Sutron Reports Third Quarter Sales and Earnings.

Business Editors

STERLING, Va.--(BUSINESS WIRE)--Oct. 11, 2001

Sutron Corporation (NASD OTC Bulletin Board: STRN), an environmental monitoring firm, announced today that sales for the third quarter totaled $2,274,885 down 36% from $3,569,338 for the same period the previous year.

Net income for the quarter was down 88% to $49,629 or $.01 per share as compared with net income of $414,264 or $.10 per share in the previous year.

Sales for the nine months ended September 30, 2001 totaled $6,834,015, down 6% from $7,249,800 for the same period the previous year. The net loss for the nine months ended September 30, 2001 was $145,396 or $.03 per share as compared with net income of $97,315 or $.02 per share in the previous year.

Sales and income information for the quarter and for the year to date is summarized in the table shown below:

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                     3rd Qtr      3rd Qtr        2001         2000
                       2001         2000         YTD          YTD
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Net Sales           $2,274,885   $3,569,338   $6,834,015   $7,249,800
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Net Income (Loss)   $   49,629   $  414,264   $ (145,396)  $   97,315
----------------------------------------------------------------------
Basic Earnings
 (Loss) Per Share   $      .01   $      .10   $     (.03)  $      .02
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Average Number of
 Common Shares       4,289,551    4,298,351    4,290,904    4,298,351
----------------------------------------------------------------------
Diluted Earnings
 (Loss) Per Share   $      .01   $      .10   $     (.03)  $      .02
----------------------------------------------------------------------
Average Number of
 Common Shares       4,289,551    4,298,351    4,290,904    4,298,351
----------------------------------------------------------------------

"Our sales revenues were disappointing because of production problems in July with our new satellite transmitter, the SATLINK G312," reported Raul McQuivey, Chief Executive Officer. "We had an excellent quarter for sales bookings with total bookings for the third quarter of approximately $3,972,000. We entered the fourth quarter with an order backlog of $4,024,000. Our bookings have been on a steady increase since May. Average monthly bookings since May have been approximately $1,267,000. Our challenge has been in ramping up our production. We continue to anticipate that revenues for the year will be in the range of $10 million to $11 million depending on our ability to manufacture the SATLINK G312. We believe that operating income will be in the range of $100,000 to $450,000 dependent upon revenues."

"We are excited with the sales of the SATLINK G312. Since June 30, 2001 we have received orders totaling $1,318,000 for our new satellite transmitter either as a stand-alone unit or combined with an 8210 data logger. The fact that the SATLINK G312 is stand-alone transmitter has been a tremendous boost to our sales. Our previous transmitter was not a stand-alone unit and we anticipate significant SATLINK sales as a stand-alone unit. The US Geological Survey has indicated that they have approximately 2,000 dataloggers requiring the addition of a satellite transmitter and there are many other opportunities."

"We also believe that we have a competitive advantage over our two competitors in the satellite telemetry market. We are the only company that has complete ownership of the product. We designed, developed and certified our SATLINK with the National Environmental Satellite Data Information Service, NESDIS, the government agency responsible for the GOES satellite system. We also manufacture our transmitter. Our competitors have relied on outside firms for much of the design, development and manufacturing. We believe that this gives us both a pricing advantage and a quality control advantage. The requirement for real-time data collection is growing around the world and the SATLINK G-312 is going to be the main platform that we build upon."

Management wishes to caution the reader that these forward-looking statements are only predictions and are subject to risks and uncertainties and actual results may differ materially from those indicated in the forward-looking statements as a result of a number of factors.

Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include uncertainties relating to competition and technological change, setbacks in product development programs, slower-than-anticipated customer acceptance of new products, delays or cancellation of government procurements, dependence on certain key industries, and risk associated with the company's international operations.

Sutron sells environmental monitoring systems that monitor and collect environmental, hydrological and meteorological real-time data. Sutron Corporation is a major provider of real-time data collection systems to government agencies and industry with over 29,000 stations in operation around the world. The Company's common stock is traded on the NASD OTC Bulletin Board under the symbol STRN.

For more information see our web site at www.sutron.com.