ONIX Systems Reports Second Quarter Results.

KINGWOOD, Texas, Aug. 11 /PRNewswire/ -- ONIX Systems Inc. (Amex: ONX), a Thermo Electron company, today reported that revenues for the quarter ended July 3, 1999, were $34.7 million, compared with $38.4 million for the same period in 1998. Net income was $0.7 million, or $.05 per diluted share, compared with $3.2 million, or $.21 per diluted share, last year. The 1999 second quarter results include a pretax restructuring charge of $0.3 million. Excluding restructuring costs, net income for the current quarter would have been $0.9 million, or $.06 per diluted share.

"Customers in certain markets continued to spend cautiously this quarter, which is reflected in our financial performance," said Dr. William J. Zolner, president and chief executive officer of ONIX Systems. "Yet, while revenues were down, several of our businesses reported increased orders late in the quarter, evidence that some of our markets may be strengthening. For instance, sales of our production automation products for the oil and gas industry and our consistency monitors for the pulp and paper markets were on the rise, despite softness in these industries as a whole. Additionally, I am pleased to report that we completed a marketing and sales agreement with a major German instrument manufacturer to be its exclusive U.S. representative for infrared-based, on-line gas analysis systems for the process and environmental monitoring industries. These technologies provide a natural fit with our existing gas chromatography, process mass spectrometry, and on-line sulfur-detection capabilities."

Consolidated Statement of Income (unaudited)

(In thousands except per share amounts)

                             Three Months Ended          Six Months Ended                           July 3,       July 4,        July 3,     July 4,                             1999          1998          1999        1998     Revenues               $34,716       $38,439     $ 68,735     $ 75,583      Costs and Operating Expenses:     Cost of revenues        21,832        21,930       43,671       43,554     Selling, general, and      administrative      expenses                9,306         9,529       17,672       19,162     Research and      development expenses    2,378         2,388        4,607        4,565     Restructuring      costs, net                308            --          281           --                             33,824        33,847       66,231       67,281      Operating Income           892         4,592        2,504        8,302     Interest Income            380           717          785          976     Interest Expense          (36)          (16)         (56)        (277)     Other Expense             (20)            --           --           --      Income Before Provision      for Income Taxes        1,216         5,293        3,233        9,001     Provision for      Income Taxes              474         2,090        1,261        3,581      Net Income                $742        $3,203       $1,972       $5,420      Basic and Diluted      Earnings per Share       $.05          $.21        $ .14        $ .39      Weighted Average Shares:     Basic                   14,358        15,606       14,356       14,065     Diluted                 14,358        15,610       14,356       14,070 

Condensed Consolidated Balance Sheet (unaudited)

(In thousands)

                                             July 3, 1999        Jan. 2, 1999      ASSETS     Current Assets:     Cash, cash equivalents, and      advance to affiliate                      $ 35,918           $ 33,373     Other current assets                         71,334             72,489                                                 107,252            105,862      Property, Plant, and Equipment, Net          10,775             10,136     Other Assets                                    295                302     Cost in Excess of Net Assets      of Acquired Companies                       62,788             64,278                                                 $181,110           $180,578     LIABILITIES AND SHAREHOLDERS' INVESTMENT     Current Liabilities                        $ 30,960           $ 31,019     Deferred Income Taxes and      Other Deferred Items                         3,005              3,012     Shareholders' Investment                    147,145            146,547                                                 $181,110           $180,578 

A pre-recorded subsidiary update will be available from 5:00 p.m. EST today until August 31, 1999. Please call 800-880-8745 within the U.S., or 703-925-2531 outside the U.S.

ONIX Systems Inc. designs, develops, markets, and services sophisticated field measurement instruments and on-line sensors for the process control industry. The company's products incorporate advanced technologies to provide real-time data collection, analysis, and local control functions regarding the flow, level, density, or composition of a particular material. ONIX Systems is a public subsidiary of Thermo Instrument Systems Inc., another Thermo Electron (NYSE: TMO) company. More information is available on the Internet at http://www.thermo.com/subsid/onx1.html.

The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward- looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the heading "Forward-looking Statements" in Exhibit 13 to the company's annual report on Form 10-K for the year ended January 2, 1999. These include risks and uncertainties relating to: dependence on the oil and gas industry, market acceptance of new products, customer capital spending policies, the company's acquisition strategy, international sales, technological change and new products, competition, use of gamma technology, protection of proprietary rights, government regulations and approvals, and the potential impact of the year 2000 on processing date-sensitive information.