NTI Northern Technologies International

CIRCLE PINES, Minn., Jan. 9 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (AMEX:NTI) announced today an increase in operating results for the first quarter of fiscal year 2007. NTI's net income for the three months ended November 30, 2006 increased 56% to $990,224 as compared to $633,985 for the three months ended November 30, 2005 and net income per common share, basic and diluted, increased to $0.27 per share for the three months ended November 30, 2006 compared to $0.18 for the three months ended November 30, 2005 primarily as a result of the $724,495 gain on the sale of assets partially offset by a decrease in equity in income at various industrial chemical corporate joint ventures. NTI's net income before taxes increased 24% or $216,241 to $1,122,224 for the three months ended November 30, 2006 compared to $905,985 for the same period in fiscal 2005. NTI's total worldwide sales from its international joint ventures increased 14% to $18,879,432 during the three months ended November 30, 2006 as compared to $16,535,347 during the same period in fiscal 2005. NTI's net sales increased 4.9% or $213,744 to $4,617,374 during the three months ended November 30, 2006 as compared to $4,403,630 during the same period in fiscal 2006 primarily as a result of the increase in net sales of traditional Zerust(R) products and of React-NTI products to new and existing customers in North America. Net sales of traditional Zerust(R) products increased $33,205 to $3,023,384 during the three months ended November 30, 2006 as compared to the same period in fiscal 2006. Net sales of React-NTI products increased $180,540 to $1,593,990 for the three months ended November 30, 2006 as compared to the same period in fiscal 2006. NTIC's working capital was $2,454,282 at November 30, 2006, including $507,017 in cash and cash equivalents. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY November 30, November 30, 2006 2005 NORTH AMERICAN OPERATIONS: Net sales $4,617,374 $4,403,630 Cost of sales 2,945,055 2,729,111 Gross profit 1,672,319 1,674,519 Operating expenses: 1,676,962 1,454,268 NORTH AMERICAN OPERATING (LOSS) INCOME (4,643) 220,251 INCOME FROM ALL CORPORATE JOINT VENTURES AND HOLDING COMPANIES 451,811 677,994 INTEREST INCOME 935 26,801 INTEREST EXPENSE (42,881) (3,649) OTHER INCOME 2,093 - GAIN ON SALE OF ASSET 724,495 - MINORITY INTEREST (9,586) (15,412) INCOME BEFORE INCOME TAX EXPENSE 1,122,224 905,985 INCOME TAX EXPENSE 132,000 272,000 NET INCOME $990,224 $633,985 NET INCOME PER COMMON SHARE: Basic $0.27 $0.18 WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: Basic 3,624,314 3,589,993 Composite financial information from the audited and unaudited financial statements of the Company's joint ventures carried on the equity basis is summarized as follows: November 30, August 31, 2006 2006 Current assets $37,297,284 $33,954,156 Total assets 43,952,531 39,030,247 Current liabilities 5,816,651 14,323,903 Noncurrent liabilities 2,721,582 1,496,557 Joint ventures' equity 25,414,299 23,209,788 Northern Technologies International Corporation's share of Corporate Joint Ventures' equity $11,840,314 $10,772,102 November 30, November 30, 2006 2005 Net sales $18,879,432 $16,535,347 Gross profit 9,068,677 7,454,578 Net income 1,624,028 1,539,415 Northern Technologies International Corporation's share of equity in income of Corporate Joint Ventures $635,219 $729,518 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 2006, 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. DATASOURCE: Northern Technologies International Corporation CONTACT: Matthew Wolsfeld, CFO, Northern Technologies International Corporation, +1-763-225-6600 Web site: http://www.ntic.com/

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