SOURCE: Puradyn Filter Technologies Incorporated

November 14, 2008 17:44 ET

Puradyn Announces 3rd Quarter Financial Results

BOYNTON BEACH, FL--(Marketwire - November 14, 2008) - Puradyn Filter Technologies Incorporated (OTCBB: PFTI), manufacturer of the puraDYN® bypass oil filtration system, today reported results of operations for the third fiscal quarter ended September 30, 2008.

Net sales for the third quarter decreased by approximately $222,000, or 27%, from approximately $819,000 in 2007 to approximately $597,000 in 2008. Net sales year-to-date (YTD) decreased by approximately $219,000, or 9%, from approximately $2.37 million in 2007 to approximately $2.15 million for the same period in 2008.

For the quarter ending September 30th, the Company reported a net loss of approximately $670,000 or ($0.02) per share, basic and diluted, compared to a net loss of approximately $526,000 or ($0.02) per share, basic and diluted, for the same period in 2007. Year-to-date, the Company reported a net loss of approximately $1.5 million or ($0.05) per share basic and diluted, compared to a net loss of approximately $1.7 million or ($0.06) per share basic and diluted, for the same period in 2007. Basic and diluted weighted average shares used in the calculation for the three months ended 2008 and 2007 were 34,525,584 and 28,981,383, respectively.

Cost of products sold decreased by approximately $268,000, or 13%, from approximately $2.1 million in 3rd Qtr 2007 to approximately $1.8 million in 2008. Cost of products sold, as a percentage of sales, decreased from approximately 87% for the nine months ended September 30, 2007 to approximately 84% for the nine months ended September 30, 2008. The majority of the decrease is attributable to the 9% decline in net sales.

Selling and administrative expenses increased by approximately $64,000 or approximately 8% from approximately $818,000 for the nine months ended September 30, 2007 to approximately $882,000 for the nine months ended September 30, 2008. The majority of the increase was attributable to an increase in exchange rate loss of approximately $247,000.

Kevin G. Kroger, President and COO, stated, "Upheavals in the financial and business markets have resulted in dramatic changes in our customers' buying patterns. Many existing customers are downsizing and reducing their own output, but mostly postponing purchases. Our continuing challenge is to bring other companies to understand that an initial investment in puraDYN® systems will actually save a significant amount of oil purchases and oil maintenance costs in the short-term, not to mention increasing the efficiency of their vehicles and equipment life in the long haul. We remain confident given the current motivation on the part of many companies to be more 'green.'

"However, despite an overall downturn in the industry, during the 3rd quarter we were able to announce that:

--  Avis Budget Group is installing the puraDYN system as standard
    equipment on its fleet of 300+ heavy duty buses.
--  John Deere Forestry Division is factory-installing puraDYN systems in
    Joensuu, Finland on equipment to be utilized in Russia and other countries
    where high sulfur fuel is used.  Deere has more than doubled its initial
    order since we announced this in August and we will be filling ongoing
    orders to be shipped to Russia.
--  The Foreign Military Sales (FMS) program, the government-government
    method for selling U.S. defense equipment, services, and training, is
    supplying the puraDYN systems for the line haul fleet and we routinely
    receive further orders through FMS.
--  We received our first contract from the U.S. Army to supply the
    puraDYN system to outfit JERRV vehicles used in combat in Iraq and
    Afghanistan."
    

Kroger continued, "Moreover, we have entered into an agreement with Emerging Markets Consulting, an investor relations firm specializing in microcap stocks, who we believe will expose Puradyn to more financial markets and stabilize our presence in a precarious economy."

Kroger concluded, "Several of the orders we've publicized will come to fruition in the 4th Qtr 2008 and first six months of 2009. We also have other potential customers that are committed to coming onboard, having seen the advantages of bypass oil filtration technology in terms of cost reduction and environmental initiatives.

"We fully understand the extreme situation the economy is in and will continue to focus on the directives that have brought positive results -- targeting specific industries well-suited to benefit from bypass oil filtration, continuing to implement cost-cutting measures without sacrificing quality, and operating our business as lean as possible while fulfilling the orders we have in-house."

For further discussion relevant to the Company's financial status, you can request a copy of the Company's quarterly report on Form 10-QSB, at 561 547 9499, or go to the Investor Relations section of the Company's website at www.puradyn.com. A copy is also available at the SEC website, www.sec.gov.

About Puradyn Technologies Incorporated

Puradyn (OTCBB: PFTI) designs, manufactures and markets the puraDYN® Bypass Oil Filtration System, the most effective filtration product on the market today. It continuously cleans lubricating oil and maintains oil viscosity to safely and significantly extend oil change intervals and engine life. Effective for internal combustion engines, transmissions and hydraulic applications, the Company's patented and proprietary system is a cost-effective and energy-conscious solution targeting an annual $15 billion potential industry. Puradyn equipment has been certified as a 'Pollution Prevention Technology' by the California Environmental Protection Agency and was selected as the manufacturer used by the US Department of Energy in a three-year evaluation to research and analyze performance, benefits and cost analysis of bypass oil filtration technology.

STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, INCLUDING BUT NOT LIMITED TO THE POSSIBLE INABILITY TO RAISE CAPITAL FUNDS, LACK OF PROTECTION FROM INTELLECTUAL PROPERTY, VULNERABILITY BECAUSE OF MANUFACTURING A LIMITED NUMBER OF PRODUCTS, DEPENDENCE ON DISTRIBUTORS, ORDERS PREVIOUSLY STATED IN THIS PRESS RELEASE MAY NOT MATERIALIZE, AND THE POSSIBILITY THAT THE PRODUCTS DO NOT MEET CUSTOMERS' NEEDS, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

                 Puradyn Filter Technologies Incorporated
              Condensed Consolidated Statements of Operations
  For the Three Months and Nine Months Ended September 30, 2008 and 2007
                               (Unaudited)


                        Three Months Ended          Nine Months Ended
                          September 30,               September 30,
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

Net sales           $    597,398  $    818,682  $  2,152,604  $  2,371,869

Costs and expenses:
  Cost of products
   sold                  538,171       713,222     1,805,037     2,073,082
  Salaries and
   wages                 257,746       251,595       764,676       777,168
  Selling and
   administrative        398,002       262,899       881,680       818,048
                    ------------  ------------  ------------  ------------
                       1,193,919     1,227,716     3,451,393     3,668,298
                    ------------  ------------  ------------  ------------

Loss from
 operations             (596,521)     (409,034)   (1,298,789)   (1,296,429)

Other income
 (expense):

  Interest income            824         9,776         2,153        31,694
  Interest expense       (74,596)     (127,232)     (242,772)     (470,370)
                    ------------  ------------  ------------  ------------
Total other
 expense, net            (73,772)     (117,456)     (240,619)     (438,676)
                    ------------  ------------  ------------  ------------
Loss before income
 taxes                  (670,293)     (526,490)   (1,539,408)   (1,735,105)

Income tax expense             -             -             -             -
                    ------------  ------------  ------------  ------------
Net loss            $   (670,293) $   (526,490) $ (1,539,408) $ (1,735,105)
                    ============  ============  ============  ============
Basic and diluted
 loss per common
 share              $       (.02) $       (.02) $       (.05) $       (.06)
                    ============  ============  ============  ============
Weighted average
 common shares
 outstanding          34,525,584    28,981,383    32,349,981    27,959,710
                    ============  ============  ============  ============

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