1 EXHIBIT 99 For: MELAMINE CHEMICALS, INC. Contact: RON COMO & ASSOCIATES, INC. P.O. Box 748 74 Trinity Place Donaldsonville, LA 70346 New York, NY 10006 Fred Huber, President & CEO Telephone: (212) 227-3010 Wayne D. DeLeo, Vice President & CFO Telephone: (504) 473-3121 July 18, 1997 Immediate Release MELAMINE CHEMICALS, INC. REPORTS YEAR END EARNINGS DONALDSONVILLE, LOUISIANA, JULY 18, 1997--Melamine Chemicals, Inc. (NASDAQ- MTWO) reported fourth quarter earnings of $11.4 million and twelve month earnings of $14.7 million. These are equivalent to $2.04 and $2.63 per share, respectively. For the same periods in the prior year, earnings for the quarter were $46,000 (1 c.) and $2.7 million (50 c.) for the twelve months. The results for both the quarter and the full year were greatly impacted by the gain after tax of $10.7 million ($1.90 per share) recognized from the technology sale to DSM which closed in April. The early exchanges of technical information under the agreement appear to offer considerable benefit to both companies which hopefully will continue throughout the next fiscal year and beyond. The operational results for fiscal year 1997 included new records in revenues, pounds produced and pounds sold despite a scheduled plant maintenance shutdown in April and a second, unplanned outage in late June. With inventories already at a very low level, numerous scheduled shipments had to be delayed beyond fiscal year-end. Fred Huber, president and chief executive officer, said, "Worldwide demand remains very strong and with no new capacity expansion expected for many months things are expected to remain very tight for some time. We continue to evaluate capacity increases ourselves, which we hope will help us and our customers but will have little negative impact on the overall market. Raw material prices which began fiscal 1997 at very high levels have declined for three successive quarters so we look to the new year with optimism and the old year with satisfaction." Melamine Chemicals, Inc. is engaged in the production and marketing of melamine. The Company is also active in the development of new melamine process and application technology. The Company is one of only two producers of melamine in North America and one of the three largest producers worldwide. COMPARATIVE OPERATING RESULTS (Thousands of dollars except share and per share data) Quarter Ended Twelve Months Ended June 30, June 30, ----------------------- ---------------------- 1997 1996 1997 1996 --------- -------- ------ ------ Net Sales $ 15,071 17,537 59,978 55,619 Net Earnings $ 11,451 46 14,742 2,730 Earnings Per Share $ 2.04 .01 2.63 .50 Average Shares Outstanding 5,524,400 5,455,300 5,472,658 5,453,633