Alpha Pro Tech Ltd (AMEX:APT CHX: APT), a developer, manufacturer and marketer of disposable protective apparel for the medical, dental, industrial clean room and food service markets, announced today financial results for the second quarter and six months ended June 30, 2000.

Net income for the second quarter increased 22.1% to $342,000, or $0.01 per share, compared with $280,000, or $0.01 per share, for the corresponding period a year ago. Sales decreased marginally to $5,131,000 from $5,222,000, or 1.7%. For the six months, net income increased $203,000 to $754,000, or $0.03 per share, compared with $551,000, or $0.02 per share, for the 1999 period. Sales for the six months ended June 30, 2000, increased 3.7% to $10,071,000 compared with $9,712,000 for the year ago period.

Commenting on the results, Al Millar, President of Alpha Pro Tech, stated that "The Company remains on track toward achieving continued records in sales and earnings for the current year, despite the slight second quarter sales reduction." Mr. Millar attributed the temporary decline primarily to a 4.1% sales decrease in the Company's Apparel Division resulting from a corporate wide inventory reduction program by its largest distributor. This program has now leveled off with inventories at a constant level for the past two months and shipments have resumed at a strong pace. "Additionally, strong orders in the latter part of the second quarter have led to an increase in open orders, which are now being filled. Were it not for these factors, sales for the six months ended June 30, 2000 would have been up by 13.0% as opposed to 3.7%," Mr. Millar added.

"We believe this sales shortfall will be more than compensated for in the second half of this year as the Company is well positioned to continue to grow revenue in its current markets of Industrial Cleanroom, Medical, Dental and Pet Supply, as well as in the Food Service market," Mr. Millar said.

Alpha Pro Tech, Ltd. develops, manufactures and markets innovative disposable and limited-use protective apparel products for the medical, dental, industrial, clean room and food service markets. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Janesville, Wisconsin; Valdosta, Georgia; and Benjamin Hill and Nogales, Mexico. For more information visit Alpha Pro Tech's Website at http://www.alphaprotech.com or e-mail at ir@alphaprotech.com.

This news release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in registration statements, annual reports and other periodic reports and filings of the Company filed with the Securities and Exchange Commission. All statements, other than statements of historical facts, which address the Company's expectations of sources of capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. As a result, there can be no assurance that the Company's future results will not be materially different from those described herein as 'believed,' 'anticipated,' 'estimated' or 'expected,' which reflect the current views of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based.

 
For the Three Months Ended June 30,
For the Six Months Ended June 30
 
2000
1999
2000
1999
 
Sales
$5,131,000
$5,222,000
$10,071,000
$9,712,000
Net Income
$ 342,000
$ 280,000
$ 754,000
$ 551,000
Diluted income per share
$ 0.01
$ 0.01
$ 0.03
$ 0.02

Diluted Weighted Average Shares Outstanding

25,846,027

24,405,106
25,988,520
24,392,187