Graham Corporation Announces Order to Supply Renewable Feedstock Plant; $700 thousand project includes four vacuum ejector systems

Business Wire, April 24, 2006

BATAVIA, N.Y. -- Graham Corporation (AMEX: GHM) announced today that it has received an order valued at approximately $700 thousand for four ejector systems to be installed in a plant that will use corn to manufacture biochemicals. Corn, a renewable feedstock, requires less energy to process and is more environmentally friendly than oil-based resources. Revenue for this contract will be recognized on a percentage-of-completion basis, and shipment is presently scheduled for the third fiscal quarter ending December 31, 2006.

William C. Johnson, Graham's President and CEO, commented, "As the world continues to explore ways to reduce dependency on oil and its derivative products, there are a number of companies implementing emerging, cutting edge technologies into their production processes. Our ability to comprehend the complexity of the new technology to process corn feedstock and the engineering capability to design the necessary systems gave us a competitive advantage in securing this order."

ABOUT GRAHAM CORPORATION

With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a designer, manufacturer and global supplier of ejectors, pumps, condensers, vacuum systems and heat exchangers. Over the past 70 years, Graham Corporation has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principle markets for Graham's equipment are the petrochemical, oil refining and electric power generation industries, including cogeneration and geothermal plants. Graham equipment can be found in diverse applications, such as metal refining, pulp and paper processing, ship-building, water heating, refrigeration, desalination, food processing, drugs, heating, ventilating and air conditioning. Its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. More information regarding Graham can be found at its website: www.graham-mfg.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Graham's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include the Company's ability to successfully execute the contract, that the estimated value of the production contract will be realized, customer preferences and changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.