INCON Reports Lower Sales and Profits for the Quarter Ended March 31, 2001.

Business Editors

SACO, Maine--(BUSINESS WIRE)--May 1, 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 first quarter sales declined 12 percent to $2,206,307 compared to $2,498,317 in the first quarter of 2000. A net loss of ($26,876), or ($.01) basic and diluted earnings per share compares to net income of $28,906, or $.01 basic and diluted earnings per share in the first quarter of 2000.

Roger E. Brooks, President & CEO, said; "We continue to work hard to further qualify INCON as an approved provider of fuel management systems for large convenience store chains and supermarkets that sell gasoline. Sales to this category of customer improved during the first quarter and now make up a larger percentage of our overall fuel management systems sales. Unfortunately, the general economic slowdown has affected our day to day business from petroleum equipment distributors, leading to a slight overall sales decline in the FMS area."

Mr. Brooks added; "We are pleased with the basic demand level for our power utility/predictive maintenance instrumentation and our sales level was similar to the first quarter of 2000. We did not ship any large orders, as was the case last year at this time, and as a result, overall PRS sales declined by $228,000. This shortfall accounts for essentially all of the overall INCON sales decline compared to the first quarter of 2000."

Mr. Brooks also stated, "Our balance sheet continues to be strong and cash-on-hand was $4,897,708 as of March 31, 2001. Gross margins, even with relatively weak sales volume, remain over 50 percent. We again successfully passed an ISO 9001 quality audit and our warranty costs continue to decline, strongly confirming the effectiveness of our zero defects quality initiative."

Mr. Brooks concluded, "We remain optimistic, over the long-term, about our various product and market development programs. In the near-term, we do expect some impact from the slowing economy as a portion of our existing and potential customers have reduced or delayed spending. Accordingly, we are cautious about the outlook for the next six months, but do expect improvement as we approach 2002."

Intelligent Controls, Inc. is a leading supplier of automatic tank gauging systems and line leak detection equipment for the petroleum industry as well as general predictive maintenance instrumentation 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

                                             Quarters Ended
                                      03/31/2001         04/01/2000

Net Sales                            $ 2,206,307        $ 2,498,317
Gross Margins                          1,140,608          1,231,431
Gross Margin %                               52%                49%
Net income                             $ (26,876)          $ 28,906

Basic earnings per share                  ($0.01)             $0.01
Dilluted earnings per share               ($0.01)             $0.01

Weighted average common shares         4,739,399          4,739,399
Weighted average common shares
 and common equivalent shares          4,740,759          4,751,040

Balance Sheet Data

Total Assets                         $ 8,905,759        $ 8,579,564

Long-term debt                               $ -                $ -

Stockholders' equity                 $ 7,856,844        $ 7,477,354