Cohesant Inc. Reports Results For Fiscal 2008 Second Quarter and First Half.

BEACHWOOD, Ohio -- Cohesant Inc. (COHY) today reported results for the second quarter and first half of fiscal 2008.

The Company's net sales increased $223,274, or 8.4% to $2,890,033 for the three months ended May 31, 2008 compared to $2,666,759 in the prior year period. This increase was a result of an existing CuraFlo business expanding its territory and increased equipment sales to both Raven Certified Applicators and existing CuraFlo businesses. As previously announced, the Company added two CuraFlo businesses at the beginning of the third quarter when it signed two additional franchisees.

Consolidated gross margins increased to $1,428,804 or 49.4% of net sales in the 2008 period from $1,181,975 or 44.3% of net sales, in the 2007 period. The increased sales mentioned above, in addition to improved margins earned on rehabilitation revenue, led to these increases.

The Company had a net loss of ($154,448), or ($0.04) per share for the current quarter compared to a net loss of ($306,544), or ($0.09) per share in the prior year quarter. This improvement was primarily a result of the increased sales and improved margins mentioned above as well as operating expenses expressed as a percentage of net sales decreased to 57.3% for the three months ended May 31, 2008 from 59.8% in the prior year period.

For the six months ended May 31, 2008 the Company's net sales increased $502,435, or 9.9% to $5,563,885 compared to $5,061,450 in the prior year period. This increase was primarily a result of a 16% increase in sales at CuraFlo Services (rehabilitation) led by CuraFlo Spincast Services and to a lesser extent increased Coating sales and Franchisee and Licensee Fees.

Consolidated gross margins increased to $2,686,824 or 48.3% of net sales in the 2008 period from $2,255,889 or 44.6% of net sales, in the 2007 period. The increased sales mentioned above, in addition to improved margins equated with rehabilitation revenue, led to these increases.

Operating expenses increased $457,742, or 15.1% to $3,479,747 in the 2008 period from $3,022,005 in the prior year period. This increase was primarily due to higher stock-based compensation, a one-time expense resulting from accelerated vesting of stock options as a result of the GlasCraft sale as well as higher personnel costs. The Company had a net loss of ($541,683), or ($0.16) per share for the first six months of fiscal 2008 compared to a net loss of ($555,379), or ($0.16) per share in the prior year six-month period.

Earlier this week, Cohesant ceased to be an SEC-reporting company and it no longer files Form 10-KSB, Form 10-QSB, Form 8-Ks, or other SEC forms with the Securities & Exchange Commission. The Company expects to continue to trade on the Pink Sheets and the Company's financial statements may be found on the Company's website, www.cohesant.com, and, in the near future on www.pinksheets.com.

Cohesant Inc., based in Beachwood Ohio, is engaged in the protection and renewal of drinking water distribution systems and wastewater collection systems for municipal, industrial, commercial and residential infrastructure and the design, development, manufacture and sale of specialty coatings and equipment used to apply such coatings. The Company markets its products under numerous trade names including; AquataPoxy, CuraFlo, CuraPoxy, and Raven.

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Safe Harbor Statement

This communication contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, particularly those preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," or similar expressions. Forward-looking statements relating to expectations about future results or events are based upon information available as of today's date, and there is no assumed obligation to update any of these statements. The forward-looking statements are not guarantees of future performance, and actual results may vary materially from the results and expectations discussed. These forward-looking statements are made subject to significant risks and uncertainties that could cause actual results to differ materially from those stated. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Cohesant Inc. undertakes no obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.