NOGALES, ARIZONA - August 4, 2004 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading manufacturer of disposable protective apparel and consumer products announced its financial results for the second quarter and six-month period ended June 30, 2004.

Revenues for the quarter decreased 24.1% to $6.7 million, from $8.9 million for the comparable prior year period. The decrease in sales resulted from the absence of approximately $3 million in N-95 Particulate Respirator mask and eye shield sales (non-core) related to the outbreak of the Severe Acute Respiratory Syndrome (SARS) which occurred during 2003. Excluding the SARS-related sales during the second quarter of 2003, Alpha Pro Tech’s core business grew by $853,000, or 14.5% due to increases in sales to the pharmaceutical and cleanroom industries, as well as increased sales to the industrial safety industry. Sales for the Apparel Division were $4.7 million compared to $4.0 million for the same period of 2003, an increase of 18.5%. Mask and eye shield sales for the quarter decreased to $1.6 million from $4.5 million in the same period of 2003, which was primarily the result of an increase in sales directly related to the SARS outbreak. Excluding this event, mask and eye shield sales were up 4.9% for the quarter.

Gross profit margin decreased to 48.0% for the quarter from 53.7% for the same period in 2003, which was due primarily to higher gross profit margins on the increase in N-95 masks sold during the second quarter of last year. Gross profit for this quarter was also affected by severance payments made on the closing of the Company’s Benjamin Hill, Mexico facility during the second quarter of 2004, as well as start-up costs from the new third party contractor in Mexico. Selling, general and administrative expenses decreased by $20,000 or 0.8% to $2.4 million for the quarter from $2.4 million for the second quarter of 2003.

Net income for the quarter was $450,000, or $0.02 per basic and fully diluted share, compared to net income of $1,364,000, or $0.06 per basic and fully diluted share last year, a decrease of $914,000 or 67.0%. The decrease is primarily due to the non-core SARS sales in the second quarter of 2003.

For the six-months ended June 30, 2004, sales decreased to $12.6 million from $14.3 million for the same period of 2003, representing a decrease of $1.7 million or 11.6%. Excluding the $3 million non-core SARS related sales during the second quarter of 2003, the Company’s core business grew by $1.4 million or 12.0%. Sales for the Apparel Division for the six months were $8.8 million compared to $7.5 million for the same period of 2003, an increase of $1.4 million or 18.3%. Mask and eye shield sales for the six months decreased by approximately $3.0 million, or 51.8%, to $2.8 million from $5.9 million in the same period of 2003. Excluding the $3 million in SARS related sales in 2003, mask and eye shield sales in 2004 were basically flat as compared to sales in 2003.

For the six months ended June 30, 2004 as compared to the same period in 2003, cost of goods sold decreased to $6.4 million from $6.7 million. Gross profit margin decreased to 49.4% from 52.6% for the six months ended June 30, 2004 as compared to 2003, related to the absence of non-core, SARS-related sales. Selling, general and administrative expenses increased by 5.3% to $4.5 million for the six months ended June 30, 2004 from $4.3 million last year. Net income for the six months was $917,000, or $0.04 per basic and fully diluted share, compared to net income of $1.8 million, or $0.08 per basic and fully diluted share last year, a decrease of $912,000 or 49.9%. The decrease is primarily due to the non-core SARS sales in the second quarter of 2003.

The balance sheet continues to remain strong with a current ratio of 7.1:1 on June 30, 2004. The Company continues to carry no debt, and shareholders’ equity improved to $14.0 million as of June 30, 2004 from $13.0 million as of December 31, 2003.

Ninety-five thousand shares were repurchased and retired at an aggregate cost of $171,000 during the quarter under the Company’s previously announced share buyback plan.

Al Millar, President of Alpha Pro Tech commented, “We anticipate further increases in the growth of our core revenues on a comparable basis during the remainder of the year. Excluding the revenue derived from last year’s SARS outbreak, our profit margins remained stable and revenue growth to new and existing customers continued to increase. We see strong demand for our products, in a variety of industrial and commercial industries, particularly in the apparel segment, and the benefits from our direct sales and marketing team continue to reinforce our long-term business strategy.”

During the quarter, we unveiled the Engineered Products division, which we believe will significantly expand our future growth opportunities by incorporating the Company’s core product technology and expertise into new products which address entirely new vertical markets. Our new environmental protection products include a building wrap product as well as a synthetic roof underlayment. The sales team led by Bruce Hayden, an industry veteran, expects to start generating revenue by the fourth quarter of this year. In addition, we announced a new antimicrobial paint, which is targeted towards clean rooms, hospitals, surgical rooms and other controlled environments due to its ability to inhibit the growth of bacteria, fungi and algae on the painted walls and other surfaces. Anne Marie Dixon, a respected clean-room consultant, will spearhead the antimicrobial paint sales efforts.