BRYAN, Texas, April 30 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported results for the three and nine month periods
ended March 31, 1998.  The Company reported a 66 percent decrease in net
income to $84,924 ($.03 per share - basic and diluted) for the three months
ended March 31, 1998 compared to net income of $247,934 ($.11 per share -
basic; $.10 per share - diluted) for the corresponding 1997 period.  For the
nine month period ended March 31, 1998, the Company reported net income of
$595,614 ($.21 per share - basic; $.20 per share -diluted) reflecting no
change as compared to $595,195 ($.26 per share - basic; $.24 per share
-diluted) for the nine month period ended March 31, 1997.  Per share amounts
for the current periods reflect a substantial increase in the number of shares
outstanding as a result of the Company's initial public offering in October
1997.
    Net sales for the three and nine month periods ending March 31, 1998 were
$2,679,037 and $8,704,997, respectively, decreasing approximately 18% and 6%,
respectively, as compared to the corresponding 1997 periods.  These decreases
were the results of a reduction in market demands for the Company's products
during the month of January.  Along with the significant impact of reduced
sales on operating income, there was also a 6% increase in selling, general
and administrative costs during the quarter.  The cost increases resulted from
expenses related to the acquisition of certain assets of the furniture
business of Harvard Industries, Inc. and costs associated with being a public
entity.  These decreases in operating income were partially offset by
reductions in interest expense and increases in interest income, resulting
from the Company's completion of its initial public offering in October.
    Commenting on the third quarter results, Rebecca Boenigk, Chairman and CEO
said, "We were disappointed with the sales decrease for the quarter.  Despite
significantly lower sales in January, sales for February and March returned to
the anticipated level and are on track for the final quarter of our fiscal
year.  We have also expanded our sales and technical support teams.
    "With the acquisition of the Harvard chair lines in March 1998, we believe
that our Company has broadened its market base by providing mid-priced chairs
that complement our existing product lines.  Production on the Harvard line
began on April 2, 1998.  Our market presence will be further enhanced by the
introduction of computERGO(TM), a portable ergonomic workstation for laptop
computers, which is ready for production.  We are excited about expanding our
presence in the ergonomic marketplace through these two additional product
lines."
    Neutral Posture Ergonomics, Inc. manufactures, markets and distributes
ergonomic products.  Neutral Posture Ergonomics, Inc. common stock is listed
on the Nasdaq National Market under the symbol NTRL.
    This press release may include certain statements that may be deemed to be
"forward-looking" within the meaning of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended.  There are
certain important factors which could cause actual results to differ
materially from those anticipated by the forward-looking statements.  Certain
of the important factors which could cause actual results to differ materially
from those in the forward-looking statements include, among other things,
changes from anticipated levels of sales, the ability to integrate acquired
product lines and related businesses, future national or regional economic and
competitive conditions, changes in relationships with customers, customer
acceptance of existing and new products, pricing pressures due to excess
capacity, raw material cost increases, change of tax rates, change of interest
rates, declining conditions in the industry, validity of patents, availability
of key component parts, casualty to or other disruption of the Company's
production facility and equipment, delays and disruptions in the shipment of
the Company's products and other factors that generally affect business.


                       Neutral Posture Ergonomics, Inc.
                       Summarized Statements of Income
                 (In thousands, except for per share amounts)
                                 (Unaudited)

                               For the Three Months        For the Nine Months
                                  Ended March 31,            Ended March 31,
                               1998           1997         1998           1997

    Net sales               $ 2,679         $ 3,273     $ 8,705        $ 9,294
    Cost of sales             1,744           2,034       5,353          5,855
        Gross Profit            935           1,239       3,352          3,439
    Selling, general
     and administrative         859             814       2,558          2,521
        Operating Income         76             425         794            918
    Interest (income) expense
     and other, net             (61)             31        (113)            97
        Income Before
         Income Taxes           137             394         907            821
    Income taxes (A)             52             146         311            226
        Net Income (A)           85             248         596            595
        Earnings Per Common
         Share (EPS): (A)
           Basic             $  .03           $ .11       $ .21          $ .26
           Diluted              .03             .10         .20            .24
        Weighted Average
         Shares Outstanding:
           Basic              3,200           2,300       2,832          2,300
           Diluted            3,342           2,500       2,969          2,500

    (A) Pro Forma prior to October 1997.

                            Summarized Balance Sheets
                                  (In thousands)

                                              March 31,            June 30,
                                                1998                 1997
                                             (Unaudited)
    Assets
         Current assets                        $ 6,711             $ 2,083
         Property and equipment - net            1,732               1,435
         Other assets                              484                 180
              Total Assets                     $ 8,927             $ 3,698

    Liabilities and Shareholders' Equity
         Current liabilities                   $ 1,583             $ 1,492
         Long-term debt                            587                 607
         Deferred income tax liability              72                 ---
         Shareholder's equity                    6,685               1,599
              Total Liabilities and
               Shareholders' Equity            $ 8,927             $ 3,698

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