CENTENNIAL TECHNOLOGIES, INC. reports second quarter results; Net income for the second quarter increased 375% over prior year's second quarter.

BILLERICA, Mass.--(BUSINESS WIRE)--JANUARY 30, 1996--CENTENNIAL TECHNOLOGIES, INC. (AMEX: CTN) announced today its second quarter results for the fiscal year ending June 30, 1996.

Three months:

Net income of approximately $996,000 for the quarter ended December 31, 1995 increased 375% as compared to the net income for the same period of fiscal 1995. Sales of approximately $8,478,000 for the second quarter of fiscal 1996 increased 233% over the sales for the same period in fiscal 1995. Gross margin, as a percent of sales, decreased to 37.5% for the second quarter of fiscal 1996 as compared to 46.2% for the same period of the previous fiscal year. Income from operations of approximately $1,724,000 for the second quarter of fiscal 1996 increased 369% as compared to the income from operations for the same period of the previous year. Income from operations for the second quarter of fiscal 1996 was 20.3% of sales as compared to 14.5% of sales for the same quarter of the prior year. Earnings per share of $.15 for the second quarter of fiscal 1996 increased 200% as compared to $.05 per share for the second quarter of fiscal 1995. The weighted average shares outstanding increased approximately 47% to 6,848,122 shares during the three months ended December 31, 1995 from 4,648,292 shares during the same period of the prior year. Earnings per share of $.14, on a fully diluted basis, for the second quarter of fiscal 1996 increased 250% per share from $.04 per share for the second quarter of fiscal 1995. The weighted average shares outstanding, on a fully diluted basis, increased approximately 45% to 6,908,349 shares during the three months ended December 31, 1995 from 4,781,167 during the same period of the prior year.

Six months:

Net income of approximately $1,655,000 for the six months ended December 31, 1995 increased 372% as compared to the net income for the six months ended December 31, 1994. Sales of approximately $14,860,000 for the six months of fiscal 1996 increased 209% as compared to the sales for the same period in fiscal 1995. Gross margin, as a percent of sales, was 37.4% for the six months of fiscal 1996 as compared to 46.9% for the same period of the previous fiscal year. Income from operations of approximately $2,852,000 for the six months of fiscal 1996 increased 381% as compared to the income from operations for the same period of the prior year. Income from operations, as a percent of sales, was 19.2% for the six months of fiscal 1996 as compared to 12.3% for the same period of the previous year.

Earnings per share for the six months of fiscal 1996 was $.24 per share as compared to $.08 per share for the first six months of fiscal 1995. During the six months ended December 31, 1995 weighted average shares outstanding increased approximately 47% to 6,818,600 shares from 4,633,668 shares during the same period of fiscal 1995.

Earnings per share of $.24, on a fully diluted basis, for the six months of fiscal 1996 increased 243% per share from $.07 per share for the second quarter of fiscal 1995. The weighted average shares outstanding, on a fully diluted basis, increased approximately 44% to 6,858,708 shares during the six months ended December 31, 1995 from 4,766,543 during the same period of the prior year.

                              CENTENNIAL TECHNOLOGIES, INC.
                                   FINANCIAL HIGHLIGHTS
                                        (unaudited)

                          Three Months Ended        Six Months Ended
                              December 31,             December 31,
                          1995          1994         1995        1994

Sales                  $ 8,477,994    $2,545,224  $14,860,075  $4,817,225
Gross Margin             3,183,214     1,174,817    5,557,429   2,260,290
Income from Operations   1,724,173       367,970    2,851,601     592,745

  Net Income               996,269       209,846    1,655,010     350,598
                           =======       =======    =========     =======
Earnings Per Share
      Primary                 $.15          $.05         $.24        $.08
                              ====          ====         ====        ====
      Fully Diluted           $.14          $.04         $.24        $.07
                              ====          ====         ====        ====
Weighted Average Shares
      Primary            6,848,122     4,648,292    6,818,600   4,633,668
      Fully Diluted      6,908,349     4,781,167    6,858,708   4,766,543

James Murphy, Chief Financial Officer of CENTENNIAL TECHNOLOGIES, INC., commented: "We are pleased with the significant growth in the net income for the second quarter of fiscal 1996. The gross margin, as a percentage of sales, for the second quarter of fiscal 1996 decreased from that of the same period of the prior year primarily due to increased costs of certain electronic components that were in limited supply. The Company experienced strong interest in its product offerings during the second quarter of fiscal 1996, and as a result, sales increased in the second quarter approximately 233% as compared to the sales of the same period of the prior year."

CENTENNIAL TECHNOLOGIES, INC. designs, manufactures and sells an extensive line of PC cards used in industrial applications and portable computers, and Flash SIMM Modules used in embedded applications.

CONTACT: CENTENNIAL TECHNOLOGIES INC.

JAMES M. MURPHY, 508/670-0646

or

L.G. Zangani

LINDA DECKER, 908/788-9660