Bonso Electronics International, Inc. Reports Third Quarter Financial Results.

HONG KONG --(BUSINESS WIRE)--Feb. 15, 1999--Bonso Electronics International, Inc. (Nasdaq NMS:BNSOF)(Nasdaq NMS:BNSWF) today reported results for the third quarter, ended December 31, 1998.

The Company announced that net sales for the nine month period ended December 31, 1998 were $9.7 million, a decrease of 48% compared to sales of $18.8 million for the nine month period ended December 31, 1997. For the three month period ended December 31, 1998, net sales were $2.8 million, a decrease of 66.6%, compared to sales of $8.3 million for the comparable period in 1997.

Operating income was $373,000 for the current nine month period, a decrease of 73.2% compared to $1,394,000 for the corresponding period last year. For the three month period ended December 31, 1998, operating income was $111,000, a decrease of 75.6%, compared to $454,000 for the comparable period in 1997. Net income for the nine month period ended December 31, 1998 was $112,000, a decrease of 91.6% compared to $1,326,000 for the corresponding period in 1997. For the current three month period, net income was $2,000, a decrease of 99.6% compared to $470,000 for the comparable period last year. Per share earnings were $0.0369, a decrease of 92.1% compared to earnings per share of $0.466 in the nine month period ended December 31, 1998. For the three month period ended December 31, 1998, earnings per share were $0.0007 per share, a decrease of 99.6% compared to $0.165 per share for the comparable period in 1997.

Anthony So, Chairman and CEO of Bonso, stated, "Although this quarter reflects less than satisfactory performance, our management team couldn't be more positive about Bonso's future outlook. Following our anticipated decline in sales due to reduced orders from two major customers, we have been actively negotiating with many new prospective clients for diversified contract manufacturing services. New orders from a well known United States scale dealer has been received and the first shipment is scheduled for mid-March, 1999. Also, we are close to finalizing contract negotiations with a customer in Germany for shipment commencing in late Fall. Management expects that this contract, if finalized, will result in significant sales."

Continuing, So added, "We are optimistic that we will be able to secure additional new contracts for both our old and new product lines, including our new glass body scales, kitchen scales and parcel scales in which our new four loadcells technology is incorporated. We understand that our customer base must be broadly diversified so that we can avoid taking significant hits to revenue and earnings in the event that a client reduces order flow or terminates our relationship altogether. Bonso's goal is to be a resource for literally dozens of major OEM producers who will come to rely on Bonso's state-of-the-art and cost-efficient manufacturing abilities. Besides, we are introducing "just-in-time" manufacturing, total quality management and performance management systems to increase our manufacturing efficiencies and to minimize production costs. We are confident that our sales will increase from present levels during the coming fiscal year."

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales and weighing instruments and electronic consumer and health care products. The Company manufactures all of its products in the People's Republic of China. The Company's scales include bathroom, kitchen, office, jewelry, laboratory, pocket, postal, industrial parcel and mechanical scales that are used in consumer, commercial and industrial applications. The Company's electronic consumer and health care products include joysticks, thermometers and blood pressure monitors. Headquartered in Hong Kong, Bonso Electronics markets its products to customers primarily in North America and Europe.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. -0-

                 BONSO ELECTRONICS INTERNATIONAL, INC.
                      CONSOLIDATED BALANCE SHEET
                    (In Thousands of U.S. Dollars)
                               Unaudited

                                         December 31        March 31
                                            1998              1998
ASSETS
Current Assets:
 Cash and cash equivalents              $    190           $    448
 Restricted cash deposits                    914                952
 Receivables, deposits and prepayment        947              1,707
 Deferred income tax assets - current         --                 35
         --                      35
 Inventories                               4,834              5,967
   TOTAL CURRENT ASSETS                 $  6,885           $  9,109

 Deferred income tax assets -
  non current                                 --                 38
 Deposits                                    279                448
 Property, plant & equipment (net)        11,143             11,052
   TOTAL ASSETS                         $ 18,307           $ 20,647

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
 Bank overdrafts                           1,013                601
 Notes payable                               682              2,260
 Accounts payable, accrued charges
  and deposits                             1,058              2,043
 Income taxes payable                         22                 30
 Short term bank loans                       410                339
 Current portion of long-term debt
  and capital lease obligations              309                652
   TOTAL CURRENT LIABILITIES               3,494              5,925

Long term debt and capital lease              82                243

Minority interests                            --                 --

Shareholders' Equity:
 Common stock par value $0.003 per share
  authorized 23,222,224; shares issued
  and outstanding 2,893,562 shares             8                  8
 Additional paid in capital                8,837              8,725
 Promissory note receivable from
  shareholder                             (1,350)            (1,350)
 Common stock subscribed                   1,350              1,350
 Retained earnings                         5,624              5,512
 Cumulative translation adjustments          262                234
 Shareholders' equity                     14,731             14,479

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY  18,307             20,647


                 BONSO ELECTRONICS INTERNATIONAL, INC.
                     CONSOLIDATED INCOME STATEMENT
                    (In Thousands of U.S. Dollars)
                               Unaudited

                            Three months ended      Nine months ended
                               December 31             December 31
                             1998       1997        1998       1997

Sales                       $2,777     $8,318     $9,723     $18,789

Cost of Sales               (1,837)    (6,487)    (6,904)    (14,164)

Gross Profits                  940      1,831      2,819       4,625

Operating Expenses
 Selling, salaries,
  research and development,
  administrative and
  general                      829      1,377      2,446       3,231

Income from Operations         111        454        373       1,394

Other income                    22        164         82         327

Foreign exchange gains
 (losses)                      (14)        (1)        23           5

Interest expenses           (  117)    (  147)    (  366)     (  400)

Income before income taxes  (    2)       470        112       1,326

Minority interests               0          0          0           0

Net income                       2        470        112       1,326

Per share amounts (in
 dollars):
  Earnings per share
   Basic                   $0.0007    $0.1652    $0.0369     $0.4660
   Diluted                  0.0006     0.1556     0.0320      0.4390

Weighted average shares
 outstanding             3,034,439  2,845,318  3,034,439   2,845,318

Incremental shares from
 assumed exercise of:
  Warrants                 177,727         --    177,727          --
  Stock Options            284,003    174,947    284,003     174,947

Dilutive potential
 common shares             461,730    174,947    461,730     174,947

Adjusted weighted
 average shares          3,496,169  3,020,265  3,496,169   3,020,265