Global Water Technologies Announces 2nd Quarter Results

Dec. 28, 2000

Global Water Technologies, Inc., has reported an improved gross profit margin despite reduced revenue and gross profit in its second operations quarter.

Gross profit from operations during the period was $1,383,301, as compared to $1,864,913 for the same period in 1999. Revenues for the second quarter were $13,895,793, as compared to revenues of $25,311,604 for the same period in 1999.

"Second quarter results reflect an improved gross profit margin due to our focus on more efficient delivery of our products," said George Kast, president and CEO. "General selling expenses increased as a result of the investments we are making in our two new business opportunities, Applied Water Technologies, Inc. and Global Water Services, Inc. We believe this will result in substantial growth with long-term reoccurring revenue and profits.

"Additionally, we have invested in the Factory Mutual approval process for a water cooling tower line through our Psychrometric Systems, Inc. subsidiary. Results from these investments should begin to be realized in the fourth quarter and first quarter of 2001."

Global Water's recently launched business-to-business Internet site also has expanded the business. On-line activity up was more than 500 percent this quarter.

"We are very pleased with the response from our customers in providing them the most efficient and cost effective method of providing their water cooling needs," Kast said. "We have seen activity from around the world and see this as the future for attracting additional customers to us."

(Source: Global Water Technologies, Inc.)