Paul Mueller Company Releases Its 2008 Third Quarter Earnings Report

Springfield, Missouri


SPRINGFIELD, Mo., Oct. 21, 2008 (GLOBE NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its third quarter report for the period ended September 30, 2008, as follows:



                 PAUL MUELLER COMPANY AND SUBSIDIARIES
                           NINE-MONTH REPORT
                               Unaudited

 ---------------------------------------------------------------------
                  CONSOLIDATED SUMMARIES OF OPERATIONS
 ---------------------------------------------------------------------

                    Three Months Ended          Nine Months Ended
                       September 30                September 30
                --------------------------  --------------------------
                    2008          2007          2008          2007
                ------------  ------------  ------------  ------------

 Net Sales      $ 50,564,000  $ 58,424,000  $152,595,000  $161,703,000
 Cost of
  Sales           43,140,000    51,688,000   127,875,000   137,281,000
                ------------  ------------  ------------  ------------
  Gross
   Profit       $  7,424,000   $ 6,736,000  $ 24,720,000  $ 24,422,000
 Selling,
  General
  and Admin-
  istrative
  Expense          6,455,000     6,557,000    20,675,000    18,977,000
                ------------  ------------  ------------  ------------

  Operating
   Income       $    969,000  $    179,000  $  4,045,000  $  5,445,000
 Other Income
  (Expense)         (134,000)      185,000       (18,000)      684,000
                ------------  ------------  ------------  ------------

 Income
  before
  Provision
  for Income
  Taxes         $    835,000  $    364,000  $  4,027,000   $ 6,129,000
 Provision
  for Income
  Taxes              179,000       137,000     1,315,000     2,232,000
                ------------  ------------  ------------  ------------
 Net Income     $    656,000  $    227,000  $  2,712,000  $  3,897,000
                ============  ============  ============  ============

 Earnings per
  Common Share --
   Basic               $0.57         $0.20         $2.34         $3.38
   Diluted             $0.56         $0.19         $2.30         $3.32



                                               Twelve Months Ended
                                                  September 30
                                            --------------------------
                                                2008          2007
                                            ------------  ------------

 Net Sales                                  $232,039,000  $218,301,000
 Cost of Sales                               191,453,000   183,000,000
                                            ------------  ------------
  Gross Profit                              $ 40,586,000  $ 35,301,000
 Selling, General and Administrative
  Expense                                     26,973,000    25,467,000
                                            ------------  ------------

  Operating Income                          $ 13,613,000  $  9,834,000
 Other Income (Expense)                       (1,121,000)      511,000
                                            ------------  ------------

 Income before Provision for
  Income Taxes                              $ 12,492,000  $ 10,345,000
 Provision for Income Taxes                    4,591,000       453,000
                                            ------------  ------------
 Net Income                                 $  7,901,000  $  9,892,000
                                            ============  ============

 Earnings per Common Share -- 
   Basic                                           $6.75         $8.58
   Diluted                                         $6.63         $8.43


 NOTES:   1) The third quarter of 2008 includes the results for
          Mueller B.V., a wholly owned Dutch subsidiary, which
          acquired all the outstanding stock of Paltrok Beheer B.V. as
          of April 18, 2008, the acquisition date. Mueller B.V.'s
          sales were $7,521,000, and net income was $342,000 for the
          third quarter of 2008.

          2) Net income for the third quarter of 2008 was favorably
          affected by a decrease in the LIFO reserve of $185,000,
          after tax; while net income for the third quarter of 2007
          was adversely affected by an increase in the LIFO reserve of
          $1,046,000, after tax. Net income for the nine months ended
          September 30, 2008, was adversely affected by an increase in
          the LIFO reserve of $200,000, after tax; while net income
          for the nine months ended September 30, 2007, was adversely
          affected by an increase in the LIFO reserve of $3,167,000,
          after tax.

          3) Other income (expense) for the twelve months ended
          September 30, 2008, includes an additional 401(k) match for
          2007 and amortization of an intangible asset (the value of
          the backlog of Paltrok Beheer B.V. at the acquisition date
          of April 18, 2008).

          4) The effective tax rate for the twelve months ended
          September 30, 2007, varied from the statutory rate (34%) due
          to a non-cash 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.


 ---------------------------------------------------------------------
                SUMMARIZED CONSOLIDATED BALANCE SHEETS
 ---------------------------------------------------------------------

                                           September 30   December 31
                                               2008           2007
                                           ------------   ------------

 Current Assets                            $ 67,636,000   $ 69,785,000
 Net Property, Plant, and Equipment          36,454,000     27,415,000
 Other assets                                13,921,000      4,932,000
                                           ------------   ------------
   Total Assets                            $118,011,000   $102,132,000

 Current Liabilities                       $ 59,554,000   $ 57,218,000
 Long-Term Debt                              16,511,000      3,083,000
 Other Long-Term Liabilities                 13,873,000     14,434,000
 Shareholders' Investment                    28,073,000     27,397,000
                                           ------------   ------------

   Total Liabilities and
    Shareholders' Investment               $118,011,000   $102,132,000

 Book Value per Common Share                     $23.13         $22.86

 Backlog                                   $ 76,319,000   $ 69,270,000


            

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