Hydron Technologies, Inc. Reports Third Quarter Results and Announces Completion of Private Placement Financing POMPANO BEACH, Fla., Nov. 13 /PRNewswire-FirstCall/ -- Hydron Technologies, Inc. (BULLETIN BOARD: HTEC) announced today that the Company had net sales of $295,423 and a net loss of $163,572 ($.02 per share) for the quarter ended September 30, 2003, as compared to net sales of $305,281 and a net loss of $204,049 ($.04 per share) for the quarter ended September 30, 2002. The Company also reported net sales of $860,641 and a net loss of $528,959 ($.08 per share) for the nine months ended September 30, 2003, as compared to net sales of $1,187,686 and a net loss of $596,547 ($.12 per share) for the nine months ended September 30, 2002. Catalog net sales for the three months ended September 30, 2003, were $244,635, a decrease of $44,085, or 15% from catalog net sales of $288,720 for the three months ended September 30, 2002. Catalog sale for the nine-month period ended September 30, 2003 were $789,506, a decrease of $130,285, or 14%, from Catalog net sales of $919,791 for the nine months ended September 30, 2002. The decrease in catalog net sales was primarily the result of fewer promotions to existing customers. Non-catalog net sales, including television retailers, contract sales and international, for the three months ended September 30, 2003 were $50,788, an increase of $34,227, or 207%, from non-catalog net sales of $16,561 for the three months ended September 30, 2002. Non-catalog sales for the nine-month period ended September 30, 2003 were $71,135, a decrease of $196,760, or 73%, from non-catalog net sales of $267,895 for the nine months ended September 30, 2002. This decrease is primarily due to timing of private label orders and a decrease in sales to retail stores. The Company's overall gross profit margin for the three months ended September 30, 2003 was 74%, as compared to 81% for the three months ended September 30, 2002. The decrease in gross profit margins for the period reflects a shift in product mix as non-catalog sales, which have lower margins, represent a larger portion of the sales mix versus the same quarter last year. Total operating expenses for the three months ended September 30, 2003 were $381,030, a decrease of $69,527, or 15%, from total operating expenses of $450,557 for the three months ended September 30, 2002. The decrease was principally due to decreased royalty expense, lower depreciation, sales commissions, warehousing costs and administrative expenses. The net loss for the three months ended September 30, 2003 was $163,572, a decrease of $40,477, or 20%, as compared to a net loss of $204,049 for the three months ended September 30, 2002. The decrease in the net loss resulted from stringent cost controls and the factors discussed above. Hydron also announced today the completion of a non-brokered Private Placement financing raised $1,105,000 to finance the development of its tissue oxygenation technology. The Company has accepted Subscription Agreements for 2,210,000 shares of Common and 2,210,000 Warrants to purchase an equal number of shares during the next five years, at an exercise price of $1.00 per share at a unit cost of $.50. On October 15, 2003 the Company paid the non-interest bearing bridge loan from the Company Chairman and another Director and the Directors reinvested the proceeds into the Private Placement offering. The proceeds of the placement will be added to the Company's working capital and enable Hydron Technologies to expand its research and product development program related to Hydron's patent pending skin and tissue oxygenation technology. The Company expects the U.S. Patent Office to issue the patent within the next 30 days. Mr. Terrence McGrath, the Company's Chief Operating Officer, said, "Hydron's primary focus is the advancement of its oxygenation technology. The oxygenation technology enables the infusion of oxygen, using microbubble laden fluids, into skin and tissue topically, without using the bloodstream. This unique technology provides Hydron the opportunity to develop products ranging from medical treatments for wounds and burns and development of over-the- counter products for diaper rash, scar reduction and cosmeceutical skin care products. Mr. McGrath stated, "With the closing of the private placement, Hydron is now in a position to accelerate its research program to include development of marketable products and efficacy testing of medical treatments. Hydron will also seek strategic alliances to pursue certain medical applications associated with the oxygen project. Hydron Technologies, Inc. markets a broad range of personal care products and is committed to the research and development of products and medical applications associated with its proprietary tissue oxygenation technology. The Company markets its skin care products through Hydron's direct-to-consumer catalog and on the Internet at http://www.hydron.com/. Catalogs are available by calling 1-800-4-HYDRON (1-800-449-3766). Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements involving risks and uncertainties. For additional information regarding the risks associated with the Company's business, refer to Hydron Technologies, Inc. reports filed with the SEC. DATASOURCE: Hydron Technologies, Inc. CONTACT: Terrence S. McGrath, COO of Hydron Technologies, +1-954-861-6416 Web site: http://www.hydron.com/

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