Alpha Pro Tech Reports Profitable 1998; Company Improves Bottom Line by $1.2 Million or 134% Over Previous Year.

NOGALES, Ariz.--(BUSINESS WIRE)--March 29, 1999--Alpha Pro Tech (OTC BB: APTD) today reported record net income for 1998 of $316,000, or one cent per share, as compared to a net loss of $929,000, or four cents per share, for 1997, representing an improvement of $1,245,000 or 134%. This also marks the company's first full year of profitability. The consolidated net sales for the year ended December 31, 1998 increased to $17,985,000 from $17,823,000 in 1997, representing an increase of $162,000 or 0.9%.

For the fourth quarter, net consolidated sales were $4,311,000 compared to $4,639,000 for the prior year period, a decrease of 7.1%. Net income for the quarter was $101,000, or zero cents per share, compared to a net loss of $658,000, or three cents per share, in the 1997 fourth quarter, representing an increase of 115.3%.

In late 1997, Alpha restructured its business around a strategy of innovation that has enabled it to develop custom products to meet its customers' needs in a very timely manner. This approach is to satisfy customer requirements in a way that the Company's larger competitors are unable to match. "These results validate the restructuring and turnaround the Company has gone through the past 18 months," Al Millar, Alpha Pro Tech's president said. "This also marks the first time the company has been able to post four consecutive profitable quarters."

"Sales for the year were lower than we anticipated. The main reason for the flat sales level was the effect the Asian financial crisis had on the company's largest distributor. We have already begun to see an improvement in this area and expect increases in sales to this distributor to return to previous levels during 1999," Millar said.

Gross profit margin for the year increased to 40.3%, a marked improvement from the gross profit margin of 35.0% of the past two years. The improvement in the gross profit margin is a result of the Company's strategic emphasis of developing high gross profit, innovative products, especially for its largest customer, and also on improved manufacturing efficiency as a result of recent capital expenditures.

At year end, working capital was $3,651,000, a 1.1% improvement from a year ago. The company's current ratio improved to 2.41:1 from a current ratio of 1.95:1 in 1997. The Company has a line of credit of up to $2,500,000 and term note of $400,000, of which $1,276,000 was available at December 31, 1998.

"The Company's strategic objective of maintaining profitability remains management's core focus. We believe that in the coming year we will continue to see a strengthening of our key product lines as we look to recapture market share and top line revenue growth. This can be achieved through our continued commitment to providing innovative products, high levels of service and reduced reaction times that meet our customers' needs," Mr. Millar said.

Alpha Pro Tech develops, manufactures and markets innovative disposable and limited-use protective apparel products for the medical, dental, industrial, clean room and food service markets. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Janesville, Wisconsin; Valdosta, Georgia; and Benjamin Hill and Nogales, Mexico. -0-

                           Financial Summary

                                       For Twelve Months
                                       Ended December 31
                                   1998                1997

Sales                           $17,985,000        $17,823,000
Net Profit/(Net Loss)               316,000           (929,000)
Profit/(Loss) per Share               $0.01             ($0.04)
Weighted Average
  Number of Shares Outstanding   24,112,449         23,388,369


                     Selected Balance Sheet Items

                            December 31, 1998    December 31, 1997

Cash                            $    43,000        $   490,000
Current Assets                  $ 6,230,000        $ 7,411,000
Current Liabilities             $ 2,579,000        $ 3,799,000
Stockholders Equity             $ 5,953,000        $ 5,637,000

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The Private Securities Litigation Reform Act of 1995 ("Act") provides a safe harbor for forward-looking information made on behalf of the Company. All statements, other than statements of historical facts which address the Company's expectations of sources of capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, including statements with respect to year 2000 compliance, can be identified as forward-looking statements. Such statements made by the Company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the Company, actual results may differ materially from the expectations expressed in the forward-looking statements.