INCON Reports Higher Sales and Net Income for the Quarter Ended June 30, 2001; Fuel Management Systems Sales Increase 20 Percent for the Second Quarter.

Business/Technology Editors & Utilities Writers

SACO, Maine--(BUSINESS WIRE)--July 23, 2001

Intelligent Controls, Inc. (INCON) - (AMEX symbol: ITC.EC), a manufacturer of software and electronic measurement systems for the petroleum and utility industries, announced today that second quarter revenues increased 15 percent to $2,614,590 compared to $2,279,502 in the second quarter of 2000. Net income was $94,267, or $.02 basic and diluted earnings per share and compares to $28,237 or $.01 per share in the second quarter of 2000.

For the six months ended June 30, 2001 revenues of $4,820,897 reflect an increase of 1 percent compared to $4,777,818 in the first half of 2000. Net income of $67,389 compares to $57,140 for the comparable 2000 period.

Roger E. Brooks, President & CEO, said; "As reported last quarter, we continue to make progress in gaining acceptance for our fuel management systems at large convenience store chains and supermarkets that sell gasoline. The FMS revenue increase of 20 percent for the second quarter is largely attributable to the sales made in this market segment. These are important strategic and financial wins for INCON, and our System Sentinel Software and strong hardware platform are proving to be ideally suited for organizations who directly manage their fuel inventories and environmental compliance activities. It's also encouraging that our software and site link hardware is now being used in conjunction with other manufacturers tank gauging systems, a confirmation that our open architecture structure has been well received."

Mr. Brooks added; "The basic demand for our power reliability system products continues at a level similar to this time last year. Second quarter 2001 sales, at $525,976, increased slightly when compared to the first quarter of 2001. Year-to-date sales, at $1,030,553, are 19 percent lower than the first six-month period last year due largely to a lack of large PRS orders in 2001. New construction as well as expansions of distribution substations has slowed given overall economic conditions, and we now don't expect, in the balance of the year, the same number of large orders that were received during 2000."

Mr. Brooks concluded; "Cash on hand reached a record $5,283,314 as of June 30, 2001 and we continue to have no outstanding debt. INCON operated profitably in every month during the second quarter and continues to invest heavily in market and product development. Although we remain cautious about the next three to four months, we do anticipate improvement as we approach 2002. We remain optimistic about our long-term prospects and we are taking advantage of our considerable electronics and software know-how, as well as our strong balance sheet."

Intelligent Controls, Inc. is a leading supplier of software, fuel management systems (FMS) and line leak detection equipment for the petroleum industry as well as intelligent electronic devices (IEDs) and power reliability systems (PRS) for the power utility market and other industrial applications.

Additional information about INCON may be found on its website at www.intelcon.com.

Safe harbor statement under Private Securities Litigation Reform Act of 1995: Statements contained in this news release which are not historical fact, such as forward-looking statements concerning future demand in the petroleum and power utility sectors, involve uncertainty. Future Company performance is subject to various factors including uncertainties regarding future market conditions, unforeseen product problems, new products and customer requirements. These factors are discussed in more detail in the Company's latest Annual Report on Form 10-KSB.

                   INCON REPORTS OPERATING RESULTS


                           Six Months Ended         Quarters Ended
                        06/30/2001  07/01/2000   06/30/2001 07/01/2000

Net Sales              $ 4,820,897  $4,777,818  $2,614,590  $2,279,502
Gross Margins            2,506,964   2,348,266   1,366,356   1,116,839
Gross Margin %                 52%         49%         52%         49%
Net income             $    67,389  $   57,140  $   94,267  $   28,237

Basic earnings per
 share                       $0.01       $0.01       $0.02       $0.01
Dilluted earnings per
 share                       $0.01       $0.01       $0.02       $0.01

Weighted average common
 shares                  4,739,399   4,739,399   4,739,399   4,739,399
Weighted average common
 shares and common
 equivalent shares       4,739,874   4,747,474   4,739,399   4,746,133


Balance Sheet Data

Total Assets           $ 9,043,214  $8,608,201

Long-term debt         $     -      $    -

Stockholders' equity   $ 7,951,109  $7,505,588