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Selas Reports Increased Earnings for Second Quarter 1998

28 July 1998

Selas Reports Increased Earnings for Second Quarter 1998

    DRESHER, Pa., July 28 -- Selas Corporation of America
(Amex: SLS) reported income of $1,766,000 or $.33 per diluted share for the
quarter ended June 30, 1998 versus $1,379,000 or $0.26 per diluted share for
the similar quarter in 1997.  Sales were $25,222,000 for the second quarter
1998 compared with $27,101,000 for the quarter ended June 30, 1997.
    For the six months ending June 30, 1998, Selas reported income of
$2,325,000 or $0.44 per diluted share on sales of $47,088,000 compared with
$2,541,000 or $0.47 per diluted share on sales of $58,006,000 for the first
six months of 1997.
    Stephen F. Ryan, President and Chief Executive Officer of Selas, said that
all three business segments of the company were profitable during the quarter
and that income was further enhanced by a reduction in the valuation allowance
of deferred income tax assets which resulted in a tax benefit of approximately
$700,000.
    Ryan said that, with contributions in the third and fourth quarters from
recently acquired CFR and from programs now in place at RTI, the Company is
optimistic that 1998 results will be better than those of 1997.
    Selas is a diversified firm with international operations and sales that
engages in the design, development, engineering and manufacturing of a range
of products including precision electronic components and assemblies, heat
processing equipment and systems, and cable winch products.
    This press release contains certain forward-looking statements.  Actual
results may differ materially from those contained in or implied by such
forward-looking statements.

                         SECOND QUARTER REPORT - 1998

                         SELAS CORPORATION OF AMERICA
                        Comparative Operating Results
                                 (Unaudited)

                           3 Months     3 Months      6 Months     6 Months
                             Ended        Ended        Ended         Ended
                            6/30/98      6/30/97       6/30/98      6/30/97

    Net Sales            $25,222,000   $27,101,000  $47,088,000   $58,006,000

    Income before
     income taxes         $1,370,000    $2,464,000   $2,261,000    $4,344,000

    Provision for
     income taxes
     (credits)              (396,000)    1,085,000      (64,000)    1,803,000

    Net Income            $1,766,000    $1,379,000   $2,325,000    $2,541,000


    Earnings per share

     Basic
      Income per common
       and common
        equivalent share       $0.34         $0.26        $0.44         $0.47

     Weighted average
      common shares
       outstanding         5,227,000     5,345,000    5,226,000     5,353,000

     Diluted
      Income per common
       and common
        equivalent share       $0.33         $0.26        $0.44         $0.47

     Weighted average
      common
       shares outstanding  5,315,000     5,380,000    5,287,000     5,379,000