Portland, Oregon – Schmitt Industries completed the fiscal quarter ended May 31, 2004 with net income of $535,950 or $.21 per share compared to net income of $139,656 or $.06 per share for the fiscal quarter ended May 31, 2003. Sales increased to $2,768,275 for the quarter ended May 31, 2004 compared to $2,002,115 in same period last year. Gross profits, as a percentage of sales, for the fourth fiscal quarter of 2004 were 62% compared to 59% in the same quarter in the prior fiscal year.

The Company has completed the fiscal year ended May 31, 2004 with net income of $516,585 or $.20 per share compared to a net loss of $(1,487,131) or $(.60) per share for the fiscal year ended May 31, 2003. Sales increased to $7,924,766 for the fiscal year ended May 31, 2004 compared to $7,419,521 in same period last year. Gross profits, as a percentage of sales, for the fiscal year ended May 31, 2004 were 57% compared to 53% in the same period in the prior fiscal year.

Wayne Case, President and CEO of Schmitt Industries said: “We are delighted to see the expansion in our sales volume in the most recent fiscal quarter in both the Balancer and Measurement segments. Balancer segment sales in the most recent fiscal quarter increased in both the Asian and North American markets in comparison to the same period in the prior fiscal year. The sales growth in Asia reflects continuing strong demand in that marketplace while the increase in North America is attributed to improved economic conditions.

Measurement segment sales increased for both our surface measurement and dimensional sizing products. The increase in the sales of surface measurement products is attributed to increasing unit sales as a result of improving economic conditions in the disk drive and silicon wafer markets, the target market for these products. The increase in the sales of dimensional sizing products is attributed to the efforts of our expanded sales force that is dedicated to the sales and marketing of these products.

We are hopeful the economic conditions in our markets that led to these sales and profits increases can continue in the coming months as we are seeing increasing interest and requests for quotes from our growing customer base. However, there can be no assurance those conditions will continue into the future and if so for how long.”

The information contained in this release contains certain forward-looking statements that anticipate future trends or events. These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks including but not limited to the uncertainties of the Company’s new product introductions, the risks of increased competition and technological change in the Company’s industry and other factors detailed in the Company’s SEC filings. Accordingly, actual results may differ, possibly materially, from the predictions contained herein.