NOGALES, ARIZONA - March 1, 2004 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading developer, manufacturer and marketer of disposable protective apparel for the, industrial safety, pharmaceutical, clean room, medical and dental markets announced its financial results for the fourth quarter and year ended December 31, 2003.

Revenues for the three months ended December 31, 2003 increased 11.7% to $6.1 million compared to $5.4 million for the comparable prior year period. Gross profit for the quarter increased 17.9 % to $2.9 million, or a gross margin of 48.5 %, compared to a gross profit of $2.5 million, or a gross margin of 45.9 % in the fourth quarter last year. Selling, general and administrative expenses increased to $2.2 million from $2.0 million in the fourth quarter of last year. Net income for the fourth quarter increased 125 % to $481,000, or $0.02 per share, from $214,000, or $0.01 per share in the fourth quarter of 2002.

Revenues for the year ended December 31, 2003 increased 23.7 % to $27.0 million from $21.8 million in the prior year. Gross profit for the year increased 29.8 % to $13.7 million, or a gross margin of 50.7 %, compared to a gross profit of $10.5 million, or a gross margin of 48.3 % for last year. Selling, general and administrative expenses increased to $8.6 million from $7.4 million for last year. As a percentage of net sales, selling, general and administrative expenses decreased to 31.9% from 34.1% in 2002. Net income for 2003 increased 80.8% to $3.0 million, or $0.13 per share, from $1.7 million, or $0.07 per share in 2002.

Approximately $3.5 million of the $5.2 million sales increase is due to Severe Acute Respiratory Syndrome (SARS) related sales of the N-95 mask and eye shields. The Company attributes approximately $1.5 million of the sales increase to additional orders from pharmaceutical clients. Excluding the increase in non-core sales related to SARS, the Company’s core business grew 7.7 % for the year.

The Company also improved its balance sheet, as cash increased 19 % to $3.4 million compared to $2.9 million at the end of fiscal 2002. Total assets increased 26 % to $16.1 million compared to $12.8 million as of December 31, 2002. Shareholders’ equity increased 33 % to $13.0 million, compared to $9.8 million at the end of 2002.

Al Millar, president of Alpha Pro Tech commented, “We are pleased with the results for both the quarter and the year as we showed solid increases in sales in our core business, resulting in record revenues, record profits and our 6th consecutive year of profitability. With increased cash flow we not only expanded our sales and marketing team but also strengthened our debt-free balance sheet. The Company hired five additional sales personnel, increasing the sales team from 10 to 15, with the anticipation of investing in additional sales personnel as the Company increases its market share.”

“I am encouraged by our recently implemented strategy to interface more directly with end users,” Mr. Millar said. “We believe it is critical to proactively communicate with our customers, while still supporting our distributor sales channels, in order to identify our customers’ precise needs. Our strategy remains to sell products that best satisfy the end-user’s specific requirements, and by talking more directly with our customers, our research and development activities can more closely align with their needs.”

Mr. Millar concluded, “Our focus on diversifying our products and target markets, and our focus on the specific needs of our customers, directly contributed to a record 2003. Going forward, we remain well-positioned with an excellent suite of products, loyal customers and a motivated team. Sales efforts to the food service market are showing encouraging results. We are actively involved in trials in several restaurants and are pleased with the feedback we have received. We believe this market will become an increasing contributor to future revenue growth.”

PRODUCT SUMMARY

Mask and eye shield sales for the year increased by $4.1 million, or 84.5 %, to $9.0 million from $4.9 million for 2002. The increase is primarily the result of an increase of approximately $3.5 million in N-95 mask and eye shields related to SARS. The Center for Disease Control (CDC) has recommended an N-95 be used together with an eye shield to protect healthcare workers in the fight against the spread of the SARS virus. Core mask and eye shield sales, which are distributed to the medical, dental and industrial markets, increased by 12.7 % for the year compared to 2002.

Mr. Millar, continued, “The outbreak of SARS had a profound impact on our financial results. We believe the outbreak led to an overall heightening of safety measures in medical facilities and led to increased demand for many of our products. Indeed, our core business grew at 8 percent exclusive of SARS-related sales. We certainly hope further outbreaks of SARS will not occur, and SARS-related sales have slowed since the end of the second quarter as the outbreak slowed. However, we anticipate strong demand for our masks and eye shields in the future due to increased awareness of the urgency of infection control precautions and we have adjusted our inventories accordingly.”

Sales for the Apparel Division for the year increased 8.6 % to $16.1 million compared to the $14.8 million reported for the same period of 2002. Apparel Division revenues were positively impacted primarily by increased sales to the pharmaceutical industry, partially offset by decreased sales to the electronics industry which includes semiconductor and memory device.

As the economy improves, we anticipate increased business from electronics manufacturers,” Mr. Millar continued. “While apparel sales in the electronics industry have continued to be soft, we see continued growth with pharmaceutical customers and remain well-positioned as the economy rebounds. We expect revenue growth in the pharmaceutical market. We also expect that it will continue to increase as a percentage of revenue in years to come."