Centennial Technologies, Inc. reports second quarter results; net income for the second quarter increased 247% over prior year's second quarter.

BILLERICA, Mass.--(BUSINESS WIRE)--Jan. 30, 1997-- CENTENNIAL TECHNOLOGIES, INC. (NYSE: CTN) announced today its second quarter results for the fiscal year ending June 30, 1997.

Three months:

Sales of approximately $31,664,000 for the second quarter of fiscal 1997 increased 273% over the sales for the same period in fiscal 1996. Gross margin, as a percent of sales, decreased to 26.6% for the second quarter of fiscal 1997 as compared to 37.5% for the same period of the previous fiscal year. The gross margins for the second quarter of fiscal 1997 was impacted by the lower margin contract manufacturing operations acquired in fiscal 1997. Income from operations of approximately $4,811,000 for the second quarter of fiscal 1997 increased 179% as compared to the income from operations for the same period of the previous year. Income from operations for the second quarter of fiscal 1997 was 15.2% of sales as compared to 20.3% of sales for the same quarter of the prior year. During the three months ended December 31, 1996, the Company realized a gain of approximately $1,064,000 on the sale of common stock of WebSecure, Inc. Net income of approximately $3,462,000 for the quarter ended December 31, 1996 increased 247% as compared to the net income for the same period of the previous year.

Earnings per share of $.19 for the second quarter of fiscal 1997 increased 171% as compared to $.07 per share for the second quarter of fiscal 1996. The earnings per share for the second quarter of fiscal 1997 included approximately $.04 associated with a gain on the sale of securities. The weighted average shares outstanding increased approximately 35% to 18,467,560 shares during the three months ended December 31, 1996 from 13,696,244 shares during the same period of the prior year.

Earnings per share of $.19, on a fully diluted basis, for the second quarter of fiscal 1997 increased 171% per share from $.07 per share for the second quarter of fiscal 1996. The earnings per share for the second quarter of fiscal 1997 included approximately $.04 associated with a gain on the sale of securities. The weighted average shares outstanding, on a fully diluted basis, increased approximately 35% to 18,693,379 shares during the three months ended December 31, 1996 from 13,816,698 during the same period of the prior year.

Six months:

Sales of approximately $51,200,000 for the six months of fiscal 1997 increased 245% as compared to the sales for the same period in fiscal 1996. Gross margin, as a percent of sales, was 28.6% for the six months of fiscal 1997 as compared to 37.4% for the same period of the previous fiscal year. The gross margins for the six months of fiscal 1997 was impacted by the lower margin contract manufacturing operations acquired in fiscal 1997. Income from operations of approximately $8,942,000 for the six months of fiscal 1997 increased 214% as compared to the income from operations for the same period of the prior year. Income from operations, as a percent of sales, was 17.5% for the six months of fiscal 1996 as compared to 19.2% for the same period of the previous year. During the six months ended December 31, 1996, the Company realized a gain on the sale of securities of approximately $1,200,000. Net income of approximately $5,907,000 for the six months ended December 31, 1996 increased 257% as compared to the net income for the six months ended December 31, 1995.

Earnings per share for the six months of fiscal 1997 was $.33 per share as compared to $.12 per share for the first six months of fiscal 1996. The earnings per share for the six months of fiscal 1997 included approximately $.04 associated with the gain on the sale of securities. During the six months ended December 31, 1996 weighted average shares outstanding increased approximately 32% to 18,054,890 shares from 13,637,200 shares during the same period of fiscal 1996.

Earnings per share of $.32, on a fully diluted basis, for the first six months of fiscal 1997 increased 167% per share from the $.12 per share for the first six months of fiscal 1996. The earnings per share for the six months of fiscal 1997 included approximately $.04 associated with the gain on the sale of securities. The weighted average shares outstanding, on a fully diluted basis, increased approximately 33% to 18,259,190 during the six months ended December 31, 1996 from 13,717,416 during the same period of the prior year.

CENTENNIAL TECHNOLOGIES, INC.

FINANCIAL HIGHLIGHTS

(unaudited)

Three Months Ended Six Months Ended

December 31, December 31,

1996 1995 1996 1995

Sales $31,664,341 $ 8,477,994 $51,199,905 $14,860,075 Gross Margin 8,416,016 3,183,214 14,621,194 5,557,429 Income from Operations 4,810,506 1,724,173 8,942,303 2,851,601 Gain on Sales of Securities 1,063,835 0 1,199,835 0 Net Income 3,462,015 996,269 5,906,988 1,655,010

========= ========= ========= ========= Earnings Per Share Primary $.19 $.07 $.33 $.12

==== ==== ==== ==== Fully Diluted $.19 $.07 $.32 $.12

==== ==== ==== ==== Weighted Average Shares Primary 18,467,560 13,696,244 18,054,890 13,637,200 Fully Diluted 18,693,379 13,816,698 18,259,190 13,717,416

James Murphy, Chief Financial Officer of CENTENNIAL TECHNOLOGIES, INC., commented: "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 customer's global requirements during fiscal 1997 with its acquisitions of its U.S. and U.K. contract manufacturing operations."

CENTENNIAL TECHNOLOGIES, INC. designs, manufactures and sells an extensive line of PC card- based solutions and provides contract manufacturing services to original equipment manufacturers.

CONTACT: JAMES M. MURPHY [phone]

LINDA DECKER [phone]