SALT LAKE CITY--(BUSINESS WIRE)--May 20, 1999--Daw Technologies Inc. (NASDAQ; DAWK), Thursday reported a net loss of approximately $316,000, or $0.03 per share on sales of approximately $12.5 million for the quarter ended March 31, 1999. This compared to a net loss of approximately $831,000 or $0.07 per share on sales of approximately $11.4 million for the quarter ended March 31, 1998. "While the semiconductor industry continues on its conservative path of capital spending we are beginning to see increased bidding activity on smaller scope projects for facility upgrades and expansions," stated Ronald W. Daw, president and chief executive officer. "We are also encouraged by the continued increase in worldwide semiconductor chip sales over the past seven months. It appears that the long anticipated recovery of chip sales may be finally beginning, however, we don't anticipate any significant increases in capital spending and bidding activity until later this year," added Daw. Daw went on to say, "Our diversification initiative continues to progress nicely. We have seen significant interest in our sleeper cab shells and will ship our first air entrance systems in the second quarter. Non-cleanroom related sales are currently running at about $1 million per month and we anticipate they will increase significantly throughout the year." Daw Technologies Inc. provides ultraclean manufacturing environments for customers throughout the world and specializes in the design, manufacturing and installation of cleanrooms meeting stringent semiconductor manufacturing requirements, eliminating particles up to 1,000 times smaller than the diameter of a human hair. The company, through its diversification initiative, also manufactures a line of tractor sleeper shells for heavy-duty truck manufacturers, doorless air entrance systems for large retail establishments, and engages in contract manufacturing. This news release contains forward-looking statements that involve risks and uncertainties. Actual results and outcomes may differ materially from those discussed or anticipated. Factors that might effect the actual outcome include, but are not limited to, the length and severity of the semiconductor industry downturn, decreases in capital spending by semiconductor manufacturers, cancellation or delays in existing contracts, increased competition in the cleanroom segment of the industry, customer acceptance of new products and a decline in demand for semiconductors. For a more detailed discussion of these and associated risks, see the company's most recent documents filed with the Securities and Exchange Commission. Daw Technologies, Inc. Selected Condensed Statements of Operations Data (unaudited) (in thousands, except share data) Three Months Ended March 31, 1999 1998 Revenues $12,480 $11,441 Cost of goods sold 10,903 10,955 Gross profit 1,577 486 Operating expenses 1,967 1,784 Loss from operations (390) (1,298) Other expense, net (112) (23) Loss before income taxes (502) (1,321) Income tax benefit 186 490 NET LOSS $(316) $(831) Loss per common share Basic $(0.03) $(0.07) Diluted (0.03) (0.07) Weighted average common and dilutive common equivalent shares outstanding Basic 12,479,711 12,407,977 Diluted 12,479,711 12,407,977 Daw Technologies, Inc. Selected Condensed Balance Sheet Data (unaudited) (in thousands) March 31, December 31, 1999 1998 Current assets $24,084 $22,869 Property and equipment, net at cost 4,503 4,859 Other long-term assets 3,063 3,113 Total assets $31,650 $30,841 Current liabilities $13,442 $12,195 Long-term liabilities 397 519 Shareholders' equity 17,811 18,127 Total liabilities and shareholders' equity $31,650 $30,841  