H.E.R.C. Products Inc. Reports Financial Results for the Three Months Ended March 31, 1998

Business Wire, May 19, 1998

PHOENIX--(BUSINESS WIRE)--May 19, 1998--H.E.R.C. Products Inc. (NASDAQ:HERC) Tuesday released operating results for the three months ended March 31, 1998 which were included in the company's Form 10-QSB filed with the SEC on May 15, 1998.

The company reported an operating loss of $75,000 and a net loss of $22,000 ($0.00 per common share), including a one time gain from the sale of a patent for $78,000, for the three months ended March 31, 1998.

In comparison, the company had an operating loss of $789,000 and a net loss of $851,000 ($0.13 per common share), including a loss from discontinued operation of $78,000 ($0.01 per common share), for the three months ended March 31, 1997. Sales increased to $982,000 for the three months ended March 31, 1998 compared to sales of $806,000 for the three months ended March 31, 1997. See attached table.

S. Steven Carl, chief executive officer, commented; "We are pleased to report progress toward reaching our goal of increased sales and gross profit. Additionally, our cost containment program was the primary force behind the decrease in aggregate selling, general and administrative expenses. The combination of the above items resulted in cash flow sufficient to support ongoing operations for the quarter. However, profitability will continue to be the main focus of the company."

H.E.R.C. Products Inc. develops, manufactures, and markets products that eliminate and control scaling and tuberculation on surfaces that come into contact with water through its two operating divisions: H.E.R.C. Consumer Products Inc. and the Industrial Products Group.

In addition to the historical information contained above, this document may contain some forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are in the company's SEC reports, including but not limited to the report on Form 10-QSB for the quarter ended March 31, 1998. -0-

       H.E.R.C. Products Incorporated and Subsidiaries
           Consolidated Statements of Operations
                     (Unaudited)
                                         Three Months Ended March 31,
                                              1998            1997
                                                            (Note A)

Sales                                       $981,799        $805,543
Cost of Sales                                491,038         570,781
Gross Profit                                 490,761         234,762
Selling Expenses                             136,093         259,354
General and Administrative
 Expenses                                    429,712         764,209
Operating Loss                               (75,044)       (788,801)
Other Income (Expense)
   Interest expense                          (24,791)         (1,874)
   Miscellaneous                                 380          17,906
   Gain on sale of patent                     77,597              --
     Total other income                       53,186          16,032
Loss from Continuing Operations
 Before Taxes on Income                      (21,858)       (772,769)
Taxes on Income                                  --              --
Loss from Continuing
 Operations                                  (21,858)       (772,769)
Operating Loss from
 Discontinued Operation                         --           (78,107)
Net Loss                                     (21,858)       (850,876)
Non-Cash Dividend on
 Preferred Stock                                 --           52,135
Net Loss Allocable to
 Common Stockholders                        $(21,858)      $(903,011)

Loss Per Common Share - Basic & Diluted

Loss from Continuing Operations               $(0.00)         $(0.13)
Loss from Discontinued Operations                 --           (0.01)
Net Loss Per Common Share                     $(0.00)         $(0.14)

Weighted Average
 Common Shares Outstanding                 8,230,588       6,574,000


Note A - Discontinued Operation

    During the fourth quarter of 1997, the company determined that it
would exit the agricultural business and commenced efforts to dispose
of its investment in its wholly owned subsidiary, CCT Corp.,
which is accounted for as a discontinued operation in the
accompanying financial statements.  Accordingly, the Consolidated
Statement of Operations for the three months ended March 31, 1997 is
reclassified.

CONTACTS: H.E.R.C. Products Inc., Phoenix

S. Steven Carl or Michael H. Harader, 602/492-0336