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EXHIBIT 99.1 UFP Technologies Announces Strong Q2 2021 Results NEWBURYPORT , Mass . , Aug. 03 , 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 $ 4.7 million or $ 0.62 per diluted common share outstanding for its second quarter ended June 30 , 2021 , compared to net income of $ 2.3 million or $ 0.31 per diluted common share outstanding for the same quarter in 2020. Sales for the second quarter were $ 50.7 million compared to 2020 second quarter sales of $ 42.6 million . Net income for the six - month period ended June 30 , 2021 was $ 8.9 million or $ 1.17 per diluted common share outstanding compared to $ 6.2 million or $ 0.82 per diluted common share outstanding for the same period in 2020. Sales for the six - month period ended June 30 , 2021 were $ 99.3 million compared to sales of $ 90.9 million for the same period in 2020 . " I am very pleased with our Q2 results , " said R. Jeffrey Bailly , Chairman & CEO . " Sales increased nearly 19 % and net income more than doubled versus the prior year . We also saw solid gains in sequential quarterly results , as sales grew 4.2 % and net income improved 13.3 % over Q1 . Sales increased in every market , including Medical , which returned to growth for the first time since the pandemic began . Automotive and Consumer had the greatest growth , 146 % and 88 % respectively . " " Our increased revenue , combined with our reduced cost structure , generated significantly improved bottom - line results , " Bailly added . " Gross margins improved to 26.5 % ; we expect them to improve further as medical sales continue to rebound and as patients schedule elective procedures that were delayed by Covid - 19 . " " Availability of some raw materials and direct labor shortages remain challenging issues , but we have seen significant improvement in our Covid - 19 test results , with no current reported cases and 67 % of our workforce vaccinated , " Bailly said . “ In addition , we've continued to advance our strategic initiatives , including our goal to provide our medical customers with a low- cost country manufacturing option . This progress , combined with our healthy pipeline of internal and external growth opportunities and a strong balance sheet that includes $ 30 million in cash , leaves us excited and bullish about our future . " Financial Highlights for Q2 and YTD 2021 • Sales for the second quarter increased 18.8 % to $ 50.6 million , from $ 42.6 million in the same period of 2020. Year - to - date sales through June increased 9.2 % to $ 99.3 million , from $ 90.9 million in the same period of 2020 . • Second quarter sales to the medical market increased 3.3 % . Sales to the aerospace & defense and automotive markets increased 40.7 % and 146.0 % , respectively . All other sales ( consumer , electronics , and industrial ) increased 55.0 % . • Year - to - date sales to the medical market declined 4.0 % . Sales to the aerospace & defense and automotive markets increased 50.1 % and 35.7 % , respectively . All other sales ( consumer , electronics , and industrial ) increased 42.6 % . • Gross profit as a percentage of sales ( “ gross margin " ) increased to 26.5 % for the second quarter , from 23.3 % in the same quarter of 2020. Gross margin for the six - month period ended June 30 , 2021 increased to 26.2 % from 25.0 % in the same period of 2020 . • Selling , general and administrative expenses ( “ SG & A ” ) for the second quarter increased 8.4 % to $ 7.2 million in 2021 compared to $ 6.7 million in the same quarter of 2020. For the six - month period ended June 30 , 2021 , SG & A increased slightly to $ 14.5 million from $ 14.4 million in the same period of 2020 . • For the second quarter , operating income increased to $ 6.2 million , from $ 3 million in the same quarter of 2020. For the six - month period ended June 30 , 2021 , operating income increased to $ 11.5 million , from $ 8.1 million in the same period of 2020 . • Net income increased to $ 4.7 million in the second quarter of 2021 , from $ 2.3 million in the same period of 2020. For the six - month period ended June 30 , 2021 net income increased to $ 8.9 million , from $ 6.2 million in the same period 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