FAFCO, Inc. Announces Earnings

Business Wire, March 31, 1998

REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 31, 1998--FAFCO, Inc., a manufacturer of solar heating systems and IceStor(TM) "off-peak" air conditioning products, reported a net income of $866,000 ($0.26 per primary share and $0.22 on a diluted basis) for the year ended Dec. 31, 1997 compared to a net income of $311,400 ($0.10 per primary share and on a diluted basis) in the same period of 1996.

Net sales increased by 19% to $10,551,500 for the year ended Dec. 31, 1997 from $8,868,600 in the prior year. This increase was primarily due to increased sales of the Company's pool panel products, along with increased unit sales of the Company's IceStor(TM) products partially offset by the effect of discontinuance of the Company's automated swimming pool controls.

For further information, contact: Freeman A. Ford, Chairman of the Board or Alex N. Watt, Vice President, Finance and Administration. FAFCO, Inc., 2690 Middlefield Road, Redwood City, CA 94063; 650/363-2690.

CONTACT: FAFCO, Inc.

Alex N. Watt, 650/363-2690