Benthos Announces Fiscal 1999 Third Quarter Sales and Earnings.

NORTH FALMOUTH, Mass.--(BUSINESS WIRE)--JULY 29, 1999--

BENTHOS, INC. (NASDAQ: BTHS) announced today that net income for the third quarter of fiscal 1999 ended June 30, 1999 was $411,000 or $0.29 per diluted share, a 169% increase compared with the prior year's third quarter earnings of $153,000 or $0.11 per diluted share. Sales for the quarter rose 38% to $4,730,000, compared with sales of $3,431,000 in the same period last year.

For the first nine months of fiscal 1999, net income was $1,001,000 or $0.72 per diluted share, up 120% over income of $455,000 or $0.33 per diluted share in the first nine months of fiscal 1998.

"Fiscal 1999 has seen three consecutive quarters of increasing sales and earnings, and we remain upbeat about the future," said John L. Coughlin, President and CEO. "During this quarter the Benthos Undersea Systems Division shipped its second Manta class ROV system, and our TapTone Container Inspection Systems Division announced major orders received from both Brahma in Brazil and Grupo Modelo in Mexico, two of the largest brewers in the world. New TapTone products introduced earlier this year are also starting to contribute, resulting in four quarters of accelerating TapTone order momentum. Despite occasional volatility in our results due to the timing and influence of large project orders, the general upward growth trend, evidenced by these latest results, is confirmation that our strategic initiatives are paying off."

Benthos, Inc., through its Undersea Systems Division, designs, manufactures, sells and services oceanographic and robotic equipment for undersea exploration and research; and through its TapTone Container Inspection Division markets systems for testing consumer packages made of glass, metal or plastic. The common stock of the Company is traded on the Nasdaq SmallCap market under the symbol BTHS. For more information, Benthos can be found on the internet at www.benthos.com.

-0-

                             BENTHOS, INC.
                COMPARATIVE CONDENSED INCOME STATEMENT
                 (in thousands, except per share data)
                              (unaudited)

                         Thirteen Weeks Ended  Thirty-Nine Weeks Ended
                                 June 30,             June 30,
                               1999     1998      1999      1998

Net Sales                   $ 4,730   $ 3,431   $12,926   $10,067
Net Income                  $   411   $   153   $ 1,001   $   455
Earnings Per Share
     Basic                  $  0.30   $  0.12   $  0.74   $  0.35
     Diluted                $  0.29   $  0.11   $  0.72   $  0.33
Weighted Average Common
& Common Equivalent
Shares Outstanding
     Basic                    1,355     1,321     1,353     1,310
     Diluted                  1,415     1,386     1,395     1,392

The statements in this news release and in oral statements which may be made by representatives of the Company relating to plans, strategies, economic performance and trends and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors which include: the timing of large project orders, competitive factors, shifts in customer demand, government spending, economic cycles, availability of financing as well as the factors described in this news release. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated, expected or intended.