Nur Macroprinters Ltd. Announces Record First QuarterRevenues.

MAGSHIMIM, Israel--(BUSINESS WIRE)--May 14, 1998--

Revenues Increase 80%

Fourth Consecutive Quarter of Profitability

NUR Macroprinters Ltd. (NASDAQ-NMS Symbol: NURTF) today announced unaudited results for the first quarter ended

Revenues for the first quarter grew by 70% to a record $7,485,000 compared to $4,164,000 for the same quarter the previous year. Gross profit doubled to $3,861,000 from $1,866,000 for the same period last year. Net income was $340,000, or $0.03 per share, as compared to a net loss of $326,000 or $(0.05) per share, for the comparable period last year.

Gross profit margin for the first quarter increased to 52% compared to 45% for the corresponding quarter last year due to the significantly higher margins on the Company's newest product, the Blueboard, and increased profitability resulting from the establishment of the Company's direct sales and service organization.

Mr. Erez Shachar, President and CEO of NUR Macroprinters, remarked, "We are pleased to report another quarter with record revenues and ongoing profitability. Our outstanding revenue growth this quarter reflects market acceptance of the super-wide Blueboard printer that we launched in the first quarter of last year and expansion of our customer base. Following the close of the quarter, we introduced the Blueboard*2 printer in response to feedback from customers who were looking for enhanced productivity. We are hopeful that the Blueboard*2 will generate similar success for NUR in the coming months.

"To support the growing market demand and expanding customer base, we are continuing to build our sales and service infrastructure and are investing in new product development. In addition, during the quarter we laid the groundwork for expanding our product offering with the establishment of NUR Media Solutions, which will develop and market our substrates and consumable products.

"Overall, the first quarter was a strong start to 1998, and we look forward to continued progress throughout the year." -0-

NUR Macroprinters Ltd. is a world leader in the development, manufacturing, marketing and servicing of wide-format ink-jet printing systems and consumables. The company's printers are marketed principally to commercial printers, media companies, and screen printers for a variety of large format applications, such as billboards, posters, banners and point of purchase displays for advertising as well as decorations and backdrops for show rooms, fleet graphics, trade shows, museums and exhibits. NUR printers are installed in over 130 sites throughout Europe, North and South America, Africa and Asia.

Certain statements made herein that use the words "estimate" "project" "intend" "expect" "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand to the Company's products, inability to timely develop and introduce new technologies, products and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission. -0-

                        NUR MACROPRINTERS LTD.
                  Condensed Statements of Operations
              U.S $ in thousands, except per share data

                                        Three months ended
                                       3/31/98      3/31/97
                                     (Unaudited)  (Unaudited)

Revenues
  Sales of printers and
    related products                     $6,721       $3,468
  Sales of printed materials                764          696
Total revenues                            7,485        4,164

Cost of revenues

Cost of sales of printers and
  related materials                       3,203        1,951
Cost of sales of printed materials          421          347

                                          3,694        2,298
Gross profit                              3,861        1,866

Research & development expenses             753          411
Less -- Royalty bearing grants               --          (93)
Research & development costs, net           753          318

Selling expenses, net                     1,420          861

General and administrative expenses       1,185          817

Write-off of debts of related
  parties                                    --           99
                                          2,605        1,777
Operating income (loss)                     503         (229)
Financial income (expenses), net           (137)         (97)
Other income (loss) net                      --           --
Taxes on income                              24           --
Minority interest                             2           --
Net income (loss) for the period          $ 340        $ 326

Earnings (loss) per share                 $0.03       $(0.05)
Weighted average number of shares
  outstanding during the period      10,880,000    6,880,000
-0-

                        NUR MACROPRINTERS LTD.
                       Condensed Balance Sheets
                        (U.S. $ in thousands)

                                        3/31/98     12/31/97
                                       (audited)    (audited)

Current Assets
  Cash and cash equivalents              $1,019       $1,234
  Accounts receivable -- trade            7,004        5,981
  Other receivables and prepaid
    expenses                              2,031        1,696
   Inventories                            2,482        2,252
Total current Assets                    $12,536      $11,163

Investments
Long-term bank deposit                      281          150
Severance pay funds                         246          262
Prepaid expenses                             80          186

Long-term accounts receivable-trade          --           --
Equipment:
Cost                                      2,828        2,250
Less-accumulated depreciation               762          609
                                          2,066        1,641

Other assets                                343          381
Total assets                             15,552       13,783

Liabilities and Shareholder's Equity
Current Liabilities:
Short-term bank credit                      193          518
Current maturities of long-term loans       329          261
Trade payables                            4,975        3,216
Accrued expenses and other liabilities    2,003        2,127
Advances from customers                      --           17
Total Current Liabilities                 7,500        6,139
Long-Term Liabilities                     1,519        1,476

Accrued severance pay                       375          358
                                          1,894        1,834
Minority interest                            28           26

Shareholders' Equity
Share capital                             2,729        2,729
Capital surplus                          14,390       14,383
Cumulative translation adjustment           (31)         (30)
Deficit                                 (10,958)     (11,298)
Total Shareholders' Equity                6,130        5,784
Total Liabilities and Shareholders'
  Equity                                 15,552       13,783

CONTACT: NUR Macroprinters Ltd., Magshimim

Erez Shachar/Eitan Padan, 011-972/3-908-7676

E-mail: nur_tech@netvision.net.il

or

Lippert/Heilshorn & Assoc., New York

Jody Burfening, 212-838-3777 ext. 304

e-mail: jody@lhai.com