Paul Mueller Company Reports Its Third Quarter Earnings for 2006


SPRINGFIELD, Mo., Oct. 20, 2006 (PRIMEZONE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its third quarter report for the period ended September 30, 2006, as follows:



                 Paul Mueller Company and Subsidiaries

                          -----------------
                          NINE-MONTH REPORT
                          -----------------

                             (Unaudited)

                 ------------------------------------
                 CONSOLIDATED SUMMARIES OF OPERATIONS
                 ------------------------------------

                       Three Months Ended        Nine Months Ended
                          September 30              September 30
                    -----------  -----------  -----------  -----------
                        2006         2005         2006         2005
                    -----------  -----------  -----------  -----------

 Net Sales          $36,698,000  $31,322,000  $96,289,000  $98,621,000
 Cost of Sales       30,860,000   25,854,000   79,723,000   78,978,000
                    -----------  -----------  -----------  -----------
   Gross Profit     $ 5,838,000  $ 5,468,000  $16,566,000  $19,643,000
 Selling, General
  and Admin.
  Expenses            5,601,000    5,032,000   15,656,000   15,961,000
                    -----------  -----------  -----------  -----------
   Operating
    Income          $   237,000  $   436,000  $   910,000  $ 3,682,000
 Other Income           213,000      100,000      667,000      303,000
                    -----------  -----------  -----------  -----------
   Income
    before
    Provision
    (Benefit)
    for Income
    Taxes           $   450,000  $   536,000  $ 1,577,000  $ 3,985,000
 Provision
  (Benefit)
  for Income
  Taxes                 252,000      118,000      550,000    1,197,000
                    -----------  -----------  -----------  -----------
   Net Income       $   198,000  $   418,000  $ 1,027,000  $ 2,788,000
                    ===========  ===========  ===========  ===========

 Earnings per
  Common Share -
   Basic            $      0.17  $      0.36  $      0.89  $      2.38
   Diluted          $      0.17  $      0.36  $      0.89  $      2.37





                            Twelve Months Ended
                                September 30
                        ----------------------------
                            2006            2005
                        ------------    ------------
 Net Sales              $135,801,000    $133,900,000
 Cost of Sales           110,728,000     109,039,000
                        ------------    ------------
   Gross Profit         $ 25,073,000    $ 24,861,000
 Selling, General
  and Admin.
  Expenses                20,999,000      20,541,000
                        ------------    ------------
   Operating
    Income              $  4,074,000    $  4,320,000
 Other Income                655,000         391,000
                        ------------    ------------
  Income
    before
    Provision
    (Benefit)
    for Income
    Taxes               $  4,729,000    $  4,711,000
 Provision
  (Benefit)
  for Income
  Taxes                     (127,000)      1,108,000
                        ------------    ------------

   Net Income           $  4,856,000    $  3,603,000
                        ============    ============

 Earnings per
  Common Share -
   Basic                $       4.22    $       3.08
   Diluted              $       4.19    $       3.06


                          --------------------
                          FINANCIAL HIGHLIGHTS
                          --------------------                                        
                               
                                  September 30    December 31
                                      2006           2005
                                 -------------   -------------
                               
 Total Assets                    $  79,482,000   $  55,171,000
 Working Capital                 $   5,160,000   $   7,705,000
 Current Ratio                        1.10 : 1       1.28 : 1
 Net Worth                       $  20,429,000   $  21,449,000
 Book Value Per Share            $       17.41   $       18.46
 Backlog                         $ 101,090,000   $  37,027,000
                               
                               
                               
 1)  The effective tax rates for the periods presented vary from the
     statutory rate (34%) due to the effect of a valuation allowance
     that is recorded for virtually all of the Company's deferred tax
     assets and the effect of the alternative minimum tax.

 2)  Due to significantly higher stainless steel prices during 2006
     compared to 2005, operating income was reduced by LIFO provisions
     of $2,000,000 and $3,043,000 for the three months and nine months
     ended September 30, 2006, respectively, versus $250,000 and
     $1,043,000 for the three months and nine months ended September
     30, 2005, respectively.


            

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