12 2009 Kenny Chesney GLOBE NEWSWIRE -- Northern

12, 2009 clarifies kenny chesney born (GLOBE NEWSWIRE) anything but mine chesney gathers -- Northern TechnologiesInternational Corporation (Nasdaq:NTIC) today reported financial results for itsfirst quarter of fiscal 2009.NTIC's net income decreased 98.0% to $12,885, or $0.00 per diluted common share,for the three months ended November 30, 2008 compared to $658,196, or $0.18 perdiluted common share, for the three months ended November 30, 2007. Thisdecrease was primarily the result of decreased demand of NTIC's ZERUST(r)products in the United States and internationally due to the global economicslowdown, especially with respect to its effect on the worldwide automotiveindustry."The rapid downturn in the global automotive industry has put the brakes on someof the strong forward momentum we had been enjoying with our internationalcorrosion protection business," said G Patrick Lynch, NTIC president and chiefexecutive officer. "At the same time, we are pleased to announce that two of ourjoint ventures recently have signed contracts for our new proprietary ZERUST(r)corrosion protection services with oil companies in the last two months, whichprovides us entry into a significant new market for NTIC. We also are pleasedwith the continued positive market reception of our new broad portfolio ofbio-based and biodegradable (compostable) polymer resin compounds and finishedproducts, which we began marketing under the Natur-Tec(tm) brand in fiscal 2008.We believe that our Natur-Tec(tm) (biodegradable plastics) products will be asignificant contributor to our North American sales in fiscal 2009."NTIC's consolidated net sales decreased 6.2% during the three months endedNovember 30, 2008 as compared to the three months ended November 30, 2007primarily as a result of decreased demand for NTIC's ZERUST(r) products andelimination of the React Inc. sales, partially offset by sales of its newNatur-Tec products.

Net sales of ZERUST(r) products decreased 12.0% to$2,784,536 during the three months ended November 30, 2008 as compared to$3,165,439 during the three months ended November 30, 2007 Net sales of theReact Inc kenny chesney cmt . products were $0 during the three months ended November 30, 2008compared to $248,160 during the three months ended November 30, 2007.On a positive note, net sales of Nature-Tec products increased 657.4% to$482,316 during the three months ended November 30, 2008 as compared to $63,684during the three months ended November 30, 2007.Total net sales of NTIC's joint ventures decreased 11.8% to $21,109,585 duringthe three months ended November 30, 2008 as compared to $23,944,115 during thethree months ended November 30, 2007 primarily as a result of decreased demandfor ZERUST(r) products from the global economic slowdown and to a lesser extent,the foreign currency exchange rate of the U.S when the sun goes down chesney . dollar compared to othercurrencies in which NTIC's joint ventures conduct business there goes my life chesney . NTIC's total incomefrom its corporate joint ventures and holding companies decreased 33.7% to$801,451 for the three months ended November 30, 2008 compared to $1,209,302 forthe three months ended November 30, 2007.In response to this decrease in demand, in December 2008 and January 2009, NTICimplemented a number of countermeasures the good stuff chesney . NTIC reduced the base salaries of itsexecutive and other officers by approximately 15% on average, by 10% for allother employees and suspended NTIC's matching of 401(k) contributions.

NTIC alsoimplemented a hiring freeze and laid off nine individuals or 16% of its workforce . Furthermore, significant cost concessions were requested and obtainedfrom all of NTIC's major vendors and service providers i go back chesney . NTIC enacted otherexpense control measures across all of its departments with the objective toconserve cash and reduce expenses while protecting the essential sales andmarketing efforts of each business you had me from hello chesney . NTIC anticipates recognizing the benefit ofthese cost control measures immediately."These were extraordinarily painful measures, especially considering that wewere still aggressively hiring only a few short months ago in order to meetgrowing customer demand," said G Patrick Lynch, NTIC president and chiefexecutive officer . "We trust that, in our leaner form, we will be able toprevail in our core business as well as enjoy the rewards that our newtechnologies and markets promise."NTIC's working capital was $6,625,943 at November 30, 2008, including $456,505in cash and cash equivalents. As of November 30, 2008, NTIC had no borrowingsunder its $2,300,000 demand line of credit. Comparatively, NTIC's workingcapital was $4,837,271 at August 31, 2008, including $260,460 in cash and cashequivalents and $86,000 of borrowings under its $2,300,000 demand line ofcredit.NTIC spent $722,078 in the three months ended November 30, 2008 and $715,564 inthe three months ended November 30, 2007 in connection with its research anddevelopment activities.