FAFCO, Inc. Reports Net Income

Business Wire, August 5, 1999

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 4, 1999--

FAFCO, Inc., a manufacturer of solar heating systems and IceStor(TM) "off-peak" air conditioning products, reported net income of $338,200 ($0.10 per basic share and $0.08 per share on a diluted basis) for the quarter ended June 30, 1999, compared to a net income of $565,400 ($0.17 per basic share and $0.14 per share on a diluted basis) in the same quarter of 1998.

Net income decreased in the first six months of 1999 to $517,900 ($0.16 per basic share and $0.12 on a diluted basis) from $567,600 ($0.17 per basic share and $0.14 per share on a diluted basis) for the comparable period in 1998.

Sales decreased by 6.2% to $3,573,500 for the quarter ended June 30, 1999 from $3,810,700 in the second quarter of the prior year and net sales increased by 1.6% to 6,613,400 for the first half of 1999 compared to $6,510,200 for the corresponding period in 1998.

For further information, contact:

Freeman A. Ford, Chairman of the Board or Nancy I. Garvin, Vice President, Finance FAFCO, Inc. 2690 Middlefield Road Redwood City, CA 94063 650/363-2690