter of 2001, the company had sales increases in hardware products, supplies, and service and software. Gross profit margin increased to 49.5% from 46.1% for the fourth quarter of 2001, as a result of related higher capacity utilization and favorable currency translation. Operating expense growth of 18.9% included increased expenditures for commissions and bonuses, as well as legal and audit fees. For the fourth quarter, operating income increased 24.7% to $28,417,000, or 22.5% of net sales, from $22,791,000, or 20.4% of net sales. Growth in investment income also had a positive effect on 2002 fourth quarter financial results.

For 2002, net income increased 16.4% to $71,595,000, or $2.29 per diluted share, from $61,529,000, or $1.99 per diluted share, for 2001. Excluding merger costs and an unusual charge for a terminated acquisition, 2002 net income increased 17.7% to $73,773,000, or $2.36 per diluted share, from $62,706,000, or $2.03 per diluted share, for 2001. Net sales for 2002 totaled $475,611,000, up 5.7% from $450,008,000 for 2001.

"Zebra's investments to extend market leadership and gain share when other companies were unable to do so enabled the company to increase sales, earnings and profitability in this difficult economic environment," stated Edward Kaplan, Zebra's chairman and chief executive officer. "During 2002, Zebra had record international sales, as investments expanded international coverage and our ability to support the sales activities of a growing network of reseller partners. We introduced products and technologies for established and emerging applications for bar code label, receipt and plastic card identification printing. And, we benefited from a sharper focus on application solutions for high-growth vertical markets. Our investments further strengthened the Zebra brand, which is leading to additional business opportunities."

Mr. Kaplan added, "Businesses and organizations continue to recognize the business benefits of implementing bar code and automatic identification technologies. These technologies are helping to reduce errors in health care, enhance the security of buildings and national infrastructure, and improve the service delivered to consumers around the world."

At December 31, 2002, Zebra had $348,577,000 in cash and cash equivalents, investments and marketable securities, out of total assets of $573,088,000, and no long-term debt. Stockholders' equity amounted to $534,155,000. As of December 31, 2002, inventories were $38,066,000, a decline of $1,857,000 from $39,923,000 at the end of 2001. Accounts receivable totaled $71,299,000, compared with $67,160,000 at December 31, 2001, reflecting the higher level of business activity in 2002, but down from $78,380,000 as of September 28, 2002, because of strong cash collections.

Zebra also announced its financial forecast for the first quarter of 2003. For the first quarter, net sales are expected within a range of $120 million and $125 million, with earnings between $0.61 and $0.66 per diluted share. This forecast implies growth in diluted earnings per share of 27.1% to 37.5% on sales growth of 8.9% to 13.4% from the first quarter of 2002.

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company's financial forecast for the first quarter of 2003 stated in the paragraph directly above. These statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in general industry and market conditions, of general domestic and international economic conditions, and other factors. Specifically, these factors include market acceptance of the company's products and product lines and competitors' product offerings, as well as the speed of adoption of the company's printing technologies and competing technologies. When used in this release and documents referenced, the words "anticipate," "believe," "estimate," and "expect" and similar expressions, as they relate to the company or its management are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra's Form 10-K for the year ended December 31, 2001.

Zebra Technologies Corporation delivers innovative and reliable on-demand printing solutions for business improvement and security applications in 90 countries around the world. More than 90% of Fortune 500 companies use Zebra(R)-brand printers. A broad range of applications benefit from Zebra- brand thermal bar code, "smart" label and receipt printers, and Eltron(R)- brand card printers, resulting in enhanced security, increased productivity, improved quality, lower costs, and better customer service. The company has an installed base of nearly three million printers, including RFID printer/encoders and wireless mobile solutions, and also offers software, connectivity solutions, and printing supplies. Information about Zebra Technologies can be found at www.zebra.com .

Investors are invited to listen to a live Internet broadcast of Zebra's conference call discussing the company's financial results for the fourth quarter of 2002. The conference call will be held at 11:00 Eastern Time today. To listen to the call, visit the company's Web site at www.zebra.com .