Mikron Instrument Company Reports First Quarter Results for Fiscal Year 2002.

Business Editors

OAKLAND, N.J.--(BUSINESS WIRE)--March 18, 2002

Mikron Instrument (NASDAQ:MIKR)

-- Mikron Profit Up Compared To Comparable Period Last Year

-- Mikron Instrument Co., Inc. (MIKR) announced its financial

results for the first quarter of fiscal year 2002

Net sales for the quarter ended January 31, 2002 were $2,950,146, which was 11.6% down from the comparable quarter last year.

Net income before taxes was $76,265 compared to $59,763 during the first quarter of fiscal year 2001. The earnings per shares for both basic and fully diluted remained unchanged at $0.01 for the first quarter ended January 31, 2002 and January 31, 2001.

The decrease in sales during the first quarter was due to a significant slowdown in single point instrument sales which occurred after September 11, 2001. Orders remained at lower than normal levels through the end of calendar year 2001. Counterbalancing the decrease in single point instrument sales, were substantial increases in orders for blackbody calibration sources and thermal imaging products.

Gerry Posner, Mikron's President commented that "Order placement by Mikron's customers virtually shut down for several weeks following the tragedy of the events of September 11th. Order improvement began in mid October, but was still tentative through December 2001. The slow recovery in orders resulted in shipments through the first quarter which were less than the same period last year. Orders have continued to improve however, and are approaching pre September 11th levels. When it become obvious in late September that shipment levels would be affected, we undertook significant cost control measures to ensure Mikron's profitability. As a result, we were able to improve net income year on year."

Dennis Stoneman, Mikron's Executive Vice President stated, "Although our overall orders were below budgeted levels in the first quarter, we received increased orders compared to last year for our thermal imaging products. The introduction of the new TH7515 thermal imaging camera provided us with the most attractive mid-range thermal imaging camera available. Customers recognized its value and as a result, we were able to increase market share during an uncertain economic period. Additionally, our blackbody calibration sources are utilized by companies that employ infrared technology. As a consequence, orders for our blackbodies increased to defense contractors during the first quarter."

Mikron increased its working capital slightly over the same quarter last year and renewed its $1,500,000 working capital line of credit in March of 2002.

Mikron Instrument Company, Inc., founded in 1969, is a developer, manufacturer and marketer of infrared non-contact temperature measurement devices, temperature sensors, calibration sources and thermal imaging systems. Its executive offices and manufacturing facilities are located at 16 Thornton Road, Oakland, NJ (Tel. No. 201/405-0900)

                        FIRST QUARTER 2002          FIRST QUARTER 2001
Total
Revenues                    $2,950,146                      $3,337,688

Net Income
    Before Taxes                76,265                          59,763
Net Income                      46,523                          35,858
Earning Per
    Share                        $0.01                           $0.01

                Consolidated statements of operations
           For the quarters ended January 31, 2002 and 2001

                        FIRST QUARTER 2002          FIRST QUARTER 2001
Revenues:
   Net Sales                $2,950,146                      $3,337,688
   Royalties                    37,748                          44,174
Total
    Revenues                 2,987,894                       3,381,862
Costs and Expenses
   Cost of goods sold        1,659,943                       1,820,958
   Selling, General and
    Administrative             996,866                       1,203,686
   Research, Development
    And Engineering            233,401                         255,702
Total Costs
 and Expenses                2,890,210                       3,280,346
Income from
Operations                      97,684                         101,516
Other Income (Expense):
   Interest Expense           (17,463)                        (18,831)
Other (Expense) Income,
 net                           (3,956)                        (22,922)
Net Income Before
 Income Taxes                  76,265                          59,763
  Income Tax Provision        (29,742)                        (23,905)
Net Income                     46,523                          35,858
Net Income per
 Share-Basic                    $0.01                           $0.01
Weighted Average Number
    of Shares-Basic          4,288,200                       4,288,200
Net Income per Share-Diluted     $0.01                           $0.01

Weighted Average Number
    of Shares-Diluted        4,545,203                       4,453,117

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: -- Certain of the statements contained herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could effect the company's actual results include but are not limited to the risks discussed in the company's Annual Report on Form 10KSB for the year ended October 31, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The company undertakes no obligation to update publicly any forward-looking statements to reflect the occurrence of unanticipated events.