DND Technologies Post Second Quarter Results for Fiscal 2004 CHANDLER, Ariz., Aug. 18 /PRNewswire-FirstCall/ -- DND Technologies (NASDAQ:DNDT.OB) and its sole operating subsidiary, Aspect Systems, Inc., today announced results for the second quarter of fiscal 2004, ended June 30. The company posted revenues of $3.7 Million, which represented a 52% improvement over the same quarter last year and a 12% improvement over the prior quarter. Net income also rose dramatically, jumping from a $78.5K loss in the second quarter of 2003, to a $794K profit for the second quarter of 2004. For the first six months of the year, revenues reached $7.0 Million, up 69% from the $4.2 Million reported for the first six (6) months of 2003. Net income for the first six months was $1.1 Million, up sharply from the $33K loss reported for the same period last year. The company's net income in the second quarter and six month period ended June 30, 2004 was significantly impacted by the value of inventory credits (approximately $1,000,000) resulting from the Lam contract revisions. "Even though would be difficult to match the substantial profit we showed during the second quarter as a result of the inventory credit adjustment, it is our view that the impact of our improved efficiencies and cost management strategies will continue to produce favorable results in the second half of 2004 and beyond," Dennis Key, President and CEO of ASI concluded. "There was a short lull in demand activity that occurred during the April-May timeframe, after which the strength in our markets returned," stated Key. "Booking activity has recovered and continues to be excellent, with system orders stemming from around the world. As a new OEM, we are excited by the opportunity to provide original tools to our customer base. So far this year, we have already booked ten orders for new systems and continue to work with manufacturers evaluating our tools and technologies for coming orders." About Aspect Systems: Aspects Systems is a well-established equipment and engineering services company, offering a broad suite of services to the semiconductor industry. ASI has recently directed its attention to the growing market for equipment that has been proven to serve the needs of discrete manufacturers who are building .25 micron and higher devices on 100mm to 200mm wafers, and as such do not require the more advanced, and capital intensive, equipment to achieve their goals. To meet this demand, ASI has greatly enhanced its technical capability with the addition of a full line of refurbished and highly customized products, offered on the popular Rainbow and TCP platforms, originally manufactured by Lam Research, Inc. It is ASI's intention to continue adding relevant products and services, as they become available to address the needs of this growing market. Safe Harbor Statement: Statements in this press release about the Company's future expectations, including the impact of improved efficiencies and cost management strategies on the profitability of the Company and all other statements in this release, other than historical facts, are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Act of 1934, as that term is defined in the Private Securities Reform Act of 1995. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as softening of demand or desire for our products for a variety of reasons or the failure to meet covenants in our new lending documents, among other factors. Such "forward-looking statements" are subject to risks and uncertainties set forth from time to time in the Company's SEC reports, including the report on Form 10-KSB for the year ended December 31, 2003 and Form 10-QSB for the quarter ended June 30, 2004. DATASOURCE: DND Technologies; Aspect Systems, Inc. CONTACT: Dennis Key of Aspect Systems, Inc., +1-480-558-4438

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