News Release

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