Abatix Corp. Reports 12% Revenue Increase and 28% Net Earnings Increase for Third Quarter.

Business Editors

DALLAS--(BUSINESS WIRE)--Nov. 6, 2002

ABATIX CORP. (Nasdaq:ABIX) today announced net sales for the three months ended September 30, 2002, of $16,302,000 increased 12% from net sales of $14,569,000 for the third quarter of 2001.

Net earnings of $492,000, or $.29 per share, for the third quarter of 2002 increased 28% from 2001 net earnings of $383,000, or $.22 per share. Consolidated net sales for the nine months ended September 30, 2002, increased 11% to $46,197,000 from $41,485,000 in 2001. Earnings before the cumulative effect of change in accounting principle were $1,104,000, or $.65 per share, for the nine months ended September 30, 2002, and increased 17% from 2001 amounts of $947,000, or $.55 per share. The adoption of Financial Accounting Standard Board's Statement No. 142 on January 1, 2002, resulted in a non-cash charge of $492,000, net of tax, resulting in net earnings of $612,000, or $.36 per share, for the nine months ended September 30, 2002, compared to net earnings of $947,000, or $.55 per share, for the same period in 2001.

The increase in revenue is primarily attributable to the expansion in the restoration and cleaning supply industry, which includes mold remediation. This increase is partially offset by a decline in revenues to the construction and industrial manufacturing industries. The increase in earnings before the non-cash charge is a result of increased sales volume and, because of a change in product mix, increased product margins. These positive effects on gross profit were partially offset by increased selling, general and administrative expenses, primarily labor costs in anticipation of continued growth.

Mr. Terry W. Shaver, President, stated, "Many companies in the restoration and cleaning industry added mold remediation to their list of services and came to Abatix as a source of supplies and equipment. We have been able to grow our sales within this industry by selling them products, not just for mold remediation, but for all their lines of service. We remain hopeful that business investment will rebound in the coming quarters to spur additional growth in the economy and return the industrial manufacturing and construction businesses to pre-September 11th levels. Additionally, we are hopeful our efforts in researching and planning in 2002 for the domestic preparedness market, coupled with the other factors, allow us to continue to grow and diversify our revenues."

Mr. Shaver concluded, "We have made progress streamlining some internal processes, thereby increasing the productivity of our team members. In addition, to improve our customer service, we added some general equipment repair and maintenance services and have put many of our customer service and sales personnel through extensive product training. We will continue to focus on internal operations and customer service improvements in the near term to help improve our place in the market."

Except for the historical information contained herein, the matters set forth in this release are forward looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: the continued long-term impact of the September 11, 2001, tragic events on the commercial construction, industrial manufacturing and domestic preparedness markets, the long-term impact of insurance coverage on mold remediation, adverse weather conditions, inability to hire and train quality people or retain current personnel, changes in interest rates and strong or increased competition. In addition, increases in oil prices or shortages in oil supply could significantly impact the Company's petroleum based products and its ability to supply those products at a reasonable price.

ABATIX CORP. is a full line supplier to the construction tool, industrial safety, hazardous materials, and environmental industries. The Company currently has seven distribution centers in Dallas and Houston, Texas, in San Francisco and Los Angeles, California, in Phoenix, Arizona, in Seattle, Washington and in Las Vegas, Nevada. These distribution centers serve customers throughout the Southwest, Midwest, Pacific Coast, Alaska and Hawaii.

                             ABATIX CORP.
                    SELECTED FINANCIAL INFORMATION
                              (Unaudited)

                      Three Months Ended         Nine Months Ended
                         September 30,             September 30,
                   ------------------------- -------------------------
                       2002         2001         2002         2001
                   ------------ ------------ ------------ ------------

Net sales          $16,302,440  $14,569,000  $46,196,924  $41,484,691
Cost of sales       11,526,237   10,465,815   32,754,990   29,974,597
                   ------------ ------------ ------------ ------------
   Gross profit      4,776,203    4,103,185   13,441,934   11,510,094
Selling, general
 and
   administrative
    expenses         3,900,378    3,371,547   11,467,861    9,601,497
                   ------------ ------------ ------------ ------------
   Operating
    profit             875,825      731,638    1,974,073    1,908,597
Other expense, net      64,593      114,817      172,851      342,410
                   ------------ ------------ ------------ ------------
   Earnings before
    income taxes       811,232      616,821    1,801,222    1,566,187
Income tax expense     319,200      233,885      697,100      618,899
                   ------------ ------------ ------------ ------------
   Earnings before
    cumulative
    effect of
    change in
    accounting
    principle          492,032      382,936    1,104,122      947,288
Cumulative effect
 of change in
 accounting
 principle, net of
 tax                         -            -      491,941            -
                   ------------ ------------ ------------ ------------

    Net earnings   $   492,032  $   382,936  $   612,181  $   947,288
                   ============ ============ ============ ============

Basic and diluted
 earnings per share:
   Earnings before
    cumulative
    effect of
    change in
    accounting
    principle      $       .29   $      .22  $       .65  $       .55
   Cumulative
    effect of
    change in
    accounting
    principle, net
    of tax                   -            -         (.29)           -
                   ------------ ------------ ------------ ------------
     Net earnings  $       .29  $       .22  $       .36  $       .55
                   ============ ============ ============ ============

Basic and diluted
 weighted average
   shares
    outstanding      1,711,148    1,711,148    1,711,148    1,711,148
                   ============ ============ ============ ============

                                                      As of
                                            -------------------------
                                            September 30, December 31,
                                                2002         2001
                                            ------------ ------------
Current assets                              $16,508,366  $14,529,347
Total assets                                $18,136,985  $16,441,171
Current liabilities                         $ 9,687,125  $ 8,603,492
Total stockholders' equity                  $ 8,449,860  $ 7,837,679