Butler National Corporation Announces Second Quarter and Six Months Fiscal Year 2013 Financial Results and Conference Call

  Butler National Corporation Announces Second Quarter and Six Months Fiscal
               Year 2013 Financial Results and Conference Call

PR Newswire

OLATHE, Kan., Dec. 13, 2012

OLATHE, Kan., Dec. 13, 2012 /PRNewswire/ --Butler National Corporation (OTC
QB: BUKS), a leader in the growing global market for structural modification,
maintenance, repair and overhaul (MRO) and a recognized provider of management
services in diverse business groups, announces its financial results for the
second quarter and six months fiscal 2013 for the period ended October 31,
2012. In conjunction with the release, the Company has scheduled a conference
call Monday, December 17, 2012 at 10:00 AM Central Standard Time.

What: Butler National Corporation Second Quarter Fiscal 2013 Financial Results
Conference Call

When: Monday, December 17, 2012 - 10:00 AM Central Standard Time

How: Live via phone by dialing 800-624-7038. Code: Butler National
Corporation. Participants to the conference call should call in at least 5
minutes prior to the start time. For those who cannot attend the call, an
audio replay will be archived on the Company's web site

Clark D. Stewart, President & CEO, Butler National Corp., will be leading the
call and discussing results of the second quarter, the status of new and
existing orders, and an outlook on the balance of fiscal 2013.

Historical selected financial data related to all operations:

                           Quarter Ended October 31 Six Months Ended October
                           (In thousands)           (In thousands)
                           2012    2011     2010    2012     2011       2010
 Net Sales                 $      $       $      $       $      $ 
                           13,537  14,141   11,016  27,005   26,287  20,563
 Operating Income          699     1,379    780     1,984    2,053   717
 Net Income                114     458      473     382      566     362
 Total Assets              45,288  32,095   29,299  45,288   32,095  29,299
 Long-term Obligations     10,624  4,946    4,715   10,624   4,946   4,715
 Stockholders' Equity      23,883  19,768   16,745  23,883   19,768  16,745
 Weighted Average Shares – 57,546  56,594   56,267  57,546   56,594  56,170
 New Product Research and  425     371      399     797      779     818
 Development Cost

Management Comments

"Second quarter fiscal 2013 revenue decreased 4% to $13.5 million compared to
$14.1 million in the second quarter fiscal 2012. The quarter to quarter
decrease in revenue reflects relatively flat professional services revenue and
a decrease in aerospace products revenue (down 13%) attributable to decreases
in all aerospace products. We anticipate future domestic military spending
reductions and continued slow growth of the United States economy. Butler
National Corporation is working to overcome these challenges by continuing to
drive growth in international markets. This includes significant efforts in
South America, Africa, and Asia.

Our second quarter fiscal 2013 net income decreased to $114,000 compared to
$458,000 in the second quarter fiscal 2012. We continue focusing on our
margin expansion initiatives, including efficiencies in our implementation and
operational processes and controlling general and administrative expenses.

During the three months ending October 31, 2012, we invested approximately
$425,000 in projects focused on the development and acquisition of new
products. We feel this expenditure for the design and development
engineering, testing, and certification of new products may help to stabilize
our long-term revenue and enhance our profits.

We continue to move confidently throughout fiscal year 2013. We believe we
are well positioned for the future as we focus on serving the needs of our
customers and enhancing shareholder value," commented Clark D. Stewart,
President of the Company.

Business Segment Highlights

Professional Services:
Revenue from professional services was relatively unchanged at $9.2 million in
the three months ended October 31, 2012 from $9.1 million in the three months
ended October 31, 2011. The slight increase in professional services revenue
was driven by increased revenue from gaming activities. Operating income from
professional services increased to $452,000 in the three months ended October
31, 2012 from a loss of $340,000 in the three months ended October 31, 2011.

Aerospace Products:
Revenue decreased 13% to $4.4 million in the three months ended October 31,
2012, compared to $5.0 million in the three months ended October 31, 2011.
This decrease is due to reduced military spending and uncertainty in the
economy. We anticipate future domestic military spending reductions,
continued slow growth of the United States economy, and volatility in the
aerospace industry including challenges faced by certain aircraft
manufacturers. Aerospace products had operating income of $61,000 in the
three months ended October 31, 2012 compared to operating income of $1.2
million in the three months ended October 31, 2011. We are working to
overcome this volatility by increasing marketing efforts in international
markets and continuing to diversify product offerings.

As of October 31, 2012 our backlog totaled approximately $5.7 million. The
backlog includes firm, pending, and contract orders, which may not be
completed within the next fiscal year. This is consistent with the industry
in which modifications services and related contracts may take several months
and sometimes years to complete. There can be no assurance that all orders
will be completed or that some may ever commence.

Our Business:
Butler National Corporation operates in the Aerospace and Services business
segments. The Aerospace segment focuses on the manufacturing of support
systems for "Classic" commercial and military aircraft including the Butler
National TSD for the Boeing 737 and 747 Classic aircraft, switching equipment
for Boeing McDonnell Douglas Aircraft, weapon control systems for Boeing
Helicopter and performance enhancement structural modifications for Learjet,
Cessna, Dassault and Beechcraft business aircraft. Services include
electronic monitoring of water pumping stations, temporary employee services,
gaming services and administrative management services.

Forward-Looking Information:
The information set forth above includes "forward-looking statements" as
outlined in the Private Securities Litigation Reform Act of 1995 and Section
21E of the Securities Exchange Act of 1934. Words such as "anticipate,"
"estimate," "expect," "project," "intend," "may," "plan," "predict,"
"believe," "should" and similar words or expressions are intended to identify
forward-looking statements. Investors should not place undue reliance on
forward-looking statements, and the Company undertakes no obligation to
publicly update or revise any forward-looking statements. All forward-looking
statements reflect the present expectation of future events of our management
and are subject to a number of important factors, risks, uncertainties and
assumptions that could cause actual results to differ materially from those
described in the forward-looking statements. These factors and risks include,
but are not limited to the Cautionary Statements and Risk Factors, filed as
Exhibit 99 and Section 1A to the Company's Annual Report on Form 10-K,
incorporated herein by reference. Investors are specifically referred to such
Cautionary Statements and Risk Factors for discussion of factors, which could
affect the Company's operations, and forward-looking statements contained

Reign Strategy and Investment Group
Lou Albert Rodriguez                           Ph (914) 479-9060
www.reigninvestment.com                        Ph (830) 669-2466

Jim Drewitz, Public Relations                  
Butler National Corporation Investor Relations
                                               Ph (913) 780-9595

Please review www.butlernational.comfor pictures of our products and details
about Butler National Corporation and its subsidiaries.

SOURCE Butler National Corporation

Website: http://www.butlernational.com
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