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Laser Technology, Inc. Reports Second Quarter Operating Results

ENGLEWOOD, Colo., May 16 /PRNewswire-FirstCall/ -- Laser Technology, Inc. (Amex: LSR - News), a leading designer, manufacturer and marketer of pulse laser measuring systems, today reported operating results for the second quarter and first six months of its 2002 fiscal year.

Net sales during the second quarter of fiscal 2002, which ended March 31, 2002, declined 27% from the same period a year earlier, to $2,234,728 from $3,060,393.

Traffic Safety revenues during the second quarter fell 22% to $1,442,330 from $1,838,619 a year ago. North America accounted for 67% of sales while International sales totaled 33%. Traffic Safety product sales in North American markets rose 2% to $966,409 from $947,043, while International sales of Traffic Safety products declined 47% to $475,921 from $891,576. This decrease reflected continued competitive pricing in overseas markets, and cautionary spending for capital items by various government agencies.

Sales of our Survey and Mapping products decreased 32% to $661,697 in 2002 as compared to $966,794 in 2001. North American sales and International sales comprised 70% and 30%, respectively of the total during the quarter ended March 31, 2002. North American sales declined 31% to $465,484 from $674,108. Continued uncertainty about the economy slowed private spending while purchases by government agencies were hindered by reallocated budgets. International sales decreased by 33%, to $196,212 from $292,686 as customers postponed discretionary purchases of capital items.

"Domestic Survey and Mapping sales continue to be affected by cautious spending in both the private and government sectors. Traffic Safety sales remained solid and we look to strengthen our domestic presence with the recent addition of MPH Industries' radar speed detection products which will be sold through Laser Technology's direct distribution channels," commented Eric Miller, President and CEO of Laser Technology, Inc. "International revenues have been hindered by pricing pressures created by the strong US dollar in certain countries and purchasing delays caused by the cyclic demand of traffic safety products. Management anticipates a moderate recovery of international sales in the 3rd quarter of the current fiscal year," concluded Mr. Miller.

Gross margins narrowed to 46% of sales in the second quarter versus 51% in the second quarter a year ago. Although average selling prices for the majority of products held at or above last year's levels, higher labor content in cost of goods sold reduced gross margins. Management is currently evaluating our manufacturing processes to identify areas for potential efficiency improvements.

Royalty and licensing income which is based on a percentage of net sales from our licensee was $124,178, in the second quarter of 2002 as compared to $137,144 in 2001. This 9.5% decrease represents a greater proportion of licensee sales of lower priced units.

Total operating expenses remained virtually unchanged at $1,684,477 from $1,677,199 for the comparable 2001 period. After other income of $21,938, the company posted a pretax loss of $513,582 for the March 31, 2002 quarter, as against a profit of $53,496 a year earlier. The net loss after tax benefit amounted to $328,692, or $0.06 per share, versus a profit of $45,207 or $0.01 per share a year ago.

Laser Technology, Inc. manufactures and markets laser-based speed and distance measuring instruments, which utilize proprietary technology developed by the Company. Its products are sold worldwide and are used in a wide variety of applications, including traffic speed enforcement, natural resource management, GIS mapping, surveying, sporting/recreational activities, and industrial process control. The Company's headquarters and primary manufacturing facilities are located in Englewood, Colorado, and its common stock is traded on the American Stock Exchange under the ticker symbol "LSR".

This press release includes statements which may constitute "forward- looking" statements, usually containing the words "believe," "project," "expect" or similar expressions. Any forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned forward- looking statement inherently involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, new products and technological developments, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

                   For further information, please contact:

                  Maggie Urban-Phillips, Investor Relations

                                      Or

             Elizabeth Hearty, Controller and Corporate Secretary

                              At (303) 649-1000



                              LASER TECHNOLOGY, INC.

                       CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

                                                     Three Months Ended
                                                   March 31,      March 31,
                                                     2002           2001
    Net Sales                                     $2,234,728     $3,060,393

    Less Cost of Goods Sold                        1,209,949      1,488,591

       Gross Margin                                1,024,779      1,571,802

    Royalty & Licensing Income                       124,178        137,144

    Total Operating Income                         1,148,957      1,708,946

    Operating Expenses                             1,684,477      1,677,199

    Income (Loss) From Operations                   (535,520)        31,747

    Other Income (Expense), Net                       21,938         21,749

    Income (Loss) Before Changes In
     Accounting Estimate                            (513,582)        53,496

    Changes In Accounting Estimate Income
     (Expense)                                            --             --

    Income (Loss) Before Taxes On Income            (513,582)        53,496

    Taxes On Income (Benefit)                       (184,890)         8,289

    Net Income (Loss)                              $(328,692)       $45,207

    Basic Earnings (Loss) Per Common Share            $(0.06)         $0.01

    Weighted Avg. Shares Outstanding               5,710,867      5,486,220

    Diluted Earnings (Loss) Per Common Share          $(0.05)         $0.01

    Diluted Avg. Shares Outstanding                6,664,067      6,291,220



                              LASER TECHNOLOGY, INC.

                       CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

                                                      Six Months Ended
                                                   March 31,      March 31,
                                                     2002           2001

    Net Sales                                     $4,700,807     $5,470,035

    Less Cost of Goods Sold                        2,398,303      2,609,022

       Gross Margin                                2,302,504      2,861,013

    Royalty & Licensing Income                       345,888        389,876

    Total Operating Income                         2,648,392      3,250,889

    Operating Expenses                             3,370,272      3,401,845

    Income (Loss) From Operations                   (721,880)      (150,956)

    Other Income (Expense), Net                       50,426         66,483

    Income (Loss) Before Changes in
     Accounting Estimate                           $(671,454)      $(84,473)

    Changes In Accounting Estimate Income
     (Expense)                                      $(14,945)            --

    Income (Loss) Before Taxes On Income            (686,399)       (84,473)

    Taxes On Income (Benefit)                       (247,104)       (41,380)

    Net Income (Loss)                              $(439,295)      $(43,093)

    Basic Earnings (Loss) Per Common Share            $(0.08)        $(0.01)

    Weighted Avg. Shares Outstanding               5,710,867      5,486,220

    Diluted Earnings (Loss) Per Common Share          $(0.07)        $(0.01)

    Diluted Avg. Shares Outstanding                6,664,067      6,291,220



                              LASER TECHNOLOGY, INC.

                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                                   March 31,    September 30,
                                                     2002           2001
    Current Assets:
      Cash and cash equivalents                   $2,848,437     $1,641,586
      Trade Accounts receivable,
       less allowance for doubtful
       accounts of $66,235 and $55,228
       at March 31, 2002 and
       September 30,2001, respectively             1,607,179      2,363,225
      Royalties receivable                           123,220        443,713
      Inventories                                  3,620,603      4,493,440
      Prepaids and other current assets              113,591        186,017
      Income tax prepayment                          284,666          8,406

        Total current assets                      $8,597,696     $9,136,387

    Property and equipment,
     net of accumulated depreciation                 599,877        788,983

    Other assets                                   1,042,760      1,068,559

        TOTAL CURRENT ASSETS                     $10,240,333    $10,993,929

    Current Liabilities:
      Accounts payable                              $377,652       $593,271
      Accrued expenses                               240,624        327,094
      Current maturities of long-term debt             2,400         14,611

        Total current liabilities                   $620,676       $934,976

    Stockholders' equity:
      Preferred Stock, $.01 par value
       -- shares authorized 2,000,000:
       shares issued -- none                              --             --
      Common stock, $.01 par value
       -- shares authorized 25,000,000;
       shares issued 5,710,867                        57,109         57,109
      Additional paid-in capital                  10,314,226     10,314,226
      Treasury stock at cost
       (224,650 shares)                             (194,259)      (194,259)
      Retained earnings (Deficit)                   (557,419)      (118,123)

        Total stockholders' equity                 9,619,657     10,058,953

          TOTAL LIABILITIES AND
           STOCKHOLDERS' EQUITY                  $10,240,333    $10,993,929