SIFCO Industries, Inc. Announces Restatement of Fiscal 2007 Third Quarter Income Tax Provision

Business Wire, Dec 10, 2007

CLEVELAND -- SIFCO Industries, Inc. (AMEX:SIF) announced today that it has restated its income tax provision for its fiscal 2007 third quarter, which ended June 30, 2007. Subsequent to the issuance of the Company's unaudited consolidated condensed financial statements for the nine months ended June 30, 2007, the Company reevaluated its U.S. income tax provision and determined that it had, during the third quarter of fiscal year 2007, incorrectly reflected the accounting for (i) the reversal of its valuation allowance against its net deferred tax assets, and (ii) the recognition of the tax benefit resulting from the utilization in fiscal 2007 of its U.S. net operating loss carry forwards. This resulted in the understatement of the Company's U.S. deferred income tax provision and the overstatement of the Company's income from continuing operations for the nine months ended June 30, 2007 in the amount of $1.8 million.

SIFCO Industries, Inc. is engaged in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include forging, heat-treating, coating, welding, machining and selective electrochemical finishing. The products include forged components, machined forged components and other machined metal components, remanufactured component parts for aerospace turbine engines, and selective electrochemical finishing solutions and equipment. The Company's operations are conducted in three business segments: (1) Aerospace Component Manufacturing Group, (2) Turbine Components Services and Repair Group, and (3) Applied Surface Concepts Group.

Forward-Looking Language

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.

The Company's Form 10-Q/A for the quarter ended June 30, 2007 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.

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