Paul Mueller Company Released Its First Quarter Earnings for 2007


SPRINGFIELD, Mo., April 25, 2007 (PRIME NEWSWIRE) -- Paul Mueller Company (Pink Sheets:MUEL) today released its first quarter report for the period ended March 31, 2007, as follows:



                Paul Mueller Company and Subsidiaries
                -------------------------------------
                          THREE-MONTH REPORT
                -------------------------------------
                             (Unaudited)


                          CONSOLIDATED SUMMARIES OF OPERATIONS
                  ----------------------------------------------------
                     Three Months Ended         Twelve Months Ended
                           March 31                  March 31
                  ------------------------  --------------------------
                      2007         2006          2007          2006
                  -----------  -----------  ------------  ------------
 Net Sales        $49,539,000  $25,476,000  $176,950,000  $130,826,000
 Cost of Sales     41,019,000   20,558,000   145,903,000   105,388,000
                  -----------  -----------  ------------  ------------
  Gross Profit    $ 8,520,000  $ 4,918,000  $ 31,047,000  $ 25,438,000
 Selling, General
  and Administrative
  Expenses          5,754,000    4,963,000    22,937,000    21,229,000
                  -----------  -----------  ------------  ------------
  Operating
   Income (Loss)  $ 2,766,000  $   (45,000) $  8,110,000  $  4,209,000
 Other Income         191,000      226,000       459,000       404,000
                  -----------  -----------  ------------  ------------
 Income before
  Provision for
  Income Taxes    $ 2,957,000  $   181,000  $  8,569,000  $  4,613,000
 Provision (Benefit)
  for Income Taxes  1,073,000       34,000      (190,000)     (126,000)
                  -----------  -----------  ------------  ------------
 Net Income       $ 1,884,000  $   147,000  $  8,759,000  $  4,739,000
                  ===========  ===========  ============  ============
 Earnings per
  Common Share -
   Basic          $      1.64  $      0.13  $       7.61  $       4.09
   Diluted        $      1.61  $      0.13  $       7.51  $       4.06


                                   FINANCIAL HIGHLIGHTS
                              ------------------------------
                                March 31         December 31
                                  2007              2006
                              -------------      ------------
 Total Assets                 $117,627,000       $ 92,816,000

 Working Capital              $ 10,973,000       $ 10,678,000

 Current Ratio                  1.14 : 1           1.19 : 1

 Net Worth                    $ 21,781,000       $ 20,569,000

 Book Value Per Share         $      18.38       $      17.36

 Backlog                      $160,517,000       $116,913,000

 NOTES:

 (1) The effective tax rate for the twelve months ended March 31,
     2007, varies from the statutory rate (34%) due to a noncash
     credit of $3,157,000 recorded during the fourth quarter of 2006
     to reduce the remaining balance of the valuation allowance
     established during 2004 for all of the Company's net deferred tax
     assets.

 (2) First quarter 2007 net income was adversely affected by an
     increase to the LIFO reserve of $589,000, after tax, or $0.51 per
     share ($0.50 diluted), while first quarter 2006 net income was
     adversely affected by an increase to the LIFO reserve of
     $122,000, after tax, or $0.11 per share on a basic and diluted
     basis.

 (3) The effective tax rate for the three months ended March 31,
     2006, varies from the statutory rate (34%) due to the effect of
     the alternative minimum tax.

 (4) The effective tax rate for the twelve months ended March 31,
     2006, varies from the statutory rate (34%) due to the benefit of
     a net operating loss carryforward, tax credits, and a noncash
     credit of $1,200,000 that was a partial reduction of the
     valuation allowance established during 2004 for all of the
     Company's net deferred tax assets.



            

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