<SEC-DOCUMENT>0001171520-19-000309.txt : 20191015
<SEC-HEADER>0001171520-19-000309.hdr.sgml : 20191015
<ACCEPTANCE-DATETIME>20191015081236
ACCESSION NUMBER:		0001171520-19-000309
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20191014
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191015
DATE AS OF CHANGE:		20191015

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SONO TEK CORP
		CENTRAL INDEX KEY:			0000806172
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				141568099
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-16035
		FILM NUMBER:		191149276

	BUSINESS ADDRESS:	
		STREET 1:		2012 RT 9W BLDG 3
		CITY:			MILTON
		STATE:			NY
		ZIP:			12547
		BUSINESS PHONE:		8457952020

	MAIL ADDRESS:	
		STREET 1:		2012 RT. 9W, BLDG. 3,
		CITY:			MILTON
		STATE:			NY
		ZIP:			12547
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eps8669.htm
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<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">UNITED STATES</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported): <B>October
14, 2019</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center"><B><U>Sono-Tek Corporation</U></B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center">(Exact name of registrant as specified in its charter)</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center">Commission File Number: <B>0-16035</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 41%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B><U>New York</U></B></FONT></TD>
    <TD STYLE="width: 5%; font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 54%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B><U>14-1568099</U></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif">(State of Incorporation)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif">(I.R.S. Employer ID No.)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B><U>2012 Route 9W, Milton, New York</U></B></FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B><U>12547</U></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including area code <B>(845)
795-2020</B></P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">Check appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 31.7pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 31.7pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 31.7pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman,serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 31.5pt"><FONT STYLE="font-family: MS Mincho">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Cambria,serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">Securities registered pursuant to Section 12(b) of the Act:</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 31%; padding-right: 4pt; padding-bottom: 4pt; padding-left: 4pt; font-family: Times New Roman,serif"><FONT STYLE="font: 10pt Cambria,serif"><B><U>Title
    of each class</U></B></FONT></TD>
    <TD STYLE="width: 14%; padding-right: 4pt; padding-bottom: 4pt; padding-left: 4pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B>Trading<BR>
    <U>Symbol(s)</U></B></FONT></TD>
    <TD STYLE="width: 55%; padding-right: 4pt; padding-bottom: 4pt; padding-left: 4pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Cambria,serif"><B><U>Name
    of each exchange on which registered</U></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 4pt; padding-right: 4pt; padding-left: 4pt; font-family: Times New Roman,serif"><FONT STYLE="font-size: 10pt">None</FONT></TD>
    <TD STYLE="padding-top: 4pt; padding-right: 4pt; padding-left: 4pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">N/A</FONT></TD>
    <TD STYLE="padding-top: 4pt; padding-right: 4pt; padding-left: 4pt; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-size: 10pt">N/A</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">Indicate by check mark whether the registrant is an emerging growth company as defined
in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">Emerging growth company &#9744;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0">If an emerging growth company, indicate by check mark if the registrant has elected
not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. &#9744;</P>


<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 2.02: Results of Operations and Financial Condition.</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 7.01: Regulation FD Disclosure</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">On October 14, 2019, Sono-Tek Corporation issued a press release regarding its financial
results for the quarter ended August 31, 2019, in the form attached as exhibit 99.1.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall
not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange
Act&rdquo;) or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference
into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0"><B>Item 9.01: Financial Statements and Exhibits.</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">(d) Exhibits</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="ex99-1.htm">Press Release dated October 14, 2019</A>.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: center">Signatures</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">SONO-TEK CORPORATION</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">By: <U>/s/ Stephen J. Bagley</U></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Stephen J. Bagley</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in">Chief Financial Officer</P>



<P STYLE="font: 12pt Cambria,serif; margin: 0 0 0 3in; text-align: center; text-indent: 0.5in"></P>

<P STYLE="margin: 0"><FONT STYLE="font-size: 12pt">October 14, 2019</FONT></P>



<P STYLE="margin: 0"></P>

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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex99-1.htm
<DESCRIPTION>FOR IMMEDIATE RELEASE
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<P STYLE="font: 12pt Cambria,serif; margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="font: 11pt Cambria,serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0">FOR IMMEDIATE RELEASE</P>

<P STYLE="font: 16pt Cambria,serif; margin: 12pt 0 6pt; text-align: center"><B>Sono-Tek Reports Record Quarter Sales of $3.35 million<BR>
in Second Quarter Fiscal 2020 with Continued Record Backlog <BR>
and Provides Sales Guidance</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri,sans-serif; margin-top: 0; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif; font-size: 12pt">Highest Quarterly Sales in Company history of $3.35 million</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri,sans-serif; margin-top: 0; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif; font-size: 12pt; color: windowtext">Record high backlog of $4.17 million </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri,sans-serif; margin-top: 0; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif; font-size: 12pt">Second quarter gross margin 46.2% </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri,sans-serif; margin-top: 0; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif; font-size: 12pt">Achieved net income of $115,000 versus $59,000 in second quarter
FY2019</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri,sans-serif; margin-top: 0; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 12pt">&middot;</FONT></TD><TD><FONT STYLE="font-family: Cambria,serif; font-size: 12pt">Second quarter revenues increased 19% vs last year, with 15% - 25%
growth expected for Fiscal 2020</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Cambria,serif; margin: 10pt 0 10pt 0.5in">MILTON, N.Y., October 14, 2019 &ndash; <FONT STYLE="color: Blue">Sono-Tek
Corporation</FONT> (OTCQX: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial
results for its fiscal 2020 second quarter and year-to-date period ended August 31, 2019.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0.7pt 6pt 0">Dr. Christopher L. Coccio, Chairman and CEO commented that &ldquo;The
second quarter of FY2020 showed 19% revenue growth, along with a strong increase in our bottom line. As previously announced, we
have initiated expansion of our manufacturing facility and have acquired new machinery to accommodate our continued and anticipated
growth. Our strategy to provide customers with a high level of application engineering support, in combination with large complex
ultrasonic coating systems, that are often highly customized, continues to gain momentum. These orders increase our average revenue
per order compared to less sophisticated systems and individual units, and we are expecting this trend to continue.&rdquo;</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0.7pt 6pt 0">The Company experienced significant growth in sales of larger Multi-Axis
coating systems, along with an increase in Integrated Coating Systems. Growth in these product categories more than offset the
decline in OEM system sales. The same general trends were seen in the first half year results comparisons. There was a dip in sales
to several China based OEM partners, but the Asia Pacific results were stable through the first half with a strong second quarter
performance.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0.7pt 6pt 0">The Electronics / Microelectronics sector saw a significant increase,
primarily derived from the semiconductor industry, and this drove the Company&rsquo;s increases in the first half of the year and
more so in the second quarter.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0.7pt 6pt 0">&ldquo;Due to the continued record increase in our orders and backlog
this quarter, we are expecting third quarter revenues to also show an increase of 15-25% over last year and for this trend to continue
through the balance of the Fiscal Year&rdquo;, commented Dr. Christopher L. Coccio, Chairman and CEO.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 10pt 0 0">&nbsp;</P>

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<P STYLE="font: 12pt Cambria,serif; margin: 10pt 0 0"><B>Year-to-Date Fiscal 2020 Results </B><FONT STYLE="font-size: 10pt"><I>(Narrative
compares with prior-year period unless otherwise noted)</I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Cambria, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Six Months Ended August 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Change</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; text-align: left">Net Sales</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">6,168,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">5,519,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">649,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">12%</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,852,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,616,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">236,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">46.2%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">47.4%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">97,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">46,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">1.6%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">0.8%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">140,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">81,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">2.3%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">1.5%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Diluted Earnings Per Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>Weighted Average Shares - Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,377,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,169,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt"><B>Second Quarter Fiscal 2020 Results </B><FONT STYLE="font-size: 10pt"><I>(Narrative
compares with prior-year period unless otherwise noted) </I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Cambria, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Three Months Ended August 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Change</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="width: 44%; text-align: left">Net Sales</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">3,346,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,818,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">528,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">19%</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,547,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,345,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">46.2%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">47.7%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">92,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">14,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">557%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">2.8%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">0.5%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">115,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">59,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95%</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD STYLE="font-style: italic; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Margin</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">3.4%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">2.1%</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Diluted Earnings Per Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(230,239,255)">
    <TD>Weighted Average Shares - Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,399,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,224,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: right">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman,serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0"><B></B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 10pt 0 6pt">The Company&rsquo;s sales growth was primarily driven from the Electronics/Microelectronics
market (up 100%), and the Medical market (up 7%). The Company&rsquo;s strategy of providing paid coating services as a part of
its Application Engineering services in addition to its coating equipment, is clearly benefitting revenues.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">From a product sales perspective, Integrated Coating Systems increased by 46%
or $130,000, and Multi-Axis Coating Systems increased 43% or $545,000, while OEM systems decreased by 53% or $281,000. Quarterly
demand and revenue in any of the Market or Product baskets typically varies due to the size and timing of orders, so the multi-quarter
totals at year-end are often more significant, reflecting overall Market and Product trends.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">In the second quarter of fiscal 2020, approximately 72% of sales originated
outside of the United States and Canada compared with 62% in the prior-year period. This increase in export sales was greatly impacted
by a larger custom medical device coating platform sold into Latin America.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">The change in product mix resulted in slightly lower gross margin of 46.2%,
but due to increased revenues the Company increased its net income by $56,000 to $115,000 for the quarter. The Company expects
its income to rise considerably as it proceeds through the fiscal year, due to increasing backlog and growth in orders with associated
leverage on operating costs.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0 0"></P>

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<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0 0"><B>Balance Sheet and Cash Flow Overview</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">Cash and cash equivalents and short-term investments at quarter-end were $5.7
million, up from $5.5 million at the end of fiscal 2019. The increase was the result of the timing of working capital requirements
primarily due to an increase in customer deposits and accounts payable. These increases were partially offset by increased inventories
and capital expenditures. Higher inventory is to address both customer demand for shorter delivery cycles and increased order
levels.</P>



<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">Year-to-date capital expenditures were $319,000 compared with $160,000 in the
prior-year period.&nbsp; The increase was primarily due to investments to upgrade the Company&rsquo;s manufacturing facilities.&nbsp;
Sono-Tek anticipates total capital expenditures to be approximately $0.5 million to $0.6 million in fiscal 2020.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0">At August 31, 2019, the Company had total debt of $790,000, down $81,000 since
fiscal 2019 year-end. Long-term debt is comprised of the mortgage on the Company&rsquo;s industrial park complex and has an interest
rate of 4.15%.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0"><B>About Sono-Tek</B></P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt">Sono-Tek Corporation is the leading developer and manufacturer of ultrasonic
coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for
the microelectronics/electronics, alternative energy, medical and industrial markets, including specialized glass applications
in construction and automotive.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 0 0 6pt; background-color: white">The Company&rsquo;s solutions are environmentally-friendly,
efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and
provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; background-color: white">Sono-Tek&rsquo;s growth strategy is focused on leveraging
its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film
coating technologies that enable better outcomes for its customers&rsquo; products and processes. <FONT STYLE="background-color: white">For
further information, visit <FONT STYLE="color: Blue">www.sono-tek.com</FONT></FONT>.</P>

<P STYLE="font: 12pt Cambria,serif; margin: 6pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Cambria,serif; margin: 0 0.9pt 0 0"><B><I>Safe Harbor Statement </I></B><BR> <I>This news
release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that
involve risks and uncertainties that could cause actual results to differ materially. These factors include, among
other considerations, general economic and business conditions; political, regulatory, tax, competitive and
technological developments affecting our operations or the demand for our products; timely development and market acceptance
of new products and paid coating services; adequacy of financing; capacity additions; the ability to enforce patents;
maintenance of operating leverage; continued effectiveness of investment in application engineering support; the successful
transition to sales of more complex systems; maintenance of order backlog; consummation of order proposals; continued sales
growth in the Electronics/Microelectronics and Medical market areas; and the ability to achieve increased sales volume and
net income  at projected levels. We refer you to documents that the company files with the Securities and Exchange
Commission, which includes Form 10-K and Form 10-Qs containing additional important information</I>.</P>

<P STYLE="font: 11pt Cambria,serif; margin: 12pt 0 6pt"><B>For more information, contact:</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 42%; font-family: Times New Roman,serif"><FONT STYLE="font-family: Cambria,serif">Stephen J. Bagley</FONT></TD>
    <TD STYLE="width: 58%; font: 11pt Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Calibri,sans-serif"><FONT STYLE="font-family: Cambria,serif">Chief Financial Officer</FONT></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Calibri,sans-serif"><FONT STYLE="font-family: Cambria,serif">Sono-Tek Corporation</FONT></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt Calibri,sans-serif"><FONT STYLE="font-family: Cambria,serif; color: Blue">info@sono-tek.com</FONT></TD>
    <TD STYLE="font: 11pt Calibri,sans-serif">&nbsp;</TD></TR>
</TABLE>


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