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EXHIBIT 99.1 UFP Technologies Announces Record Q1 2021 Results NEWBURYPORT , Mass . , May 04 , 2021 ( GLOBE NEWSWIRE ) -- UFP Technologies , Inc. ( Nasdaq : UFPT ) , an innovative designer and custom manufacturer of components , subassemblies , products , and packaging primarily for the medical market , today reported net income of $ 4.2 million or $ 0.55 per diluted common share outstanding for its first quarter ended March 31 , 2021 , compared to net income of $ 3.9 million or $ 0.52 per diluted common share outstanding for the same quarter in 2020. Sales for the first quarter were $ 48.6 million compared to 2020 first quarter sales of $ 48.3 million . " I am very pleased with our Q1 results for a number of reasons , ” said R. Jeffrey Bailly , Chairman & CEO . “ Our medical market showed notable progress versus the last two quarters of 2020. While medical sales are still below where they were before the Covid pandemic , they improved from a 19.4 % decrease in Q4 2020 to an 11.5 % decrease in Q1 , as patients are again beginning to schedule the elective procedures that are key to our overall medical strategy . Another positive sign is that our Product Development business grew 51 % vs. the prior year , which bodes well for future medical manufacturing revenue . " " Overall , revenue for the quarter exceeded prior year results for the first time since the pandemic began , " Bailly said . " We saw especially strong growth in the Aerospace & Defense and Consumer markets , 68 % and 62 % , respectively , as we ramped up production on several important new programs . ” " Along with the revenue increase , our reduced cost structure generated improved bottom line results , ” Bailly added . “ This impact will be amplified as the pandemic diminishes and higher - gross - margin medical sales rebound . In addition , we continued to make progress on our strategic initiatives related to acquisitions , low - cost country manufacturing , and efficiency improvement , all of which leave us bullish about the future . ” Financial Highlights for Q1 2021 • Overall sales grew 0.7 % to $ 48.6 million . • Sales to the medical market declined 11.5 % . Sales to the aerospace & defense and automotive markets increased 68.2 % and 1.0 % , respectively . All other sales ( consumer , electronics , and industrial ) increased 31.5 % . • Gross profit as a percentage of sales decreased to 25.9 % compared to 26.6 % in the first quarter of 2020 . • • Selling , general and administrative expenses ( " SG & A " ) as a percentage of sales was 15.0 % compared to 16.1 % in the first quarter of 2020 . Operating income was $ 5.3 million compared to $ 5.1 million in the first quarter of 2020 . • Net income was $ 4.2 million compared to $ 3.9 million in the first quarter of 2020 . About UFP Technologies , Inc. UFP Technologies is an innovative designer and custom manufacturer of components , subassemblies , products , and packaging primarily for the medical market . Utilizing highly specialized foams , films , and plastics , we convert raw materials through laminating , molding , radio frequency welding and fabricating techniques . We are diversified by also providing highly engineered solutions to customers in the aerospace & defense , automotive , consumer , electronics , and industrial markets . Forward Looking Statements This news release contains statements relating to expected financial performance and / or future business prospects , events and plans that are forward - looking statements . Such statements include , but are not limited to : statements regarding the anticipated effects on us of the COVID - 19 pandemic , including with respect to demand for our products ; statements regarding anticipated trends in the different markets in which we compete and expectations regarding customer demand ; expectations regarding our liquidity and business opportunities ; statements about our growth potential and strategies for growth ; and any statements implying that we may be able to sustain or increase sales , earnings and earnings per share or sales , earnings and earnings per share growth rates . Investors are cautioned that such forward - looking statements involve risks and uncertainties that could adversely affect our business and prospects , and otherwise cause actual results to differ materially from those anticipated by such forward - looking statements , or otherwise , including without limitation : the severity and duration of the COVID - 19 pandemic and its impact on the markets in which we participate , including its impact on our customers , suppliers and employees , as well as the U.S. and worldwide economies ; the timing , scope and effect of further governmental , regulatory , fiscal , monetary and public health responses to the COVID - 19 pandemic ; risks relating to decreased , including substantially decreased , demand for our products ; risks relating to the potential closure of any of our facilities or the unavailability of key personnel or other employees ; risks that our inventory or cash reserves may be insufficient ; risks relating to the identification of suitable acquisition candidates and the successful , efficient execution of acquisition transactions and integration of any acquisition candidates ; risks and uncertainties associated with increasing sales , earnings and earnings per share , as well as other risks and uncertainties that are detailed in the documents we file with the SEC . Accordingly , actual results may differ materially . Readers are referred to the documents we file with the SEC , specifically the last report on Form 10 - K . The forward - looking statements contained herein speak only of our expectations as of the date of this press release . We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events , conditions , or circumstances on which any such statement is based .