INCON Reports Lower Revenue and Earnings for the Third Quarter Ended September 25, 1999.

SACO, Maine--(BUSINESS WIRE)--Oct. 21, 1999--

Intelligent Controls, Inc. (INCON; AMEX:ITC. EC), today reported revenues for the quarter ended September 25, 1999 declined 42 percent to $2,583,901 from $4,451,620 in the prior year. The Company reported third quarter net income of $87,975 compared to $434,370 in the prior year. Basic and diluted earnings per share for the third quarter of 1999 were $.02 compared to $.09 per share in 1998.

For the nine months ended September 25, 1999 the Company reported revenues were $10,225,390 compared to $11,371,108, a 10 percent decline. Net income, at $802,884 for the nine months ended September 25, 1999 increased from $45,089 for the same period a year ago. As previously reported, first half 1998 earnings were adversely affected by the costs of two legal settlements totaling $747,660 which were reflected in the second quarter of 1998.

According to Roger E. Brooks, President and CEO, "We continue to make progress on a number of fronts but were disappointed that our third quarter revenues and earnings declined. The demand in our petroleum market sector was slower than we expected and the merger activity in the industry has slowed the decision making process on equipment purchases. The current petroleum market situation follows a period of strong demand last year and, in particular, our third and fourth quarters were very strong due to last minute installation activity related to the December 22, 1998 deadline for complying with EPA underground storage tank leak detection regulations. Sales continue to improve in our power utility/predictive maintenance instruments business and we received a record size new order in September."

Mr. Brooks added, "It's noteworthy that even at a very modest quarterly sales volume we continue to operate profitably and have positive cash flow. This allows us to remain committed to our long-term strategies and work aggressively to make the Company a bigger, broader and better business. We will be introducing a new software product, System Sentinel v2.0 during the fourth quarter. System Sentinel permits operators of multiple petroleum distribution facilities to remotely poll fuel inventory levels and monitor tanks and lines for leaks from one or more centrally located computers. This new version enables users to automatically reconcile inventory at the end of every month and also works with other manufacturers automatic tank gauging systems."

Mr. Brooks further commented, "As we look toward the end of 1999 and also complete our plans for the year 2000, we are focusing on our strategic initiatives and taking actions to expand our business through internal growth, acquisitions, alliances, and joint ventures."

About Intelligent Controls, Inc.

Based in Saco, Maine, Intelligent Controls, Inc. (AMEX:ITC.EC) is a leading developer, manufacturer and marketer of electronic instrumentation and systems for industrial measurement and control applications, including fuel management and predictive maintenance. For more information on INCON, visit the Company's web site at www.intelcon.com.

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                    INCON REPORTS OPERATING RESULTS

                       NINE MONTHS ENDED           QUARTERS ENDED
                     09/25/99     09/26/98     09/25/99     09/26/98

Net Sales          $10,225,390  $11,371,108  $ 2,583,901  $ 4,451,620
Gross Margins        5,438,111    5,595,518    1,310,649    2,383,838
Gross Margin %            53.2%        49.2%        50.7%        53.5%

Net income (loss)  $   802,884  $    45,089  $    87,975  $   434,370

Net income (loss)
 per share         $       .16  $       .01  $       .02  $       .09

Weighted average
 common shares
                     4,887,513    4,206,642    4,904,397    4,949,171
Weighted average
 common shares and
 common equivalent
 shares              4,930,385    4,251,785    4,939,520    4,965,181


Balance Sheet Data

Total Assets       $ 9,058,012  $ 9,449,702

Long-term debt          52,753      236,297

Stockholders'
 equity            $ 7,672,968  $ 6,740,188