Mikron Infrared, Inc. Reports Three and Nine Month Results for Fiscal Year 2005; Mikron Posts Record Sales and Profits for Nine Months Ending July 31, 2005

Mikron continued on a record setting pace during the nine monthsending July 31, 2005. Sales were 18% higher ($22,011,494 versus$18,704,422) and operating profit was 45% higher ($2,759,516 versus$2,043,240) than the same period last year. Basic earnings per sharewere $0.30 for the first nine months of fiscal 2005 compared to $0.21for the same period in fiscal 2004. Fully diluted earnings earning pershare were $0.30 for the first nine months of fiscal 2005 compared to$0.20 for the same period in fiscal 2004. The gross profit for thenine months ending July 31, 2005 was 54.5% compared to 52.9% for thesame period last year.

Mikron's sales for the three months ended July 31, 2005 were$7,048,353 (8% higher) compared to $6,530,817 for the same period in2004. Operating income for the three months ended July 31, 2005 was$869,417, compared to $942,512 for the same period in 2004. Thedecrease in operating income for the third quarter was almost totallya result of a slight decrease in gross profit and a $56,000 increase(from zero in the same period of 2004) in Sarbanes Oxley expense. Thegross profit percentage for the three months ending July 31, 2005 was54.5% compared to 55.2% last year.

Gerry Posner, Mikron's President, commented that, "shipments,although an improvement over the same period last year, were adverselyaffected in the US during this quarter by the transition to a newthermal imaging camera. One supplier of several key parts for the newcamera encountered delivery problems and we were unable to ship theentire number of cameras in our backlog. Although shipments in thequarter were approximately $7,000,000 as noted above, bookings for thequarter were $7,980,125."

Dennis Stoneman, Mikron's Executive Vice President added, "we areheartened by the acceptance of our two new thermal imaging camerasthat were introduced April 1, 2005. After our vendor solved the partsdelivery problems, we began to receive parts at the end of July, andwere able to start shipping the new camera late in July. We plan toreduce the back orders for the camera in our fourth quarter."

Paul Kohmescher, Mikron's Chief Financial Officer stated "thethird quarter produced a significant improvement in Mikron's balancesheet. Debt was reduced by over $1,225,000 for the quarter and over$2,500,000 in the first nine months of this fiscal year. This has leftMikron in a strong financial position to capitalize on attractiveopportunities.

Mikron Infrared, Inc., founded in 1969, is a developer,manufacturer and marketer of infrared non-contact temperaturemeasurement devices, temperature sensors, calibration sources andthermal imaging systems. Its executive offices and manufacturingfacilities are located at 16 Thornton Road, Oakland, NJ (Tel. No.201/405-0900)
Consolidated statements of operations
For the three and nine months ended July 31, 2005 and 2004
----------------------------------------------------------------------
3 MONTHS 3 MONTHS 9 MONTHS 9 MONTHS
ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31,
2005 2004 2005 2004
------------------------ ---------- ---------- ----------- -----------
Total Revenues 7,048,353 6,530,817 22,011,491 18,704,422
------------------------ ---------- ---------- ----------- -----------
Costs and Expenses
------------------------ ---------- ---------- ----------- -----------
Cost of goods sold 3,208,397 2,925,575 10,026,068 8,805,214
------------------------ ---------- ---------- ----------- -----------
Selling, General and
Administrative 2,434,477 2,151,791 7,276,403 6,348,917
------------------------ ---------- ---------- ----------- -----------
Research, Development
And Engineering 536,062 510,939 1,746,418 1,507,051
------------------------ ---------- ---------- ----------- -----------
Total Costs and Expenses 6,178,936 5,588,305 19,048,889 16,661,182
------------------------ ---------- ---------- ----------- -----------
Income from Operations 869,417 942,512 2,962,602 2,043,240
------------------------ ---------- ---------- ----------- -----------
Other Income (Expense):
------------------------ ---------- ---------- ----------- -----------
Interest Expense (90,502) (65,863) (225,812) (201,160)
------------------------ ---------- ---------- ----------- -----------
Other (Expense)
Income, net 6,142 (12,962) 22,726 (16,631)
------------------------ ---------- ---------- ----------- -----------
Net Income Before Income
Taxes 785,057 863,687 2,759,516 1,825,449
------------------------ ---------- ---------- ----------- -----------
Income Tax Provision (322,914) (360,770) (1,114,435) (727,884)
------------------------ ---------- ---------- ----------- -----------
Net Income 462,143 502,917 1,645,081 1,097,565
------------------------ ========== ========== =========== ===========
Net Income per Share-
Basic $0.08 $0.10 $0.30 $0.21
------------------------ ========== ========== =========== ===========
Weighted Average Number
of Shares-Basic 5,598,556 5,259,628 5,433,225 5,259,628
------------------------ ========== ========== =========== ===========
Net Income per Share-
Diluted $0.08 $0.09 $0.30 $0.20
------------------------ ========== ========== =========== ===========
Weighted Average Number
of Shares-Diluted 5,608,673 5,414,817 5,443,343 5,414,817
------------------------ ========== ========== =========== ===========

Safe Harbor Act Statement under the Private Securities LitigationReform Act of 1995: -- Certain of the statements contained herein areforward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such statements are subjectto certain risks and uncertainties that could cause actual results todiffer materially from those included in the forward-lookingstatements. These statements are not guarantees of future performanceand are subject to certain risks, uncertainties and assumptions thatare difficult to predict. Factors that could affect the company'sactual results include, but are not limited to, general andmarket-specific economic and business conditions, both nationally andinternationally; fluctuations in our quarterly and annual operatingresults which make it difficult to predict our future performance ouracquisition opportunities and our ability to integrate acquisitions;our expectations and estimates concerning future financialperformance; our ability to obtain sufficient supplies of criticalcomponents; our ability to respond to the rapid technological changein the intense markets for thermal imaging products in which wecompete; our ability to successfully introduce new or enhancedproducts; financing plans and the impact of competition; economic andother disruptions and uncertainties resulting from the post-9/11 waron terrorism, including military action such as the conflict in Iraq,new terrorist attacks, actual or threatened, and related politicalevents; and anticipated trends in our business,. Readers are cautionednot to place undue reliance on these forward-looking statements, whichspeak only as of the date of this release. The company undertakes noobligation to update publicly any forward-looking statements toreflect the occurrence of unanticipated events.