**For ImmediateRelease**

**FORWARDINDUSTRIES ANNOUNCES THIRD QUARTER RESULTS**

**REVENUESINCREASE 17% FOR QUARTER AND YEAR-TO-DATE**

Pompano Beach,FL, July 22, 2003 -****Forward Industries, Inc. (Nasdaq:FORD), a designerand distributor of custom carrying case solutions, today announced results forits third quarter and nine-month period ended June 30, 2003.  Completeunaudited balance sheets and statements of income for the periods are set forthin the tables accompanying this release.

For the thirdquarter, net sales increased 17% to $4.8 million from $4.1 million in the sameperiod last year.  Sales of Forward's most rapidly growing product line -diabetic equipment cases - more than doubled to $2.9 million from $1.4 millionin the third quarter of last year, and represented 61% of overall net salescompared to 35% in last year's quarter.

Forward reportedan 11% increase in income from operations to $166,000 in the 2003 quarter from$150,000 in the 2002 quarter on lower operating expenses, which more thanoffset a lower gross profit resulting from the change in product mix.  Otherincome in the 2003 quarter declined approximately $68,000, primarily a resultof lower foreign currency gains due to the weak dollar. Net income in the 2003quarter was $178,000, or $.03 per diluted share, compared to $249,000, or $.04per diluted share, in the same quarter of the prior year.

For thenine-month period, net sales rose 17% to $14.4 million from $12.3 million inthe comparable period of fiscal 2002.  Income from operations more than doubledto $834,000, from $408,000, while net income increased 112% to $929,000, or$.16 per diluted share, from $438,000, or $.08 per diluted share, in the sameperiod of last year.

Jerome E. Ball,Chairman and Chief Executive Officer of Forward, stated, "We are extremelypleased with the sales increases of our diabetic products - it is clear thatour efforts to grow that area of our business have produced results.  Whilesales of our cellular products declined generally due to a soft cell phonemarket, we expect sales levels to improve during the second half of calendar2003.  We also see excellent growth potential for our other products, such ascamera bags, sporting goods cases and other carrying solutions that are sold ona made-to-order basis and year-to-date accounted for approximately 12% of totalsales."

Mr. Ballcontinued, "Our cost control initiatives continue to prove effective, withoperating expenses declining 5% year-to-date.

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ForwardIndustries, Inc. Press Release                                                                                          Page2

July 22, 2003

"Wehave also maintained our strong financial position.  As of June 30, 2003, wehad $2.0 million in cash, no borrowings outstanding under our credit facilitiesand $4.1 million in working capital.  In September 2002, our Board authorizedthe Company to repurchase up to 400,000 shares of Forward's outstanding commonstock.  In the nine-month period ended June 30, 2003, we have purchased 66,200shares in the open market under that authorization and plan to buy additionalshares subject to market conditions and the cash requirements of the Company." 

Mr. Ballconcluded, "We are very enthusiastic about the Company's business prospects aswe continue to focus on operating efficiently, expanding sales to existingcustomers and exploring new markets for cases.  We look forward to updating youwith our progress." 

**About Forward Industries**

ForwardIndustries, Inc. designs and distributes custom carrying case solutionsprimarily for cellular phones and medical monitoring equipment. The Companysells its products directly to original equipment manufacturers and markets aline of Carry Solutions under the "Motorola" brand name. Forward'sproducts can be viewed online at www.fwdinnovations.com andwww.forwardindustries.com. 

Statements inthis press release other than statements of historical fact are"forward-looking statements." Such statements are subject to certainrisks and uncertainties, identified from time to time in the Company's filingswith the Securities and Exchange Commission that could cause actual results todiffer materially from any forward-looking statements. These forward-lookingstatements represent the Company's judgment as of the date of this release. TheCompany disclaims, however, any interest or obligations to update theseforward-looking statements.

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

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Forward Industries, Inc. PressRelease                                                                                             Page 3July22, 2003

**FORWARD INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF INCOME**(Unaudited)

** **

|                                                                                            |  | Three Months Ended                                                             |  | Nine  Months Ended                                                             |
|--------------------------------------------------------------------------------------------|--|--------------------------------------------------------------------------------|--|--------------------------------------------------------------------------------|
|                                                                                            |  | June 30,                                                                       |  | June  30,                                                                      |
|                                                                                            |  | 2003                                                                           |  | 2002                                                                           |  | 2003 |  | 2002 |
| Net  sales......................................................................           |  | $    4,758,073                                                  |  | $   4,051,225                                                        |  | $  14,353,273 |  | $   12,279,901 |
| Cost of goods  sold....................................................                    |  | 3,273,658                                                                      |  | 2,492,811                                                                      |  | 9,829,338 |  | 7,969,936 |
| Gross  profit.................................................................             |  | 1,484,415                                                                      |  | 1,558,414                                                                      |  | 4,523,935 |  | 4,309,965 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Operating  expenses:                                                                       |  |                                                                                |  |                                                                                |  |  |  |  |
| Selling.................................................................                   |  | 736,533                                                                        |  | 704,067                                                                        |  | 1,988,542 |  | 2,160,367 |
| General and  administrative..............................                                  |  | 581,768                                                                        |  | 704,081                                                                        |  | 1,701,126 |  | 1,741,119 |
| Total operating  expenses............................                                      |  | 1,318,301                                                                      |  | 1,408,148                                                                      |  | 3,689,668 |  | 3,901,486 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Income from  operations.............................................                       |  | 166,114                                                                        |  | 150,266                                                                        |  | 834,267 |  | 408,479 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Other  income (expense):                                                                   |  |                                                                                |  |                                                                                |  |  |  |  |
| Interest  expense.................................................                         |  | (4,759)                                                                        |  | (12,122)                                                                       |  | (7,448) |  | (47,998) |
| Interest  income..................................................                         |  | 3,111                                                                          |  | 3,165                                                                          |  |             7,949 |  |        14,419 |
| Other  income......................................................                        |  | 11,248                                                                         |  | 88,002                                                                         |  | 107,626 |  | 63,104 |
| Total other income  (expense)......................                                        |  | 9,600                                                                          |  | 79,045                                                                         |  | 108,127 |  | 29,525 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Income before income  taxes......................................                          |  | 175,714                                                                        |  | 229,311                                                                        |  | 942,394 |  | 438,004 |
| Provision (benefit) for income  taxes........................                              |  | (2,600)                                                                        |  | (19,400)                                                                       |  | 13,800 |  | -- |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Net income  ..................................................................             |  | $       178,314                                  |  | $       248,711                                  |  | $       928,594 |  | $       438,004 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Net income  per common and common equivalent      share                          |  |                                                                                |  |                                                                                |  |  |  |  |
| Basic................................................................                      |  | $             0.03 |  | $             0.04 |  | $              0.16 |  | $              0.08 |
| Diluted.............................................................                       |  | $             0.03 |  | $             0.04 |  | $              0.16 |  | $              0.08 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |
| Weighted  average number of common and      common equivalent shares outstanding |  |                                                                                |  |                                                                                |  |  |  |  |
| Basic.................................................................                     |  | 5,773,441                                                                      |  | 5,825,641                                                                      |  | 5,790,374 |  | 5,825,641 |
| Diluted..............................................................                      |  | 5,954,442                                                                      |  | 5,825,641                                                                      |  | 5,907,426 |  | 5,825,641 |
|                                                                                            |  |                                                                                |  |                                                                                |  |  |  |  |

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Forward Industries, Inc. Press Release                                                                                             Page 4July22, 2003

####  

#### FORWARD INDUSTRIES, INC.CONSOLIDATED BALANCE SHEETS

 

|                                                                                                                                                                                                                                                                                |                               |        |                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|-------------------------------------|
|                                                                                                                                                                                                                                                                                | June 30,                      |        | September 30,                       |
|                                                                                                                                                                                                                                                                                | 2003                          |        | 2002                                |
| **ASSETS**                                                                                                                                                                                                                                                                     | (Unaudited)                   |        |                                     |
|                                                                                                                                                                                                                                                                           |                               |        |                                     |
| Current assets:                                                                                                                                                                                                                                                                |                               |        |                                     |
|    Cash and cash equivalents..........................................................................................                                                                                                                                               | $    1,990,139 |        |  $    1,207,311 |
|     Accounts receivable - net  ...........................................................................................                                                                                                                                           | 2,985,960                     |        | 2,680,916                           |
|     Inventories......................................................................................................................                                                                                                                                | 648,910                       |        | 718,986                             |
|    Prepaid expenses and other current assets................................................................                                                                                                                                                         | 200,179                       |        | 219,124                             |
|    Deferred tax asset...........................................................................................................                                                                                                                                     | 15,500                        |        | 15,500                              |
|       Total current assets.....................................................................................................                                                                                                                       | 5,840,688                     |        | 4,841,837                           |
|                                                                                                                                                                                                                                                                                |                               |        |                                     |
| Property, plant and equipment - net...............................................................................                                                                                                                                                             | 283,125                       |        | 341,187                             |
| Deferred tax asset..............................................................................................................                                                                                                                                               | 161,700                       |        | 164,500                             |
| Other assets.......................................................................................................................                                                                                                                                            | 41,337                        |        | 41,337                              |
|      **TOTAL ASSETS**.........................................................................................................                                                                                                                             | $   6,326,850       |        |  $    5,388,861 |
|                                                                                                                                                                                                                                                                                |                               |        |                                     |
| **LIABILITIES AND  STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                      |                               |        |                                     |
|                                                                                                                                                                                                                                                                                |                               |        |                                     |
| Current liabilities:                                                                                                                                                                                                                                                           |                               |        |                                     |
|     Accounts  payable..........................................................................................................                                                                                                                                      | $   1,118,389       |        |  $    1,306,381 |
|    Accrued expenses and other current  liabilities.........................................................                                                                                                                                                          | 667,485                       |        | 291,984                             |
|    Current portion of capital lease  obligations...............................................................                                                                                                                                                      | --                            |        | 27,814                              |
|        Total current  liabilities................................................................................................                                                                                                                     | 1,785,874                     |        | 1,626,179                           |
|                                                                                                                                                                                                                                                                                |                               |        |                                     |
| Long term portion of capital lease obligations..............................................................                                                                                                                                                                   | --                            |        | 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 527,090 and  460,890 shares, respectively, held in          treasury)........................................................................................................................ | 62,865                        |        | 62,865                              |
|    Paid-in capital..................................................................................................................                                                                                                                                 | 8,251,780                     |        | 8,251,780                           |
|     Accumulated  deficit.......................................................................................................                                                                                                                                      | (3,000,233)                   |        | (3,928,827)                         |
|                                                                                                                                                                                                                                                                                | 5,314,412                     |        | 4,385,818                           |
|    Less: Cost of shares in treasury...................................................................................                                                                                                                                               | (773,436)                     |        | (681,887)                           |
|        Total stockholders'  equity..........................................................................................                                                                                                                          | 4,540,976                     |        | 3,703,931                           |
|                                                                                                                                                                                                                                                                                |                               |        |                                     |
| **TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY**.......................................                                                                                                                                                                                         | $  6,326,850             |        |  $    5,388,861 |
|                                                                                                                                                                                                                                                                           |                          |   |                                |
|                                                                                                                                                                                                                                                                           |                          |   |                                |
| ###
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