Kewaunee Scientific Announces Results for Second Quarter STATESVILLE, N.C.

Scientific Announces Results

N.C., December 3, 2009 /PRNewswire-/ -- Kewaunee Scientific Corporation (Nasdaq:

KEQU - News) today announced

the financial results for its second quarter ended October 31,

earnings for the quarter were $1,352,000, or $0.53 per diluted

share. Earnings were unfavorably impacted by an after-tax increase in

pension expense of $179,000, or $0.07 per diluted share, as compared to the

second quarter last year. Net earnings for the second quarter last

year were $1,464,000, or $0.57 per diluted share. Current quarter net

earnings reflect strong sales and earnings from domestic operations, lower

manufacturing costs, and improved operational efficiencies.

earnings for the six months ended October 31, 2009 were $2,423,000, or $0.95 per

diluted share. Earnings for the six months were unfavorably impacted by an

after-tax increase in pension expense of $314,000, or $0.12 per diluted share,

as compared to the same period last year. Net earnings for the same period last

year were $2,445,000, or $0.95 per diluted share. The increases in

pension expense for the quarter and six months of the current year primarily

resulted from last year's decline in the market value of pension

the quarter were $27,088,000, a decrease of 2% from sales of $27,732,000 in the

second quarter of last year. Domestic operations sales were a record

$24,713,000, up 4% from sales of $23,786,000 in the second quarter last

year. International operations sales, which continue to be impacted

by a slowdown in Asia of construction activity, were $2,375,000, as compared to

sales of $3,946,000 the second quarter last year.

backlog increased to a record $65.2 million at October 31, 2009, up from $60.7

million at July 31, 2009 and $61.6 million at October 31, 2008.

the six months ended October 31, 2009 were $53,337,000, slightly above sales of

$53,127,000 in the same period last year. Domestic operations sales

increased to $48,071,000, up 7% from sales of $44,799,000 in the same period

last year. International operations sales were $5,266,000, as

compared to sales of $8,328,000 in the same period last year.

Company's balance sheet remains strong. Working capital increased to $20,880,000

at October 31, 2009, up from $17,410,000 at the end of the same period last

year. Cash on hand was $3,057,000, up from $2,690,000 at the end of the same

period last year. Bank borrowings and capital lease obligations

totaled $5,647,000, as compared to $5,557,000 at October 31, 2008, and the

debt-to-equity ratio was .19-to-1, as compared to .23-to-1.

second quarter was another excellent quarter for in-coming orders, sales, and

earnings," said William A. Shumaker, President and Chief Executive

Officer. "The order backlog at the end of the quarter was a record,

sales were the second highest in the Company's history, and earnings were the

third highest. Our domestic operations had an outstanding quarter

with record sales, as we continue to see many good opportunities, particularly

for larger construction projects. Activity for smaller projects was

also good, with demand varying by geographic area and market

particularly pleased with the progress we made during the quarter in the

international arena, as we were awarded several large orders. One of

these is a major project for a prestigious research university in Saudi Arabia,

one of the Middle East areas we have targeted as important growth markets for

the Company. Although our international business continues to be

impacted by a softer Asian marketplace, we are quoting and winning an increasing

consider the months that lie ahead, we expect our forward progress to continue

during the second half of the fiscal year, aided by our strong order backlog and

improved manufacturing efficiencies, subject as usual to uncertainties such as

the global economic slowdown."

Scientific Corporation is a recognized leader in the design, manufacture, and

installation of scientific and technical furniture. The Company's corporate

headquarters are located in Statesville, North Carolina. The Company's

manufacturing facilities are located in Statesville and Bangalore, India. The

Company has subsidiaries in Singapore and Bangalore that serve the Asian and

Middle East markets. Kewaunee Scientific's website is located at http://www.kewaunee.com.

statements in this release constitute "forward-looking" statements within the

meaning of the Private Securities Litigation Reform Act of 1995. Such

forward-looking statements involve known and unknown risks, uncertainties and

other factors that could significantly impact results or achievements expressed

or implied by such forward-looking statements. These factors include, but are

not limited to, economic, competitive, governmental, and technological factors

affecting the Company's operations, markets, products, services, and

Statements of Operations

thousands, except per share data)

Consolidated Balance Sheets

thousands, except per share data)