Epolin, Inc. Announces Results for the Year Ended February 28, 2009; Also Announces Letter of Intent

NEWARK, NJ, May 18 (MARKET WIRE) --
EPOLIN, INC. (the "Company") (OTCBB: EPLN) (www.epolin.com) today
announced results for the fiscal year ended February 28, 2009.

For the year ended February 28, 2009, sales were $3,092,000 as compared to
$3,593,000 for the year ended February 29, 2008, a decrease of $501,000 or
14.0%. Gross profit, defined as sales less cost of sales, was $1,647,000
or 53.3% of sales for the year ended February 28, 2009 compared to
$2,189,000 or 60.9% of sales for the year ended February 29, 2008.

Cost of sales was $1,444,000 for the year ended February 28, 2009, which
represented 46.7% of sales compared to $1,404,000 for the year ended
February 29, 2008, which represented 39.1% of sales. Selling, general and
administrative expenses increased to $1,252,000 or 40.5% of sales for the
year ended February 28, 2009 compared to $1,235,000 or 34.4% of sales for
the year ended February 29, 2008, an increase of $17,000.

Operating income, in terms of absolute dollars, decreased to $396,000 in
fiscal 2009 from $954,000 for fiscal 2008, a decrease of $558,000. Net
income after taxes was $328,000 or $0.03 per share for the year ended
February 28, 2009 as compared to $724,000 or $0.06 per share for the year
ended February 29, 2008.

The Company also announced today that it has entered into a non-binding
letter of intent whereby all of the outstanding capital stock of the
Company will be acquired by a strategic purchaser.

The proposed transaction is subject to various conditions including but
not limited to satisfactory completion of due diligence by the purchaser
expected to be completed within sixty days, receipt by the Company of a
fairness opinion acceptable to its Board of Directors, execution of a
definitive agreement and approval by the shareholders of the Company.
Epolin has agreed to negotiate exclusively with the potential buyer for a
period of sixty days. No other terms were disclosed.

There can be no assurance that any definitive agreement will be entered
into, that any proposed transaction will be approved by the shareholders
of the Company or that a transaction will be completed as a result of the
execution of the letter of intent.

About Epolin

Epolin, Inc. is a specialized chemical company primarily engaged in the
manufacturing, marketing, research and development of infrared dyes, laser
absorbing dyes and infrared dye formulations. The Company's business is
heavily weighted towards the development, manufacture and sale of near
infrared dyes. Applications for these dyes cover several markets that
include laser protection, welding, sunglasses, optical filters, glazing
and imaging and security inks and tagants. The Company also manufactures
specialty chemicals for certain chemical manufacturers.

Statements contained herein that are not based upon current or historical
fact are forward-looking in nature. Such forward-looking statements
reflect the Company's expectations about its future operating results,
performance and opportunities that involve substantial risks and
uncertainties. When used herein, the words "anticipate," "believe,"
"estimate," "plan," "intend" and "expect" and similar expressions, as
they relate to Epolin, Inc., or its management, are intended to identify
such forward-looking statements. These forward-looking statements are
based on information currently available to the Company and are subject
to a number of risks, uncertainties, and other factors that could cause
the Company's actual results, performance, prospects, and opportunities
to differ materially from those expressed in, or implied by, these
forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, such factors discussed
in reports and documents filed from time to time by the Company with the
Securities and Exchange Commission. Except as required by the Federal
Securities law, the Company does not undertake any obligation to release
publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or for any other reason.

EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED FEBRUARY 28, 2009 AND FEBRUARY 29, 2008

2009 2008
----------- -----------

Sales $ 3,091,539 3,592,940
----------- -----------

Cost of sales and expenses:
Cost of sales 1,444,199 1,404,009
Selling, general and administrative 1,251,521 1,235,078
----------- -----------

Total 2,695,720 2,639,087
----------- -----------

Operating income 395,819 953,853
----------- -----------

Other income:
Rental income 18,000 18,000
Miscellaneous - 66,881
Interest 52,861 89,348
----------- -----------

Total 70,861 174,229
----------- -----------

Income before taxes 466,680 1,128,082

Income taxes 139,111 404,455
----------- -----------

Net income $ 327,569 723,627
=========== ===========

Per share data:
Basic earnings per common share $ 0.03 0.06
=========== ===========

Fully diluted earnings per common share $ 0.03 0.06
=========== ===========

Weighted average number of common shares
outstanding 12,015,944 11,966,355
=========== ===========

Fully diluted number of common shares outstanding 12,056,380 12,004,973
=========== ===========

For more detailed information, please contact:
Murray S. Cohen
Chairman of the Board
James Ivchenko
President
(973) 465-9495

Copyright 2009, Market Wire, All rights reserved.

-0-