Cohesant Technologies holds first annual meeting; management's outlook bright for current year.

CLEVELAND--(BUSINESS WIRE)--May 23, 1995--The management of Cohesant Technologies Inc. (NASDAQ:COHT) expressed optimism about the company's outlook for fiscal 1995 at its first annual meeting of stockholders yesterday. The company became public on November 30, 1994.

After reviewing highlights of fiscal 1994 and the first quarter of fiscal 1995, Morton A. Cohen, Cohesant's chairman and chief executive officer, revealed, ``Our second quarter is off to a good start, and we are pleased with the results thus far.''

``Our seasonal expectations of improving trends in March and April have materialized,'' Mr. Cohen said, noting that Cohesant's consolidated aftertax earnings through the first two months of the second quarter were up approximately 85 percent on a 16 percent increase in revenues from the comparable two months last year. The company's second quarter ends on May 31, 1995, and management expects to report record financial results for the quarter by the end of June.

Cohesant Technologies was formed by the combination of its two subsidiaries, Glas-Craft, Inc., and American Chemical Company. Glas-Craft manufactures spray finishing and coating equipment that meets strict new clean-air standards. American Chemical Company manufactures and sells over 250 coating, adhesive, and sealant products, including AquataPoxy(R), a high-performance sealant that is resistant to water and corrosive breakdown by most acids and solvents and that can be used in drinking water systems.

Mr. Cohen noted that fiberglass chopped strands are in short supply, which has flattened sales of Glas-Craft application systems, but that this is being offset somewhat by an increase in replacement-part sales by Glas-Craft.

Mr. Cohen also noted that sales on the American Chemical side of the business are running 18 percent ahead of last year's on a year-to-date basis, driven largely by increases in the private-label and contract manufacturing business at the company's King Adhesive Division, through new sales to new customers and strong activity from existing accounts.

As announced on January 27, 1995, on a pro-forma basis, the company's revenues increased 16 percent in fiscal 1994 (November) to $13,483,000 from $11,597,000 in fiscal 1993. Pro-forma combined income from operations in fiscal 1994 increased 27 percent to $857,000 from $674,000 the year before, while pro-forma net income from continuing operations increased to $430,000 from $180,000 in fiscal 1993.

As announced on April 17, 1995, the company's first-quarter net sales increased 16 percent to $3,286,000 in fiscal 1995 from $2,835,000 in fiscal 1994. First-quarter net income from operations increased to $110,000 in fiscal 1995 from $17,000 in fiscal 1994. Net income per share for the first quarter of 1995 increased to $0.04, on 2,551,000 shares outstanding, from $0.01, on 1,500,000 shares outstanding, in the comparable period last year.

The annual meeting was also addressed by Michael Boeckman, Cohesant's president and chief operating officer, who said, ``Our future looks bright because the markets we serve are continuing to grow at rates faster than the growth of the U.S. economy.''

One of Cohesant Technologies' core strategies is to grow through acquisitions, and Mr. Boeckman said, ``We will continue to search for those strategic acquisitions that would benefit our existing businesses.''

At the annual meeting, which was held at the Sheraton Airport Hotel, shareholders voted to reduce the number of common shares outstanding from 20 million to 10 million and to re-elect all six members of the board of directors: Morton A. Cohen, Chairman and Chief Executive Officer, Clarion Capital Corporation and Cohesant Technologies Inc.; Michael Boeckman, President, Chief Operating Officer, and Secretary, Cohesant Technologies Inc.; Dwight D. Goodman, President and Chief Executive Officer, Glas-Craft, Inc.; Douglas R. Elliott, President and Chief Executive Officer, American Chemical Company; Samuel B. Sutphin, Chief Executive Officer, CI Professional Training Center; and Norton W. Rose, Executive Vice-President, Creativity for Kids, and Vice-Chairman, Blue Coral, Inc.

Cohesant Technologies Inc., designs, develops, and manufactures specialized spray finishing and coating application equipment and specialty coating, adhesive, and sealant products through its two subsidiaries: American Chemical Company and Glas-Craft, Inc.

CONTACT: Cohesant Technologies Inc., Cleveland

Michael Boeckman, 216/861-6266