Tech/Ops Sevcon Reports Second Quarter Results

SOUTHBOROUGH, Mass.--April 27, 2004--Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported that net income for its second fiscal quarter was $142,000, or $.05 per diluted share, compared to last year's results when the Company had net income of $211,000, or $.07 per diluted share. Revenues for the second quarter were $7,273,000, an increase of $1,135,000, or 18%, compared to the prior year's $6,138,000. Foreign currency fluctuations resulted in a $645,000 increase in reported sales. Second quarter volumes were 8% higher than last year mainly due to gains in the controls business. Engineering expense, mainly on advanced new products, was $386,000 higher than the second quarter of last year, Operating income for the second quarter was $280,000 compared to $303,000 in the same quarter last year. Foreign currency changes compared to last year resulted in a decrease of $20,000 in second quarter operating income.

For the six month period, net income was $223,000, or $.07 per diluted share, compared to $217,000, or $.07 per diluted share last year. Revenues in the first six months of fiscal 2004 were $13,739,000, an increase of $1,956,000, or 17%, compared to last year. Foreign currency fluctuations resulted in a $1,200,000 increase in reported sales. Volumes were 6% ahead of the prior year. Higher spending on new products resulted in an increase in engineering expense of $647,000, equivalent to $.13 per share. Operating income for the six-month period was $453,000, compared to $317,000, in the first half of the prior year. Foreign currency fluctuations increased year-to-date reported operating income by $140,000 compared to the same period last year.

Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing of microprocessor based controls for electric vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions, and to prolong the shift life of the vehicles' batteries. Sevcon supplies customers throughout the world from its operations in the United Kingdom, the USA, France, the Far East, and through an international dealer network. The Company's customers are manufacturers of fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers, and other battery powered vehicles.

Second Quarter 2004 Financial Highlights (unaudited)
(in thousands except per share data)


                                  Three months ended  Six months ended

                                    April 3 March 31  April 3 March 31
                                       2004    2003     2004     2003
                                     ======= ======= ======== ========

Net sales                            $7,273  $6,138  $13,739  $11,783
                                     ======= ======= ======== ========

Operating income                        280     303      453      317

Income before income taxes              220     325      344      334

Net income                             $142    $211     $223     $217
                                     ======= ======= ======== ========

Basic income per share                 $.05    $.07     $.07     $.07
                                     ======= ======= ======== ========

Diluted income per share               $.05    $.07     $.07     $.07
                                     ======= ======= ======== ========

Cash dividend per share                $.03    $.03     $.06     $.06
                                     ======= ======= ======== ========

Average shares outstanding            3,125   3,125    3,125    3,125