BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--Sept. 13, 2002--SETO Holdings Inc. (OTCBB-SETO) today announced, net sales of $3,828,761, net profit from continuing operations of $872,831, earnings per share of $.06 and quarterly earnings per share of $.03.

Management was particularly pleased with key financial ratios for the quarter and six months results that are historically better than previous quarters and six months results. As a percentage of sales, gross profit was 52%; selling, general and administrative expenses was 28.5%, and net income was 22%.

Total consolidated net sales for the six months ending July 31, 2002 increased 45% and the net sales for the three months increased 61% respectively over the previous quarter respectively over the 2001 levels. Operating income for the three months ended July 31, 2002 was $497,795, or 25% of sales compared to operating income of $186,133, or 15% of sales for the corresponding period in 2001. Operating income for the six months ended July 31, 2002 was $872,292, or 23% of sales, compared to operating income of $347,187 or 13% of sales respectively.

Management now anticipates reporting net sales of $8 million and EPS $.11 - .12 for fiscal year ending January 31, 2003. The current backlog of $2.2 million, which will be delivered over the next three to four months, supports this increase in the forecast from the previous quarter.

About SETO Holdings, Inc.

Founded in 1975, SETO Holdings, Inc. operates as a broad based technical manufacturer in three major product groupings: Technical Products to industry, inclusive of diamond tools, wafer fab supplies and technical ceramics; and Consumer Products such as industrial batteries, chargers and accessories and Contract manufacturing services. Please visit the Company's web sites: www.SETOHOLDINGS.com, www.stidiamond.com, www.ecsceramics.com, www.setoEmall.com, www.hk-batteries.com.hk.

Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.

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Contact:

     SETO Holdings, Inc., Briarcliff Manor

     Gene Pian, 914/923-5000

     [email protected]