Graham Corporation Wins $2.4 Million in Surface Condenser Contracts for Asia and Middle East Applications

Business Wire, March 27, 2006

BATAVIA, N.Y. -- Graham Corporation (AMEX: GHM) announced today that it has been awarded multiple surface condenser contracts valued at approximately $2.4 million by a Japanese turbo machinery manufacturer. The equipment will be installed in a Middle Eastern ethylene plant and in three Asian crude oil refining plants. Revenue for these contracts will be recognized on a percentage-of-completion basis, and shipments are presently scheduled for the latter half of fiscal year 2007, which ends March 31, 2007.

William C. Johnson, President and CEO, commented, "We continue to see strong demand for our products from the petrochemical processing sector, particularly in the Middle East and Asia. As a result of higher consumption of consumer products, which are manufactured with ethylene and petrochemical by-products, ethylene capacity is expected to double in these regions over the next ten years to keep pace.

"Graham's reputation for outstanding engineering design and quality products gives us a leading competitive edge in bidding on, and ultimately winning, these projects. The expansion of our engineering capacity through new hires, outsourcing and the addition of sales and engineering staff in China are enabling us to take on more projects from this region. We are aggressively pursuing bid opportunities in the Asian markets to capitalize on the strong cycle of new plant additions."

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.

Graham's reach spans the globe. 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.