NTI Northern Technologies International

CIRCLE PINES, Minn., July 12 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (AMEX:NTI) announced today an increase in operating results for the three and nine months ended May 31, 2007. NTIC's net income for the nine months ended May 31, 2007 increased 32.7% or $509,551 to $2,066,227 and $0.56 per share compared to $1,556,676 and $0.43 per share for the nine months ended May 31, 2006. NTI's total worldwide sales from its international joint ventures increased 15.6% to $59,265,028 during the nine months ended May 31, 2007 as compared to $51,278,645 during the same period in fiscal 2006. The Company's net sales increased 2.0% and 3.3% during the three and nine months ended May 31, 2007 as compared to the same periods in fiscal 2006 primarily as a result of the increase of React-NTI products to new and existing customers in North America offset by a slight decrease in net sales of Zerust(R) products. Net sales of Zerust(R) products decreased $35,933 to $8,833,283 for the nine months ended May 31, 2007 as compared to the same period in fiscal 2006. Net sales of React-NTI products increased $446,307 to $4,076,784 for the nine months ended May 31, 2007 as compared to the same period in fiscal 2006. NTIC's working capital was $3,253,245 at May 31, 2007, including $536,246 in cash and cash equivalents. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY Three Months Ended Nine Months Ended May 31, May 31, May 31, May 31, 2007 2006 2007 2006 NORTH AMERICAN OPERATIONS: Sales $4,407,798 $4,320,371 $12,910,067 $12,499,693 Cost of goods sold 2,876,012 2,759,360 8,280,131 7,803,716 Gross profit 1,531,786 1,561,011 4,629,936 4,695,977 Operating expenses: 1,542,059 1,575,723 4,878,810 4,546,808 NORTH AMERICAN OPERATING (LOSS) INCOME (10,273) (14,712) (248,874) 149,169 INCOME FROM ALL CORPORATE JOINT VENTURES AND HOLDING COMPANIES 755,558 721,335 2,073,994 1,714,180 INTEREST INCOME 667 2,129 2,368 30,108 INTEREST EXPENSE (41,139) (19,886) (131,503) (55,392) OTHER INCOME 6,281 -- 14,655 -- GAIN ON SALE OF ASSETS 100 -- 726,295 -- MINORITY INTEREST INCOME (EXPENSE) 7,606 (903) 292 (8,389) INCOME BEFORE INCOME TAX EXPENSE 718,800 687,963 2,437,227 1,829,676 INCOME TAX EXPENSE (BENEFIT) 91,000 (30,000) 371,000 273,000 NET INCOME $627,800 $717,963 $2,066,227 $1,556,676 NET INCOME PER COMMON SHARE: Basic $0.17 $0.20 $0.56 $0.43 Diluted $0.17 $0.20 $0.56 $0.43 WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: Basic 3,679,016 3,610,993 3,674,635 3,599,677 Diluted 3,708,626 3,638,795 3,707,772 3,625,061 Composite financial information from the audited and unaudited financial statements of the Company's joint ventures carried on the equity basis is summarized as follows: May 31, August 31, 2007 2006 Current assets $36,481,058 $33,954,156 Total assets 42,967,257 39,030,247 Current liabilities 13,733,953 14,323,903 Non-current liabilities 3,522,544 1,496,557 Joint ventures' equity 25,710,645 23,209,788 Northern Technologies International Corporation's share of Corporate Joint Ventures' equity $12,804,366 $10,772,102 Nine Months Ended May 31, 2007 May 31, 2006 Net sales $59,265,028 $51,278,645 Gross profit 28,705,348 23,901,140 Net income 4,903,342 4,351,355 Northern Technologies International Corporation's share of equity in income of Corporate Joint Ventures $2,384,020 $2,117,612 About Northern Technologies International Corporation The Company focuses on developing, marketing and selling proprietary environmentally responsible materials science based products and technical services in over 50 countries worldwide via a network of joint ventures. In fiscal 2007, the Company's primary revenues derived from the sales of Zerust(R) rust and corrosion inhibiting packaging products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. During this same period, the Company also received revenues from sales of proprietary new technologies including anti-abrasion ink additives, as well as bio-based sintered metal mold release agents, bio-solvents, bio- emollients, bio-cleaners, bio-lubricants and fully bio-degradable plastic packaging. In a concerted effort to extend the Company's proprietary technologies, the Company engages in extensive scientific research and development programs in the areas of material science and corrosion protection. DATASOURCE: Northern Technologies International Corporation CONTACT: Matthew Wolsfeld, CFO of Northern Technologies International Corporation, +1-763-225-6600 Web site: http://www.ntic.com/

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