DUBLIN, Ohio, May 21 /PRNewswire/ -- Improved demand for both its core equipment line and its "next generation" technology generated record first quarter sales for Salient Systems, Inc. (OTC BULLETIN BOARD: SLTS). Salient, headquartered in Dublin, Ohio, manufactures electronic measurement and detection systems for the railroad industry. "The first quarter has traditionally seen a loss for Salient, as railroads concentrate their capital spending efforts during the warmer weather months of the second and third quarters. As a result, the company posted a net loss of $225,648, or $.06 per common share, for first quarter 1999," announced Harold D. Harrison, President and Chief Executive Officer. Both of Salient's business segments -- the core Salient Systems business and the Tricon Lubricants subsidiary -- reported operating losses for the quarter. In 1998's first quarter, the company had reported modest net income of $12,290, or less than $.01 per common share, primarily on the strength of several large, one-time orders received in late 1997. Positives for 1999 Despite the loss, Salient's President and Chief Executive Officer cited several positives that could lead to improved financial performance for the balance of 1999. "We're pleased by the first quarter's record sales and the underlying demand we're seeing in the market. During the last several years, Salient has invested a great deal of time and money introducing a new generation of products to the railroad industry, complementing our flagship Wheel Impact Load Detector and Wheel Data Management System," Harrison explained. These products, installed on major railroads throughout North America and in numerous foreign countries, help railroads electronically detect out-of- round wheels, reducing track damage and maintenance costs. "Our 'next generation' products, including the StressNet(TM) track safety and maintenance monitoring system, are moving into main line trials at several major railroads. We're enthusiastic about their long-term sales potential," Harrison added. Another positive for Salient is its entry into several new markets, including transit systems. "We recently introduced the StressNet(TM) product to several major transit systems. As passenger volume increases, transits must increase capacity. The most economical way to accomplish that is by using technologies such as communications-based train control to reduce the 'head space' between trains. StressNet(TM) provides critical, real-time information on track conditions, which facilitates these higher-volume operations," Harrison noted. Salient has also seen increased sales and opportunities in foreign markets, including Europe and China, for both the StressNet(TM) product and the company's core product line, according to Mr. Dana Earl, Salient's General Manager and Sales Director. "We're seeing some positive results from our partnership arrangements," Mr. Earl said. "Salient recognizes that its strengths lie in the development and implementation of Information Technology solutions for its railroad customers. The company has identified several opportunities to partner with other rail suppliers having extensive sales and distribution networks in order to take Salient's high-tech products to a broader customer base," Earl added. Salient's Harrison also commented that the company anticipates a near-term resolution of issues involving its money-losing Tricon Lubricants subsidiary. "As we told shareholders at our recent Annual Meeting, Tricon's management has done a good job of implementing a revamped marketing program. As a result, Tricon is the final stages of the sales cycle with a number of potentially large customers," Harrison explained. "If those sales efforts prove successful, they'll generate significantly improved performance at Tricon. However, Salient's Board of Directors has established strict performance targets and timetables for Tricon, and if these aren't met within the next several months, we're prepared to resolve this issue," he emphasized. Improved Prospects "Our innovative products have long sales cycles, but we believe the increased interest we're seeing could translate into improved orders later this year. We believe that trend, coupled with a resolution of the issues at our Tricon Lubricants subsidiary, could result in improved financial performance this year," Mr. Harrison added. Salient Systems, Inc., manufactures and markets sophisticated electronic measurement and detection systems that offer cost-effective solutions to many of the operational and competitive challenges facing railroads today. Salient, established in 1984, believes that increasing traffic levels on major railroads, expanded capital spending programs, heightened safety and reliability concerns, rising cost pressures, and expanding joint venture and partnership opportunities could significantly expand domestic and international markets for its high-tech alternatives to costly manual monitoring and detection procedures. Safe Harbor Statement: Statements in this report which are not historical fact are forward-looking statements. They are based on the company's current plans and strategies and reflect its current assessment of the risks and uncertainties related to its business. These risks and uncertainties include such things as product demand and market acceptance; the economic and business environment; the impact of government regulations, both in the U.S. and abroad; the effects of competitive products and pricing pressures, currency risks, capacity, efficiency, and supply constraints; weather conditions; and other risks detained in the company's press releases and shareholder communications. Actual events affecting the company and the impact of such events on its operations may vary from those currently anticipated, causing actual results to differ from those projected in the company's forward-looking statements.  