IKONICS Posts Increase in Operating Income on Record First Quarter Sales



DULUTH, Minn., April 24 /PRNewswire-FirstCall/—IKONICS Corporation
(Nasdaq: IKNX), a Duluth based imaging technology company, announced today
record 2008 first quarter sales of $3,781,000, an 8% increase over the
first quarter of last year. Operating income was $47,000 compared to a
small loss for the first quarter of 2007. Net earnings were $106,000, or
$0.05 per share, a $33,000 decrease compared to the first quarter of 2007,
which benefited from a one time $55,000 gain on the sale of our interests
in Apprise Technologies and a $55,000 tax benefit.

Bill Ulland, Ikonics’ CEO, said that the sales growth was led by sales
to Europe and Asia, and a significant contribution from our new Photo
Machining venture. The weak dollar has helped our export business, while
the slow U.S. economy has had some effect on domestic sales.

Ulland added, “Sales of our new Digital Texturing products have been
slow to materialize reflecting both continuing product optimization and the
depressed condition of the domestic automotive industry, the initial target
market. We are now broadening the target market to the international
automotive industry and the non-automotive U.S. market,” he added.

On April 7th, 2008 IKONICS purchased 11 acres, with an option on an
additional 4 acres, from the City of Duluth for $366,000. A 35,000 square
foot manufacturing and warehouse facility is being constructed on this
brown field site.

This press release contains forward-looking statements regarding sales,
earnings, and new products that involve risks and uncertainties. The
company’s actual results could differ materially as a result of domestic
and global economic conditions, competitive market conditions, acceptance
of new products, the ability to identify, complete and integrate suitable
acquisitions, as well as the factors described in the company’s Form
10-KSB, Forms 10-QSB and other reports on file with the SEC.

IKONICS Corporation

Condensed Statements of Operations (Unaudited)
For the Three Months Ended March 31, 2008 and 2007
Three Months Ended
03/31/08 03/31/07

Sales $3,780,848 $3,507,767
Costs and expenses 3,733,728
3,511,434
Income (Loss) from Operations 47,120 (3,667)
Gain on sale of investment -
55,159
Interest Income 43,675 32,907
Income before income taxes $90,765 $84,399
Federal and state income tax benefit (expense) 14,843 54,698
Net income 105,638 139,097

Earnings per common share-diluted $0.05 $0.07
Average shares outstanding-diluted 2,069,129 2,064,511

Condensed Balance Sheets
As of March 31, 2008 and December 31, 2007

Assets 3/31/08 12/31/07
(Unaudited)
Current assets $9,397,635 $9,315,737
Property, plant and equipment, net 1, 403,373 1,320,591
Investment in non-marketable
equity securities 855,201 855,201
Intangible assets 492,825 479,888
Deferred income taxes 11,000 11,000
$12,160,034 $11,982,417
Liabilities and Equity
Current liabilities $922,774 $936,703
Long term debt - -
Stockholders’ equity 11,237,260 11,045,714
$12,160,034 $11,982,417

SOURCE IKONICS Corporation