BZ Boise Inc.

Bairnco Announces Amended Fourth Quarter and Full Year 2004 Financial Results Due to Tax Benefit From Settlement LAKE MARY, Fla., Feb. 18 /PRNewswire-FirstCall/ -- Bairnco Corporation (NYSE:BZ) today reported that subsequent to year end and the issuance of its January 27, 2005 press release on the 2004 operating results, a review of tax information on the settlement of the NOL Lawsuit resulted in a $1,015,000 tax receivable, and related income, which is included in income from spun off subsidiary. The 2004 fourth quarter and full year consolidated financial statements have been amended to reflect this information. Bairnco Corporation is a diversified multinational company that operates two distinct businesses -- Arlon (Electronic Materials and Coated Materials segments) and Kasco (Replacement Products and Services segment). Arlon's principal products include high technology materials for the printed circuit board industry, cast and calendered vinyl film systems, custom-engineered laminates and special silicone rubber compounds and components. Kasco's principal products include replacement band saw blades for cutting meat, fish, wood and metal, and on site maintenance primarily in the meat and deli departments. Kasco also distributes equipment to the food industry in France. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release referring to the expected future plans and performance of the Corporation are forward-looking statements. Actual future results may differ materially from such statements. Factors that could affect future performance include, but are not limited to, changes in US or international economic or political conditions, such as inflation or fluctuations in interest or foreign exchange rates; disruptions in operations due to labor disputes; renegotiation of the Corporation's Credit Agreement; changes in the pricing of the products of the Corporation or its competitors; the impact on production output and costs from the availability of energy sources and related pricing; the market demand and acceptance of the Corporation's existing and new products; the impact of competitive products; changes in the market for raw or packaging materials which could impact the Corporation's manufacturing costs; changes in the product mix; the loss of a significant customer or supplier; production delays or inefficiencies; the costs and other effects of legal and administrative cases and proceedings, settlements and investigations; the ability to achieve anticipated revenue growth, synergies and other cost savings in connection with acquisitions and plant consolidations; the costs and other effects of complying with environmental regulatory requirements; and losses due to natural disasters where the Corporation is self-insured. While the Corporation periodically reassesses material trends and uncertainties affecting the Corporation's results of operations and financial condition in connection with its preparation of its press releases, the Corporation does not intend to review or revise any particular forward-looking statement referenced herein in light of future events. Comparative Consolidated Results of Operations (Unaudited) Quarter Ended Year Ended Condensed Consolidated Dec. 31, Dec. 31, Dec. 31, Dec. 31, Statements of Income 2004 2003 2004 2003 Net sales $40,544,000 $37,135,000 $165,496,000 $152,696,000 Cost of sales 28,934,000 26,708,000 117,612,000 109,825,000 Gross profit 11,610,000 10,427,000 47,884,000 42,871,000 Selling and administrative expenses 8,998,000 9,367,000 39,827,000 38,248,000 Operating profit 2,612,000 1,060,000 8,057,000 4,623,000 Interest expense, net 18,000 190,000 566,000 768,000 Income before income taxes 2,594,000 870,000 7,491,000 3,855,000 Provision for income taxes 720,000 281,000 2,372,000 1,206,000 Income from continuing operations 1,874,000 589,000 5,119,000 2,649,000 Income from spun off subsidiary 1,015,000 -- 25,710,000 -- Net income $2,889,000 $589,000 $30,829,000 $2,649,000 Basic Earnings Per Share of Common Stock from Continuing Operations $0.25 $0.08 $0.70 $0.36 Basic Earnings per Share of Common Stock from Spun Off Subsidiary 0.14 -- 3.49 -- Basic Earnings per Share of Common Stock $0.39 $0.08 $4.19 $0.36 Diluted Earnings per Share of Common Stock from Continuing Operations $0.24 $0.08 $0.68 $0.36 Diluted Earnings per Share of Common Stock from Spun Off Subsidiary 0.13 -- 3.40 -- Diluted Earnings per Share of Common Stock $0.38 $0.08 $4.07 $0.36 Basic Average Common Shares 7,386,000 7,342,000 7,362,000 7,338,000 Diluted Average Common Shares 7,660,000 7,436,000 7,569,000 7,391,000 Condensed Consolidated Balance Sheets Dec. 31, 2004 Dec. 31, 2003 ASSETS Cash $3,451,000 $796,000 Accounts receivable, net 24,912,000 23,511,000 Inventories 24,964,000 25,516,000 Other current assets 7,702,000 7,873,000 Total current assets 61,029,000 57,696,000 Plant and equipment, net 34,429,000 36,476,000 Cost in excess of net assets of purchased businesses 14,542,000 14,360,000 Other assets 8,781,000 9,697,000 Total $118,781,000 $118,229,000 LIABILITIES AND STOCKHOLDERS' INVESTMENT Short-term debt $1,030,000 $1,875,000 Current maturities of long-term debt 663,000 2,173,000 Accounts payable 10,601,000 10,159,000 Accrued expenses 10,515,000 10,916,000 Total current liabilities 22,809,000 25,123,000 Long-term debt 231,000 27,785,000 Other liabilities 10,974,000 11,023,000 Stockholders' investment 84,767,000 54,298,000 Total $118,781,000 $118,229,000 DATASOURCE: Bairnco Corporation CONTACT: Lawrence C. Maingot, Bairnco Corporation, +1-407-875-2222, ext. 230 Web site: http://www.bairnco.com/

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