Ionics Reports First Quarter Results

>Ionics, Inc. reported first quarter revenues, net income, and earnings per share for the period ended March 31, 2001. Revenues for the quarter were $123.0 million, up 19.6% compared to the first quarter of 2000. Net income of $3.0 million and earnings per share of $0.18 were down 15.9% and 18.2% from the year-earlier period. Bookings for the quarter totaled $111.1 million, down 17.9% compared to $135.3 million for the first quarter of 2000. Backlog at the end of the quarter was $258.8 million, down 5.5% over the year-earlier backlog of $273.8 million.

Commenting on results for the quarter, Arthur L. Goldstein, Chairman andChief Executive Officer, noted that "we are encouraged by our continuing revenue growth, as well as by the improvement in our gross margins which, as expected, have begun to move closer to historical levels."

He also noted that it was unnecessary to reflect additional accruals relating to the recent settlement of the lawsuit with U.S. Filter in the first quarter because the charges specifically applicable to that settlement were accrued in the fourth quarter of 2000.

Ionics is a global separations technology company involved in the manufacture and sale of membranes, equipment and own and operate services for the purification, disinfection, concentration, treatment and analysis of water, wastewater and ultrapure water. Over a period of more than 50 years

Ionics has built more desalination plants than any company in the world. Ionics has been a pioneer in purified water with its worldwide five-gallon brand, Aqua Cool(R) Pure Bottled Water.

Safe-harbor statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release involve risk and uncertainty. The statements contained in this release which are not historical facts are forward-looking statements. Important factors, including overall economic conditions, demand for Company products, raw material availability, availability of manufacturing capacity, technological and product development risks, competitors' actions, and other factors described in the Company's filings with the Securities and Exchange Commission could cause actual results to differ materially.

Source: Ionics Inc.