Angstrom Technologies announces increased sales and first profitable consecutive fiscal quarters in its history.

ERLANGER, KY--(BUSINESS WIRE)--June 17, 1997--Angstrom Technologies Inc., a Delaware corporation (OTC bulletin board: AGTT and AGTTP) today announced results of operations for its second quarter ending April 30, 1997 and the six month period then ended.

The company's net sales for the six months ended April 30, 1997 were approximately $856,000, as compared with net sales of approximately $442,600 for the comparable six month period of the prior fiscal year. Daniel A. Marinello, chief executive officer, stated that the company was building up momentum, having just achieved its first back-to-back profitable quarters in its history, with sales for the current six months reaching 98% of the sales figure for the entire prior fiscal year. -0-

                        Three Months Ended       Six Months Ended
                     April 30,     April 30,    April 30,   April 30,
                       1997          1996          1997       1996

Net sales           $ 433,183    $ 244,083     $ 855,979  $ 442,582
Cost of sales         129,293      120,150       248,743    260,307
Gross profit          303,890      123,933       607,236    182,275
Selling, general and
  administrative
  expenses            225,463      215,338       452,828    395,197
Interest income        12,595       17,415        19,776     34,926
Interest expense       (2,583)      (3,305)       (5,355)    (6,778)
Net income (loss)
  before income
  taxes                88,439      (77,295)      168,829   (180,746)
Less preferred
  dividend requirement(54,819)     (62,855)     (109,600)  (106,900)
Net income (loss)
  applicable to
  common stockholders  33,620     (140,150)       59,229   (287,646)
Net income (loss)
  per share                --       $(0.01)           --     $(0.01)
Weighted average
  number of shares
  outstanding      22,537,466   21,760,958    22,512,045 21,985,118

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 pharamceutical 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].