SUNNYVALE, California (December 18, 2001) - LOGIC Devices Incorporated (Nasdaq: LOGC) today reported revenues and earnings for its 2001 fiscal year. Revenues for its fiscal year ended September 30, 2001 were $10,007,300 compared to $11,785,900 for the fiscal year ended October 1, 2000. Earnings for the fiscal year were down from $522,400, or $0.08 per share, in fiscal 2000 to a loss of $212,000, or $(0.03) per share.

Revenues for the quarter ended September 30, 2001 were $1,919,700 compared to $3,017,300 for the quarter ended October 1, 2000. The fourth quarter of fiscal 2001 resulted in a loss of $335,000, or $(0.04) per share, compared to earnings of $194,200, or $0.03 per share, in the same quarter of fiscal 2000.

"While the fourth quarter of fiscal 2001 was down, our numbers were still generally better than the industry as a whole. When compared to the financial results reported by other major semiconductor manufacturers, depending on the product area, our industry is generally off by 40-50% compared to the prior year, while our revenues were off by approximately 15%," stated Bill Volz, president of LOGIC Devices.

"Although our revenues and earnings were down, we believe our aggressive debt reduction and cost-cutting over the past few years have positioned us to survive the current economic slow down. Fiscal 2001 was both challenging and fruitful. Weak economic conditions limited our revenues and slowed inventory turns, which resulted in year-end inventory levels being higher than we targeted. Going forward, we will pull from these existing stores to meet anticipated orders, rather than spend additional cash to manufacture and ship the products. This, combined with our low cash burn rate and minimal debt, should allow us to build our cash position during fiscal 2002."

"The unfortunate attacks of September 11, 2001 had a mixed impact on the Company. In the weeks immediately following the attacks, orders plummeted to very low levels, which severely impacted an already weak fourth quarter. During the current first quarter of fiscal 2002, order rates have begun to recover, but still remain below the order rates of the same quarter in the prior year."

"On the positive side, requests for price and lead time quotes on military programs have increased sharply from major defense contractors. Although we have supported these programs for many years, our quotes are consolidated and subsequently submitted to the Defense Department for approval, which can take weeks to months. Therefore, we expect limited bookings or shipments during the current quarter. Since, in many cases, we are the sole supplier of critical components, we anticipate these recent quotes will result in orders, which will help offset the weak commercial economic environment," continued Volz.

"While we are disappointed by the conclusion of fiscal 2001, we are optimistic about the upcoming fiscal year. Not only will our military sales help us maintain revenues, but we also expect our target commercial markets to contribute increasing revenues. We expect the high-definition broadcast video market to finally develop, and wireless basestations to recover. Medical diagnostic imaging equipment has remained strong and is generally not materially affected by macroeconomic changes. As long as economic conditions remaining uncertain, we will continue to operate under conservative financial expectations. We believe our growth will be more driven by new products in our development pipeline, rather than by waiting for a recovery in the economy," concluded Volz.

"Safe harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding anticipated changes in balance sheet positions, availability of raw materials, new product introductions, and sales and earnings expectations are "forward-looking statements" involving risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions and shifts in supply and demand, the impact of competitive products and pricing, product development risks and delays, commercialization and technological difficulties, and capacity and supply constraints. For a discussion of certain risks, please refer to the Management Discussion and Analysis of Financial Conditions and Results of Operations in the most recent LOGIC Devices Annual Report on Form 10-K and the Quarterly Report on Form 10-Q.

Established in 1983, LOGIC Devices develops and markets high-performance integrated circuits. The Company's products include high-speed digital signal processing chips that are used in digital communications, broadcast and medical imaging processing applications, instrumentation, and smart weapons systems.