SOURCE: Puradyn Filter Technologies Incorporated

May 14, 2008 14:32 ET

Puradyn Releases 2008 1st Quarter Financial Results

BOYNTON BEACH, FL--(Marketwire - May 14, 2008) - Puradyn Filter Technologies Incorporated (OTCBB: PFTI), the global bypass oil filtration system manufacturer, today reported results of operations for the first fiscal quarter ended March 31, 2008.

Net sales for the first quarter ended March 31, 2008 were approximately $763,000 compared to approximately $766,000 for the same period in 2007.

The Company reported a net loss of approximately $470,000 or ($0.02) per share, basic and diluted, for the quarter ended March 31, 2008, compared to a net loss of approximately $711,000 or ($0.03) per share, basic and diluted, for the same period in 2007.

Operating losses decreased by approximately $130,000 or 25%, in the first quarter of 2008 as compared to the same time period in 2007. Cost of sales decreased by approximately 3.5%, from $648,000 in 2007 to $625,000 in 2008.

Kevin G. Kroger, President and COO, said, "Net sales for the first quarter were below expectations; however, there are several positive signs. A few customers who represented nearly $250,000 in first quarter of 2007 did not reach similar levels in first quarter 2008. Acquisition of companies and others, who over-purchased inventory in fourth quarter 2007 in anticipation of increased 2008 business, we believe will be back as acquisitions settle and inventory levels deplete. In addition, and just as important, new customer orders offset this deficit and new inquiries into our technology continue at a growing rate."

Kroger went on to say, "As we continue enhancements to our product line, introduce new technology to preserve the oil's condition in the equipment, and control operating costs, we are confident about 2008. Sales costs were further reduced by concentrating on several large opportunities which we are confident will produce significant sales as we move into the second half of the year and early 2009."

Kroger concluded, "Puradyn is dedicated to helping companies who operate engine and hydraulic equipment reduce their oil maintenance cost and keep their businesses moving. Keeping oil clean and in good condition allows the company to safely extend their oil service intervals and reduce the need for new oil purchases. As a windfall, it helps to reduce waste oil generation and the overall carbon footprint left behind by their operations."

The Company's quarterly report on Form 10-QSB is available from the SEC website at http://www.sec.gov or the Investor Relations sections of the Company's website at http://www.puradyn.com/.

About Puradyn Filter 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 AND SALES 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 Ended March 31, 2008 and 2007
                                (Unaudited)



                                                      Three Months Ended
                                                          March 31,
                                                       2008        2007
                                                    ----------  ----------

Net sales                                           $  763,425  $  766,198

Costs and expenses:
  Cost of products sold                                625,329     647,972
  Salaries and wages                                   256,053     260,805
  Selling and administrative                           262,398     368,171
                                                    ----------  ----------
                                                     1,143,780   1,276,948
                                                    ----------  ----------
Loss from operations                                  (380,355)   (510,750)

Other income (expense):
  Interest income                                          733     12,470
  Interest expense                                     (90,853)   (212,633)
                                                    ----------  ----------
Total other income (expense)                           (90,120)   (200,163)
                                                    ----------  ----------

Net loss before income tax expense                    (470,475)   (710,913)
Income tax expense                                           -           -
                                                    ----------  ----------
Net loss                                            $ (470,475) $ (710,913)
                                                    ==========  ==========

Basic and diluted loss per common share             $    (0.02) $    (0.03)
                                                    ==========  ==========

Weighted average common shares outstanding, basic
 and diluted                                        30,052,600  27,386,352
                                                    ==========  ==========

See accompanying notes to consolidated financial statements included in the Company's 10-QSB.

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