AXIA Inc. Announces Third Quarter 1999 Earnings.

HOUSTON--(BUSINESS WIRE)--Nov. 16, 1999--

AXIA Incorporated announced its results for the three-month and nine-month periods ended September 30, 1999. AXIA was acquired July 22, 1998 by a new group of investors and the results for 1998 discussed herein include that of the predecessor company prior to the acquisition.

Net revenues for the three-month period ended September 30, 1999 increased $3,209,000 or 10.7% to $33,345,000 from $30,136,000 for the comparable period in 1998. The increase in net revenues was primarily a result of increased sales and rentals of automatic taping and finishing ("ATF") tools, increased sales of drywall related merchandise and dishwasher racks and the revenue contribution of an acquisition in the bag closing industry. The Company benefited from strength in the housing market.

Excluding the transaction related expenses of $11,280,000 in 1998, income from operations increased 12.4% to $5,693,000 from $5,063,000 for the comparable period in 1998. The Company recorded operating depreciation and amortization of $1,861,000 in the most recent three-month period compared to $1,564,000 in the prior year's comparable period primarily as the result of the acquisition of the Company.

Net revenues for the nine-month period increased $11,221,000 or 13.0% to $97,557,000 from $86,336,000 for the comparable period in 1998. The increase in net revenue was primarily the result of increased sales and rentals of ATF tools and increased sales of drywall merchandise, dishwasher racks and other formed wire products, and flexible material handling products. The Company's revenue also increased as a result of an acquisition in the bag closing industry.

Income from operations for the most recent nine months increased 8.1% to $17,913,000 from $16,564,000, excluding transaction related expenses, in the comparable period in 1998. The increase was not commensurate with the sales increase due primarily to amortization of costs related to the transaction as depreciation and amortization increased to $5,536,000 in the most recent nine-month period from $3,935,000 in the year ago comparable period.

Condensed Consolidated Statement of Operation Information at September
30, 1999 (in thousands)

                              Three Months Ended    Nine Months Ended
                              9/30/99    9/30/98    9/30/99   9/30/98
                              -------    -------    -------   -------

Net revenue                  $ 33,345   $ 30,136   $ 97,557  $ 86,336
Gross profits                  15,641     13,484     45,620    39,921
SG&A                            8,087      6,857     22,171    19,422
Depreciation & amortization     1,861      1,564      5,536     3,935
Transaction expenses                -     11,280          -    11,280
                             --------   --------   --------  --------
Income from operations       $  5,693   $ (6,217)  $ 17,913  $  5,284

Interest expense                3,718      3,013     10,843     4,406
Interest income                   (37)       (26)      (184)      (33)
Other expense (income)              1         43        114       214
                             --------   --------   --------  --------
Income before income taxes &
  extraordinary item         $  2,011   $ (9,247)  $  7,140  $    697

Provision for income taxes        906     (3,325)     3,441       629
                             --------   --------   --------  --------
Income before extraordinary
  item                       $  1,105   $ (5,922)  $  3,699  $     68
Extraordinary item                  -        382          -       682
                             --------   --------   --------  --------
Net income                   $  1,105   $ (6,304)  $  3,699  $   (614)
                             ========   ========   -=======  ========


Condensed Balance Sheet Information at September 30, 1999
(in thousands)

Current assets                                    $  38,471
PP&E, net                                            32,048
Goodwill, net                                       109,032
Other non-current assets                             18,151
                                                  ---------
Total assets                                      $ 197,702
                                                  =========

Current maturities of long-term debt              $   4,737
Current liabilities (less current maturities)        15,514
Long-term debt                                      130,445
Other non-current liabilities                         8,683
Deferred taxes                                        6,272
Stockholder's equity & ESOP plan                     32,051
                                                  ---------
Total liabilities & stockholder's equity          $ 197,702
                                                  =========

AXIA Incorporated, operating through its Ames, Nestaway and Fischbein units, manufactures and distributes automatic taping and finishing tools used to finish drywall construction, manufactures dishwasher racks and other formed wire products, and manufactures and markets bag closing and material handling equipment.

This report may contain certain estimates and forward-looking statements. Actual results could differ materially from those projected in the estimates and forward looking statements as a result of any number of factors and uncertainties, many of which factors may be beyond the control of the Company. Therefore, undue reliance should not be placed upon such estimates and statements. No assurance can be given that any such estimates or statements will be realized and actual results may differ materially from those contemplated by such forward looking statements.