August 21, 2001 — ST. PETERSBURG, FL — Flanders Corporation, recently announced its results for its second quarter ended June 30, 2001. The company reported net earnings for the second quarter from continuing operations of $546,000 or $0.02 per share, down 43 percent from $959,000, or $0.04 per share in the second quarter of 2000.

Revenues for the quarter were flat at approximately $50 million compared to the second quarter of 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA), declined 4 percent from $5 million for the second quarter ended June 30, 2001 compared to$5.2 million for the second quarter ended June 30, 2000. Earnings from continuing operations for the six months were $1.4 million, down 50 percent compared to $2.9 million for the six months ended June 30, 2000.

Revenues for the six months ended increased 3 percent, to $97 million compared to $94 million for the six months ended June 30, 2000. EBITDA for the six months decreased 16 percent, to $10.4 million compared to $12.4 million for the six months ended June 30, 2000.

“Business conditions in the second quarter were difficult, particularly in the latter part of the quarter, and certainly worse than in the first quarter of this year,” said Robert Amerson, CEO. “Year over year sales for the second quarter were flat compared to last year. In particular, sales activity and operating results in the high end filtration side of our business declined significantly.”

“Our future business will also continue to be impacted by the slowdown in the U.S. economy. Being the largest manufacturer of consumable, disposable residential and commercial air filters used in HVAC applications gives our sales and profits some additional stability, but we are not immune to fluctuations in the overall economy. In August, we implemented a 10 percent salary reduction. We will continue to consolidate the administrative activities of the company,” Amerson said.