Increases in Fiscal Year 2007 Third Quarter Sales and Earnings

CIRCLE PINES, Minn., July 12 /PRNewswire-FirstCall/ -- Northern Technologies International Corporation (Amex: NTI) announced today an increase in operating results for the three and nine months ended May 31, 2007.

NTIC's net income for the nine months ended May 31, 2007 increased 32.7% or $509,551 to $2,066,227 and $0.56 per share compared to $1,556,676 and $0.43 per share for the nine months ended May 31, 2006.

NTI's total worldwide sales from its international joint ventures increased 15.6% to $59,265,028 during the nine months ended May 31, 2007 as compared to $51,278,645 during the same period in fiscal 2006.

The Company's net sales increased 2.0% and 3.3% during the three and nine months ended May 31, 2007 as compared to the same periods in fiscal 2006 primarily as a result of the increase of React-NTI products to new and existing customers in North America offset by a slight decrease in net sales of Zerust(R) products. Net sales of Zerust(R) products decreased $35,933 to $8,833,283 for the nine months ended May 31, 2007 as compared to the same period in fiscal 2006. Net sales of React-NTI products increased $446,307 to $4,076,784 for the nine months ended May 31, 2007 as compared to the same period in fiscal 2006.

NTIC's working capital was $3,253,245 at May 31, 2007, including $536,246 in cash and cash equivalents.

        NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARY
                                Three Months Ended       Nine Months Ended
                                May 31,      May 31,     May 31,     May 31,
                                2007         2006         2007        2006
    NORTH AMERICAN
     OPERATIONS:
     Sales                   $4,407,798   $4,320,371  $12,910,067 $12,499,693
     Cost of goods sold       2,876,012    2,759,360    8,280,131   7,803,716
     Gross profit             1,531,786    1,561,011    4,629,936   4,695,977
    Operating expenses:       1,542,059    1,575,723    4,878,810   4,546,808
    NORTH AMERICAN OPERATING
     (LOSS) INCOME              (10,273)     (14,712)    (248,874)    149,169
    INCOME FROM ALL CORPORATE
     JOINT VENTURES AND
     HOLDING COMPANIES          755,558      721,335    2,073,994   1,714,180
    INTEREST INCOME                 667        2,129        2,368      30,108
    INTEREST EXPENSE            (41,139)     (19,886)    (131,503)    (55,392)
    OTHER INCOME                  6,281           --       14,655          --
    GAIN ON SALE OF ASSETS          100           --      726,295          --
    MINORITY INTEREST INCOME
     (EXPENSE)                    7,606         (903)         292      (8,389)
    INCOME BEFORE INCOME
     TAX EXPENSE                718,800      687,963    2,437,227   1,829,676
    INCOME TAX EXPENSE
     (BENEFIT)                   91,000      (30,000)     371,000     273,000
    NET INCOME                 $627,800     $717,963   $2,066,227  $1,556,676
    NET INCOME PER COMMON
     SHARE:
     Basic                        $0.17        $0.20        $0.56       $0.43
     Diluted                      $0.17        $0.20        $0.56       $0.43
    WEIGHTED AVERAGE COMMON
     SHARES ASSUMED
     OUTSTANDING:
     Basic                    3,679,016    3,610,993    3,674,635   3,599,677
     Diluted                  3,708,626    3,638,795    3,707,772   3,625,061

Composite financial information from the audited and unaudited financial statements of the Company's joint ventures carried on the equity basis is

                            summarized as follows:
                                                    May 31,       August 31,
                                                      2007           2006
    Current assets                                $36,481,058    $33,954,156
    Total assets                                   42,967,257     39,030,247
    Current liabilities                            13,733,953     14,323,903
    Non-current liabilities                         3,522,544      1,496,557
    Joint ventures' equity                         25,710,645     23,209,788
    Northern Technologies International
     Corporation's share of Corporate Joint
     Ventures' equity                             $12,804,366    $10,772,102
                                                       Nine Months Ended
                                                  May 31, 2007   May 31, 2006
    Net sales                                     $59,265,028    $51,278,645
    Gross profit                                   28,705,348     23,901,140
    Net income                                      4,903,342      4,351,355
    Northern Technologies International
     Corporation's share of equity in income
     of Corporate Joint Ventures                   $2,384,020     $2,117,612
    About Northern Technologies International Corporation

The Company focuses on developing, marketing and selling proprietary environmentally responsible materials science based products and technical services in over 50 countries worldwide via a network of joint ventures. In fiscal 2007, the Company's primary revenues derived from the sales of Zerust(R) rust and corrosion inhibiting packaging products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. During this same period, the Company also received revenues from sales of proprietary new technologies including anti-abrasion ink additives, as well as bio-based sintered metal mold release agents, bio-solvents, bio- emollients, bio-cleaners, bio-lubricants and fully bio-degradable plastic packaging. In a concerted effort to extend the Company's proprietary technologies, the Company engages in extensive scientific research and development programs in the areas of material science and corrosion protection.

SOURCE Northern Technologies International Corporation

CONTACT: Matthew Wolsfeld, CFO of Northern Technologies International Corporation, +1- 763-225-6600 -0- Jul/12/2007 16:45 GMT

Last Updated: July 12, 2007 12:45 EDT