puraDYN Releases 2nd Quarter Financial Results

puraDYN Filter Technologies Incorporated (AMEX:PFT)
today reported results of operations for the second fiscal quarter
ended June 30, 2005.
   Net sales for the second quarter 2005 were $639,000 as compared to
$627,000 for the second quarter 2004. Net sales year-to-date were
$1.237 million compared to $1.24 million for the same period in 2004.
Net sales increased 2% for the second quarter of 2005 and are
virtually the same for year to date for the comparable period in 2004.
   The Company reported a net loss of $723,000 or ($0.04) per share,
basic and diluted, for the quarter ended June 30, 2005, compared to a
net loss of $822,000 or ($0.05) per share, basic and diluted, for the
same period in 2004. Basic and diluted weighted average shares used in
the calculation for the three-months ended 2005 and 2004 were
18,991,477 and 17,452,164, respectively.
   Cost of products sold decreased by approximately 2%, or $13,000,
to $633,000 in 2005 from $646,000 in the second quarter 2004. Cost of
products sold year-to-date also decreased by approximately 1%, or
$18,000, to $1.26 million in 2005 from $1.28 million in 2004. This
decrease is primarily due to improvements in raw material sourcing.
   In addition, sales generated by the Company's subsidiary in the
United Kingdom decreased by 9%, to approximately $402,000 for the
six-month period ended June 30, 2005 from $443,000 for the same period
in 2004. The major cause for reduced sales from the subsidiary was due
primarily to a change in product mix. One of the subsidiary's major
accounts lost its contract to supply generators to the local mobile
telephone company. Even though the subsidiary has been awarded other
contracts for similar volumes from new customers, the product mix has
been for smaller-sized systems.
   Kevin G. Kroger, President and COO, stated, "Many of the projects
we have been concentrating on the past couple of years are slowly
beginning to produce results, such as the evaluations we've been
conducting with the Federal government and the addition of a couple of
Detroit Diesel-Allison distributors to our distribution network, as
well as some major inroads we've been able to make in the construction
industry. The energy bill recently signed into legislation by the
President specifically mentions bypass oil filtration as a technology
worth evaluating, something the US Department of Energy has been
doing, using our product, for almost three years. These results,
posted by the US DOE, have initiated inquiries into how bypass oil
filtration can help reduce its maintenance costs. Between this
research and the price of oil escalating on a daily basis, we're
already having companies come back to us to take a second and third
look at what our technology can do for their bottom line."
   As reported earlier in the year, the Board of Directors voted to
voluntarily delist the Company's common stock from trading on the
American Stock Exchange and have applied to the Securities and
Exchange Commission to trade on the OTCBB. The announcement will be
made shortly as to the effective date and the new symbol under which
the Company will be traded.

   About puraDYN Filter Technologies Incorporated

   puraDYN (AMEX:PFT) designs, manufactures and markets the
puraDYN(R) Bypass Oil Filtration System, the most effective filtration
product on the market today. It continuously cleans lubricating oil
and maintains oil viscosity to safely and significantly extend oil
change intervals and engine life. Effective for internal combustion
engines, transmissions and hydraulic applications, the Company's
patented and proprietary system is a cost-effective and
energy-conscious solution targeting an annual $13 billion potential
industry. The Company has established aftermarket programs with
several of the transportation industry leaders such as Volvo Trucks
NA, Mack Trucks, PACCAR; a strategic alliance with Honeywell Consumer
Products Group, producers of FRAM(R) filtration products; and
continues to market to major commercial fleets. puraDYN(R) equipment
has been certified as a 'Pollution Prevention Technology' by the
California Environmental Protection Agency and was selected as the
manufacturer used by the US Department of Energy in a three-year
evaluation to research and analyze performance, benefits and cost
analysis of bypass oil filtration technology.
   Statements in this press release which are not historical data are
Forward-Looking Statements which involve known and unknown risks,
uncertainties or other factors not under the Company's control,
including but not limited to the possible inability to raise capital
funds, lack of protection from intellectual property, vulnerability
because of manufacturing a limited number of products, dependence on
distributors, orders previously stated in this press release may not
materialize, and the possibility that the products do not meet
customers' needs, which may cause actual results, performance or
achievements of the Company to be materially different from the
results, performance or other expectations implied by these
Forward-Looking Statements. These factors include, but are not limited
to, those detailed in the Company's periodic filings with the
Securities and Exchange Commission.
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               Puradyn Filter Technologies Incorporated
            Condensed Consolidated Statements of Operations
  For the Three Months and Six Months Ended June 30, 2005 and 2004
                            (Unaudited)


                        Three Months Ended         Six Months Ended
                             June 30,                  June 30,
                         2005        2004          2005        2004
                     -------------------------------------------------

Net sales               639,090    $ 627,320    1,236,783  $1,240,724

Costs and expenses:
   Cost of products
    sold                632,640      645,586    1,257,155   1,275,252
   Salaries and wages   339,382      403,283      707,899     812,269
   Selling and
    administrative      325,184      380,020      684,833     774,195
    Stock based
     compensation       (34,263)     (33,881)     (68,478)    237,222
                     -------------------------------------------------

                      1,262,943    1,395,008    2,581,409   3,098,938
                     -------------------------------------------------
Loss from operations   (623,853)    (767,688)  (1,344,626) (1,858,214)

Other income (expense):
    Interest income      13,098       12,995       25,765      27,134

    Interest expense   (112,436)     (67,618)    (226,078)   (155,635)
                     -------------------------------------------------

Total other expense,
 net                    (99,338)     (54,623)    (200,313)   (128,501)
                     -------------------------------------------------

Net loss               (723,191)   $(822,311)  (1,544,939)$(1,986,715)
                     =================================================

Basic and diluted loss
 per common share          (.04)   $   (0.05)        (.08) $     (.12)
                     =================================================

Weighted average 
 common shares 
 outstanding         18,991,477   17,452,164   18,227,542  17,102,823
                     =================================================
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