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Measurement Specialties Announces Revised Guidance for FY05 HAMPTON, Va., May 17 /PRNewswire-FirstCall/ -- Measurement Specialties, Inc. (AMEX:MSS), a designer and manufacturer of sensors and sensor-based consumer products, announced today it has revised previously disclosed guidance for fiscal 2005 earnings per share to approximately $1, from $1.05. The reduction is primarily due to higher than expected non-cash charges associated with the final accounting for the recent acquisitions and related amortization of intangible assets, and lower sensor gross margin, as compared to previous estimates. Frank Guidone, Company CEO, commented "The final appraisal of certain acquisitions assigned a greater portion of the goodwill to intangible assets subject to amortization than we had previously estimated, resulting in a larger than expected non-cash amortization expense. For the fourth quarter, this charge was approximately $0.56 million. We estimate total amortization will increase to approximately $1.6 million for FY06, versus our previous estimate of $0.6 million. Furthermore, while preliminary results suggest net sales for the fourth quarter and fiscal year are in line with previous guidance, sensor division gross margin is approximately 1 point below our expectation due to lower than expected margin from recent acquisitions, higher commodity costs, and product mix/pricing in our core sensor lines." Guidone continued, "We remain extremely bullish on the Company and our prospects moving forward. Sales grew approximately 25% in FY05 as compared to FY04 driven by over 50% growth in the sensor division. We expect similar overall growth in fiscal 2006. This increase in sales, coupled with integration synergies from acquisitions, should accelerate year on year earnings growth from approximately 20% in FY05, to over 30% in FY06." The information contained herein is preliminary and unaudited. Accordingly, actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The Company plans to report its audited FY05 full-year results on or about June 10th. The Company will discuss the FY05 results, as well as the FY06 outlook, in the upcoming FY05-Q4 analyst conference call. Specific call information will be disclosed in an upcoming release. About MSI. Measurement Specialties, Inc. designs and manufactures sensors and sensor-based consumer products. The Sensor division, also known as MSI Sensors, produces a wide variety of sensors and transducers to measure precise ranges of physical characteristics such as pressure, force, vibration, position, tilt, flow and humidity. MSI Sensors uses multiple advanced technologies -- including piezoresistive, electro-optic, electro-magnetic, capacitive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezoelectric polymers and strain gauges -- to engineer sensors that operate precisely and cost effectively. The Consumer division produces OEM bathroom scales, Accutire(R) brand tire pressure gauges and other products. Company Contact: Frank Guidone, CEO, (757) 766-4400 Investor Contact: Aimee Boutcher or Daniel Boutcher, (973) 239-2878 This release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phases "should", "intends", " is subject to", "expects", "will", "continue", "anticipate", "estimated", "projected", "may", "we believe", "future prospects", or similar expressions. The forward- looking statements above involve a number of risks and uncertainties. Factors that might cause actual results to differ include, but are not limited to, success of any reorganization; ability to raise additional funds; conditions in the general economy and in the markets served by the Company; competitive factors, such as price pressures and the potential emergence of rival technologies; interruptions of suppliers' operations affecting availability of component materials at reasonable prices; timely development and market acceptance, and warranty performance of new products; success in integrating prior acquisitions; changes in product mix, costs and yields, fluctuations in foreign currency exchange rates; uncertainties related to doing business in Hong Kong and China; and the risk factors listed from time to time in the Company's SEC reports. The Company from time-to-time considers acquiring or disposing of business or product lines. Forward-looking statements do not include the impact of acquisitions or dispositions of assets, which could affect results in the near term. Actual results may differ materially. The Company assumes no obligation to update the information in this issue. DATASOURCE: Measurement Specialties, Inc. CONTACT: Frank Guidone, CEO of Measurement Specialties, Inc., +1-757-766-4400; or Investors - Aimee Boutcher or Daniel Boutcher, +1-973-239-2878, for Measurement Specialties, Inc. Web site: http://www.msiusa.com/

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