Brady Corporation Provides Initial F'09 Sales and Net Income Guidance

Business Wire,  June 23, 2008  

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MILWAUKEE -- Brady Corporation (NYSE: BRC), a world leader in identification solutions, today issued initial guidance for its 2009 fiscal year beginning August 1, 2008, of sales of $1.56 to $1.59 billion, net income of between $145 and $152 million and earnings per diluted share of $2.63 to $2.75. This guidance is before any new acquisitions.

"We are pleased with the results that we have delivered so far in fiscal 2008 and expect to deliver solid results again in fiscal 2009 by achieving double-digit growth in our net income and operating margins while continuing to reduce our working capital on modest single-digit sales growth," said Brady President and Chief Executive Officer Frank M. Jaehnert. "While we continue to believe that a target of 12 percent net income as a percentage of sales is still possible in our business, we do not believe it is realistic to think that the current economic climate will support sufficient core business growth needed to reach this by 2010 as discussed in prior communications. We will now be focused on delivering 10 to 15 percent earnings-per-share growth through the current business cycle."

"We believe that we have the tools in place to achieve such growth in F'09 and sustain it going forward," said Brady Chief Financial Officer Thomas J. Felmer. "We will continue our on-going cost control initiatives, and our strategies for both core sales growth and growth through acquisitions. Additionally, we have begun to implement the Brady Business Performance System (BBPS), a set of tools and methodologies to enable Brady businesses to build on our culture of lean thinking and to ensure sustainable, repeatable business processes that achieve breakthrough levels of performance, and continue to improve upon them again and again. Tools and techniques used by BBPS include aligning strategy and execution throughout the business, value stream mapping, 5S and others."

"We expect BBPS to be a key contributor to improving operating margins, reducing lead times to our customers, reducing working capital and improving utilization of assets such as machinery, equipment and floor space," said Jaehnert.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Its products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has more than 500,000 customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in Milwaukee and employs about 8,000 people at operations in the Americas, Europe and Asia/Pacific. Brady's fiscal 2007 sales were approximately $1.363 billion.

More information is available on the Internet at www.bradycorp.com.

Brady believes that certain statements in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this news release, including, without limitation, statements regarding Brady's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations are forward-looking statements. When used in this news release, words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project" or "plan" or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from future financial performance of major markets Brady serves, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; Brady's ability to retain significant contracts and customers; future competition; Brady's ability to develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; interruptions to sources of supply; environmental, health and safety compliance costs and liabilities; Brady's ability to realize cost savings from operating initiatives; Brady's ability to attract and retain key talent; difficulties associated with exports; risks associated with international operations; fluctuations in currency rates versus the US dollar; technology changes; potential write-offs of Brady's substantial intangible assets; risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products; business interruptions due to implementing business systems; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the "Risk Factors" section located in Item 1A of Part II of Brady's Annual Report on Form 10-K for the period ended July 31, 20076. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements.

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