The Company reported a net loss of $174,000 for the third quarter of Fiscal 1999 compared with net income of $88,000 for the third quarter of Fiscal 1998. For the nine months ended February 28, 1999, the Company reported a net loss of $19,000 compared to net income of $707,000 for the same period last year. The Company announced sales of $3,063,000 for the third quarter of Fiscal 1999 compared with sales of $3,543,000 for the third quarter of Fiscal 1998. Year to date sales for Fiscal 1999 were $9,406,000 compared to year to date sales of $11,728,000 for Fiscal 1998. Decreased sales in the Company’s Thermal Products Unit were the primary reason for the lower sales. Diluted per share loss for the third quarter of Fiscal 1999 was $.08 on 2,289,000 shares outstanding compared to diluted earnings per share of $.03 on 3,629,000 shares outstanding for the third quarter of Fiscal 1998. Diluted per share loss year to date for Fiscal 1999 was $.01 on 2,289,000 shares outstanding compared to diluted earnings per share of $.20 on 3,514,000 shares outstanding for the same period last year. The effects of options and warrants for the Fiscal 1999 periods were anti-dilutive.

According to Company President and CEO, Alan H. Silverstein, "Over the last year we have experienced decreased sales and sales activity in the Company’s core Thermal Products line due to a worldwide decline in purchasing of capital goods in the chemical industry as well as other process industries that the Company serves. During the fourth quarter of Fiscal 1999, the Company has increased its advertising and marketing activity in order to try and capture more sales in the Thermal Products business unit. Our Filtration Business is growing and we expect it to pick up some of the slack in the fourth quarter of Fiscal 1999 and into the first quarter of Fiscal 2000. Obviously, we have been cutting costs and will continue to do so as we can."

Headquartered in Easton, PA, The Bethlehem Corporation is in the business of providing thermal and filtration process solutions, equipment, systems and technology. BAM designs and manufactures high-temperature furnaces for sale and for its own use in the processing of specialty carbon, graphite and ceramic materials for semiconductor and aerospace applications.

Financial Highlights
(amounts in thousands, except per share data)