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Northern Technologies International Corporation Reports Increased Sales And Earnings For The Third Quarter Fiscal 2010

NTIC's working capital was $5,536,087 at May 31, 2010, including $1,103,620 in cash and cash equivalents. 

G. Patrick Lynch, President and Chief Executive Officer of NTIC said, "Both NTIC and many of our joint ventures experienced significant sales increases in Q3 as compared to Q3 of last year for the core business of ZERUST® corrosion inhibiting products. Many of our international joint ventures reported their best sales quarters ever which for NTIC results in fees for services and equity income from joint ventures."

Lynch continued, "While still relatively small, we are also starting to supply ZERUST® products and services to an increasing number of companies in the oil & gas industry."

"Furthermore, market acceptance of our Natur-Tec® certified fully compostable and biodegradable products continues to grow in major U.S. regional "green" hotspots including Oregon, Washington, Minnesota and New England as we have continued to make inroads with key regional and national retailers," Lynch further stated.

Financial Results

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2010 AND 2009
         
  Three Months Ended Nine Months Ended
  May 31, 2010 May 31, 2009 May 31, 2010 May 31, 2009
NORTH AMERICAN OPERATIONS:        
 Net sales, excluding joint ventures $ 2,559,467 $1,555,065 $ 7,164,784 $ 5,855,536
 Net sales, to joint ventures 677,731 118,569 1,660,294 823,212
  3,237,198 1,673,634 8,825,078 6,678,748
 Cost of goods sold 2,172,902 995,672 5,771,045 4,444,075
  Gross profit 1,064,296 677,962 3,054,033 2,234,673
         
JOINT VENTURE OPERATIONS:        
 Equity in income (loss) of joint ventures 1,511,534 (6,838) 2,909,120 650,900
 Fees for services provided to joint ventures 1,140,295 821,810 3,441,563 2,760,379
  2,651,829 814,972 6,350,683 3,411,279
         
OPERATING EXPENSES:        
 Selling 819,572 591,559 2,004,094 1,975,387
 General and administrative 869,183 599,012 2,628,447 2,184,974
 Expenses incurred in support of joint ventures 208,444 224,887 682,828 1,152,654
 Research and development 960,780 655,281 2,526,478 2,222,576
 Loss on impairment 554,000
  2,857,979 2,070,739 7,841,847 8,089,591
         
OPERATING INCOME (LOSS) 858,146 (577,805) 1,562,869 (2,443,639)
         
INTEREST INCOME 864 6,509 5,607 7,828
INTEREST EXPENSE (23,867) (27,933) (73,637) (102,271)
OTHER INCOME 6,825 4,550 20,475 18,200
MINORITY INTEREST 3,398
         
INCOME (LOSS) BEFORE INCOME TAX EXPENSE 841,968 (594,679) 1,515,314 (2,516,484)
         
INCOME TAX (BENEFIT) EXPENSE (110,000) 44,000 (219,000) (377,000)
         
NET INCOME (LOSS) $ 951,698 $ (638,679) $ 1,734,314 $ (2,139,484)
         
NET INCOME (LOSS) PER COMMON SHARE:        
 Basic $ 0.23 $ (0.17) $ 0.41 $ (0.57)
 Diluted $ 0.22 $ (0.17) $ 0.41 $ (0.57)
         
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:        
 Basic 4,244,086 3,754,596 4,213,465 3,746,977
 Diluted 4,299,855 3,754,596 4,252,735 3,746,977

About Northern Technologies International Corporation

Northern Technologies International Corporation develops and markets proprietary environmentally beneficial products and technical services either directly or via a network of joint ventures and independent distributors in over 55 countries. NTIC's primary business is corrosion prevention. NTIC has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets, for over 35 years. NTIC also offers worldwide on-site technical consulting for rust and corrosion issues. NTIC's technical service consultants work directly with the end users of NTIC's products to analyze their specific needs and develop systems to meet their technical requirements. In addition, NTIC markets proprietary bio-plastic technologies under the Natur-Tec® brand. Finally, NTIC's Polymer Energy® joint venture manufactures and sells advance waste plastic to fuel conversion machines.

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