Scientific Industries Reports First Quarter Earnings


BOHEMIA, N.Y., Nov. 14, 2006 (PRIMEZONE) -- Scientific Industries Inc. (OTCBB:SCND), reported today net income of $77,600 ($0.8 per basic share) and net sales of $802,900 for the three months ended September 30, 2006, compared to net income of $96,900 ($0.10 per basic share) and net sales of $890,000 for the three months ended September 30, 2005.

The lower net income was the result of the $87,100 reduction in total net sales due to the loss in May 2006 of the Company's major customer and distributor, Fisher Scientific International ("Fisher"), which decided to discontinue distributing the Company's products because of a stated objective of switching focus from branded to private label products.

Ms. Helena R. Santos, President and Chief Executive Officer, noted, however, the effect of the loss of sales to Fisher was offset to a material extent by the success of the Company's new expanded marketing program, including increasing business with its other distributors, appointing new distributors and increasing the Company's direct-to-end user selling efforts.

About Scientific Industries

Scientific Industries designs, manufactures, and markets a variety of laboratory equipment, including the world-renowned Vortex-Genie(r) 2 Mixer. Scientific Industries' products are generally used for research purposes in laboratories of universities, hospitals, clinics, pharmaceutical companies, and medical device manufacturers.

The Scientific Industries logo is available at http://media.primezone.com/prs/single/?pkgid=715

"Statements made in this press release that relate to future events, performance or financial results of the Company are forward-looking statements which involve uncertainties that could cause actual events, performance or results to materially differ. The Company undertakes no obligation to update any of these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties set forth in the Company's Securities and Exchange Commission reports, including our annual report on Form 10-KSB."


              SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
            UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                                ASSETS

                                         September 30, 2006
                                         ------------------
 Current Assets                                  $2,944,600
 Property and Equipment, Net                        112,300
 Intangible Assets and Other                         80,000

        Total Assets                             $3,136,900
                                                 ==========
          LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities                             $  430,700
 Deferred Taxes                                       5,500
 Shareholders' Equity                             2,700,700

    Total Liabilities and Shareholders' Equity   $3,136,900
                                                 ==========

                SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                     For The Three Months Ended
                              September 30, 2006   September 30, 2005
                               -----------------   ------------------
 Net Sales                            $  802,900           $  890,000

 Gross Profit                            414,400              456,700

 Operating Expenses                      314,100              329,300
                                      ----------           ----------

 Income from Operations                  100,300              127,400

 Interest and Other Income, Net           14,300                7,500
                                      ----------           ----------
 Income Before Income Taxes              114,600              134,900

 Income Taxes, All Current                37,000               38,000
                                      ----------           ----------
 Net Income                           $   77,600           $   96,900
                                      ==========           ==========

 Basic Earnings Per Common Share      $ .08                $ .10
 Diluted Earnings Per Common Share    $ .07                $ .09
 Cash Dividends Declared Per Common
  Share                               $ .07                $ .09

 Weighted Average Number of
  Outstanding Shares:
   Basic                               1,000,352              980,310

   Diluted                             1,059,320            1,060,825


            

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