Centennial Technologies, Inc. reports first quarter results for fiscal 1997; Sales increased 206%; Net income increased 271%; and earnings per share rose 180%.

BILLERICA, Mass.--(BUSINESS WIRE)--Nov. 6, 1996--CENTENNIAL TECHNOLOGIES, INC. (AMEX: CTN) announced today record-level sales, net income and earnings per share for the first quarter of fiscal 1997. Sales for the first quarter of fiscal 1997 reached approximately $19.5 million, a 206% increase compared to sales of approximately $6.4 million for the same period in fiscal 1996. Net income for the first quarter of fiscal 1997 was approximately $2.4 million, or $.28 per share as compared to net income of approximately $659,000, or $.10 per share for the same period in fiscal 1996.

Gross margin, as a percentage of sales, was 31.8% for the first quarter of fiscal 1997 as compared to 37.2% for the same period in fiscal 1996. The gross margin for the first quarter of fiscal 1997 was impacted by the inclusion of the lower margin contract manufacturing business of its recent acquisition, Design Circuits, Inc. Income from operations of approximately $3.9 million for the first quarter of fiscal 1997 included an amortization charge of approximately $203,000 associated with the goodwill from the acquisition of Design Circuits, Inc. in July 1996 as compared to income from operations of approximately $1.1 million for the same period in fiscal 1996. As a percentage of sales, income from operations increased to 19.9% of sales as compared to 17.7% of sales for the same period in fiscal 1996.

James M. Murphy, Chief Financial Officer of CENTENNIAL TECHNOLOGIES, INC., commented: "We take great pride in reporting our operating results of the first quarter of fiscal 1997. In the first quarter of fiscal 1997, CENTENNIAL continued to grow its global PC Card and contract manufacturing businesses while increasing sales and net income to record-levels. CENTENNIAL will further strengthen its ability to satisfy its customers' global requirements during fiscal 1997 with its recent acquisition of Design Circuits, Inc., a U.S. contract manufacturer, Triax Technology Group, Ltd., a U.K. contract manufacturer, and the Thailand manufacturing facility which is expected to be operational in January 1997." -0-

                               CENTENNIAL TECHNOLOGIES, INC.
                                   FINANCIAL HIGHLIGHTS
                                        (Unaudited)

                                                   Three Months Ended
                                                      September 30,
                                                   1996          1995

            Sales                             $ 19,536,000     $ 6,382,000
            Gross Margin                         6,205,000       2,374,000
            Income from Operations               3,880,000       1,127,000
            Net Income                        $  2,445,000     $   659,000

            Earnings per Share:
              Primary                                $0.28           $0.10
              Fully Diluted                          $0.28           $0.10

            Weighted Average Shares Outstanding
              Primary                            8,842,000       6,789,000
              Fully Diluted                      8,880,000       6,789,000

CENTENNIAL TECHNOLOGIES, INC. designs, manufactures and markets an extensive line of PCMCIA cards used primarily by OEMs for industrial and commercial applications, as well as provides contract manufacturing services.

CONTACT: JAMES M. MURPHY [phone]

LINDA DECKER [phone]