Uniroyal Technology Corporation Reports First Quarter Earnings Per Share of $0.18

Sarasota, Fla. Uniroyal Technology Corporation (Nasdaq: UTCI) today reported net income for the first quarter ended January 2, 2000 of $2,420,000 or $0.18 per diluted common share versus net income in the first quarter of the prior year of $19,000 and a break even per diluted common share.

Sales for the first quarter were $48.9 million versus $49.1 million in the prior year. Sales from continuing operations, excluding sales of the Coated Fabrics automotive business from both periods, increased 13% for the first quarter. The first quarter of this year is a fourteen week period versus thirteen weeks in the prior year period. Howard R. Curd, Chairman and Chief Executive Officer, commenting on the quarter noted, "We continue to aggressively spend in our Optoelectronics segment and we continue to reach key production milestones. We are greatly encouraged by the industry interest in our optoelectronics products and the significant interest we are getting in our Company from the investment community."

In late December, the Company announced that it had entered into an agreement to sell its High Performance Plastics segment as part of a redeployment strategy. The transaction is subject to regulatory review which, if not extended, will lead to a closing in late February.

Sales for the High Performance Plastics segment increased 9% from the first quarter of the previous year. Royalite had a strong quarter with improved unit volume but Polycast was temporarily impacted by lower production levels as the division is nearing completion of its $9.0 million modernization project. Income Before Interest and Taxes increased to $4,735,000 versus $2,735,000 for the prior year period as the negative impact on production at Polycast was more than offset by a suspension of corporate allocations to this discontinued operation as well as a strong performance by Royalite. Prior year corporate allocations to this segment for the first quarter were approximately $1,098,000.

Naugahyde(R) sales of the Coated Fabrics segment increased 25% versus the prior year first quarter as the division continued to roll-out new patterns and coated fabrics products. However, overall sales declined 32% versus the prior year due to the transitional phase-out of the automotive business which has been sold. Income Before Interest and Taxes was $575,000 versus $778,000 in the first quarter of the previous year due to the absence of the automotive sales.

The Specialty Adhesives segment recorded an increase in sales of 10% versus the previous year due to improved sales in both the roofing and industrial segments. Income Before Interest and Taxes increased sharply to $341,000 versus $177,000 in the previous year due to a better sales mix of industrial products which command higher margins.

The Optoelectronics segment recorded sales of $614,000 in the first quarter. The Loss Before Interest and Taxes of $2,929,000 reflects continued start-up costs related to the segment s ramp-up of production of high brightness light emitting diodes.

Also during the first quarter of Fiscal 2000, the Company sold its position in an equity investment and realized a gain of $2,905,000. The gain is included as an offset to Corporate in the Summary of Operations attached. Uniroyal Technology has four business segments: Optoelectronics, High Performance Plastics, Coated Fabrics and Specialty Adhesives. Some of the Company s well-known brand names and products include epitaxial wafers, package ready dies and lamps for LEDs in its Optoelectronics segment, ROYALITE(R) thermoplastics products, POLYCAST(R) acrylic products, VIPLEX and HAPPEL in fabrication of parts for the marine industry, NAUGAHYDE(R) coated fabrics, and SILAPRENE(R) and GUNTHER ULTRA/BOND(TM) in adhesives. The Company s stock and warrants trade on the Nasdaq under the symbols UTCI and UTCIW, respectively. Statements made herein that are forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those related to business conditions and the financial strength of the various markets served by the Company, the level of spending for such products and the ability of the Company to successfully manufacture and market its products.

Contact:
Uniroyal Technology Corporation
George J. Zulanas, Jr., CFO. Tel: 941-361-2220
or
Mark N. Tyler of TT Communications, 212-962-3690