Advanced Deposition Technologies, Inc. Reports 1999 Year End Results.

Business Editors

TAUNTON, Mass.--(BUSINESS WIRE)--April 13, 2000

Advanced Deposition Technologies, Inc. (NASDAQ: ADTC) (BSI: DTI) reported revenues for the year of 1999 of $25,030,000 compared to revenues of $23,501,000 for the year ended 1998, an increase of 6.5%. The Company reported a net loss of $638,000, or ($0.14) per share, compared to a net loss of $2,695,000, or ($.63) per share in 1998. Revenue growth was primarily due to increases from domestic operations of 10.8%, the full year benefit of a Malaysia acquisition, but adversely offset by the strong dollar adjustment to revenues in Spain. Losses in the fourth quarter were affected by higher indirect costs primarily due to production expansion and equipment installation delays.

Alex P. Boxall, President, stated, "Start up expenses and costs associated with the installation of our new production equipment in the fourth quarter of 1999 are substantially behind us. Our new equipment, increased output, and cost reduction efforts combined with the strong demand for all of our products gives me confidence of consistent profitability in the foreseeable future."

Notwithstanding currency fluctuations, the Company expects double digit growth for the year 2000 in all of its business sectors and feels it is well positioned to cope with this additional demand as a result of the new production capacity now in place.

Glenn J. Walters, CEO, commented, "Our production expansion experienced some costly delays and cost overruns in 1999. Nonetheless, our increased output combined with lower overhead had a positive affect in the first quarter of 2000. We are also pleased that our GS&A costs in 1999 versus 1998 decreased by over $700,000. Additional cost reduction programs were instituted during the first quarter while simultaneously increasing throughput. "

Advanced Deposition Technologies, Inc. is a technology and market leader for metallized thin films, coatings and components thereof. Currently, the Company has primary product divisions in markets for electronic capacitors and microwave food packaging. With subsidiaries in Spain and Malaysia the company sells into over fifty countries. The Company owns or has licenses to more than 36 patents and 10 patents pending. On a selective basis the Company licenses its proprietary thin film technologies and patents to partners who can accelerate revenue and earnings growth of A.D.TECH's unique products and technologies on a global basis.

To receive AD Tech's latest news and other corporate developments via fax at no cost, please call 1-800-PRO-INFO. Use company code ADTC. Or visit The Financial Relations Board's web site at http://www.frbinc.com.

Any forward-looking statements in this release are made pursuant to the "safe-harbor" provision of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, new products and technological changes, dependence upon third-party vendors, a limited number of customers, political and other uncertainties related to customer purchases, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission.

          CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS
                               (AUDITED)
          (dollars in thousands, except net income per share)


                                          Twelve Months Ended
                                               December 31,
                                        1999                  1998

REVENUES:
  Product sales                    $  24,735             $  23,070
  Royalties, license fees and other      295                   431

                                      25,030                23,501

COST OF REVENUES                      20,411                19,120

     Gross Profit                      4,619                 4,381

SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES           3,715                 4,449

RESEARCH AND DEVELOPMENT EXPENSES        340                   356

AMORTIZATION EXPENSE                     319                   338

LOSS FROM IMPAIRMENT OF LONG-LIVED ASSET  --                 1,108

      Operating income                   245                (1,870)

INTEREST EXPENSE, NET                   (789)                 (810)

OTHER INCOME (EXPENSE)                   (97)                  352

Income (loss) before income
  taxes and minority Interest           (641)               (2,328)

INCOME TAXES                              --                    98

MINORITY INTEREST IN NET INCOME OF
     CONSOLIDATED SUBSIDIARY              (3)                  269

  Net income (loss)                 $   (638)            $  (2,695)

BASIC AND FULLY DILUTED
  NET INCOME (LOSS) PER
  WEIGHTED AVERAGE COMMON
  SHARES OUTSTANDING                $  (0.14)            $   (0.63)

WEIGHTED AVERAGE NUMBER
   OF COMMON SHARES
   OUTSTANDING                     4,403,108             4,267,213

WEIGHTED AVERAGE NUMBER
 OF COMMON SHARES
 OUTSTANDING, ASSUMING DILUTION    4,403,108             4,267,213



               CONDENSED AND CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                December 31,          December 31,
                                    1999                  1998

                                 (Audited)            (Audited)

CASH AND CASH EQUIVALENTS          $     309            $      411
INVESTMENT IN MARKETABLE SECURITIES       17                    43
ACCOUNTS RECEIVABLE, NET               6,521                 5,868
INVENTORIES, NET                       4,567                 4,252
PREPAID EXPENSES AND
  OTHER CURRENT ASSETS                   392                   274

          TOTAL CURRENT ASSETS        11,806                10,848
PROPERTY AND EQUIPMENT, NET            8,383                 7,676
OTHER ASSETS, NET                      4,942                 5,426

          TOTAL ASSETS          $     25,131          $     23,950

DUE TO FINANCIAL INSTITUTIONS    $     4,309          $      3,589
CURRENT PORTION OF LONG TERM DEBT      1,335                 1,764
ACCOUNTS PAYABLE                       4,746                 4,347
ACCRUED LIABILITIES                      697                   643

   TOTAL CURRENT LIABILITIES          11,087                10,343

REVOLVING LINE OF CREDIT               1,820                 1,136
LONG TERM DEBT AND OTHER
   LONG TERM LIABILITIES               4,700                 4,010
MINORITY INTEREST IN
    CONSOLIDATED SUBSIDIARY              488                 1,078
SHAREHOLDERS' EQUITY                   7,036                 7,383

 TOTAL LIABILITIES,
   MINORITY INTEREST
   AND SHAREHOLDER'S EQUITY     $     25,131          $     23,950