REPLACEMENT REVOLVING LINE OF CREDIT PROMISSORY NOTE


$10,000,000.00 U.S.              Manchester, NH             December 3, 1998

     FOR VALUE RECEIVED, PRESSTEK, INC., a Delaware corporation with a principal
place of business at 8  Commercial  Street,  Hudson,  New  Hampshire  03051 (the
"Borrower"),  promises to pay to the order of  CITIZENS  BANK NEW  HAMPSHIRE,  a
guaranty  savings bank  organized  under the laws of the State of New  Hampshire
with an address of 875 Elm Street, Manchester, New Hampshire 03101 (the "Bank"),
at such  address,  or such  other  place or  places  as the  holder  hereof  may
designate in writing from time to time hereafter,  the maximum  principal sum of
TEN MILLION DOLLARS  ($10,000,000.00),  or so much thereof as may be advanced or
readvanced by the Bank to the Borrower from time to time hereafter (such amounts
defined as the "Debit  Balance"  below),  together with interest as provided for
hereinbelow, in lawful money of the United States of America.

     The Borrower's  "Debit  Balance" shall mean the debit balance in an account
on the  books of the Bank,  maintained  in the form of a ledger  card,  computer
records or  otherwise  in  accordance  with the Bank's  customary  practice  and
appropriate  accounting procedures wherein there shall be recorded the principal
amount of all advances made by the Bank to the Borrower,  all principal payments
made by the Borrower to the Bank hereunder, and all other appropriate debits and
credits.

     Under the Revolving  Line of Credit Loan  evidenced by this Note (the "Line
of  Credit"),  the Bank agrees to lend to the  Borrower,  and the  Borrower  may
borrow,  up to the  maximum  principal  sum  provided  for in this Note,  all in
accordance  with and subject to the terms,  conditions,  and limitations of this
Note and the Loan  Agreement  dated  December 18, 1996,  amended by Amendment to
Loan Agreement and Related Loan  Documents  dated February 6, 1998 and Amendment
to Loan  Agreement  and  Related  Loan  Documents  of even date  herewith by and
between the Bank and the Borrower,  as the same may be amended from time to time
(as amended,  the "Loan Agreement").  The holder of this Note is entitled to all
of the  benefits  and  rights  of the Bank  under the Loan  Agreement.  However,
neither this  reference to the Loan  Agreement nor any  provision  thereof shall
impair the  absolute  and  unconditional  obligation  of the Borrower to pay the
principal  and  interest of this Note as herein  provided.  Terms not  otherwise
defined herein shall have the meanings ascribed to them in the Loan Agreement.

     The Borrower  shall make requests for advances  under this Note as provided
in the Loan  Agreement.  The Borrower agrees that the Bank may make all advances
under this Note by direct deposit to any demand account of the Borrower with the
Bank or in such other manner as may be provided in the Loan Agreement,  and that
all such advances shall represent binding obligations of the Borrower.

     The  Borrower  acknowledges  that this Note is to evidence  the  Borrower's
obligation  to pay its Debit  Balance,  plus  interest and any other  applicable
charges as  determined  from time to time,  and that it shall  continue to do so
despite the  occurrence of intervals  when no Debit


<PAGE>



Balance  exists  because the Borrower  has paid the  previously  existing  Debit
Balance in full.

     Interest shall be calculated  and charged  daily,  based on the actual days
elapsed  over a three  hundred  sixty  (360) day  banking  year,  on the  unpaid
principal balance  outstanding from time to time of each Advance at a fixed rate
for the Advance Term applicable to such Advance equal to the LIBOR rate plus one
and one-half percent (1.5%) per annum. The term "LIBOR rate" shall mean the rate
as  determined  for each  separate  Advance by the BANK in  accordance  with the
provisions  of the Loan  Agreement.  Subject  to the  terms  of Loan  Agreement,
outstanding  principal  which is not subject to an interest rate hereunder based
upon the LIBOR rate shall bear  interest at a variable  annual rate equal to the
Prime Rate (as hereinafter defined). As used herein, the term "Prime Rate" shall
mean the rate  published by The Wall Street  Journal from time to time under the
category "Prime Rate: The Base Rate of Corporate Loans posted by at least 75% of
the  Nation's 30 Largest  Banks" (the lowest of the rates so  published  if more
than one rate is published  under this category at any given time) or such other
comparable  index rate  selected by the Bank in its sole  discretion if The Wall
Street Journal ceases to publish such rate. The Borrower  acknowledges  that the
Prime  Rate  is  used  for  reference  purposes  only  as an  index  and  is not
necessarily  the lowest  interest rate charged by the Bank on commercial  loans.
Each time the Prime Rate changes the interest  rate  applicable  to  outstanding
principal   hereunder   which  is  subject  to  the  Prime  Rate  shall   change
contemporaneously  with  such  change  in the  Prime  Rate.  Interest  shall  be
calculated  and charged  daily on the basis of actual days  elapsed over a three
hundred sixty (360) day banking year.

     The Bank shall  extend the Line of Credit  through and until July 31, 2000,
and, if the Line of Credit is renewed and  extended by the Bank  pursuant to the
Loan Agreement,  through and until each anniversary of such date with respect to
which  the Line of Credit is  renewed  and  extended  (July 31,  2000,  and each
anniversary thereof to which the Line of Credit is renewed and extended, being a
"Review  Date").  Pending  a Review  Date as to which  the Line of Credit is not
extended,  the Borrower  shall (i) make payments of  outstanding  principal from
time to time as may be required  under the Loan Agreement and (ii) make payments
of accrued and unpaid interest  monthly in arrears  commencing  thirty (30) days
from the date hereof (or on any day within 30 days of the date hereof  agreed to
by the  Borrower  and the Bank to provide  for a  convenient  payment  date) and
continuing  on the same date of each  month  thereafter,  through  and until any
Review Date as to which the Line of Credit is not renewed by the Bank, whereupon
all principal,  accrued and unpaid interest,  and any other charges provided for
hereunder,  shall be due and  payable  in full.  In the  event  that the Line of
Credit is renewed  pursuant to the Loan  Agreement as of any Review  Date,  this
Note shall  thereafter  continue to evidence  amounts advanced and due under the
Line of Credit as renewed.  Prepayments of the outstanding  principal  amount of
any Advance  prior to the end of the Advance Term  therefor  shall be subject to
prepayment charges and costs as determined under the Loan Agreement.



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<PAGE>



     This Note is being  executed and delivered in accordance  with the terms of
the Loan Agreement and the documents  defined  therein as the "Loan  Documents".
The payment and performance of the  obligations  contained in the Loan Documents
are secured by the collateral granted to the Bank therein (the "Collateral") and
the security granted to the Bank in the Loan Documents.

     Upon the  occurrence  and  during  the  continuance  of an Event of Default
specified  in the Loan  Agreement,  or if any payment of  principal  or interest
under this Note is not paid within ten (10) days of the due date  therefor,  the
principal hereof and all interest accrued and accruing hereon may be declared to
be forthwith due and payable.

     The holder may impose upon the Borrower a delinquency charge of the greater
of Thirty Five  Dollars  ($35.00) or five percent (5%) of the amount of interest
not paid on or before the tenth  (10th) day after such  installment  is due. The
entire principal balance of each Advance,  together with accrued interest, shall
after maturity,  whether by demand,  acceleration or otherwise, bear interest at
the then applicable  interest rate for such Advance  hereunder plus five percent
(5%) per annum.

     The Borrower  agrees that any other  property upon or in which the Borrower
has granted or  hereafter  grants the holder a mortgage  or  security  interest,
securing the payment and  performance of any other  liability of the Borrower to
the holder,  shall also constitute  Collateral.  As additional  Collateral,  the
Borrower grants (1) a security interest in, or pledges,  assigns and delivers to
the holder,  as  appropriate,  all deposits,  credits and other  property now or
hereafter due from the holder to the Borrower;  and (2) the right to set off and
apply (and a security  interest  in said  right),  upon an Event of Default  and
without demand or notice of any nature,  all, or any portion,  of such deposits,
credits and other  property,  against the  indebtedness  evidenced  by this Note
whether the other Collateral, if any, is deemed adequate or not.

     The Borrower, and every maker, endorser, or guarantor of this Note, jointly
and  severally,  agree to pay on demand all  reasonable  out-of-pocket  costs of
collection  hereof,  including  reasonable  attorneys' fees,  whether or not any
foreclosure or other action is instituted by the holder in its discretion.

     No delay or  omission  on the part of the holder in  exercising  any right,
privilege or remedy shall impair such right, privilege or remedy or be construed
as a waiver thereof or of any other right, privilege or remedy. No waiver of any
right,  privilege  or remedy or any  amendment  to this Note shall be  effective
unless made in writing and signed by the holder. Under no circumstances shall an
effective  waiver  of  any  right,  privilege  or  remedy  on any  one  occasion
constitute  or be  construed  as a bar to the  exercise  of or a waiver  of such
right, privilege or remedy on any future occasion.



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<PAGE>



     The  acceptance  by the  holder  hereof of any  payment  after any  default
hereunder  shall not  operate to extend  the time of payment of any amount  then
remaining  unpaid  hereunder or  constitute a waiver of any rights of the holder
hereof under this Note.

     All rights and remedies of the holder, whether granted herein or otherwise,
shall be cumulative  and may be exercised  singularly or  concurrently,  and the
holder shall have, in addition to all other rights and remedies,  the rights and
remedies of a secured party under the Uniform  Commercial Code of New Hampshire.
The  holder  shall  have no  duty  as to the  collection  or  protection  of the
Collateral or of any income  thereon,  or as to the  preservation  of any rights
pertaining thereto beyond the safe custody thereof. Surrender of this Note, upon
payment  or  otherwise,  shall not  affect the right of the holder to retain the
Collateral as security for the payment and performance of any other liability of
the Borrower to the holder.

     The Borrower,  and every maker, endorser, or guarantor of this Note, hereby
jointly waive,  to the fullest  extent  permitted by law,  presentment,  notice,
protest and all other  demands and notices and assents (1) to any  extension  of
the time of payment or any other indulgence,  (2) to any substitution,  exchange
or release of Collateral,  and (3) to the release of any other person  primarily
or secondarily liable for the obligations evidenced hereby.

     This Note and the provisions  hereof shall be binding upon the Borrower and
the   Borrower's   heirs,   administrators,    executors,    successors,   legal
representatives  and assigns  and shall inure to the benefit of the holder,  the
holder's heirs, administrators, executors, successors, legal representatives and
assigns.

     The word  "holder" as used herein  shall mean the payee or endorsee of this
Note who is in  possession  of it,  or the  bearer,  if this Note is at the time
payable to the bearer.

     This Note may not be amended,  changed or modified in any respect except by
a written document which has been executed by each party.  This Note constitutes
a New Hampshire contract to be governed by the laws of such state and to be paid
and performed therein.

     The provisions of this Note are expressly  subject to the condition that in
no event shall the amount paid or agreed to be paid to the holder  hereunder and
deemed interest under  applicable law exceed the maximum rate of interest on the
unpaid  principal  balance  hereunder  allowed by  applicable  law, if any, (the
"Maximum  Allowable  Rate"),  which  shall  mean the law in  effect  on the date
hereof,  except that if there is a change in such law which  results in a higher
Maximum  Allowable Rate being  applicable to this Note,  then this Note shall be
governed by such  amended law from and after its  effective  date.  In the event
that  fulfillment  of any  provisions  of this Note results in the interest rate
hereunder  being in excess of the Maximum  Allowable  Rate, the obligation to be
fulfilled  shall   automatically  be  reduced  to  eliminate  such  excess.   If
notwithstanding  the  foregoing,  the  holder  receives  an amount  which  under
applicable



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<PAGE>



law would cause the  interest  rate  hereunder  to exceed the Maximum  Allowable
Rate,  the portion  thereof  which would be  excessive  shall  automatically  be
applied to and deemed a prepayment of the unpaid principal balance hereunder and
not a payment of interest.

     This Note is executed and delivered in substitution and replacement of, but
not in novation or discharge of, the Revolving Line of Credit Promissory Note of
the  undersigned  to Citizens Bank New Hampshire in the principal  amount of Ten
Million Dollars  ($10,000,000.00)  dated December 18, 1996 (the "Old Note"). All
references  to the Old Note in the Loan  Agreement  or any other  Loan  Document
shall be deemed to refer to this Note.


     Executed and delivered this 3rd day of December, 1998.


                                          PRESSTEK, INC.


 /s/ Diane L. Bourque                    By:  /s/ Richard A. Williams 
-----------------------                      -------------------------
Witness                                      Name: Richard A. Williams
                                             Title: Chief Executive Officer