Abatix Corp. Reports 8% Revenue Increase and 8% Net Earnings Increase for Second Quarter.

Business Editors

DALLAS--(BUSINESS WIRE)--Aug. 5, 2002

ABATIX CORP. (Nasdaq:ABIX) today announced net sales for the three months ended June 30, 2002, of $15,944,000 increased 8% from net sales of $14,783,000 for the second quarter of 2001. Net earnings of $397,000, or $.23 per share, for the second quarter of 2002 increased 8% from 2001 net earnings of $368,000, or $.22 per share. Consolidated net sales for the six months ended June 30, 2002, increased 11% to $29,894,000 from $26,916,000 in 2001. Earnings before the cumulative effect of change in accounting principle were $612,000, or $.36 per share, for the six months ended June 30, 2002, and increased 8% from 2001 amounts of $564,000, or $.33 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 $120,000, or $.07 per share, for the six months ended June 30, 2002, compared to net earnings of $564,000, or $.33 per share, for the same period in 2001.

The increase in revenue is primarily attributable to the expanding awareness of toxic molds in homes and buildings throughout the U.S., 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 increased prices due to product mix. 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, "In June 2001, Tropical Storm Allison hit the Houston area and resulted in a sharp increase in business for Abatix. Overcoming those non-recurring revenues from June, July and August, 2001 and the economic slowdown after September 11th, we are extremely pleased to report an increase in revenues in the second quarter 2002. Coupled with continued growth in mold business, we are hopeful the industrial manufacturing and construction industries will rebound toward the end of 2002 providing the platform for sustained growth in 2003. In addition, after spending the last four months preparing, we will enter the domestic preparedness industry in the coming months."

Mr. Shaver concluded, "We are continuing to place special emphasis on internal operations and customer service in 2002. Our focus on purchasing and inventory control has reduced our inventory levels over this same time last year. This lower inventory translates to lower borrowings on our line of credit and hence, lower interest expense. In addition, this emphasis on purchasing and inventory control improves customer service by having products on hand when needed by the customer. We are also continuing to evaluate our general and administrative expenses, making adjustments where necessary to align those expenses with our expectations for revenue growth."

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 and domestic preparedness markets, the long-term impact of insurance coverage on mold remediation jobs, adverse weather conditions, inability to hire and train quality people or retain current personnel, changes in interest rates and strong 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, in San Francisco and Los Angeles, in Phoenix, in Seattle, and in Las Vegas. These distribution centers serve customers throughout the Southwest, Midwest, Pacific Coast, Alaska and Hawaii.

                             ABATIX CORP.
                    SELECTED FINANCIAL INFORMATION
                              (Unaudited)

                          Three Months Ended       Six Months Ended
                              June 30,                June 30,
                       ----------------------- -----------------------
                          2002         2001       2002        2001
                       ----------- ----------- ----------- -----------

Net sales              $15,943,861 $14,782,809 $29,894,484 $26,915,691
Cost of sales           11,301,523  10,763,369  21,228,753  19,508,782
                       ----------- ----------- ----------- -----------
 Gross profit            4,642,338   4,019,440   8,665,731   7,406,909
Selling, general and
 administrative
 expenses                3,945,774   3,300,022   7,567,483   6,229,950
                       ----------- ----------- ----------- -----------
 Operating profit          696,564     719,418   1,098,248   1,176,959
Other expense, net          52,743      96,841     108,258     227,593
                       ----------- ----------- ----------- -----------
 Earnings before
  income taxes             643,821     622,577     989,990     949,366
Income tax expense         246,600     254,298     377,900     385,014
                       ----------- ----------- ----------- -----------
Earnings before
 cumulative effect of
 change in accounting
 principle                 397,221     368,279     612,090     564,352
Cumulative effect of
 change in accounting
 principle, net of tax          --          --     491,941          --
                       ----------- ----------- ----------- -----------
 Net earnings          $   397,221 $   368,279 $   120,149 $   564,352
                       =========== =========== =========== ===========

Basic and diluted earnings per share:
 Earnings before
  cumulative effect of
  change in accounting
  principle            $       .23 $       .22 $       .36 $       .33
 Cumulative effect of
  change in accounting
  principle, net of tax         --          --        (.29)         --
                       ----------- ----------- ----------- -----------
         Net earnings  $       .23 $       .22 $       .07 $       .33
                       =========== =========== =========== ===========

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

                                                        As of
                                               -----------------------
                                                 June 30,  December 31,
                                                  2002        2001
                                               ----------- -----------
Current assets                                 $16,440,020 $14,529,347
Total assets                                   $18,237,320 $16,441,171
Current liabilities                            $10,279,492 $ 8,603,492
Total stockholders' equity                     $ 7,957,828 $ 7,837,679