**ForImmediate Release**

#### FORWARD INDUSTRIES ANNOUNCES SECOND QUARTER RESULTS

**REPORTS INCREASED NETINCOME FOR THE QUARTER AND YEAR-TO-DATE**

Pompano Beach, FL, April 22, 2003-ForwardIndustries, Inc. (Nasdaq:FORD), a designer anddistributor of custom carrying case solutions, today announced resultsfor its second quarter and six-month period ended March 31, 2003.  Complete unaudited consolidated results forthe periods are set forth in the tables accompanying this release.

For the second quarter, the Company reported an increase insales of $52,000 to $3.90 million compared to $3.85 million in the same quarterlast year.  Net income increased $140,000to $191,000, or $.03 per diluted share, from $51,000 or $.01 per diluted sharein last year's quarter.

For the first six months of fiscal 2003, net sales rose 17%,or $1.4 million, to $9.6 million from $8.2 million in the comparable period offiscal 2002.  Net income increased$561,000 to $750,000 or $.13 per diluted share from $189,000 or $.03 perdiluted share in the first six months of fiscal 2002.

Jerome E. Ball, Chairman and Chief Executive Officer ofForward, stated, "We are extremely pleased with the sales of our line ofdiabetes equipment carrying cases. Compared to last year, sales of these products increased approximately40% in the quarter and 35% year-to-date. Diabetes related products have becomeour largest revenue producer and generated approximately 55% of our sales inthe second quarter, and 45% in the first six months of this year.  We did experience a decline in the sales ofour cell phone products in the second quarter. Year-to-date, however, our cellphone product sales are approximately the same as last year at $4.1million.  We are taking steps we believewill strengthen this line including adding items such as faceplates for the newMotorola phones, and working with the OEMs to expand our product offerings withthem."

Mr. Ball continued, "On theexpense side, we continued our focus on controlling costs. Compared to thesecond quarter last year, our operating expenses decreased approximately 11%and fell to 28% from 32% as a percentage of sales.  Our efforts helped us to achieve moreearnings from operations despite essentially flat sales.  Overall, we are satisfied with the results forthe second quarter, which historically has been a soft period for us, and areproud to have achieved our sixth consecutive quarter of profitability."

Mr. Ball concluded, "Our balance sheet is in excellent shapewith $1.6 million in cash, no borrowings outstandingunder our credit facilities and $3.9 million in working capital at March 31,2003.  In September 2002, our Boardauthorized the Company to repurchase up to 400,000 shares of Forward'soutstanding common stock.  We havepurchased 45,200 shares in the open market under that authorization and plan tobuy additional shares subject to market conditions and the cash requirements ofthe Company.  The stock repurchase is anindication of our continued confidence in Forward's short and long-termbusiness prospects." 

 

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ForwardIndustries, Inc. Press Release                                                                                              Page 2April22, 2003

**AboutForward Industries**

ForwardIndustries, Inc. designs and distributes custom carrying case solutionsprimarily for cellular phones and medical monitoring equipment.  The Company sells its products directly tooriginal equipment manufacturers and recently began marketing a line of CarrySolutions under the "Motorola" brand name. Forward's products can be viewedonline at www.fwdinnovations.comand www.forwardindustries.com. 

Statements in this press release other thanstatements of historical fact are "forward-looking statements."  Such statements are subject to certain risksand uncertainties, identified from time to time in the Company's filings withthe Securities and Exchange Commission that could cause actual results todiffer materially from any forward-looking statements.  These forward-looking statements representthe Company's judgment as of the date of this release.  The Company disclaims, however, any interestor obligations to update these forward-looking statements.

| **CONTACT:**             | -or-   | **INVESTOR RELATIONS COUNSEL** |
|--------------------------|--------|--------------------------------|
| Forward Industries, Inc. |   | TheEquity Group Inc.           |
| Jerome E. Ball, CEO      |   | Loren Mortman                  |
| (954) 419-9544           |   | (212)836-9604                  |
|                     |   |  lmortman@equityny.com    |
|                     |   | www.theequitygroup.com         |

 

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Forward Industries, Inc. Press Release                                                                                              Page 3April22, 2003

**FORWARDINDUSTRIES, INC.CONSOLIDATEDSTATEMENTS OF INCOME**(Unaudited)** **

|                                                                                                                                           |   | Three Months Ended                                           |   | Six  Months Ended                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                                                                                                           |   | March 31,                                                    |   | March  31,                                                         |
|                                                                                                                                           |   | 2003                                                         |   | 2002                                                               |   | 2003 |   | 2002 |
| Net sales...............................................................................                                                  |   | $   3,903,559                                      |   | $   3,851,603                                            |   | $   9,595,200 |   | $    8,228,676 |
| Cost of goods sold..............................................................                                                          |   | 2,704,059                                                    |   | 2,551,179                                                          |   | 6,555,681 |   | 5,477,126 |
| Gross profit...........................................................................                                                   |   | 1,199,500                                                    |   | 1,300,424                                                          |   | 3,039,519 |   | 2,751,550 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Operating expenses:                                                                                                                       |        |                                                         |   |                                                               |   |   |   |   |
|      Selling...............................................................................                           |   | 577,589                                                      |   | 701,083                                                            |   | 1,252,008 |   | 1,456,299 |
|      General and administrative............................................                                           |   | 499,371                                                      |   | 515,134                                                            |   | 1,119,359 |   | 1,037,037 |
|           Total operating  expenses.........................................                 |   | 1,076,960                                                    |   | 1,216,217                                                          |   | 2,371,367 |   | 2,493,336 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Income from operations......................................................                                                              |   | 122,540                                                      |   | 84,207                                                             |   | 668,152 |   | 258,214 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Other income (expense):                                                                                                                   |        |                                                         |   |                                                               |   |   |   |   |
|      Interest expense..............................................................                                   |   | (1,288)                                                      |   | (14,230)                                                           |   | (2,689) |   | (35,876) |
|      Interest income................................................................                                  |   | 1,702                                                        |   |  3,938                                                        |   | 4,838 |   |       11,253 |
|      Other income (expense)..................................................                                         |   | 59,579                                                       |   | (20,360)                                                           |   | 96,376 |   | (24,898) |
|           Total other income (expense)...................................                    |   | 59,993                                                       |   | (30,652)                                                           |   | 98,525 |   | (49,521) |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Income before provision for income taxes.......................                                                                           |   | 182,533                                                      |   | 53,555                                                             |   | 766,677 |   | 208,693 |
| Provision (benefit) for income taxes.................................                                                                     |   | (8,600)                                                      |   | 2,500                                                              |   | 16,400 |   | 19,400 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Net income ...........................................................................                                                    |   | $     191,133                                 |   | $       51,055                       |   | $      750,277 |   | $     189,293 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Net income per common and common equivalent  share                                                                                        |        |                                                         |   |                                                               |   |   |   |   |
|           Basic............................................................................  |   | $          0.03 |   | $           0.01 |   | $            0.13 |   | $            0.03 |
|           Diluted.........................................................................   |   | $          0.03 |   | $           0.01 |   | $            0.13 |   | $            0.03 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
| Weighted average number of common and    common equivalent shares outstanding                                                   |        |                                                         |   |                                                               |   |   |   |   |
|           Basic............................................................................. |   | 5,783,774                                                    |   | 5,825,641                                                          |   | 5,798,841 |   | 5,825,641 |
|           Diluted..........................................................................  |   | 5,953,929                                                    |   | 5,825,641                                                          |   | 5,883,918 |   | 5,825,641 |
|                                                                                                                                           |        |                                                         |   |                                                               |   |   |   |   |
|                                                                                                                                           |   |                                                         |   |                                                               |   |   |   |   |

4

Theaccompanying notes are an integral part of the consolidated financialstatements.

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ForwardIndustries, Inc. Press Release                                                                                              Page 4April22, 2003

 

 

**FORWARDINDUSTRIES, INC.CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                                         |                                    |   |                                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------|--------------------------------------|
|                                                                                                                                                                                                                                                                         |                                    |   |                                 |
|                                                                                                                                                                                                                                                                         | March 31,                               |   | September 30,                        |
|                                                                                                                                                                                                                                                                         | 2003                                    |   | 2002                                 |
| **ASSETS**                                                                                                                                                                                                                                                                   | (Unaudited)                             |   |                                 |
| ** **                                                                                                                                                                                                                                                                   |                                    |   |                                 |
| Current assets:                                                                                                                                                                                                                                                              |                                    |   |                                 |
|    Cash and cash equivalents............................................................................................                                                                                                                                           | $   1,564,786                 |   |  $     1,207,311 |
|    Accounts receivable - net .............................................................................................                                                                                                                                         | 2,406,221                               |   | 2,680,916                            |
|    Inventories........................................................................................................................                                                                                                                             | 1,111,128                               |   | 718,986                              |
|    Prepaid expenses and other current assets.................................................................                                                                                                                                                      | 239,034                                 |   | 219,124                              |
|    Deferred tax asset............................................................................................................                                                                                                                                  | 15,500                                  |   | 15,500                               |
|       Total current assets......................................................................................................                                                                                                                    | 5,336,669                               |   | 4,841,837                            |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| Property, plant and equipment -  net................................................................................                                                                                                                                                         | 315,057                                 |   | 341,187                              |
| Deferred tax asset...............................................................................................................                                                                                                                                            | 161,700                                 |   | 164,500                              |
| Other assets.........................................................................................................................                                                                                                                                        | 41,337                                  |   | 41,337                               |
|      **TOTAL ASSETS**...........................................................................................................                                                                                                                         | $   5,854,763                 |   |  $     5,388,861 |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                     |                                    |   |                                 |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| Current liabilities:                                                                                                                                                                                                                                                         |                                    |   |                                 |
|    Accounts payable...........................................................................................................                                                                                                                                     | $      926,803 |   |  $     1,306,381 |
|    Accrued expenses and other current  liabilities...........................................................                                                                                                                                                      | 455,190                                 |   | 291,984                              |
|    Current portion of capital lease  obligations................................................................                                                                                                                                                   | 28,752                                  |   | 27,814                               |
|       Total current liabilities.................................................................................................                                                                                                                    | 1,410,745                               |   | 1,626,179                            |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| Long term portion of capital  lease obligations...............................................................                                                                                                                                                               | 44,136                                  |   | 58,751                               |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| Commitments and contingencies                                                                                                                                                                                                                                                |                                    |   |                                 |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| Stockholders' equity:                                                                                                                                                                                                                                                        |                                    |   |                                 |
|    Preferred stock, 4,000,000 authorized  shares, par value $.01; none issued.............                                                                                                                                                                         | --                                      |   | --                                   |
|    Common stock, 40,000,000 authorized  shares, par value $.01; 6,286,531                                                                                                                                                                                          |                                    |   |                                 |
|       shares issued (including 506,090 and  460,890 shares, respectively, held in       treasury)......................................................................................................................... | 62,865                                  |   | 62,865                               |
|    Paid-in capital...................................................................................................................                                                                                                                              | 8,251,780                               |   | 8,251,780                            |
|    Accumulated deficit........................................................................................................                                                                                                                                     | (3,178,550)                             |   | (3,928,827)                          |
|                                                                                                                                                                                                                                                                              | 5,136,095                               |   | 4,385,818                            |
|    Less: Cost of shares in treasury....................................................................................                                                                                                                                            | (736,213)                               |   | (681,887)                            |
|       Total stockholders' equity...........................................................................................                                                                                                                         | 4,399,882                               |   | 3,703,931                            |
|                                                                                                                                                                                                                                                                              |                                    |   |                                 |
| **TOTAL  LIABILITIES AND STOCKHOLDERS' EQUITY**........................................                                                                                                                                                                                      | $   5,854,763                 |   |  $     5,388,861 |