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SMS Reports Financial Results for First Fiscal Quarter 1998

8 January 1998

SMS Reports Financial Results for First Fiscal Quarter 1998

    AUSTIN, Texas, Jan. 8 -- Scientific Measurement Systems
(OTC Bulletin Board: SCMS) (SMS) today announced results for the three months
ended October 31, 1997.
    Revenues for first fiscal quarter 1998 were $443,000 compared with
revenues of $1,057,000 for the same fiscal quarter 1997.  The Company suffered
a net loss of ($324,000), compared to a net loss of ($275,000) for the same
period last year.
    Howard L. Burris Jr., President and CEO of SMS, noted that although the
Company ended the quarter with substantially comparable sales backlog to the
same period a year ago ($2,400,000 in the current quarter compared with
$2,500,000 a year ago), the timing of the orders limited revenue recognition
within the quarter.  The Company was also forced to expend time to complete
work on older projects which had little or no remaining revenue recognition
potential for the quarter.  Mr. Burris mentioned that recent sales indicators
were positive, and scanning services backlog were very healthy.  He also
stated that the results of the current fiscal quarter were in line with the
Company's expectations.
    SMS designs, manufactures, and sells industrial CT equipment and services
to a world wide customer base. The company is a recognized leader in the
development and commercialization of CT technology. SMS is a public company
traded on the OTC Bulletin Board under the symbol SCMS.

    Selected Data from Consolidated Financial Statements (Unaudited)

                                          Quarter ended 10/31/97
                                       1997                    1996
    Revenue                          $443,000               $1,057,000
    Net Income (Loss)               ($324,000)               ($275,000)
    Net Income (Loss) per Share         ($.02)                   ($.02)

SOURCE  Scientific Measurement Systems, Inc.