Auto-Graphics, Inc. Announces 2006 Annual Earnings

Auto-Graphics, Inc. Announces 2006 Annual Earnings

Auto-Graphics, Inc. (OTCBB: AUGR) (Pink Sheets: AUGR), a technology innovator providing library automation solutions for over 35 years, today reported that operating income was $337,000 for the year ended December 31, 2006, up $31,000 or 10% from $306,000 for the same period in 2005. This performance represents 20 consecutive quarters in which Auto-Graphics has delivered a positive operating income.

Auto-Graphics’ net sales were $5,331,000 for the year ended December 31, 2006, up $181,000 or 3% from $5,150,000 for the same period in 2005 due to an increase in license revenue from new library contracts. Recurring subscription and maintenance sales increased $29,000 for the year ended December 31, 2006 over the same period in 2005 due to additional AGent VERSO™ sales. License and services sales were up $152,000 due to an increase in implementation and license revenues.

Net income was $333,000 for the year ended December 31, 2006, up $22,000 from a net income of $311,000 for the same period in 2005. Basic and diluted earnings per share was $0.06 per share in 2006 compared to $0.06 and $0.05 per share in 2005, respectively.

During the third quarter Auto-Graphics was awarded a statewide contract by the state of Wisconsin. This contract is one of the largest union/virtual hybrid resource sharing systems in the world, incorporating over 1,200 public, academic, school and special libraries throughout the state. The new system was installed and fully functional in December 2006.

Additionally, through a competitive bid, Auto-Graphics was awarded a major contract for AGent Search™ by a well-known Wall Street mutual fund investment company. AGent Search will provide federated search functionality to employees worldwide for accessing multiple commercial databases. The award provides further verification that AGent Search is a viable option for any enterprise seeking federated search technology.

About Auto-Graphics, Inc.

Founded in 1950, Auto-Graphics has been a technology innovator for more than five decades, providing data automation solutions to customers across multiple industries. For the past 35 years, Auto-Graphics has helped libraries of all sizes become more efficient and patron-centric. Its flagship solution, AGent, is one of the most comprehensive library automation platforms available today, allowing libraries of any size to manage, share and search their resources. The AGent integrated product suite – currently used by more than 5,000 libraries in North America – comprises a complete ILS system for public libraries; a robust ILL solution for consortial entities and member libraries; and a powerful federated search solution for both public and academic libraries. For more information, please visit www.auto-graphics.com.

© 2006 Auto-Graphics, Inc. All rights reserved. AGent, AGent VERSO, AGent Resource Sharing and AGent Search are trademarks of Auto-Graphics, Inc. All other trademarks are the property of their respective owners.
Contacts

Auto-Graphics, Inc.
Dan Luebben, Chief Financial Officer
800-776-6939 ext. x1504
del {at} auto-graphics(.)com