BOYNTON BEACH, FL -- (Marketwire) -- 08/14/08 -- Puradyn Filter Technologies Incorporated (OTCBB: PFTI), the global bypass oil filtration system manufacturer, today reported results of operations for the second fiscal quarter ended June 30, 2008.

Net sales increased by approximately 1%, or $5,000, for the second quarter 2008 to approximately $792,000 as compared to approximately $787,000 for the second quarter 2007. Net sales year-to-date for the six month period were comparable for 2008 and 2007, at $1.55 million. This is a result of one of our largest customers postponing purchases while awaiting installation of new maintenance procedures. However, excluding this customer's decrease in sales of approximately $184,000, total consolidated sales have actually increased by approximately $186,000 or 12%.

Cost of products sold decreased by approximately $60,000, or 9%, in the three-months ending June 30, 2008 as compared to the same time period in 2007; and by approximately $83,000, or 6%, from $1.35 million in 2007 to $1.27 million in 2008 for the six-months ended June 30. Cost of products sold, as a percentage of sales, decreased from approximately 87% for the six months ended June 30, 2007 to approximately 81% for the same period in 2008. This decrease is attributable to reductions in indirect factory wages, factory overhead and scrap expense.

The Company reported a net loss of $399,000 or ($0.01) per share, basic and diluted, for the quarter ended June 30, 2008, compared to a net loss of $498,000 or ($0.02) per share, basic and diluted, for same period in 2007. Basic and diluted weighted average shares used in the calculation for the three-months ended 2008 and 2007 were 32,447,852 and 27,514,923, respectively.

Joseph V. Vittoria, Chairman and CEO, stated, "Given the fact that our quarterly and annual reports have not shown the increase in sales revenue we expected to achieve over the past 12 months, we feel an explanation to our stockholders is in order. At the same time, we would like to update our stockholders as to the Company's state of affairs.

"During the past 18 months, we have concentrated on the following areas:

"Certain original equipment manufacturers (OEMs) which have been under evaluation and review for some time will bring our product in as either optional or mandatory factory installation. We are also well along in the evaluation process and in certain instances with initial deliveries, with:

--  A major international port-servicing company
--  International bus companies
--  Remote area large generators used for oil well-drilling and pumping
--  International ship engines and generators
--  Agricultural equipment where high-percentage bio-diesel fuel is used
--  Any equipment using high-sulfur fuels
--  Mining operations
--  US Military and private companies servicing the military
    

"It became apparent a few years ago that it would be necessary to concentrate on the above-selected accounts which could bring larger volume. Revenue from replacement filters has more than doubled in recent years proving that the puraDYN® systems in the marketplace are being effectively used and are producing the predicted savings.