Advanced Deposition Technologies, Inc. Reports First Quarter 2000 Results; 13% Increase in Revenues.

Business/Technology Editors

TAUNTON, Mass.--(BUSINESS WIRE)--May 10, 2000

Advanced Deposition Technologies, Inc. (NASDAQ:ADTC) (BSI:DTI) today reported a 13% increase in revenues during the first quarter 2000. Total revenues of $7,045,000 for the first quarter 2000 were reported in comparison to revenues of $6,244,000 for the comparable quarter of 1999. The Company reported a net income of $108,000, or $0.02 per share for this quarter, compared to net income of $37,000, or $.01 per share in the comparable 1999 period. The Company's improved profitability was a result of stronger sales, improved productivity and cost reductions.

Alex P. Boxall, President, stated, "Our persistent efforts over the past 18 months are continuing to show improvements and positive results. The revenue growth, together with our cost-cutting efforts have allowed us to reach a stage where we anticipate continued increases in profitability from all our core products throughout the year. From this point forward, further revenue increases and reduction of overheads together with the gradual incorporation of new products should continue to improve our bottom line. The strength of the US Dollar caused our revenues to be understated in comparison to the 36% increase in unit output in our Spanish operations over the 1st Quarter of 1999."

The Company's CEO, Glenn J. Walters, added, "It remains our intent to improve shareholder value throughout this year by staying focused on operational profitability that can be complimented in the second half by new product introductions and other expansionary projects."

Advanced Deposition Technologies, Inc. is a technology and market leader for metallized thin films, coatings and components thereof. The Company has primary product divisions in markets for electronic capacitors, microwave food packaging and electronic packaging materials selling in over fifty countries along with subsidiaries in Spain and Malaysia. 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 A.D.TECH's latest news and other corporate documents visit A.D.TECH's web site at www.adtc.net or www.adv-dep.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
                              (UNAUDITED)
          (dollars in thousands, except net income per share)


                                                 Three Months Ended
                                                      March 31,
                                                 2000          1999
REVENUES:
 Product sales                                  $7,027        $6,138
 Royalties, license fees and other                  18           106
                                                 7,045         6,244

COST OF REVENUES                                 5,712         4,864

     Gross Profit                                1,333         1,380

SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES                           789           917

RESEARCH AND DEVELOPMENT EXPENSES                   63            75

AMORTIZATION EXPENSE                                76            54

     Operating income                              405           334

INTEREST EXPENSE, NET                             (238)         (222)

OTHER (EXPENSE)                                     (3)          (63)

     Income before income taxes
       and minority interest                       164            49

INCOME TAXES                                         2            13

MINORITY INTEREST IN NET INCOME OF
 CONSOLIDATED SUBSIDIARY                           (54)           (1)
          Net income                              $108           $37

BASIC AND FULLY DILUTED NET INCOME PER
 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      $0.02         $0.01

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
 OUTSTANDING                                 4,818,648     4,249,483

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
 OUTSTANDING, ASSUMING DILUTION              4,818,648     4,249,483



               CONDENSED AND CONSOLIDATED BALANCE SHEETS
                            (In thousands)


                                               March 31,  December 31,
                                                  2000       1999
                                              (Unaudited)  (Audited)

CASH AND CASH EQUIVALENTS                        $   397   $   309
INVESTMENT IN MARKETABLE SECURITIES                    1        17
ACCOUNTS RECEIVABLE, NET                           7,265     6,521
INVENTORIES, NET                                   4,674     4,567
PREPAID EXPENSES AND OTHER CURRENT ASSETS            450       392

    TOTAL CURRENT ASSETS                          12,787    11,806

PROPERTY AND EQUIPMENT, NET                        8,267     8,383
OTHER ASSETS, NET                                  4,725     4,942

    TOTAL ASSETS                                 $25,779   $25,131

DUE TO FINANCIAL INSTITUTIONS                    $ 4,464   $ 4,309
CURRENT MATURITIES OF LONG TERM OBLIGATIONS        2,240     1,335
ACCOUNTS PAYABLE                                   5,381     4,746
ACCRUED LIABILITIES                                  561       697

    TOTAL CURRENT LIABILITIES                     12,646    11,087

LONG TERM DEBT AND OTHER LONG TERM LIABILITIES     5,580     6,520
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY         509       488
SHAREHOLDERS' EQUITY                               7,044     7,036

    TOTAL LIABILITIES, MINORITY
     INTEREST AND SHAREHOLDER'S EQUITY           $25,779   $25,131