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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001169232-04-004668.txt : 20040826
<SEC-HEADER>0001169232-04-004668.hdr.sgml : 20040826
<ACCEPTANCE-DATETIME>20040826125235
ACCESSION NUMBER:		0001169232-04-004668
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040824
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20040826
DATE AS OF CHANGE:		20040826

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CTI INDUSTRIES CORP
		CENTRAL INDEX KEY:			0001042187
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED RUBBER PRODUCTS, NEC [3060]
		IRS NUMBER:				362848943
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23115
		FILM NUMBER:		04998151

	BUSINESS ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010

	MAIL ADDRESS:	
		STREET 1:		22160 N PEPPER RD
		CITY:			BARRINGTON
		STATE:			IL
		ZIP:			60010
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d60585_8-k.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 24, 2004

                           CTI INDUSTRIES CORPORATION
             (Exact name of registrant as specified in its charter)

Illinois                                0-23115               36-2848943
(State or other jurisdiction          (Commission            (IRS Employer
    of incorporation)                 File Number)           Identification No.)

22160 North Pepper Road, Barrington, IL                 60010
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code (847) 382-1000

                                      N/A
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

<PAGE>

Item No. 2.02 - Results of Operations and Financial Condition

      On August 24, 2004, CTI Industries Corporation issued a press release
reporting earnings and other financial results for its second quarter ended June
30, 2004. A copy of the Press Release is attached as Exhibit 99.

Item No. 9.01 - Exhibit

      (c)   The following exhibit is attached hereto:

      Exhibit No.           Exhibit

      99                    Press Release dated August 24, 2004, captioned:
                            "CTI Industries Corporation Releases Financial
                            Results for the Second Quarter and Six Months Ended
                            June 30, 2004"


                                       2
<PAGE>

                                   SIGNATURES

      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.

                                            CTI Industries Corporation
                                                   (Registrant)

Date: August 26, 2004                    By: /s/ Howard W. Schwan
                                            ------------------------------
                                            Howard W. Schwan, President


                                       3

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>d60585_ex99.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

                                   EXHIBIT 99
NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick
Executive Vice President
(847) 382-1000

                           CTI Industries Corporation
                         Releases Financial Results for
                        The Second Quarter and Six Months
                               Ended June 30, 2004

FOR IMMEDIATE RELEASE
Tuesday, August 24, 2004

BARRINGTON, IL, August 24, 2004 -- CTI Industries Corporation (NASDAQ Small Cap
- - CTIB), a manufacturer and marketer of metalized balloons, latex balloons,
novelty items and printed and laminated films, today released financial results
for its second quarter and for the six months ending June 30, 2004. For the
quarter, net sales were $9,591,785, compared to net sales for the second quarter
of 2003 of $8,661,939, an increase of 10.7%. The Company incurred a net loss for
the quarter of ($135,681), compared to net income of $133,178 for the second
quarter of 2003.

Net loss per share basic and diluted was ($0.07) for the three months ending
June 30, 2004, compared to net income per share for the three months ending June
30, 2003 of $0.07 basic and $0.06 diluted.

For the six month period ending June 30, 2004, net sales were $20,485,769,
compared to net sales for the same period in 2003 of $18,824,434, an increase of
8.8%. For the six month period, the Company had net income of $236,220 compared
to a net loss of ($556,611) for the same period of 2003. For the six month
period, the Company had net income per share of $0.12 (basic and diluted),
compared to a loss per share of ($0.29) (basic and diluted) for the same period
last year.

"We have experienced healthy increases in revenues in all of our product lines
this year, with the sole exception of our sales of consumer storage pouches
which have declined." said Howard Schwan, President. "Sales of foil balloons
have increased by 32.7% in the first six months of this year, compared to the
same period last year. Sales of latex balloons have increased 13.2% during the
period.

"Margins have improved from 18.7% during the year ended 2003 to 20.4% during the
first six months of 2004." reported Stephen Merrick, Executive Vice President
and Chief Financial Officer. "This improvement comes as the result of our
efforts to control production and other costs."


                                       4
<PAGE>

CTI Industries is one of the leading manufacturers and marketers of metalized
and latex balloons and produces laminated and printed films for commercial uses.
CTI markets its products throughout the United States and in 30 other countries.

This press release may contain forward-looking statements within the meaning of
Section 17A of the Securities Act and Section 21E of the Securities Exchange
Act. Actual results could differ materially from those projected in the
forward-looking statements, which involve a number of risks and uncertainties,
including (i) the risks of generating and maintaining sales in a highly
competitive market, (ii) the ability of the Company to enter into or maintain
contracts or relationships with customers, distributors, licensors and
suppliers, (iii) manufacturing risks, as well as other risks and uncertainties
reported by the Company in its SEC filings, and such statements should also be
considered in conjunction with cautionary statements contained in the Company's
most recent filing with the Securities and Exchange Commission on Form 10-K.

                        - FINANCIAL HIGHLIGHTS FOLLOW --


                                       5
<PAGE>

                           CTI INDUSTRIES CORPORATION
                          SUMMARY FINANCIAL INFORMATION
                      Quarter Ended June 30, 2004 and 2003
                     Six months ended June 30, 2004 and 2003

<TABLE>
<CAPTION>
Consolidated Balance Sheets
                                                                      December 31,
                                                     June 30, 2004        2003
                                                     -----------------------------
<S>                                                    <C>             <C>
            Assets
Current Assets:
  Cash and cash equivalents                            $   421,430     $   329,742
  Accounts receivable, net                               5,467,657       4,620,276
  Inventories                                            9,388,535       9,263,160
  Other current assets                                   1,394,740       1,221,386
                                                     -----------------------------
Total current assets                                    16,672,362      15,434,564

Property and equipment, net                             11,272,925      12,207,649
Other assets                                             2,402,901       2,627,969
                                                     -----------------------------

Total Assets                                           $30,348,188     $30,270,182

         Liabilities & Stockholders' Equity
Total current liabilities                              $16,650,928     $16,140,080
Long term debt, less current maturities                  8,110,631       8,909,258
Minority interest                                           10,230           9,263
Stockholders' equity                                     5,576,399       5,211,581
                                                     -----------------------------

Total Liabilities & Stockholders' Equity               $30,348,188     $30,270,182
                                                     =============================

<CAPTION>

Consolidated Statements of Operations
                                                          Quarter Ended June 30          Six months ended June 30
                                                           2004            2003              2004          2003
                                                     -----------------------------     ----------------------------
<S>                                                    <C>             <C>                <C>           <C>
Net sales                                              $ 9,591,785     $ 8,661,939        20,485,769    $18,824,434
Cost of sales                                            7,559,756       6,755,910        16,306,371     14,981,352
                                                     -----------------------------     ----------------------------

Gross profit on sales                                    2,032,029       1,906,029         4,179,398      3,843,082

Operating expenses                                       1,814,013       1,928,759         3,586,565      4,090,402
                                                     -----------------------------     ----------------------------

Income from operations                                     218,016         (22,730)          592,833       (247,320)

Other income (expense):
  Interest expense                                        (338,828)       (273,691)         (669,964)      (475,443)
  Other                                                    (73,984)        302,025           489,667         70,406
                                                     -----------------------------     ----------------------------
Income (loss) before income taxes and minority
interest                                                  (194,797)          5,604           412,536       (652,357)

Income tax expense                                         (58,327)       (129,671)          175,129        (95,425)
                                                     -----------------------------     ----------------------------

Income (loss) before minority interest                    (136,470)        135,275           237,408       (556,932)

Minority interest in (loss) of subsidiary                     (789)          2,097             1,187           (321)
                                                     -----------------------------     ----------------------------

Net income (loss)                                      $  (135,681)    $   133,178           236,220    $  (556,611)
                                                     =============================     ============================

Income (loss) applicable to common shares              $  (135,681)    $   133,178           236,220    $  (556,611)

Basic income (loss) per common and common
equivalent shares                                      $     (0.07)    $      0.07              0.12    $    ( 0.29)
                                                     =============================     ============================

Diluted income (loss) per common and common
equivalent shares                                      $     (0.07)    $      0.06              0.12    $     (0.29)
                                                     =============================     ============================

Weighted average number of shares and equivalent
shares of common stock outstanding:
    Basic                                                1,918,420       1,918,420         1,918,420      1,918,420
                                                     =============================     ============================
    Diluted                                              1,918,420       2,139,754         2,032,665      1,918,098
                                                     =============================     ============================
</TABLE>


                                       6

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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