Cox Technologies Reports Fiscal 1998 Results.

BELMONT, N.C.--(BUSINESS WIRE)--July 22, 1998--Cox Technologies Inc. (OTC/BB:ERES) Wednesday announced the results for fiscal 1998, ended April 30.

Sales in the year just ended were $8,139,000, a 9.2% gain over $7,454,000 reported last year. Net income for 1998, including a one-time net gain of $2,094,000 resulting from a favorable settlement of a complaint against Pacific Gas & Electric, was $3,067,000, or $0.15 a share. Excluding the one-time gain, which was not related to the company's ongoing recorder business, 1998 earnings were $0.05 a share, compared with $0.05 in 1997.

"The continued increase in revenues this past year was the result of growing acceptance of COX monitoring instruments by the fresh produce industry," said Dr. James L. Cox, president of Cox Technologies.

"In the coming year we plan to expand our time-temperature recorder business across a broad range of markets such as fresh and frozen foods, medical and pharmaceutical products, and chemicals, where exposure to certain adverse levels of temperatures needs to be monitored and indicated."

Added Dr. Cox: "As a consequence of the positive developments during the year, there were considerable improvements to the company's balance sheet. Working capital more than doubled, to $4.8 million, and shareholders' equity rose by 55% to $8.6 million. Long-term debt, which was modest to begin with, decreased by 21% to $281,000."

Cox Technologies develops, manufactures, and markets self-contained recording instruments and devices which produce documentary or visual proof of temperature conditions useful for compliance with governmental regulations, monitoring the performance of refrigerated carriers, and for claims related to the transport of valuable perishables such as produce, meat, fish, poultry, pharmaceuticals, chemicals, live plants, and animal material. Cox Technologies also produces allied products such as electronic data loggers, digital temperature probes, and package monitors for the perishables trade.

Statements in this news release about future results are preliminary and based on partial information and assumptions, and actual results may differ. Except for historical information presented, the matters discussed in this announcement contain forward-looking statements that involve risks and uncertainties, including the development and growth of markets targeted by Cox Technologies Inc., the acceptance of time/temperature monitoring recorders by customers, the impact of competition, government regulations, general economic conditions in the United States and abroad, and other risks detailed form time to time in the company's public disclosure filings with the U.S. Securities and Exchange Commission (SEC). Copies of the most recent forms 10K and 10Q of QCS Corp. are available upon request from its corporate office.

    CONTACT:  Cox Technologies Inc.
               Robert Dupree, 602/944-1510