NTI Northern Technologies International

LINO LAKES, Minn., July 11 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (AMEX:NTI) announced today its operating results for third quarter fiscal year 2006. The Company's net income increased $0.28 per share or 178% to $0.43 per share for the nine months ended May 31, 2006 compared to $0.16 per share for the nine months ended May 31, 2005. The Company's net sales increased 17.4% and 13.7% during the three and nine months ended May 31, 2006, respectively, as compared to the same respective periods in fiscal 2005 primarily as a result of the increase in demand of Zerust(R) products and of React-NTI products to new and existing customers in North America. Net sales of Zerust(R) products increased $1,007,675 to $8,869,216 and net sales of React-NTI products increased $501,187 to $3,630,477 for the nine months ended May 31, 2006 as compared to the same period in fiscal 2005. Total net sales of all of the Company's joint ventures increased 19.0% to $51,278,645 during the nine months ended May 31, 2006 as compared to $43,082,226 during the same period in fiscal 2005 due to an increase in demand for product. The Company's working capital was $3,255,243 at May 31, 2006, including $577,683 in cash and cash equivalents. About Northern Technologies International Corporation The Company focuses on developing, marketing and selling proprietary environmentally responsible materials science based products and technical services in over 50 countries worldwide via a network of joint ventures. In fiscal 2005, the Company's primary revenues derived from the sales of ZERUST(R) rust and corrosion inhibiting packaging products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. During this same period, the Company also received revenues from sales of proprietary new technologies including anti-abrasion ink additives, as well as bio-based sintered metal mold release agents, bio-solvents, bio- emollients, bio-cleaners, bio-lubricants and fully bio-degradable plastic packaging. In a concerted effort to extend the Company's proprietary technologies, the Company engages in extensive scientific research and development programs in the areas of material science and corrosion protection. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY Three Months Ended Nine Months Ended May 31, 2006 May 31, 2005 May 31, 2006 May 31, 2005 NORTH AMERICAN OPERATIONS: Sales $4,320,371 $3,680,263 $12,499,693 $10,990,831 Cost of goods sold 2,759,360 2,185,636 7,803,716 6,533,684 Gross profit 1,561,011 1,494,627 4,695,977 4,457,147 Operating expenses: 1,575,723 1,277,346 4,546,808 4,492,898 NORTH AMERICAN OPERATING (LOSS) INCOME (14,712) 217,281 149,169 (35,751) INCOME FROM ALL CORPORATE JOINT VENTURES AND HOLDING COMPANIES 721,335 194,739 1,714,180 584,337 INTEREST INCOME 2,129 1,491 30,108 47,139 INTEREST EXPENSE (19,886) (9,949) (55,392) (13,263) MINORITY INTEREST (903) 9,053 (8,389) 3,789 INCOME BEFORE INCOME TAX EXPENSE 687,963 412,615 1,829,676 586,251 INCOME TAX (BENEFIT) EXPENSE (30,000) 39,000 273,000 27,000 NET INCOME $717,963 $373,615 $1,556,676 $559,251 NET INCOME PER COMMON SHARE: Basic $0.20 $0.10 $0.43 $0.16 WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: Basic 3,610,993 3,582,036 3,599,677 3,585,007 Composite financial information from the audited and unaudited financial statements of NTIC's joint ventures carried on the equity basis is summarized as follows: May 31, 2006 August 31, 2005 Current assets $32,168,174 $27,305,426 Total assets 38,651,384 33,839,267 Current liabilities 13,629,511 13,388,740 Noncurrent liabilities 2,929,198 2,249,904 Joint ventures' equity 22,092,616 18,198,864 Northern Technologies International Corporation's share of Corporate Joint Ventures' equity $10,270,097 $8,622,361 Nine Months Ended May 31, 2006 May 31, 2005 Net sales $51,278,645 $43,082,226 Gross profit 23,901,140 20,621,346 Net income 4,351,355 3,064,050 Northern Technologies International Corporation's share of equity in income of Corporate Joint Ventures $2,117,612 $1,495,156 DATASOURCE: Northern Technologies International Corporation CONTACT: Matthew Wolsfeld, CFO of Northern Technologies International Corporation, +1-651-784-1250 Web site: http://www.ntic.com/

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