NOGALES, ARIZONA - August 8, 2005 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading manufacturer of disposable protective apparel, consumer and building products announced its financial results for the second quarter and six month period ended June 30, 2005.

Revenues for the three months ended June 30, 2005 increased 34.0% to $9.0 million compared to $6.7 million in the second quarter of 2004. The revenues for the quarter also increased 29.5% sequentially from the $7.0 million reported in the first quarter of 2005. Sales in the second quarter of 2005 were favorably impacted by approximately $1 million in sales of disposable protective apparel products related to manufacturing delays from the first quarter of 2005.

Sales of building wrap and roof underlayment for the Engineered Products segment totaled $1.1 million for the second quarter of 2005 compared to $0 for the same period of 2004. Sales for the Disposable Protective Apparel segment for the quarter was $6.4 million, an increase of 35.5% compared to the $4.7 million reported for the same period of 2004, primarily due to increased sales of $1.3 million to the Company’s largest distributor, and approximately a $400,000 increase due to other distributors who focus on the industrial safety and cleanroom industry. Infection Control segment sales for the second quarter decreased by 28.1% to $1.2 million compared to $1.6 million for the same period of 2004, primarily due to a $600,000 international sale for N-95 respirator masks booked during the second quarter of 2004, partially offset by increased medical, dental and industry mask sales as well as increased shield sales in the second quarter of 2005. Excluding last year’s large international sale, the infection control segment was up 14.2% for the second quarter of 2005. Sales of the Company’s Extended Care Unreal Lambskin and other related products decreased by 12.8% to $341,000 for the second quarter from $391,000 for the quarter ended June 30, 2004.

Gross profit increased by 30.5% to $4.2 million, or 46.7% of net sales, for the second quarter from $3.2 million, or 48.0% of net sales, for the same period in 2004. The decrease is primarily related to lower margins on sales by the Engineered Products segment. Gross profit on Engineered Products segment improved to 25.2% for second quarter from 20.6% for the first quarter ended March 31, 2005, and management expects gross profit on this product line to increase to the mid 30% range by mid 2006 as our production facility in India becomes fully operational. Excluding Engineered Products, gross profit margin was 49.8% for the second quarter.

Selling, general and administrative expenses increased by 4.9% to $2.5 million, or 27.8% of net sales, for the second quarter from $2.4 million, or 35.5% of net sales, for the second quarter of 2004. Selling, general and administrative expenses for the second quarter for the Engineered Products segment was $240,000 with no comparable expenses in the same period of 2004. Management believes the infrastructure required to substantially grow the Engineered Products is now in place, and accordingly, expenses are not expected to change substantially from current year to date levels for at least the next 12 months if sales increase as expected.

Income from operations increased by 124.6% to $1.6 million for the quarter ended June 30, 2005 as compared to income from operations of $707,000 for the quarter ended June 30, 2004. Net income increased 122.9% for the quarter ended June 30, 2005 to $1.0 million or $0.04 per fully diluted share, compared to net income of $450,000, or $0.02 per fully diluted share, for the quarter ended June 30, 2004. 25.1 million fully diluted shares were utilized in the calculation compared to 24.6 million shares last year.

Al Millar, President of Alpha Pro Tech commented, “We expect continued growth in 2005 from our largest distributor as they continue to implement a new growth strategy, introduced late last year, to expand sales of private-label products, like those produced by Alpha Pro Tech. We also expect growth with other distributors as our products gain a more prominent presence in the pharmaceutical, industrial safety and cleanroom markets. Our Engineered Products division reported its initial profit of $34,000 during the second quarter, and we expect this segment to become a solid contributor to our overall revenue and net income growth going forward with margin improvements emanating from higher volume production.”

For the six month period ended June 30, 2005, sales increased 27.1% to $16.0 million from $12.6 million for the same period last year. The increase is primarily attributed to $1.8 million in increased sales of disposable protective apparel, as well as new sales of construction supply weatherization products of $2.1 million, partially offset by decreased infection control segment sales of $455,000 relating to one international sale in 2004.

Sales for the Disposable Protective Apparel segment for the six months were $10.7 million compared to $8.8 million for the same period of 2004, an increase of 20.7%. Infection Control segment sales decreased by 16.0% to $2.4 million from $2.8 million in the same period of 2004, again due to $600,000 in international sales for N-95 respirator masks in the second quarter of 2004. Excluding this international sale, the infection control segment was up $145,000 or 6.5% for the six months ended June 30, 2005. Engineered Products sales for the six months were $2.1 million as compared to $0 for the same period of 2004. Sales of the Company's Extended Care Unreal Lambskin and other related products decreased by 6.5% to $874,000 from $935,000 for the six months ended June 30, 2004.

Gross profit increased to $7.4 million, or 46.1% of net sales, for the six months compared to $6.2 million, or 49.4% of net sales, for the same period in 2004. Gross profit margin is primarily down due to lower margins on the Engineered Products segment. Gross profit on Engineered Products segment was 23.0% for the six month period. Excluding Engineered Products, gross profit margin was 49.6% for the six months ended June 30, 2005.

Selling, general and administrative expenses increased by 7.9% to $4.9 million, or 30.4% of net sales, for the six month period compared to $4.5 million, or 35.8% of net sales, for the same period last year. Excluding the year-to-date Engineered Products segment expenses of $556,000, selling, general and administrative expenses for the six months ended June 30, 2005 decreased by $201,000 or 4.5%, to $4.3 million as compared to $4.5 million for the same period of 2004.

Income from operations increased by 56.8% to $2.3 million for the six month period as compared to income from operations of $1.5 million for the same period last year. Net income for the six months increased 57.8% to $1.4 million, or $0.06 per basic and fully diluted shares, compared to net income of $917,000, or $0.04 per basic and fully diluted share, for the same period of 2004. 25.1 million fully diluted shares were utilized in the calculation compared to 24.9 million shares last year.

The balance sheet continues to remain strong with a current ratio of 6.2 to 1 on June 30, 2005. The Company continues to carry no long-term debt, and shareholders’ equity improved to $17.4 million as of June 30, 2005 from $15.7 million as of December 31, 2004. As of June 30, 2005, the Company had cash and cash equivalents of $1.1 million and working capital of $13.9 million, an increase of almost $1 million from December 31, 2004. Cash was utilized for the six months ended June 30, 2005 to purchase inventory and capital equipment primarily for the Engineered Products segment, as well as for the investment in the joint venture in India.

“Our investment in India was a very prudent step for the Company to make and once the manufacturing facility comes on-line, it will increase our gross margin, as well as our manufacturing capacity for the Engineered Products segment,” Mr. Millar continued. “We believe we are well positioned for success and anticipate the second half of 2005 will show further improvements over the first half.”