NTI Northern Technologies International

CIRCLE PINES, Minn., April 11 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (AMEX:NTI) announced today an increase in operating results for the three and six months ended February 28, 2007. NTIC's net income for the three months ended February 28, 2007 increased 118.9% or $243,473 to $448,203 and $0.12 per share compared to $204,730 and $0.06 per share for the three months ended February 28, 2006. Additionally, net income for the six months ended February 28, 2007 increased 71.5% or $599,713 to $1,438,427 and $0.40 per share compared to $838,714 and $0.23 per share for the six months ended February 28, 2006. NTI's total worldwide sales from its international joint ventures increased 26.1% to $39,272,049 during the six months ended February 28, 2007 as compared to $31,153,683 during the same period in fiscal 2006. NTI's net sales increased 2.9% and 3.9% during the three and six months ended February 28, 2007 as compared to the same periods in fiscal 2006 primarily as a result of the increase of React-NTI products to new and existing customers in North America offset by a slight decrease in net sales of Zerust(R) products. Net sales of Zerust(R) products decreased $89,301 to $5,716,602 or the six months ended February 28, 2007 as compared to the same period in fiscal 2006. Net sales of React-NTI products increased $412,248 to $2,785,667 for the six months ended February 28, 2007 as compared to the same period in fiscal 2006. NTIC's working capital was $3,208,032 at February 28, 2007, including $240,554 in cash and cash equivalents. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY Three Months Ended Six Months Ended February 28, February 28, February 28, February 28, 2007 2006 2007 2006 NORTH AMERICAN OPERATIONS: Sales $3,884,895 $3,775,693 $8,502,269 $8,179,322 Cost of goods sold 2,459,064 2,315,245 5,404,119 5,044,356 Gross profit 1,425,831 1,460,448 3,098,150 3,134,966 Operating expenses: 1,659,789 1,516,817 3,336,751 2,971,085 NORTH AMERICAN OPERATING (LOSS) INCOME (233,958) (56,369) (238,601) 163,881 INCOME FROM ALL CORPORATE JOINT VENTURES AND HOLDING COMPANIES 866,625 314,851 1,318,436 992,845 INTEREST INCOME 766 1,178 1,701 27,979 INTEREST EXPENSE (47,483) (31,857) (90,364) (35,506) OTHER INCOME 6,281 - 8,374 - GAIN ON SALE OF ASSETS 1,700 - 726,195 - MINORITY INTEREST 2,272 7,927 (7,314) (7,485) INCOME BEFORE INCOME TAX EXPENSE 596,203 235,730 1,718,427 1,141,714 INCOME TAX EXPENSE 148,000 31,000 280,000 303,000 NET INCOME $448,203 $204,730 $1,438,427 $838,714 NET INCOME PER COMMON SHARE: Basic $0.12 $0.06 $0.40 $0.23 Diluted $0.12 $0.06 $0.39 $0.23 WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: Basic 3,664,248 3,597,815 3,644,126 3,593,926 Diluted 3,690,260 3,628,594 3,679,023 3,618,101 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: February 28, August 31, 2007 2006 Current assets $36,481,058 $33,954,156 Total assets 42,967,257 39,030,247 Current liabilities 13,733,953 14,323,903 Non-current liabilities 3,522,544 1,496,557 Joint ventures' equity 25,710,645 23,209,788 Northern Technologies International Corporation's share of Corporate Joint Ventures' equity $12,021,431 $10,772,102 February 28, February 28, 2007 2006 Net sales $39,272,049 $31,153,683 Gross profit 18,925,025 14,703,559 Net income 3,133,779 2,742,286 Northern Technologies International Corporation's share of equity in income of Corporate Joint Ventures $1,629,734 $1,315,326 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 2007, 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. For more information, please contact Matthew Wolsfeld, CFO, Northern Technologies International Corporation, (763) 225-6600. 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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