Barringer Technologies Inc. Announces Second Quarter 1999 Results.

WARREN, NJ--(BUSINESS WIRE)--July 28, 1999--

--Pretax Income From Continuing Operations Increases 28.4%--

--Also Plans To Divest DigiVision Subsidiary--

Barringer Technologies Inc. (Nasdaq:BARR), the world's leading developer, manufacturer, and marketer of trace drug and explosive detection equipment, today announced results for its second quarter and six months ended June 30, 1999. Barringer Technologies also announced that it plans to divest its DigiVision subsidiary, which the Company purchased in May 1998 for $750,000.

Financial results presented in this release reflect the Company's DigiVision subsidiary as a discontinued operation and, as such, results for the 1998 periods have been restated accordingly.

For the second quarter of 1999, revenues increased 12.6% to $5.5 million compared with $4.9 million in the second quarter of 1998. Income from continuing operations before income taxes increased 28.4% to $1.5 million compared to $1.2 million in the second quarter of 1998. Income from continuing operations in the 1999 second quarter of $930,000, or $0.12 per diluted share compared to $1.3 million, or $0.16 per diluted share, in the corresponding 1998 quarter. Income from continuing operations for the second quarter of 1999 includes income tax expense of $600,000, or $0.08 per diluted share, while results for the year- ago quarter include a net income tax benefit of $139,000, or $0.02 per diluted share.

For the second quarter of 1999, the after-tax loss attributable to the discontinued DigiVision operation was $1.1 million, or $0.15 per diluted share. For the comparable quarter of 1998 the after-tax loss from the discontinued operation was $501,000, or $0.06 per diluted share.

Net loss in the second quarter of 1999 was $181,000, or $0.03 per diluted share compared to net income of $830,000, or $0.10 per diluted share in the second quarter of the prior year.

For the first six months of 1999, revenues were $10.4 million versus $10.8 million in the year-ago period. Income from continuing operations before income taxes was $2.5 million compared to $2.8 million for the 1998 period. Income from continuing operations was $1.6 million, or $0.20 per diluted share, versus $3.1 million, or $0.42 per diluted share, in the corresponding period of 1998. Income from continuing operations for the first half of 1999 includes income tax expense of $965,000, or $0.12 per diluted share, while results for the year- ago period include a net income tax benefit of $339,000, or $0.05 per diluted share.

For the six months of 1999, the after-tax loss attributable to the discontinued DigiVision operation was $1.3 million, or $0.16 per diluted share. For the first six months of 1998 the loss from the discontinued operation was $501,000 or $0.07 per diluted share.

Net income for the six-month period of 1999 was $319,000, or $0.04 per diluted share compared to net income of $2.6 million, or $0.35 per diluted share in the first half of the prior year.

Mr. Stanley Binder, Chairman and Chief Executive Officer, said, "Dur the Company for further growth. In the area of- IONSCAN's portability and expanded applications provide us with the opportunity to broaden our customer base. We are on target to begin delivery of these units in the subsidiary, which is now being carried on our boally engaged in developing, manufacturing, and mhat are based on the beliefs of the Company's mae actual results to differ materially from the the Securities and Exchange Commission, news reGIES INC.

CONDENSED CONSOLIDATED STAT June 30, June 30, 552 Operating expenses:

Selling, general and 2,537 2,783 Income tax provision

(benefit) 600 (139) 965 (339)

Income from continuing 930 1,331 1,572 3,122

operations

Discontinued operation

net of tax

benefit of $701, $11, $765, $11 (1,111) (501) (1,253)

(501)

Net Income (loss) (181) 830 319 2,621

Preferred stock dividends (2) (2) (5) (5)

Net Income (loss)

attributable to

Common stockholders $ (183) $ 828 $ 314 $ 2,616

Basic earnings per common share:

Continuing operations $ 0.13 $ 0.17 $ 0.21 $ 0.47

Loss from

discontinued (0.16) (0.06) (0.17) (0.07)

operation

Net income (loss) $ (0.03) $ 0.11 $ 0.04 $ 0.40

Diluted earnings per

common share:

Continuing operations $ 0.12 $ 0.16 $ 0.20 $ 0.42

Loss from discontinued (0.15) (0.06) (0.16) (0.07)

operation

Net income (loss) $ (0.03) $ 0.10 $ 0.04 $ 0.35

Weighted average common and common equivalent shares outstanding:

Basic 7,119 7,710 7,414 6,624

Diluted 7,673 8,435 8,038 7,426

BARRINGER TECHNOLOGIES INC. AND SUBSIDIARIES

CONDENSED BALANCE SHEETS

ASSETS June 30, December, 31

1999 1998

(unaudited) Current assets

Cash and Marketable securities $ 28,246,000 $ 34,408,000

Accounts receivable, net 7,670,000 6,502,000

Inventories 6,471,000 3,943,000

Other current assets 4,333,000 4,203,000

Total current assets 46,720,000 49,056,000

Property and equipment 2,677,000 2,349,000

Other assets 565,000 1,239,000

Total assets $ 49,962,000 $ 52,644,000

LIABILITIES AND SHAREHOLDERS EQUITY

Current liabilities 4,970,000 3,359,000

Non-current liabilities 131,000 145,000

Total Liabilities 5,101,000 3,504,000

Shareholders' equity:

Preferred stock 88,000 92,000

Common stock 79,000 79,000

Additional paid-in capital 54,739,000 54,693,000

Accumulated deficit (4,045,000) (4,359,000)

Foreign currency translation (784,000) (786,000)

Treasury stock at cost (5,216,000) (579,000)

Total shareholders' equity 44,861,000 49,140,000

Total liabilities and shareholders' equity $ 49,962,000 $ 52,644,000