BHA Group Holdings Inc. Announces Second Quarter 1998 Unaudited Operating Results.

KANSAS CITY, Mo.--(BUSINESS WIRE)--April 16, 1998--BHA Group Holdings, Inc. (NASDAQ - BHAG) today announced unaudited operating results for the second quarter and six months ended March 31, 1998.

Net sales for the three months ended March 31, 1998 increased 16% to $38,881,000 from $33,646,000 for the same period in fiscal 1997. Net earnings for the second quarter were $2,100,000 ($.30 per share), up 6% from $1,972,000 ($.29 per share) for the same period in the prior year.

Net sales for the six months ended March 31, 1998 increased 6% to $68,902,000 from $64,761,000 the prior year. Net earnings for the six month period decreased 7% to $3,491,000 from $3,766,000 the prior year with earnings per share decreasing to $.50 from $.56 in 1997.

New order activity has been strong resulting in a backlog of $53.3 million at March 31, 1998. This compares with order backlogs of $55.3 million at December 31, 1997 and $45.7 million at March 31, 1997, respectively.

Commenting on the results, James E. Lund, President and Chief Executive Officer, said "A strong backlog at December 31, 1997 combined with a high level of new orders enabled BHA to post record sales and operating income for the quarter. Our fabric filter and electrostatic precipitator businesses in the U.S. and Europe have performed well. Although we are pleased with the results in these markets, we have seen a significant decline in new orders coming from Asia. The majority of this business is exported from the U.S. and many customers are electing to delay expenditures due to their weaker local currencies.

"Earnings growth has not kept pace with the increase in overall sales due to higher selling, general & administrative expense which is due in part to improvements the Company has made to its information technology infrastructure. The increase in spending is also attributable to an expansion of the PTFE membrane sales and product development efforts of BHA Technologies, Inc. for applications outside of industrial air pollution control."

In other news, the Company announced that the Board of Directors has declared a cash dividend of $.03 per share of common stock, payable on May 5, 1998 to shareholders of record on April 27, 1998. The Company also reports that it has accumulated 1.2 million shares of BHA stock under its ongoing stock repurchase program.

BHA Group Holdings, Inc., is a world leader in innovative filtration technology. Through its principal operating subsidiary, BHA Group, Inc., it manufactures and markets industrial air pollution control parts and services worldwide.

This press release contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "should," "believe," "anticipate," "expect," and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the performance of newly established domestic and international operations, demand and price for the Company's products and services, and other factors. You should also consult the sections entitled "Factors Affecting Earnings and Stock Price" and "Management's Discussion and Analysis" which are included in the Company's Reports on Form 10-K and 10-Q. -0-

                BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED
              Three and Six Months Ended March 31, 1998
                 (With Comparative Figures for 1997)

                                            Three Months Ended
                                                 March 31
                                          1998              1997

Net Sales                             $38,881,000      $ 33,646,000
Earnings Before Income Taxes           $3,155,000        $2,962,000
Net Earnings                           $2,100,000        $1,972,000
Earnings Per Share/a                         $.30              $.29
Weighted Average Shares Outstanding/a   6,996,983         6,776,316


                                         Six Months Ended March 31
                                         1998               1997

Net Sales                             $68,902,000       $64,761,000
Earnings Before Income Taxes           $5,216,000        $5,656,000
Net Earnings                           $3,491,000        $3,766,000
Earnings Per Share/a                        $ .50             $ .56
Weighted Average Shares Outstanding/a   6,985,093         6,778,960


/a The weighted average number of shares outstanding for all periods
presented have been adjusted to reflect the 10% stock dividend
distributed in June of 1997. The earnings per share figures in this
press release are computed on a "diluted" basis as defined under
Statement of Financial Accounting Standards No. 128, "Earnings per
Share", which is effective for BHA's fiscal year 1998.

CONTACT: BHA Group Holdings, Inc.,

James C. Shay, [phone], Extension 336