Contact: Morris H. Wheeler, Chairman  & Chief Executive Officer
Cohesant Inc.
216 910-1700

For Immediate Release

Cohesant Inc. Reports Results For Fourth Quarter and Fiscal Year Ended November 30, 2008

Beachwood, Ohio March 3, 2009--Cohesant Inc. (Pink Sheets: COHY) today reported results for the fourth quarter and fiscal year ended November 30, 2008.

For the fiscal year ended November 30, 2008 the Company’s net sales increased $25,444 to $11,574,854 compared to $11,549,410 in the prior year period.  This increase was a result of increased sales at CuraFlo Services (rehabilitation).  The increase was partially offset by a decline in equipment and parts sales, franchisee and licensee fees and coating sales.

Consolidated gross margins, in 2008, decreased slightly to $5,405,303, or 46.7% from $5,496,016, or 47.6% of net sales, in the 2007 period.    Ongoing operating expenses were 7,204,594 in fiscal 2008 compared to $6,389,084 in the prior year period, an increase of $815,510, or 12.8%.  This increase was primarily due to higher marketing costs relating to the development of CuraFlo’s national marketing campaign, increased stock-based compensation, a one-time expense occurring in the first quarter and resulting from accelerated vesting of stock options as a result of the sale of the Company’s former parent, as well as higher severance costs.  Excluding the goodwill and intangible write downs discussed below, the Company had a net loss of ($1,084,685), or ($0.31) per share for fiscal 2008 compared to a net loss of ($679,921), or ($0.20) per share in the prior year period.

Management performed a periodic goodwill and intangible impairment test in the fourth quarter and concluded the carrying values of certain assets should be written down.  As a result, the 2008 period included an $8,581,509 charge for goodwill and intangible write-downs and the Company had a net loss of ($9,666,194), or ($2.79) per share for fiscal 2008.

For the three months ended November 30, 2008 the Company’s net sales decreased $322,526, or 10.7% to $2,694,515 compared to $3,017,041 in the prior year period.  This decrease was a result of a slow down in demand for the Company’s coating products and to a lesser extent decreased franchisee and licensee revenue and rehabilitation revenue.  This decrease was partially offset by increased equipment and part sales.

Consolidated gross margins decreased to $1,217,862 or 45.2% of net sales in the 2008 period from $1,541,671 or 51.1% of net sales, in the 2007 period. 

The Company had a net loss of ($8,888,247), or ($2.57) per share for the current quarter compared to a net loss of ($120,244), or ($0.03) per share in the prior year quarter.  This decrease was a result of the goodwill and intangible write downs and decreased sales and margins mentioned above as well as an 18.7% increase in operating expenses primarily resulting from the development of CuraFlo’s national marketing campaign.  Excluding the aforementioned goodwill and intangible write downs the Company had a net loss of ($306,738), or ($0.09) per share for the 2008 period.  

Cohesant Inc., based in Beachwood, Ohio, is engaged in the protection and renewal of drinking water distribution systems and wastewater collection systems for municipal, industrial, commercial and residential infrastructure and the design, development, manufacture and sale of specialty coatings and equipment used to apply such coatings. The Company markets its products under numerous trade names including; AquataPoxy, CuraFlo, CuraPoxy, and Raven.

[Table follows]

COHESANT  INC. Summary Financial Data (Unaudited)
			Three Months Ended November 30, 2008			Three Months Ended November 30, 2007
Net sales			$ 2,694,515			$ 3,017,041
Gross profit			1,217,862			1,541,671
Research and development expense			99,598			80,557
Selling, general and administrative expense			1,909,644			1,611,130
Goodwill and intangible assets impairment loss			8,581,509			-
Loss from operations			(9,372,889)			(150,016)
Loss before income taxes			(9,361,738)			(153,823)
Net loss			$ (8,888,247)			$ (120,244)
Basic and diluted net loss  per share			$ (2.57)			$ (0.03)
Average number of common shares outstanding basic and diluted			3,460,357			3,460,357
			Twelve Months Ended November 30, 2008			Twelve Months Ended November 30, 2007
Net sales			$ 11,574,854			$ 11,549,410
Gross profit			5,405,303			5,496,016
Research and development expense			320,136			266,941
Selling, general and administrative expense			6,884,458			6,122,143
Goodwill and intangible assets impairment loss			8,581,509			-
Loss from operations			(10,380,800)			(893,068)
Loss before income taxes			(10,347,262)			(916,725)
Net loss			$ (9,666,194)			$ (679,921)
Basic and diluted net loss  per share			$ (2.79)			$ (0.20)

Safe Harbor Statement
This communication contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, particularly those preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” or similar expressions.  Forward-looking statements relating to expectations about future results or events are based upon information available as of today’s date, and there is no assumed obligation to update any of these statements.  The forward-looking statements are not guarantees of future performance, and actual results may vary materially from the results and expectations discussed.  These forward-looking statements are made subject to significant risks and uncertainties that could cause actual results to differ materially from those stated. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Cohesant Inc. undertakes no obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.