Brunswick Technologies, Inc. Reports Third Quarter Earnings.

BRUNSWICK, Maine--(BUSINESS WIRE)--Nov. 4, 1998--Brunswick Technologies, Inc. (Nasdaq:BTIC) a leading manufacturer and innovative developer of composite reinforcement materials, reported softer earnings for the third quarter ended September 30, 1998. The company had previously announced that it expected lower earnings and today reported fully diluted earnings per share of $.05, compared to $.09 per share, for the same period last year. Net income was $260,000 against $446,000 as the gross margin declined to 21% from 25%. Revenues totaled $10,309,000, up 35% from $7,603,000 for the third quarter a year ago.

For the nine months ended September 30, 1998, the company reported fully diluted earnings per share of $.22 compared to $.25 for the same period last year. Revenues reached $30,325,000, up 32% from last year's revenue of $23,008,100 for the nine month period and net income was $1,195,600, up slightly from $1,173,800. However, the gross margin declined to 23% from 26% a year ago. Results included seven months of BTI-Europe's activity which was acquired in March, 1998. Exclusive of this activity, revenues from comparable domestic operations grew 16% during the quarter and on a year-to-date basis.

As noted earlier, demand for BTI products remained strong but the weaker than expected earnings resulted from a continuation of scheduling problems, product mix and capacity constraints that affected the company last quarter, Martin Grimnes, BTI Chairman and CEO explained. "These constraints caused production runs in our Maine plant to be shorter and less efficient than planned. This in turn lowered production rates below targeted levels, and prevented us from meeting our third quarter goals. The extremely tight labor market in the Brunswick, Maine area continues to drive up our hiring and training costs as we expand capacity impacting our margins."

"We brought a new machine on line in Brunswick late in the third quarter and upgraded existing equipment," according to Bill Dubay, BTI President and COO. "It is expected that these changes will bring improved results. Operations in our Texas and UK plants continue on target. Production shortfalls have been confined principally to the Maine facility." Mr. Dubay continued, "Our core markets continue to perform though the production shortfalls in Maine prevented us from achieving the operating leverage we anticipated resulting in narrower margins."

"We remain cautiously optimistic about improvement in the fourth quarter and anticipate revenue and net income growth rates of 25% and 15% for the year, respectively. As we look into 1999, we expect some relief from the increase in raw material prices absorbed in early 1998. However, we anticipate the market will remain highly competitive which could temper any reduction in material costs we're able to achieve," Mr Dubay concluded.

Matters discussed in this news release, including any discussion of or impact, expressed or implied, on the Company's anticipated operating results and future earnings per share contain forward-looking statements (identified by the words "expect", "estimate", "project", "plans", "believe", and similar expressions) that involve known and unknown risks and uncertainties. For these statements the company claims the protection of the safe harbor of the private Securities Litigation Reform Act of 1995. The company's results may differ significantly from the results indicated by such forward-looking statements. The Company's future results are dependent upon general economic conditions, the availability and pricing of supplies of raw materials, the ability to improve production capacity and scheduling, the ability to expand current markets, competitions from competing product lines from both fiberglass and non-fiberglass suppliers, the stability of its customers' capital spending plans and the ability of the company to obtain necessary capital from time to time. These and other risks are detailed from time to time in the Company's SEC reports, including Form 10K for the year ended December 31, 1997. -0-

                     Brunswick Technologies, Inc.
                     Summary Financial Information
             (in thousands except earnings per share data)

               For the Three Months Ending  For the Nine Months Ending
                       September 30,                 September 30,
                    1998          1997           1998            1997
                      (Unaudited)                     (Unaudited)
Net sales         $ 10,309 100%  $7,603 100%  $30,325 100% $23,008 100%
Cost of goods
 sold (raw material
 purchased from a
 stockholder amounted
 to $2,561 in 1998
 and $2,226 in 1997
 for the three months
 ended September 30,
 and $6,386 in 1998
 and $4,217 in 1997
 for the nine months
 ended September 30) 8,158  79%   5,682  75%   23,458  77%  17,002  74%

 Gross profit        2,151  21%   1,921  25%    6,867  23%   6,006  26%

Selling, general
 and administrative
 expenses            1,714  17%   1,219  16%    4,882  16%   3,819  17%

Research and
 development
 expenses              138   1%     152   2%      437   1%     418   2%

 Operating income      299   3%     550   7%    1,548   5%   1,769   8%

Other income
 (expense):
  Interest income       14   0%      95   1%       77   0%     226   1%
  Interest expense       -   0%     (93) -1%        -   0%    (325) -1%
  Miscellaneous, net    99   1%     124   2%      238   1%     179   1%
                       113   1%     126   2%      315   1%      80   0%

Income before
 income tax            412   4%     676   9%    1,863   6%   1,849   8%

Income tax expense     152   1%     230   3%      667   2%     670   3%

   Net income          260   3%     446   6%    1,196   4%   1,179   5%

Preferred stock
 dividend                -            -             -          (48)
Accretion of preferred
 stock redemption value  -            -             -           (8)

   Net income
    attributable
    to common stock   $260   3%    $446   6%   $1,196   4%  $1,123   5%

Basic:
 Earnings per share  $0.05        $0.10         $0.23        $0.28
 Weighted average
  common shares
  outstanding        5,161        4,687         5,157        3,967

Diluted:
 Earnings per share  $0.05        $0.09         $0.22        $0.25
 Weighted average
  common shares
  outstanding        5,423        5,112         5,447        4,807


    Notes to the financial statements can be found in the company's
third quarter 10-Q report to be filed with the SEC.

                     Brunswick Technologies, Inc.
                     Summary Financial Information
                   (in thousands except share data)

                              September 30,    December 31,
                                 1998               1997
 ASSETS
Current assets:               (Unaudited)
 Cash                            $  1,267     $    353
 Marketable securities
  available for sale                    -        6,607
 Accounts receivable,
  net of allowance for
  doubtful accounts of
  $130 in 1998 and $46
   in 1997                          5,259        2,909

    Inventories                     4,666        3,308
    Deferred income taxes             179          179
    Other current assets              424          354


       Total current assets        11,795       13,710

Property, plant and equipment
   Land and building                  988          937
   Furniture and fixtures             616          458
   Leasehold improvements             113           81
   Machinery and equipment          9,296        6,375
   Machine under construction         896          231
   Vehicles                            92           92
   Management information system      345          102

                                   12,346        8,276
   Less accumulated depreciation
    and amortization               (2,624)      (2,003)

   Net property, plant and
    equipment                       9,722        6,273
   Due from shareholder                74           70
   Investment in European
    technology, net of
    accumulated amortization
    of $87 in 1998                  2,149         --
   Goodwill, net of accumulated
    amortization of $513 in
    1998 and $322 in 1997           4,912        5,039

    Other assets                       77          124

      Total assets               $ 28,729     $ 25,216

    LIABILIllments
  of long-term debt              $    100     $    100

    Due to stockholder                534           84
    Accounts payable                2,046          538
    Accrued expenses                  628          514
    Income taxes payable              201          130

       Total current liabilities    3,509        1,366

Long-term debt, excluding
 current installments                 370

Shareholders' equity:
 Preferred stock, $10 par value;
  1,000,000 authorized,
  none outstandinin 1998
  and 5,146,606 outstanding in 1997         adjustment
140      28,729     $ 25,216

     Notes to the financial statements can be found in the company's
third quarter 10-Q report to be filed with the SEC.