BHA Group Holdings announces second quarter 1997 unaudited operating results.

KANSAS CITY, Mo.--(BUSINESS WIRE)--April 15, 1997--BHA Group Holdings Inc. (NASDAQ:BHAG) today announced unaudited operating results for the second quarter and six months ended March 31, 1997.

Net sales for the three months ended March 31, 1997 increased 8 percent to $33,646,000 from $31,202,000 for the same period in fiscal 1996. Net earnings for the second quarter were $1,972,000 ($.32 per share), up 13 percent from $1,741,000 ($.28 per share) for the same period in the prior year.

Net sales for the six months ended March 31, 1997 increased 10 percent to $64,761,000 from $58,901,000 the prior year. Net earnings for the six month period increased 16 percent to $3,766,000 from $3,246,000 the prior year with earnings per share increasing to $.61 from $.53 in 1996.

Net order activity has been strong resulting in a backlog of $45.7 million at March 31, 1997. This compares with order backlogs of $43.8 million at Dec. 31, 1996 and $35.7 million at March 31, 1996, respectively.

Commenting the results, James E. Lund, president and chief executive officer, said, "We are pleased to report record sales and earnings for our most recently completed quarter. We are achieving our goal to sell a more favorable mix of products to the markets we serve which has resulted in higher overall gross margins and increased earnings growth.

"BHA's domestic businesses performed well during the period. The fabric filter business increased sales across traditional and targeted industrial markets. Strong sales of newer product lines, such as BHA PulsePleat(R) filter elements and filter bags laminated with BHA-TEX(R) expanded PTFE membrane, contributed to the favorable results.

"The domestic electrostatic precipitator business also posted a strong quarter as several large replacement parts orders were shipped during the period. Although year-to-date sales for this segment are currently in line with our internal projections, we continue to be cautious about the domestic market for electrostatic precipitator replacement parts and services as it remains competitive.

"International sales for the quarter decreased as compared to the first quarter of this fiscal year and the same period in the prior year due in part to the timing of execution of project work. We are optimistic about the long-term prospects of our international replacement parts and service business and are committed to expanding our presence. Reflective of this is our decision to establish a presence in China, which is expected to be operational by the summer of 1997."

The company also announced that the board of directors has declared a cash dividend of $.03 per share of common stock, payable on May 5, 1997, to shareholders of record on April 28, 1997.

BHA Group Holdings Inc., through its principal operating subsidiary, BHA Group Inc., is the recognized leader in the manufacturing and marketing of industrial air pollution control parts and services worldwide. -0-

                  BHA Group Holdings Inc. and Subsidiaries
                    Consolidated Statements of Operations
                  Three and Six Months Ended March 31, 1997
                     (With Comparative Figures for 1996)
                                (Unaudited)

                                    Three Months Ended March 31
                                       1997             1996

Net sales                          $33,646,000       $31,202,000
Earnings before income taxes         2,962,000         2,721,000
Net earnings                         1,972,000         1,741,000
Earnings per share                         .32               .28
Weighted average shares outstanding  6,160,287         6,154,394


                                     Six Months Ended March 31
                                       1997             1996

Net sales                          $64,761,000       $58,901,000
Earnings before income taxes         5,656,000         5,106,000
Net earnings                         3,766,000         3,246,000
Earnings per share                         .61               .53
Weighted average shares outstanding  6,162,691         6,153,155

CONTACT: BHA Group Holdings Inc., Kansas City

James C. Shay, 816/356-8400 ext. 336