Paul Mueller Company Reports Its First Quarter Earnings

Springfield, Missouri


SPRINGFIELD, Mo., April 18, 2008 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its first quarter report for the period ended March 31, 2008, as follows:



                Paul Mueller Company and Subsidiaries
                          THREE-MONTH REPORT
                             (Unaudited)

                          CONSOLIDATED SUMMARIES OF OPERATIONS

                     Three Months Ended        Twelve Months Ended
                           March 31                  March 31
                --------------------------  --------------------------
                    2008           2007         2008           2007
                ------------  ------------  ------------  ------------

 Net Sales      $ 51,855,000  $ 49,539,000  $243,463,000  $176,950,000
 Cost of
  Sales           43,517,000    41,019,000   203,357,000   145,903,000
                ------------  ------------  ------------  ------------
  Gross
   Profit       $  8,338,000  $  8,520,000  $ 40,106,000  $ 31,047,000
 Selling,
  General
  and Admin-
  istrative
  Expenses         6,787,000     5,754,000    26,308,000    22,937,000
                ------------  ------------  ------------  ------------
  Operating
   Income       $  1,551,000  $  2,766,000  $ 13,798,000  $  8,110,000
 Other Income
  (Expense)          240,000       191,000      (370,000)      459,000
                ------------  ------------  ------------  ------------
 Income
  before
  Provision
  for Income
  Taxes         $  1,791,000  $  2,957,000  $ 13,428,000  $  8,569,000
 Provision
  (Benefit)
  for Income
  Taxes              655,000     1,073,000     5,090,000      (190,000)
                ------------  ------------  ------------  ------------
 Net Income     $  1,136,000  $  1,884,000  $  8,338,000  $  8,759,000
                ============  ============  ============  ============

 Earnings per
  Common
  Share -
  Basic         $       0.98  $       1.64  $       7.22  $       7.61
  Diluted       $       0.97  $       1.61  $       7.10  $       7.51


                                FINANCIAL HIGHLIGHTS

                                            March 31      December 31
                                              2008           2007
                                          -------------  -------------

  Total Assets                            $  92,700,000  $ 102,132,000

  Working Capital                         $  12,228,000  $  12,567,000

  Current Ratio                                1.25 : 1       1.22 : 1

  Net Worth                               $  27,885,000  $  27,397,000

  Book Value Per Share                    $       23.27  $       22.86

  Backlog                                 $  54,262,000  $  69,270,000


 NOTES:   1)   First quarter 2008 net income was adversely affected by
               an increase to the LIFO reserve of $231,000, after tax,
               or $0.20 per share on a basic and diluted basis, while
               first quarter 2007 net income was adversely affected by
               an increase to the LIFO reserve of $589,000, after tax,
               or $0.51 per share ($0.50 diluted).

          2)   The effective tax rate for the twelve months ended
               March 31, 2007, varies from the statutory rate (34%)
               due to a noncash credit of $3,157,000 recorded during
               the fourth quarter of 2006 to reduce the remaining
               balance of the valuation allowance established during
               2004 for all of the Company's net deferred tax assets.


            

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