BHA Group Inc. announces first quarter 1997 unaudited operating results.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Jan. 16, 1997--BHA Group Inc. (NASDAQ:BHAG) today announced unaudited operating results for the three months ended Dec. 31, 1996.

Net sales for the quarter increased 12% to $31,116,000 from $27,699,000 for the same period in fiscal 1996. Net earnings for the first quarter were $1,795,000 ($.29 per share) up 19% from $1,506,000 ($.25 per share) for the same period in the prior year.

New order activity continues to be strong resulting in a record backlog of $43.8 million at Dec. 31, 1996. This compares favorably to order backlogs of $40.9 million and $35.6 million at Sept. 30, 1996, and Dec. 31, 1995, respectively.

Commenting on the results, James E. Lund, president and chief executive officer, said: "The first quarter sales and net earnings clearly indicate the positive effect of our ongoing strategy to meet the needs of existing customers through innovative solutions and to expand our presence in growth markets throughout the world.

"Our new fine filtration products continue to gain market acceptance and contribute to a more favorable mix of business. These products benefit customers by enabling improved collection efficiency, increased throughput and lower operating costs. Our domestic fabric filter parts and service business grew at a double digit pace for the quarter as higher sales of new products were complemented by increases in our traditional product offerings.

"International sales rose sharply, led by an increase in our electrostatic precipitator parts and service business. These markets continue to present significant opportunities as customers around the world are demanding the highest quality and advanced technology solutions. The domestic market for these products remains competitive. We continue to manage our resources to most effectively respond to both domestic and international opportunities."

During the quarter, the company repurchased 43,000 shares of its common stock. Through the end of December 1996, the company had accumulated a total of 1,153,860 shares under its authorized stock repurchase program.

In other news, the company announced that the board of directors has declared a dividend of 3 cents per share of common stock, payable on Feb. 7, 1997, to shareholders of record on Jan. 27, 1997.

BHA Group Inc. manufactures and markets replacement parts and provides maintenance and rebuilding services for industrial air pollution control equipment on a worldwide basis. -0-

                      BHA Group Inc. and Subsidiaries
                   Consolidated Statements of Operations
                        Three Months Ended Dec. 31, 1996
                    (With Comparative Figures for 1995)
                               (Unaudited)

                                    Three Months Ended Dec. 31
                                        1996             1995

Net sales                           $31,116,000      $27,699,000
Earnings before income taxes          2,695,000        2,386,000
Net earnings                          1,795,000        1,506,000
Earnings per share                          .29              .25
Weighted average shares outstanding   6,166,320        6,152,163/a

                                               Dec. 31
                                        1996             1995

Backlog                             $43,825,000      $35,626,000


    Note /a:  Weighted average shares outstanding have been adjusted to
reflect the June 1996 stock dividend of 10%

CONTACT: BHA Group Inc., Kansas City

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