Alcide Announces Financial Results For Fiscal Year Ended May 31, 1998.

REDMOND, Wash. --(BUSINESS WIRE)--July 8, 1998--Alcide Corporation (NASDAQ:ALCD) today announced record sales and net income for its fiscal year ended May 31, 1998. -0-

                              3 Months Ended         Year Ended
                            May 31,   May 31,     May 31,    May 31,
                             1998       1997       1998       1997

Net Sales                 $3,385,491 $4,017,972$12,998,952 $11,768,504

Net Income                  $813,493 $1,195,731 $3,222,723  $2,881,295

Average Shares Outstanding 2,784,567  2,772,233  2,789,491   2,783,064

Diluted Earnings Per Share      $.29       $.43      $1.16       $1.04

Fiscal year 1998 net sales of $12,998,952 were 10% higher than net sales for the previous fiscal year, and a record high for the Company. Net income of $3,222,723 was also a record high for the Company and 12% higher than fiscal 1997.

Both sales and net income for the three month period ended May 31, 1998 were lower than the corresponding period last year primarily because Alcide received a $1 million payment in May, 1997 from Novus International, Inc. to purchase Alcide's inventory and prototype application equipment related to the Sanova(tm) poultry antimicrobial intervention. This resulted in fourth quarter FY 1997 Sanova sales of $1 million. During the FY 1998 fourth quarter Sanova sales totaled $594,404. Sanova sales for the total FY 1998 were $2,445,106.

President and Chief Executive Officer, Joseph A. Sasenick, commented that, "We are proud of the Company's accomplishments during the past 12 months and believe that we have positioned the Company for future sales and earnings growth. Key accomplishments were:

-- Approval of the Sanova(tm) Food Quality System for use in poultry processing plants by the United States Department of Agriculture  (USDA) on January 9, 1998. Subsequently, on May 29, 1998, the Company and its distribution partner, Novus International, Inc., received further USDA approval for multiple plant "continuous on-line processing" trials. Several plants are successfully utilizing the Sanova system for improving the quality of poultry products.

-- Food and Drug Administration (FDA) approval in March of Alcide's Food Additive Petition for the use of Sanova as an antimicrobial agent for red meat. The Company has contracted with a major beef slaughter operation to conduct tests under commercial conditions necessary to satisfy USDA approval requirements.

-- Market share growth of Alcide's existing bovine mastitis control products in the United States and in most international markets where the Alcide products are sold. The only major exceptions were in England and in France, where the Company initiated changes to its distribution arrangements with the goal of improving long term market penetration. The Alcide financial performance for fiscal 1998 does not fully reflect the market share gained because ABS Global, Inc., the Company's leading distributor, continued to reduce its inventory of Alcide products by approximately 170,000 gallons. This in turn reduced Alcide FY 1998 sales by $1.2 million."

Sasenick went on to say that, "The food safety market will be an important part of Alcide's future. We believe that Sanova and the Sanova Food Quality System offer the food industry a highly effective means for controlling food borne pathogens that have become a major consumer concern. During the next year we intend to achieve the necessary regulatory approval and then to commercially introduce Sanova for use on red meats and on fresh fruits and vegetables. To accomplish this we have strengthened the Alcide organization with the recent addition of Dr. Nahed M. Kotrola as Director of Food Safety Research. Dr. Kotrola adds significant pathogen control experience to the Alcide team and will concentrate her efforts toward gaining regulatory approval for the use of Sanova on red meats, fruits and vegetables."

Alcide Corporation develops and markets unique biocidal products based on its patented technology. Alcide currently sells anti-infective products to the animal health market, disinfecting products to the medical industries, and an antimicrobial for controlling food borne pathogens on poultry. The Company intends to broaden its business base through further regulatory approval and market introduction of the same antimicrobial for controlling food borne pathogens in other areas.

This earnings report includes forward looking statements which involve risk and uncertainty including, without limitation, risk of dependence on third party suppliers, market acceptance of and demand for the Company's products, distribution capabilities, and development of technology and regulatory approval thereof.

    CONTACT: Alcide Corp.
              John Richards, 425/882-2555