Kadant Corporate

News Release

Thermo Fibertek Announces First Quarter Results

April 25, 2001 at 12:00 AM EDT

WALTHAM, Mass., April 25 /PRNewswire/ -- Thermo Fibertek Inc. (Amex: TFT), a Thermo Electron company, today reported net income of $3.1 million, or $.05 per diluted share, for the quarter ended March 31, 2001, compared with $2.7 million, or $.04 per diluted share, for the same period last year. Results for the first quarter of 2000 include an after-tax charge of $0.9 million representing the cumulative effect of adopting the Securities and Exchange Commission's new revenue-recognition rules. Excluding this item, net income would have been $3.6 million, or $.06 per diluted share, in the 2000 period.

Revenues for the quarter ended March 31, 2001, were $58.9 million compared with $57.9 million in the same period last year. Excluding unfavorable currency effects of $2.0 million and the net increase of $0.3 million from acquisitions and dispositions that affected both periods, revenues increased 5 percent over the 2000 quarter.

"I am pleased that we met our financial goals for the first quarter of 2001," said William A. Rainville, president and chief executive officer of Thermo Fibertek. "We are particularly pleased to have met our revenue target for our rapidly expanding fiber-based composites business, with shipments of soundwall and decking systems totaling more than $0.9 million in the first quarter. We expect to generate positive operating cash flow in our composite building-products business starting in the second half of the year."

    Consolidated Statement of Income (Unaudited)
                                                     Three Months Ended
    (In thousands except per share amounts)    Mar. 31, 2001      Apr. 1, 2000

    Revenues                                       $58,900           $57,922

    Costs and Operating Expenses:
      Cost of revenues                              36,196            34,607
      Selling, general, and administrative
       expenses                                     15,856            15,831
      Research and development expenses              1,792             1,863
                                                    53,844            52,301

    Operating Income                                 5,056             5,621
    Interest Income                                  2,141             2,503
    Interest Expense                                (1,873)           (1,890)

    Income Before Provision for Income
     Taxes, Minority Interest, and
      Cumulative Effect of Change in
      Accounting Principle                           5,324             6,234
    Provision for Income Taxes                       2,219             2,525
    Minority Interest (Income) Expense                 (24)              149

    Income Before Cumulative Effect of
     Change in Accounting Principle                  3,129             3,560
    Cumulative Effect of Change in
     Accounting Principle (net of income
     taxes of $580)                                      -              (870)

    Net Income                                      $3,129            $2,690

    Basic and Diluted Earnings per Share
     Before Cumulative Effect of
      Change in Accounting Principle                  $.05              $.06

    Basic and Diluted Earnings per Share              $.05              $.04

    Weighted Average Shares:
      Basic                                         61,387            61,244

      Diluted                                       61,448            61,597

A pre-recorded company update will be available from 5 p.m. EDT today until May 7, 2001. To listen to the recording, call 888-689-6813 within the U.S., or 402-530-0460 outside the U.S. An audio archive will also be available on the Internet until May 7, 2001, accessible through www.thermo.com under "Investor Info" in the "audio archive" section.

Thermo Fibertek Inc. develops, manufactures, and markets a range of equipment and products for the domestic and international papermaking and paper recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and accessories. Through its majority- owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Thermo Fibertek is a public subsidiary of Thermo Electron Corporation. More information is available at www.thermofibertek.com.

The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward- looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the heading "Forward-looking Statements" in Exhibit 13 to the company's annual report on Form 10-K for the year ended December 30, 2000. These include risks and uncertainties relating to: dependence on the paper industry and pulp and paper prices, international operations, competition, ability to enter the composites market, dependence on patents and proprietary rights, acquisition strategy, fluctuations in quarterly operating results, and the proposed spinoff of the company.

CONTACT: Investor: 781-622-1111 or Media: 781-622-1252 of Thermo Electron/

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