Unassociated Document Kewaunee Scientific Announces Record Sales and Earnings for Second Quarter Exchange: NASDAQ (KEQU) Contact: D. Michael Parker 704/871-3290 STATESVILLE, N.C.

Scientific Announces

Sales and Earnings for Second Quarter

N.C., December 3, 2008 /PRNewswire-/ - Kewaunee Scientific Corporation (Nasdaq:

announced record sales and earnings for its second quarter ended October 31,

earnings for the quarter were $1,464,000, or $0.57 per diluted share, up 21%

from net earnings of $1,212,000, or $0.47 per diluted share, for the second

quarter of the prior year. Earnings benefited from increased sales and on-going

manufacturing efficiencies.

the quarter were $27,732,000 up 12% from sales of $24,727,000 in the second

quarter of the prior year. Sales benefited from a continuing healthy marketplace

for laboratory products, both domestically and internationally. Sales from

domestic operations increased to $23,785,000, up from sales of $20,080,000

the same period last year, and sales from international operations were

$3,947,000, as compared to sales of $4,647,000 in the same period last year.

decline in international operations sales resulted from customer changes in

their product delivery dates.

backlog increased to a record $61.6 million at October 31, 2008, up from $60.4

million at the end of the previous quarter and $54.9 million at October 31,

earnings for the six months ended October 31, 2008 were $2,445,000, or $0.95

diluted share, an increase of 30% from net earnings for the same period last

year of $1,886,000, or $0.74 per diluted share. Sales for the six months ended

October 31, 2008 were $53,127,000, an increase of 17% from sales of $45,511,000

in the same period last year. Sales from domestic operations increased to

$44,798,000, up from sales of $38,094,000 in the same period last year, and

sales from international operations were $8,329,000, up from sales of $7,417,000

in the same period last year.

Company's balance sheet and liquidity continue to be strong. Bank borrowings

capital lease obligations totaled $5,557,000 million at October 31, 2008, as

compared to $2,997,000 at October 31, 2007. The debt-to-equity ratio was

.19-to-1, as compared to .12-to-1 at the end of the same period last year.

on hand was $2,690,000, as compared to $1,796,000 at the end of the same period

last year. Working capital was $17,410,000, up from $14,016,000 at the end

the same period last year.

second quarter record sales, earnings, and order backlog reflect solid

performances in all aspects of our businesses, both domestically and

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

Officer. "Our on-going cost reduction strategies again successfully mitigated

increased costs of raw materials, particularly steel and resin. Vendor pricing

for steel and resin appears to have stabilized in recent weeks, albeit at the

recent historically high levels. We anticipate it may take several months for

any decline in steel and resin prices to make it through the business channels

to our bottom line. We did experience some relief late in the quarter in our

energy and transportation costs.

far, we have not noticed any significant impact of the global economic slowdown

on the markets we serve, either domestically or internationally," Mr. Shumaker

continued. "Incoming orders have continued to be strong, and our quotation

activity remains at high levels. We believe Kewaunee is on track for a solid

third quarter, and we remain optimistic about our progress continuing in the

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

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

headquarters and domestic manufacturing facilities are located in Statesville,

North Carolina. The Company also has subsidiaries in Singapore and Bangalore,

India 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

financial information on back of page]

Statements of Operations

thousands, except per share data)

Consolidated Balance Sheets