Hach Company Announces Record Second Quarter Sales.

LOVELAND, Colo.--(BUSINESS WIRE)--Nov. 20, 1998--Hach Company (NASDAQ:HACH/HACHA) today announced its unaudited financial results for the second quarter and six months ended October 31, 1998.

For the second quarter of fiscal year 1999, net income was $2,550,000 or $.15 per share on sales of $33,414,000 compared to net income of $2,755,000 or $.16 per share on sales of $31,542,000 for the second quarter of fiscal year 1998. This represents a 6% increase in net sales and a 6% decrease in net income per share.

For the first six months of fiscal year 1999, net income was $6,000,000 or $.35 per share on sales of $70,190,000 compared to net income of $6,075,000 or $.32 per share on sales of $63,956,000 for the first six months of fiscal year 1998. This represents a 10% increase in net sales and a 9% increase in net income per share.

Bruce Hach, President and Chief Executive Officer of Hach Company stated: "Economic conditions in Asia continued to adversely affect sales. For the second quarter and six months, sales throughout Asia decreased approximately 23%, from the same periods in the prior year. In addition, weakness in the ultra pure water market lead to flat sales domestically. During this sluggish sales period we are aggressively controlling expenses, while continuing to invest in future growth opportunities."

The Company reported that as expected sales for its subsidiary, Environmental Test Systems, Inc.(ETS), acquired on April 30, 1998, decreased to $2.0 million in the second quarter from $4.2 million in the first quarter of fiscal year 1999. "With approximately 60% of ETS sales to the pool and spa testing market, ETS sales are seasonal in nature. We believe ETS sales will exceed our original projections for fiscal year 1999, the first full year of integration," said Hach.

The Company also stated it anticipated third quarter results to be similar to those recorded in the second quarter, but that fourth quarter and fiscal year 2000 results should be stronger due to the introduction of new products slated for late fiscal year 1999 and strong demand for test strips sold by ETS.

Hach Company is engaged in the manufacture and distribution of laboratory instruments, process analyzers, test kits, test strips and analytical reagents which are used to analyze the chemical content and other properties of water and other aqueous solutions.

This press release contains forward-looking statements, including without limitation, statements regarding expected earnings. Actual results may materially differ from those in the forward-looking statements. Factors that may cause such differences include changes in customer demand and requirements, delays in introducing new products, foreign exchange rate fluctuations, the level of government funding, especially funding by municipalities for water-related products, competition and conditions in the U.S. economy in general, and worldwide economic conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, further events or otherwise. -0-

                     HACH COMPANY AND SUBSIDIARIES
                   Consolidated Statements of Income
               (Thousands of dollars except share data)
                              (Unaudited)

                          Quarter Ended           Six Months Ended
                     Oct.  31,      Nov. 1,     Oct. 31,      Nov. 1,
                         1998         1997         1998         1997


Net sales             $33,414      $31,542      $70,190      $63,956
Cost of sales          16,794       16,010       34,874       32,561
Gross profit           16,620       15,532       35,316       31,395
Selling, general and
 administrative
 expense                9,752        8,782       20,158       17,668
Research and
 development
 expense                2,506        2,070        5,008        4,237
Income from
 operations             4,362        4,680       10,150        9,490
Interest income            96          119          260          599
Interest expense          540          516        1,046          656
Income before income
 taxes                  3,918        4,283        9,364        9,433
Income tax expense      1,368        1,528        3,364        3,358
Net income              2,550        2,755        6,000        6,075
Net income per common
 share - basic          $ .15        $ .16        $ .35        $ .32
                        =====        =====        =====        =====
Net income per
 common share
 - diluted              $ .15        $ .16        $ .35        $ .32
                        =====        =====        =====        =====
Weighted average
 shares - basic    17,118,745   16,455,936   17,091,293   18,764,029
                   ==========   ==========   ==========   ==========
Weighted average
 shares - diluted  17,213,147   16,567,632   17,192,748   18,836,617
                   ==========   ==========   ==========   ==========