NOGALES, ARIZONA - August 13, 2007 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, today announced its financial results for the second quarter and six months ended June 30, 2007.

Consolidated sales for the second quarter ended June 30, 2007 decreased 7.4% to $9.1 million from $9.9 million in the comparable 2006 quarter. The decrease was primarily due to decreased sales of engineered products and infection control products, partially offset by an increase in disposable protective apparel sales. Sales for the Disposable Protective Apparel segment for the quarter increased 5.8% to $5.8 million compared to $5.5 million for the same period of 2006. The increase is attributable to the internal efforts to diversify the Company’s distribution strategy, with the majority of the increase coming from sales unrelated to the Company’s largest distributor. This segment has continued to progress throughout 2007, and management expects continued growth in 2007 due to market acceptance of the Company’s new ComforTech® line of products and previously announced expansions to the distribution network. Infection Control segment sales for the quarter decreased 15.3% to $1.6 million compared to $1.8 million for the same period of 2006. Mask sales in this segment were down by $0.3 million due to lower sales of our N-95 NIOSH approved Respirator mask as recent concerns about Avian Flu have abated. Engineered Products segment sales for the quarter decreased by 30.8% to $1.5 million compared to $2.2 million for the same period of 2006. The decrease is directly related to the change in the Company’s distribution strategy, in which the Company decided to move forward on a non-exclusive basis with its distributor, which led the distributor to source product from other suppliers and to ultimately discontinue purchasing from the Company. The Company has announced a new private label distributor, ABC Supply Co. and its division, Amcraft Building Products, and is aggressively building a direct sales force as well as a network of independent manufacturers’ representatives to target the construction market nationwide.

Al Millar, President of Alpha Pro Tech commented, “The impact of the change in our distribution strategy for our innovative construction supply weatherization products continued in the second quarter, and we believe this impact will last throughout the balance of 2007. We are aggressively pursuing a more broad-based and comprehensive distribution strategy, which includes a new national distributor, ABC Supply Co. and its division, Amcraft Building Products, which will sell our products to its extensive customer base on a non-exclusive basis. To date, our internal sales force has expanded to five, and we have recruited thirty-five independent manufacturing representatives. We look forward to continued acceleration as we layer on new customers. We are beginning to benefit from the diversification of our sales channel for our disposable protective apparel segment. The majority of the modest sales increase we recognized during the quarter in this segment was generated by new distributors and not by our largest distributor. We see this as a strong positive indicator and are optimistic that we can continue to diversify sales in this key growth area, growing sales to both our largest distributor and new sales channels as well to capture additional market share.”

Gross profit decreased by 7.7% to $4.3 million for the quarter, or 46.7%, from $4.6 million, or 46.8%, for the same period in 2006. For perspective, gross profit for the first quarter of 2007 was $4.2 million, or 46.0%. Gross profit margin on the Engineered Products segment continued to improve in the second quarter of 2007, and although the gross profit margin in the Engineered Products segment remains lower than the overall company margin, management expects continual improvement in 2007.

Selling, general and administrative expenses increased by 24.5% to $3.4 million for the quarter from $2.7 million for the same quarter last year. The increase was primarily due to the creation of an internal sales team and a marketing campaign designed to support the launch of the new engineered products, REX SynFelt™, REX Wrap™ and Deuce Wrap™. In addition, the Company incurred a $0.3 million severance agreement related to the termination of the Company’s former Senior VP of Manufacturing who was terminated in April.

Income from operations decreased by 57.3%, to $0.8 million for the second quarter of 2007 as compared to income from operations of $1.8 million for the same quarter last year due to the decrease in gross profit and the increase in SG&A expenses. Income before provision for income taxes for the second quarter was $0.8 million compared to $1.8 million last year, a decrease of 54.2%. The provision for income taxes for the second quarter was $0.3 million compared to $0.7 million for the second quarter of 2006. The effective tax rate was 38.1% for the quarter ended June 30, 2007 and was 37.0% for the same quarter of 2006.

Net income for the quarter was $507,000, or $0.02 per basic and diluted share (based on 25.8 million diluted shares) compared to net income of $1.1 million, or $0.05 per basic and diluted share (based on 25.0 million diluted shares) for the second quarter of 2006. Excluding the severance agreement for the Company’s former Senior VP of Manufacturing, net income, based on non-GAAP measures, for the quarter would have been $685,000 or $0.03 per share.

Net sales for the first six months of 2007 were $18.2 million, an increase of 1.9% compared to net sales of $17.9 million last year. Gross profit for the first six months was $8.4 million, or 46.4%, compared to gross profit of $8.3 million, or 46.3% last year. Selling, general and administrative expenses were $6.6 million, an increase of 26.7% compared to SG&A expenses of $5.2 million for the first half of last year. Income from operations for the six months was $1.6 million, a decrease of 30.4% compared to income from operations of $2.8 million last year. Net income for the first six months of 2007 was $1.0 million, or $0.04 per basic and diluted share (based on 25.6 million diluted shares) compared to net income of $1.8 million, or $0.07 per basic and diluted share (based on 25.0 million diluted shares) for the same period last year. Excluding the severance agreement, net income, based on non-GAAP measures, for the six months would have been $1,221,000 or $0.05 per share.

The balance sheet continued to remain strong with a current ratio of 12.6 to 1 on June 30, 2007. The Company completed the quarter with cash and cash equivalents of $1.6 million and working capital of $21.9 million. Inventories during the quarter totaled $14.9 million and were up 17.4% compared to inventories as of December 31, 2006. Inventory levels increased by $139,000 or less than 1% from the first quarter. Inventory for the Engineered Product segment at $7.6 million is up only marginally by $82,000 as compared to the prior quarter end. The Company currently has no outstanding debt and maintains an unused $3.5 million credit facility.

Lloyd Hoffman, Chief Financial Officer commented, “We expect slight increases in our Engineered Products inventory throughout the remainder of 2007 but anticipate that these inventory levels should begin to decrease in the first quarter of 2008, with the reduction accelerating throughout the balance of the year.”

About Alpha Pro Tech, Ltd.