Tower Tech, Inc. Announces First Quarter Results, $2.7 Million Cooling Tower Rental Contract.

CHICKASHA, Okla.--(BUSINESS WIRE)--April 24, 1998--Tower Tech, Inc. (NASDAQ: TTMT) today reported financial results for the quarter ended February 28, 1998.

Summaries of results of operations for the three months ended February 28, 1998, and for the corresponding period in the prior year, are:

                                              ($ = 000)

                                        1998              1997
                                        ----              ----

Revenues                              $4,051            $5,656
Net (Loss) Income                      $(297)             $406
Average Shares (fully diluted)     3,526,311         3,566,078
Net (Loss) Income per
  share (fully diluted)               $(0.08)            $0.11

The decrease in revenues is due mainly to the decrease in the number of modular fiberglass cooling towers sold. This decrease is due to delays in the completion and occupancy of the Oklahoma City plant combined with delays in the delivery of new manufacturing equipment and tooling. It is estimated that these delays will continue to have a negative impact on the second quarter 1998 as well. However, the Company has tried to minimize the impact by aggressively marketing its existing modular fiberglass cooling tower that continues to be assembled in its Chickasha, Oklahoma plant. Increases in revenue occurred in both the concrete tower and rental cooling tower segments. The Company has been focusing on marketing rental cooling towers and has increased the number of units available for rental. Accordingly, continued growth in rental tower revenues is anticipated, and the Company is pleased to announce that it has received a $2.7 million contract with a major power generation station to supply rental cooling towers to augment the station's cooling for the upcoming summer months.

The Company's Oklahoma City manufacturing facility includes equipment to allow the Company to produce TTMT Series cooling tower parts, which were previously purchased from outside vendors. Management believes that product costs can be significantly reduced by producing these parts in-house. The Company expects to begin full production in late May or June 1998; however, the Company may incur unforeseen costs and production problems, particularly in the short-term, in bringing these processes in-house.

Customer inquiries continue to be strong and the Company's estimated backlog for the last three quarters of fiscal year 1998 is over $15.5 million including a total of six contracts for the TTCT Series concrete cooling towers and/or parts totaling $4.2 million, four contracts are scheduled for completion in the second quarter of 1998 and the remaining contracts are projected to be completed in the last half of 1998. Interest in this product has continued to increase in both the United States and international markets. The estimated backlog for the TTMT Series fiberglass cooling towers is $7.3 million. Actual deliveries of the TTMT Series towers and the timing of these deliveries, is dependent upon when the OKC plant is fully operational. Rental tower backlog is over $4.0 million with $.8 million scheduled for second quarter 1998 and the balance scheduled for the last half of 1998.

Tower Tech, Inc. manufactures a complete line of factory assembled fiberglass modular cooling towers for the air conditioning and light industrial segments of the cooling tower market. The Company constructs on-site its modular concrete cooling towers for the heavy industrial and utility segments of the market. The Company also leases modular cooling towers to customers for temporary or emergency use.

CONTACT: Tower Tech, Inc.

Charles D. Whitsitt, 405/222-4265

Fax: [phone]