CARLSTADT, N.J.--(BUSINESS WIRE)--May 21, 1999--Tel-Instrument Electronics Corp today announced its financial results for the year ended March 31, 1999; Years Ended March 31, 1999 1998 Sales $ 3,484,499 3,959,242 Net Income (Loss) Before Taxes (244,266) 519,095 Provision (Benefit) For Taxes (97,585) (58,719) Net Income (Loss) $ (146,681) 577,814 Net Income (Loss) Per Share, Diluted $ (0.07) 0.28 Weighted Average Shares Outstanding Diluted 2,101,264 2,070,503 For the year ended March 31, 1999 sales decreased $474,743 (12%) as compared to the twelve months ended March 31, 1998. Operating income declined as a result of the lower sales and research and development expenses which increased $335,490 (39%) from the previous year. The increase in research & development expenses reflects the work on the U.S. Navy contract and development of new products for other markets. The decline in sales is attributed to reduced shipments rates resulting primarily from the completion of the substantial U.S. Air Force T-30CM contract in the third quarter of the prior fiscal year, and delayed shipments on new contracts, because of increased engineering and test requirements. The Company believes that most of its delayed 1999 sales will be delivered in fiscal year 2000. Management continues to be encouraged by the dollar value of the backlog, the large and unexpected increase in commercial sales, the progress of the U.S. Navy contract, and the efforts of its international distributors. At March 31, 1999 the Company had a strong backlog of $2,857,000. A number of the statements made by the Company in this report may be regarded as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, statements concerning the Company's outlook, pricing trends and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical fact. All predictions as to future results contain a measure of uncertainty and accordingly, actual results could differ materially. Among the factors that could cause a difference are: changes in the general economy; changes in demand for the company's products or in the costs and availability of its raw materials; the actions of competitors, the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulty in plant operations and materials transportation; environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the company's filings with the Securities and Exchange Commission. Tel-Instrument Electronics Corp designs, manufactures and sells test equipment to the general aviation, commercial aviation, and government/military aviation markets, both domestically and internationally. The company's stock is traded in the NASDAQ System under the symbol TINE.  