Uniroyal Technology Corporation Reports Second Quarter Diluted Earnings Per Share Of $2.08

Sarasota, Fla. Uniroyal Technology Corporation (Nasdaq: UTCI) today reported net income for the second quarter ended April 2, 2000 of $60,225,000 or $2.08 per diluted common share versus net income in the second quarter of the prior year of $1,059,000 or $0.04 per diluted common share. Per share data for both periods reflect the two-for-one stock dividend payable to common shareholders of record on March 20, 2000.

During the second quarter of FY 2000, the Company recorded a gain, net of tax, of $57,118,000 primarily due to the sale of its High Performance Plastics business segment which was sold on February 28, 2000. Excluding the gain on the sale, the net Income from Continuing Operations was $3,107,000 or $0.11 per diluted common share versus a net loss of $565,000 or a loss of $0.02 per diluted common share in the second quarter of FY 1999.

Sales from continuing operations increased 10% versus the second quarter of the previous year, excluding sales from both periods of the Coated Fabrics automotive business which was sold. Reported sales from continuing operations for the second quarter declined 5% to $16.1 million versus $17.0 million for the second quarter of the previous year. In commenting on the second quarter, Howard R. Curd, Chairman and Chief Executive Officer, noted, "This was a benchmark period for UTC as we strategically transition to a high technology company. We made significant progress at our Optoelectronics segment; we announced an agreement to purchase Sterling Semiconductor, Inc. (Sterling) which will enable us to compete in wireless and power amplification markets; and we completed the sale of a non- strategic business segment which led to a major redeployment of assets. This sale will allow us to move forward swiftly with major expansion activities in the high technology arena. We now have a solid balance sheet with a very strong cash position." The Sterling transaction, subject to the Sterling shareholders approval, is expected to close by the end of May.

Sales of Naugahyde(R) products increased 7% in the second quarter versus the second quarter of the prior year as the division continues to gain new customers with its new patterns and "softer feel" products. Overall, the Coated Fabrics segment declined 17% in sales versus the previous year due to the transitional phase out of the automotive business which has been sold. The Coated Fabrics segment recorded a loss in the second quarter of $950,000 due to a write down to realizable value of assets at its Port Clinton, Ohio facility, which is expected to be sold this year, and an inventory adjustment. The Port Clinton facility is where the coated fabrics automotive products were produced. In addition to the write down and the inventory adjustment, the decline in earnings from the second quarter of last year was due to the absence of the sales from the automotive business as well as idle facility costs at the Port Clinton facility.

Sales for the Specialty Adhesives segment increased 2% in the second quarter versus the comparable prior year period. Industrial sales of the segment s branded products, Silaprene(R), Hydra Fast-En(R) and Gunther, collectively recorded double digit increases which offset a decline in the sales of roofing products. Roofing sales were very strong in the second quarter of the prior year. Income increased 97% versus the second quarter of the prior year due to a greater percentage of sales of industrial products which enjoy higher margins than roofing products.

Sales for the Optoelectronics segment increased to $902,000 versus $85,000 in the prior year period. The segment began shipments of products from its Tampa, Florida facility during the quarter. The loss of $3,158,000 reflects the continued start-up costs related to the segment s ramp-up of production of high brightness light emitting diodes.

The unallocated Corporate expenses include a number of unusual and non- recurring items including the write-off of a note receivable and the related accrued interest deemed uncollectible, a write down of the Port Clinton property to fair value and certain incentive awards in connection with the sale of the High Performance Plastics segment.

For the twenty-seven week period ended April 2, 2000, sales were $31.3 million versus $35.1 million for the twenty-six week period ended March 28, 1999. Excluding the automotive sales of the Coated Fabrics segment from both periods, sales increased 17% versus the preceding year. Net Income for the twenty-seven week period ended April 2, 2000 was $62,645,000 or $2.21 per diluted common share versus net income of $1,078,000 or $0.04 per diluted common share for the twenty-six week period ended March 28, 1999. Income from Continuing Operations for the current period was $4,002,000 or $0.14 per diluted common share versus a net loss of $819,000 or a loss of $0.03 per diluted common share for the prior year period.

Uniroyal Technology has three business segments: Optoelectronics, Coated Fabrics and Specialty Adhesives. Some of the Company s well-known brand names and products include epitaxial wafers and package-ready dies for LEDs in its Optoelectronics segment, NAUGAHYDE(R) and NAUGASOFT(TM) in coated fabrics, and SILAPRENE(R), HYDRA FAST-EN(R) and GUNTHER ULTRA/BOND(R) in adhesives. The Company s stock and warrants trade on the Nasdaq/NMS 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:
George Zulanas, CFO of Uniroyal Technology Corporation
Tel: 941-361-2220
or
Mark Tyler of TT Communications for Uniroyal Technology Corporation
Tel: 212-962-3690