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SI Handling Announces First Quarter Financial Results

12 July 1999

SI Handling Announces First Quarter Financial Results

    EASTON, Pa., July 9 -- SI Handling Systems, Inc.
today announced its financial results for the first quarter
ended May 30, 1999.  For the first quarter ended May 30, 1999, the Company had
net sales of $9,952,000 and net earnings of $104,000, or $0.03 per share.

                                         Three Months Ended
                                    May 30, 1999      May 31, 1998

    Net sales                        $9,952,000        $8,800,000
    Earnings before income taxes       $168,000          $612,000
    Income tax expense                   64,000           235,000
    Net earnings                       $104,000          $377,000
    Basic earnings per share               $.03              $.10
    Diluted earnings per share             $.03              $.10
    Backlog of orders               $28,254,000       $25,976,000

    Net sales for the first quarter FY00 were $9,952,000, a 13.1% increase
from net sales of $8,800,000 for the first quarter of FY99, due primarily to
an increase in order fulfillment system sales.  Gross profit on sales
decreased by $476,000, down from $2,313,000 for the first quarter of FY99.
The significant factors contributing to the decrease in gross profit on sales
are due to first-time design costs associated with the development of enhanced
products and competitive pressures in selected markets.  Certain contracts
that were completed during the quarter ended May 31, 1998 resulted in gains
realized from supplier and production efficiencies, favorably impacting gross
profit on sales in the fiscal 1999 comparable period.
    Bill Johnson, President of SI, added, "We're pleased that our customers
awarded us $18.3 million in orders in the first quarter of FY00.  These orders
included two orders totaling $10.2 million, representing a continuation of
government agency contracts.  Our backlog of May 30, 1999 is approximately
$28.2 million. This improved backlog will favorably impact revenues and is
expected to favorably impact earnings during the balance of FY00.  Further, we
will increase activity in identifying and pursuing acquisitions which will
broaden the Company's marketing capabilities while expanding the range of
systems we offer."
    Johnson continued, "We have reached an agreement in principle regarding
the formation of SI-Egemin N.V., a 50/50 joint venture company owned by SI
Handling and Egemin N.V. of Schoten, Belgium.  The mission of SI-Egemin is the
marketing of horizontal transport systems, including spinning tube, in-floor
chain, and automated guided vehicle solutions for global applications outside
of North America and Europe.  This will give us a great new capability to
serve customers on a global scale and enter new markets."
    With headquarters in Easton, PA, SI Handling Systems, Inc. designs,
manufactures, installs, and services fully automated, integrated materials
handling systems that improve productivity in manufacturing and increase the
speed of the delivery of products being offered by companies worldwide.