Hach Company Announces Record Third Quarter Sales; Management Expects Record Earnings in Fourth Quarter.

LOVELAND, Colo.--(BUSINESS WIRE)--Feb. 19, 1999--(NASDAQ - HACH/HACHA) Hach Company today announced its unaudited financial results for the third quarter and nine months ended January 30, 1999.

For the third quarter of fiscal year 1999, net income was $2.82 million or $.16 per share on sales of $33.07 million compared to net income of $2.6 million or $.16 per share on sales of $30.34 million for the third quarter of fiscal year 1998. This represents a 9% increase in net sales and an 8% increase in net income.

For the first nine months of fiscal year 1999, net income was $8.82 million or $.51 per share on sales of $103.26 million compared to net income of $8.68 million or $.48 per share on sales of $94.29 million for the first nine months of fiscal year 1998. This represents a 9.5% increase in net sales and a 6% increase in net income per share.

Bruce Hach, President and Chief Executive Officer of Hach Company, said, "Improved profit margins, achieved by aggressively controlling expenses, helped offset world market and economic conditions. For the third quarter and nine months international sales decreased approximately 3% compared with the same periods in the prior year. Domestically, weakness in the ultra pure water market led to flat sales."

The Company reported that sales for its subsidiary, Environmental Test Systems, Inc. (ETS), acquired on April 30, 1998, were $3.0 million in the third quarter. "These results are expected to continue to increase, and will help us achieve all-time record levels for the fourth quarter and fiscal year 2000," said Hach. Approximately 60% of ETS sales are to the pool and spa testing markets and therefore seasonal in nature. "We expect that strong demand for test strips sold by ETS along with the introduction of new products in other businesses will lead to all-time record sales and earnings for the fourth quarter ending April 30, 1999," stated Hach.

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
                                      EARNINGS DIGEST

                              Quarter Ended       Nine Months Ended
                            Jan. 30,  Jan. 31,   Jan. 30,   Jan. 31,
                              1999      1998       1999       1998

Net sales                  $ 33,068  $ 30,337  $ 103,258  $  94,293
Cost of sales                16,530    15,552     51,404     48,113
Gross profit                 16,538    14,785     51,854     46,180
Selling, general and
 administrative expense       9,401     8,521     29,559     26,189
Research and development
 expense                      2,513     1,976      7,521      6,213
Income from operations        4,624     4,288     14,774     13,778
Interest income                 128       187        388        786
Interest expense                431       437      1,477      1,093
Income before taxes           4,321     4,038     13,685     13,471
Income tax expense            1,506     1,438      4,870      4,796
Net income                 $  2,815  $  2,600  $   8,815 $    8,675
Net income per common
 share - basic             $    .16  $    .16  $     .51 $      .48
Net income per common
 share - diluted           $    .16  $   . 16  $     .51 $      .48
Weighted average
 shares - basic         17,218,000 16,479,000 17,151,000 18,011,000
Weighted average
 shares - diluted       17,348,000 16,614,000 17,270,000 18,125,000