Mile Marker International-Record First Quarter 2002 Results

    POMPANO BEACH, Fla.--May 2, 2002--Mile Marker International, Inc. (OTCBB:MMKR), a specialty automotive parts distributor, announced record revenues and net income for its first quarter ending March 31, 2002 in its Form 10-QSB filing with the U.S. Securities and Exchange Commission.
    In its Form 10-QSB filing with the U.S. Securities and Exchange Commission on May 1, 2002, Mile Marker International, Inc. announced net income of $574,604 for the first quarter of 2002, or $0.05 per common share compared to net income of $1,009,808 for the year ending December 31, 2001, or $0.09 per common share. During the first quarter of 2001, the Company had recorded a net loss of $28,807 after tax based on sales revenues of $1,514,872. The Company's revenues for the first quarter of 2002 totaled $3,509,080, an increase of 132% over the first quarter of 2001. With these first quarter 2002 results, the Company's trailing twelve month earnings per share now total $0.15.
    Richard Aho, President and CEO of Mile Marker International, Inc., said: "These record results reflect the increasing recognition of the tremendous value of our unique patented hydraulic winch by customers such as utilities and four-wheel enthusiasts in addition to the substantial ongoing orders from the U.S. military."
    Mile Marker International, Inc., through its wholly-owned subsidiary, Mile Marker, Inc., is a manufacturer and distributor of specialized automobile parts primarily for the four-wheel drive utility/recreational and military vehicle markets. The Company has been in business for over 20 years under the management of the Company's founder, Chairman and Chief Executive Officer, Richard E. Aho. Mile Marker's unique patented line of hydraulic winches use a vehicle's power steering pump as its source of energy. In 2002, Mile Marker introduced a new low-cost 8000 lb. electric winch with a heavy-duty 3/8" cable, providing a larger safety margin than any other winch in this segment of the market.
    Enclosed are key excerpts from the Company's recent SEC filing, the complete text of which can be found under "Milemarker International, Inc." in the "Search for Company Filings" section of the SEC's website at http://www.sec.gov
    The following table summarizes the results of operations, stated as a percentage of sales, for the three months ended March 31, 2002, and 2001:

                                                  2002          2001
                                                 -----         -----
Sales                                            100.0%        100.0%
Cost of Sales                                     47.5%         61.2%
                                                 -----         -----
   Gross Profit                                   52.5%         38.8%
Selling, General and
 Administrative Expenses                          25.2%         38.9%
                                                 -----         -----
Income/(Loss) from Operations                     27.3%        (0.1)%
Other Income/(Expense)                           (0.8)%        (2.7)%
                                                 -----         -----
   Pre-Tax Income/(Loss)                          26.5%        (2.8)%
Income (Taxes)/Benefit                          (10.1)%          0.9% 
                                                 -----         -----
   Net Income/(Loss)                              16.4%        (1.9)%

    Sales of $3,509,080 for the three months ended March 31, 2002, were $1,994,208, or approximately 132%, more than comparable first quarter 2001 sales of $1,514,872. This sales increase was due primarily to $2,317,873 more military winch sales in the first quarter of 2002 than in the comparable period in 2001 based on the Company's fulfillment of military orders. This increase in military winch sales was partially offset by a decrease of approximately $224,000 in special order sales and approximately $114,000 in hub sales during the first quarter of 2002 compared to 2001.
    The Company's gross margins on its sales increased from 38.8% in 2001 to 52.5% in 2002, primarily due to a shift in the Company's 2002 product mix to its higher-margin hub and winch products.
    General and administrative expenses for the three months ended March 31, 2002, increased by $216,757, or about 51%, from $421,376 in the first quarter of 2001 to $638,133 in the first quarter of 2002. The most significant increase in general and administrative expenses from the first three months of 2001 related primarily to employee compensation expenses, which increased by $162,119, or approximately 81%, over 2001 levels as the Company's staffing level was increased to handle its substantial increase in sales.
    The Company's results of operations for the first three months of 2002 reflected income of $955,347 compared to a loss from operations of $1,900 during the same period in 2001. The Company's net income of $574,604 after taxes in the first quarter of 2002 compares to a net loss of $28,807 in the first quarter of 2001 after recognizing a tax benefit of $13,250. The net income in the first three months of 2002 represents earnings per share of $.05, both primary and fully diluted, compared to a negligible loss per share in the first quarter of 2001.