Baltek Corporation Announces Second Quarter and Six Months Results.

Business Editors

NORTHVALE, N.J.--(BUSINESS WIRE)--Aug. 16, 2002

BALTEK CORPORATION (NASDAQ: BTEK), today announced results from continuing operations and discontinued operations for the second quarter and six months ended June 30, 2002 (Table Follows).

Jacques Kohn, President of Baltek, stated, "We are pleased with the growth in sales and earnings from continuing operations experienced during the six months and second quarter ended June 30, 2002. While demand for our core materials from the boating industry (the Company's largest end user group) was somewhat weak, higher shipments to manufacturers of windmill blades in Europe more than offset this weakness, thereby generating substantial growth in our financial performance.

Mr. Kohn continued, "Due to the anticipated sale of our shrimp business which we announced in June, we recorded a charge of $6 million in the quarter ended June 30, 2002. This charge is non-cash and has no effect on the Company's cash position or liquidity."

BALTEK CORPORATION is a world class manufacturer and distributor of balsa wood products and other structural core materials, including PVC Foam and non-woven mat products.

Forward Looking Statements

Certain statements in this press release, the Company's quarterly report on Form 10-Q, the Annual Report on Form 10-K or in reports to stockholders constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, industries in which the Company operates, the U.S. and global economies, earnings, cash flow and operating performance and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "should," "forecast," "believe," "management is of the opinion" and similar words or phrases. Forward-looking statements are subject to inherent uncertainties and risks, including among others: changes in commodity prices for shrimp; environmental factors affecting yields at the Company's shrimp farms and balsa plantations; increasing price and product/service competition by domestic and foreign competitors; fluctuations in the cost and availability of raw materials; economic and political conditions in Ecuador; general industry trends and growth rates, including the continued advancement in composite materials technology and its acceptance as an alternative to conventional methods of construction; and economic conditions as they affect demand for our customers' products (the Company is a raw material supplier to original equipment manufacturers and sub-tier suppliers engaged in the fabrication of composite components and assemblies). In addition, such statements could be affected by general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations. The list of factors presented here should not be considered to be a complete list of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

In light of these risks and uncertainties, actual events and results may vary significantly from those expressed or implied by such statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results and readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                  BALTEK CORPORATION AND SUBSIDIARIES
              Unaudited Statement of Consolidated Income
             (dollars in thousands, except per share data)


                                           For the Three Months
                                              Ended June 30,
                                       2002                    2001
                                       ----                    ----

Net Sales                           $ 16,561                $ 15,400
Income from continuing operations        779                     527
Loss on discontinued operations       (6,264)                   (309)
Net Income (loss)                     (5,485)                    218
Basic and diluted earnings
 (loss) per share:
Earnings from continuing
 operations                         $   0.33               $    0.22
Loss from discontinued
 operations                            (2.62)                  (0.13)
Net earnings (loss)                 $  (2.29)              $    0.09

Average Shares Outstanding         2,390,383               2,456,822


                                             For the Six Months
                                               Ended June 30,
                                       2002                    2001
                                       ----                    ----

Net Sales                           $ 31,753                $ 30,227
Income from continuing operations      1,539                   1,282
Loss on discontinued operations       (6,539)                   (718)
Net Income (loss)                     (5,000)                    564
Basic and diluted earnings
 (loss) per share:
Earnings from continuing
 operations                         $   0.64                $   0.52
Loss from discontinued
 operations                            (2.73)                  (0.29)
Net earnings (loss)                 $  (2.09)               $   0.23

Average Shares Outstanding         2,391,117               2,480,314


    For purposes of comparability, prior period amounts have been
reclassified to conform with the current period presentation.