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Puroflow Announces Q3 Earnings

8 December 1997

Puroflow Announces Third Quarter Earnings - Sales of High Performance Filters Raises Revenues -

    VAN NUYS, Calif., Dec. 8 -- Puroflow Inc.
(OTC Bulletin Board: PURO) today announced net revenue of $2,018,380 in the
third quarter compared to $1,940,859 in the same period in 1996, a 4 percent
increase due primarily to increased shipments of high performance filters.
    Management also reported gross profit as a percentage of sales increased
to 31.3 percent in the quarter ended October 31, 1997, compared to 28.3
percent in the same quarter in 1996.  Cash on hand has increased to $593,379
at the end of the third quarter compared to $164,415 on January 31, 1997.  A
new $4.5 million contract for the next generation passenger and side impact
automobile inflator filters brings the current backlog to more than
$10 million.
    Management also announced an extraordinary litigation reserve of $300,000
in the third quarter to resolve ongoing litigation with a supplier.  Because
of that reserve, Puroflow announced a net loss of $37,773 for the third
quarter of 1997.  This compares to a net profit of $18,603, or 0 cents per
share, for the three months ended October 31, 1996.  For the nine months ended
October 31, 1997, Puroflow announced net income of $408,417, or 6 cents per
share, compared to net income of $423,133, or 8 cents per share for the
comparable period in 1996.  The weighted average number of shares increased by
2.53 million during this period due to a private placement.
    Puroflow Inc. is a leading supplier worldwide of high-performance filters,
which are able to withstand severe environmental conditions, for the defense,
space and commercial aircraft industries, and for the automobile airbag
industry.

SOURCE  Puroflow Inc.