Angstrom Technologies Announces Continuation of Record Sales.

ERLANGER, Ky.--(BUSINESS WIRE)--Sept. 16, 1997--Angstrom Technologies Inc., a Delaware corporation (OTC bulletin board: AGTT and AGTTP) today announced results for its third quarter ended July 31, 1997 and the nine month period then ended.

The company's net sales for the nine months ended July 31, 1997 were approximately $1,272,000; this more than doubles the figure of approximately $618,000 for the nine month period of the prior fiscal year and, in this nine months, exceeds the sales figures for any full prior year period in the company's history. Daniel A. Marinello, chief executive officer, stated that this sales increase reflected broadened demand for both the company's ultraviolet ink products and as well as for its scanner hardware. Among other things, the company was engaged in significant orders for two subcontractors for U.S. government agencies relating to projects involving sorting of mail and prevention of counterfeiting, respectively.

The company generated net income of approximately $134,933 before preferred dividend requirements for the nine month period as compared with a net loss of approximately $327,800 for the prior year's comparable period. The profit turnaround was made possible by the increased sales, a material decline in cost of sales due to management's focus on reducing manufacturing costs and increasing production efficiencies, and the company's ability to hold increases in selling, general and administrative expenses to modest levels. The company continued its research and development success by completing a special microprocessor chip design, developing additional chemical compounds, and further refining its lines of scanners and readers.

Angstrom Technologies Inc. is engaged in the development, manufacture and sale of Electro-Optical Control Systems, consisting of an ultraviolet optical scanner and invisible fluorescent chemical compounds. The company markets applications in the document security field, such as identification of counterfeit checks and negotiable instruments and verification of credit cards and other identification documents. The company's products are also, and have historically been, geared for use by the pharmaceutical and automobile parts manufacturing industries in connection with a variety of functions including: label verification, quality control, inspection, alignment, adhesive tracing, safety seal verification, sorting, automatic identification, passport security and postal label sorting.

This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which are intended to be covered by the safe harbors created thereby. Factors that could cause actual results to differ include, but are not limited to, technological changes, cancellation of orders, competition and other market factors.

For further information contact: Daniel A. Marinello, Chief Executive Officer, Angstrom Technologies Inc., 1895 Airport Exchange Boulevard, Suite No. 110, Erlanger, Kentucky 41018; telephone number: [phone].

CONTACT: Angstrom Technologies Inc.

Daniel A. Marinello

Chief Executive Officer

[phone]