Polymer Receives De-listing Notification From NASDAQ — Polymer Plans to Appeal; Polymer Announces Results for First Quarter

Business Wire, May 21, 2002

Business Editors

BROOKLYN, N.Y.--(BUSINESS WIRE)--May 21, 2002

Polymer Research Corp. of America (NASDAQ - PROA) today reported that it had received a letter from the NASDAQ staff that its common stock had not maintained a minimum market value of publicly-held shares of $1,000,000 and, as a result, was not in compliance with NASDAQ Market Place Rule 4310(c)(7).

In addition, the bid price of the Company's common stock has also closed below $1.00 for 30 consecutive days and is, therefore, not in compliance with NASDAQ Rule 4310(c)(4).

According to NASDAQ Rule 4310(c)(8)( b), the Company's common stock will be de-listed from the NASDAQ Small Cap Market at the opening of business on May 24, 202 unless the Company requests a hearing to appeal the de-listing notification. The Company has requested such a hearing.

The Company also reported results of operations for the first quarter of 2002. Net income for the quarter was $2,654 on net revenues of $922,940, compared with net income of $49,525 on net revenues of $1,399,573 in last year's first quarter. "Both income and revenues were adversely affected by the economic slowdown as fewer companies were willing to spend money on outside research services," stated Carl Horowitz, Polymer President and Chief Executive Officer.

Polymer Research Corp. of America is engaged primarily in research in the area of chemical grafting on a contract basis for a wide range of manufacturing and other companies and in the manufacture and sale of products arising from research activities and of textile printing inks.