NOGALES, ARIZONA - November 02, 2004 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading manufacturer of disposable protective apparel and consumer products announced its financial results for the third quarter and nine-month period ended September 30, 2004.

Revenues for the quarter decreased 10.6% to $5.8 million, from $6.5 million for the comparable prior year period. The decrease in sales resulted from the absence of approximately $0.5 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 decreased 3.2% compared to the $6.0 million reported for the same period last year. Sales for the Apparel Division were $4.3 million, a slight increase compared to the $4.2 million reported for the same period of 2003. Mask and eye shield sales for the quarter decreased to $1.1 million from $2.0 million in the same period of 2003. Sales were impacted by the absence of $0.5 million in sales directly related to the SARS outbreak last year and to an increased awareness of infection control concerns in the third quarter of 2003.

Gross profit margin increased to 50.1% for the quarter from 49.4% for the same period in 2003. Selling, general and administrative expenses increased by 2.7% or $57,000 to $2.2 million for the quarter as compared to the third quarter last year. Included in the SG&A expenses for the quarter, was $155,000 of costs related to the startup of the Company’s newly formed Engineered Products segment.

Net income for the quarter was $374,000, or $0.02 per fully diluted share, compared to net income of $701,000, or $0.03 per fully diluted share last year. The decrease is primarily due to the absence of non-core SARS related sales in the third quarter of 2004. In addition, the effective tax rate for the third quarter of last year was lower due to international sales related tax credits.

“By utilizing our reputation as a recognized leader in protecting people, products and environments in a variety of growing industries, we anticipate that our newly launched line of disposable apparel products will compliment growth opportunities we are pursing in our core business.” commented Al Millar, President of Alpha Pro Tech. “We anticipate that our Apparel segment will show improvements in the fourth quarter and significant improvements in 2005.”

For the first nine months of 2004 sales decreased 10% to $18.4 million from $20.5 million reported during the same period of 2003. Excluding $3.5 million in non-core SARS related sales reported during the second and third quarters of 2003, the Company’s core business grew by $1.5 million or 8.6% during the first nine months of 2004. Sales for the Apparel Division for the nine months were $13.1 million, an increase of 14.1% compared to $11.5 million for the same period of 2003. Mask and eye shield sales for the nine months decreased 49% to $3.9 million from the $7.7 million reported in the same period of 2003. Excluding the $3.5 million in SARS related sales in 2003, mask and eye shield sales in 2004 were down $284,000 or 6.7% due to an increased awareness of infection control concerns in 2003.

Gross profit margin decreased to 49.6% from 52.4% for the nine months ended September 30, 2004 as compared to 2003, related to the absence of higher margin non-core, SARS-related sales. Gross profit during 2004 was also affected by severance payments made on the closing of the Company’s facility in Benjamin Hill, Mexico, as well as start-up costs from the new third party contractor in Mexico.

Selling, general and administrative expenses increased by 4.4% to $6.7 million for the nine months from $6.4 million for the nine months ended September 30, 2003. Included in the selling, general and administrative expenses for the nine months is $180,000 of expenses that pertain to start-up costs for the newly formed Engineered Products segment.

Net income for the nine months was $1.3 million, or $0.06 per basic and $0.05 per fully diluted share, compared to net income of $2.5 million, or $0.11 per basic and fully diluted share last year, a decrease of 49.1% or $1.2 million. The net income decline in 2004 is primarily due to the $3.5 million non-core SARS related sales in 2003.

The balance sheet continues to remain strong with $3.5 million in cash and equivalents and a current ratio of 9.1:1 on September 30, 2004. The Company continues to carry no debt, and shareholders’ equity improved to $14.8 million as of September 30, 2004 from $13.0 million as of December 31, 2003.

The Company repurchased and retired 215,000 shares at an aggregate cost of $371,000 during the nine months ended September 30, 2004 under the Company’s share buyback plan. In August 2004, the Company’s Board of Directors authorized the repurchase of an additional $500,000 worth of the Company's outstanding Common Stock. Repurchases will be made from time to time in both the open market and through negotiated transactions. This is the sixth consecutive buyback for the Company, resulting in 2,323,800 shares repurchased and retired at a total cost of approximately $2.5M.

“Positive feedback from customer prospects on our new Engineered Products segment, including our new building wrap, roof underlayment and anti-microbial paint, provides optimism that our recent investments will start to produce revenues in the latter part of the fourth quarter, while providing significant growth opportunities in 2005.” Mr. Millar concluded.

Alpha Pro Tech develops, manufactures and markets innovative disposable and limited-use protective apparel products for the medical, dental, industrial, clean-room and food service markets. The Company will also manufacture a line of construction supply weatherization products, such as building wrap and roof underlayment, as well as a line of paint with antimicrobials. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Janesville, Wisconsin; Valdosta, Georgia; and Benjamin Hill, Mexico.