Exhibit 99.1 Actuant Announces Record Second Quarter Results MILWAUKEE--(BUSINESS WIRE)--March 17, 2005--Actuant Corporation (NYSE:ATU) today announced results for its second quarter ended February 28, 2005. Second quarter fiscal 2005 net earnings and diluted earnings per share ("EPS") were $15.8 million and $0.54, respectively. This compares to net earnings and EPS of $8.8 million and $0.33, respectively, for the second quarter of fiscal 2004, which included a charge of $2.3 million ($1.5 million after tax or $0.05 per diluted share) attributable to the early extinguishment of debt. Excluding the prior year debt extinguishment charge, second quarter fiscal 2005 EPS grew 42% to $0.54 from $0.38 in the prior year. Net earnings for the six-months ended February 28, 2005 were $33.3 million, or $1.17 per diluted share, compared to $9.1 million, or $0.36 per diluted share for the comparable prior year period. The Company recorded net of tax special charges of $11.3 million or $0.42 per diluted share, in the six-month period ended February 29, 2004, related to the early extinguishment of debt. Excluding these special charges, net earnings and EPS for the first half of fiscal 2005 were $33.3 million and $1.17 per diluted share, compared to $20.4 million and $0.78 per diluted share, respectively, in the prior year. Second quarter sales increased approximately 34% to $235.3 million compared to $176.0 million in the prior year. Current year results include those from recently acquired businesses including Dresco B.V., Yvel S.A., A.W. Sperry Instruments, Inc., Key Components, Inc. ("KCI"), and Hedley Purvis Ltd. Excluding foreign currency exchange rate changes, second quarter core sales increased approximately 3% over the comparable prior year period. Core sales growth is defined as the year-over-year sales growth in both existing and acquired businesses. Sales for the six months ended February 28, 2005 were a record $434.9 million, approximately 27% higher than the $342.6 million in the comparable prior year period. Excluding the impact of foreign currency rate changes on translated results, core sales for the six-month period increased 4%. Robert C. Arzbaecher, President and CEO of Actuant, commented, "This was a very busy quarter for Actuant with three acquisitions, an equity offering and new senior debt. I am happy with the second quarter results, including the 42% EPS growth ignoring debt extinguishment costs last year. This represents the 15th consecutive quarter of year-over-year growth in diluted EPS, excluding special items." Arzbaecher continued, "In addition to acquisitions, Actuant's second quarter results benefited from economic improvement from a year ago in North America and Asia. Continued strong demand in the industrial high force hydraulic tools (Enerpac) and heavy-duty truck (Power-Packer) markets, as well as a number of the KCI business units, offset weaknesses in Europe and the recreational vehicle ("RV") market. Our sales in Europe were not as robust, which we attribute to weaker economic conditions in that region. Despite overall core sales growth, we saw slower demand in a few of our markets, including RV, which was down 34% from a strong second quarter last year, and automotive convertible top, which had 2% year-over-year quarterly sales growth. Actuant's end-market diversity continues to be an important attribute; we have businesses in various geographic areas and markets that are performing differently, yet in total we are still generating record sales and earnings." All EPS disclosures include the previously disclosed adoption of the provisions of Emerging Issues Task Force Issue 04-08, "The Effect of Contingently Convertible Instruments on Diluted Earnings per Share" ("EITF 04-08") in the quarter ended February 28, 2005. Actuant's 2% Contingent Convertible Debentures ("the 2% Co-Cos") are convertible at the option of the holder into shares of Actuant Class A Common Stock once the common stock trades above $47.89 for a specified period of time (a market price trigger). This new accounting rule requires companies with contingently convertible debt instruments to include the dilutive effect of the contingently convertible debt in diluted earnings per share calculations regardless of whether the market price trigger has been met. In accordance with the EITF 04-08, Actuant restated its diluted earnings per share for fiscal 2004, when the 2% Co-Cos were issued, as well as fiscal 2005 first quarter results. Actuant's operating profit in the second quarter of fiscal 2005 was $27.9 million, or 38% higher than the $20.2 million in the second quarter of last year. Operating profit margin increased from 11.5% in the second quarter of last year to 11.9% in the current year. Second quarter Tools & Supplies segment sales were $138.5 million, a 34% increase over fiscal 2004. Excluding the weaker U.S. dollar, core segment sales increased approximately 5%. Engineered Solutions segment sales for the second quarter also increased 34% over the prior year to $96.7 million due mainly to foreign currency rate changes and acquisitions. Excluding the impact of foreign currency rate changes, Engineered Solutions segment core sales approximated the prior year. Total debt at February 28, 2005 was approximately $409 million. Net debt (total debt less approximately $4 million of cash) was $405 million, compared to $205 million at the beginning of the quarter. The increase is the result of acquisitions, partially offset by second quarter operating cash flow, a $19 million increase in accounts receivable securitization program sales, and the proceeds from the Company's December 2004 follow-on equity offering. The Company had availability under its revolving credit facility of $246 million at February 28, 2005. The Company also provided updated sales and earnings guidance for fiscal 2005, including the impact of previously announced acquisitions and EITF 04-08. Fiscal 2005 sales are expected to be in the range of $960-$970 million, and EPS in the $2.40-$2.50 per share range. Third quarter sales are forecasted to be in the $265-$270 million range, and should generate EPS of approximately $0.61-$0.66 per share. Arzbaecher said. "Our revised guidance reflects the benefit of the acquisitions we completed in the second quarter, as well as the new Co-Co accounting rule, which essentially have an offsetting effect on one-another in terms of fiscal 2005 EPS. Our current estimates would result in a 30%-35% increase in EPS for fiscal 2005, which represents our fourth consecutive year of meeting or exceeding our stated goal of increasing EPS, excluding special items, by 15%-20% annually. We are very excited about Actuant's future growth prospects, and the strategic nature of the three acquisitions we completed this quarter. Acquisition integration activities are proceeding on schedule and we are confident we will be successful in creating long term value from these transactions." Safe Harbor Statement Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions and related restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. An investor conference call is scheduled for 11am ET today, March 17, and may be listened to via webcast on Actuant's Web site at www.actuant.com. About Actuant Actuant, headquartered in Glendale, Wisconsin, is a diversified industrial company with operations in more than 25 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Formerly known as Applied Power, Actuant was created in 2000 after the spin-off of Applied Power's electronics business segment into a separate public company called APW Ltd. Since 2000, Actuant has grown its sales from $482 million to over $1 billion and its market capitalization from $113 million to over $1.4 billion. The company employs a workforce of more than 5,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, visit the Company's Web site at www.actuant.com. Actuant Corporation Condensed Consolidated Balance Sheets (Dollars in thousands) February 28, August 31, 2005 2004 ------------ ------------ (unaudited) ASSETS Current assets Cash and cash equivalents $4,069 $6,033 Accounts receivable, net 129,445 90,433 Inventories, net 143,996 87,074 Deferred income taxes 15,977 11,126 Other current assets 7,236 7,648 ------------ ------------ Total current assets 300,723 202,314 Property, plant and equipment, net 76,583 47,972 Goodwill 352,994 145,387 Other intangible assets, net 143,812 22,127 Other long-term assets 10,367 6,336 ------------ ------------ Total assets $884,479 $424,136 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $2,541 $960 Trade accounts payable 82,569 64,165 Accrued compensation and benefits 26,230 21,401 Income taxes payable 13,751 9,608 Current maturities of long-term debt 2,155 3,863 Other current liabilities 52,949 34,627 ------------ ------------ Total current liabilities 180,195 134,624 Long-term debt, less current maturities 404,031 189,068 Deferred income taxes 29,646 8,376 Pension and postretirement benefit accruals 36,040 28,862 Other long-term liabilities 18,965 31,429 Shareholders' equity Capital stock 5,389 4,753 Additional paid-in capital (378,341) (518,321) Accumulated other comprehensive income (loss) (7,716) (17,600) Stock held in trust (1,172) (806) Deferred compensation liability 1,172 806 Retained earnings 596,270 562,945 ------------ ------------ Total shareholders' equity 215,602 31,777 ------------ ------------ Total liabilities and shareholders' equity $884,479 $424,136 ============ ============ Actuant Corporation Condensed Consolidated Statements of Earnings (In thousands except per share amounts) (Unaudited) Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2005 2004 2005 2004 -------------------------- -------------------------- Net sales $235,267 $176,022 $434,944 $342,606 Cost of products sold 160,848 121,227 296,698 233,193 -------------------------- -------------------------- Gross profit 74,419 54,795 138,246 109,413 Selling, administrative and engineering expenses 45,250 34,036 81,207 67,385 Amortization of intangible assets 1,275 587 1,866 1,134 -------------------------- -------------------------- Operating profit 27,894 20,172 55,173 40,894 Financing costs, net 3,907 3,877 5,845 8,268 Charge for early extinguishment of debt - 2,268 - 17,337 Other (income) expense, net 40 638 (1,179) 1,091 -------------------------- -------------------------- Earnings from operations before income Tax expense and minority interest 23,947 13,389 50,507 14,198 Income tax expense 8,357 4,660 17,467 4,943 Minority interest, net of income taxes (229) (29) (285) 204 -------------------------- -------------------------- Net earnings $15,819 $8,758 $33,325 $9,051 ========================== ========================== Earnings per share Basic $0.61 $0.37 $1.33 $0.38 Diluted 0.54 0.33 1.17 0.36 Weighted average common shares outstanding Basic 26,103 23,601 25,003 23,580 Diluted 30,642 28,670 29,516 27,122 Actuant Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Six Months Ended ------------------------- ------------------------- February 28, February 29, February 28, February 29, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Operating Activities Net earnings $15,819 $8,758 $33,325 $9,051 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 5,699 4,254 9,797 8,188 Amortization of debt discount and debt issuance costs 332 468 577 842 Write-off of debt discount and debt issuance costs in conjunction with early extinguishment of debt - 2,180 - 3,565 Provision for deferred income taxes (701) (1,036) (152) (216) (Gain) loss on disposal of assets (117) 67 (296) 137 Changes in operating assets and liabilities, excluding the effects of the business acquisitions: Accounts receivable 3,790 3,409 (7,244) (8,390) Increase in accounts receivable securitization program 19,280 - 19,280 3,444 Inventories (4,711) 1,152 (10,038) (1,261) Prepaid expenses and other assets (1,049) (726) 2,736 (1,052) Trade accounts payable (2,362) (3,411) (4,302) (3,547) Income taxes payable 810 1,189 6,020 (4,646) Reimbursement to former subsidiary of tax refund - - (15,837) - Other accrued liabilities (2,984) (1,287) (6,379) (4,718) ------------ ------------ ------------ ------------ Net cash provided by operating activities (a) 33,806 15,017 27,487 1,397 Investing Activities Proceeds from sale of property, plant and equipment 2,482 14,601 2,839 14,601 Capital expenditures (4,764) (3,016) (7,947) (5,901) Cash paid for business acquisitions, net of cash acquired (278,195) (31,903) (287,147) (65,100) ------------ ------------ ------------ ------------ Net cash used in investing activities (280,477) (20,318) (292,255) (56,400) Financing Activities Partial redemptions of 13% senior subordinated notes - - - (49,354) Net proceeds from 2% convertible senior subordinated note offering - (222) - 144,994 Net borrowings (repayments) on revolving credit facilities and short-term borrowings (53,769) 13,533 (36,144) 12,348 Proceeds from issuance of term loans 250,000 - 250,000 - Principal payments on term loans (2,127) (36,968) (2,218) (54,369) Retirement of KCI 10.5% Bonds (82,800) - (82,800) - Debt issuance costs (2,300) (1,123) (2,300) (1,123) Net proceeds from Class A common stock offering 134,360 - 134,360 - Stock option exercises and other 323 471 1,556 829 ------------ ------------ ------------ ------------ Net cash provided by financing activities 243,687 (24,309) 262,454 53,325 Effect of exchange rate changes on cash (35) 45 350 212 ------------ ------------ ------------ ------------ Net increase in cash and cash equivalents (3,019) (29,565) (1,964) (1,466) Cash and cash equivalents - beginning of period 7,088 32,692 6,033 4,593 ------------ ------------ ------------ ------------ Cash and cash equivalents - end of period $4,069 $3,127 $4,069 $3,127 ============ ============ ============ ============ (a) Includes the net of tax cash impact of 13% senior subordinated note redemptions of $0 and $8.4 million for the three and six months ended February 29, 2004, respectively. ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA (US dollars, in thousands) FISCAL 2004 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $96,335 $103,554 $109,930 $106,298 $416,117 ENGINEERED SOLUTIONS SEGMENT 70,249 72,468 86,551 81,466 310,734 --------------------------------------------- TOTAL REPORTED SALES $166,584 $176,022 $196,481 $187,764 $726,851 ============================================= % SALES GROWTH TOOLS & SUPPLIES SEGMENT 4.7% 14.2% 20.3% 15.0% 13.5% ENGINEERED SOLUTIONS SEGMENT 25.8% 40.9% 55.1% 46.0% 41.9% TOTAL REPORTED SALES 12.7% 23.9% 33.5% 26.7% 24.2% OPERATING PROFIT TOOLS & SUPPLIES SEGMENT $14,361 $15,714 $17,546 $17,088 $64,709 ENGINEERED SOLUTIONS SEGMENT 8,775 7,257 11,415 11,216 38,663 CORPORATE / GENERAL (2,414) (2,799) (3,783) (4,037) (13,033) --------------------------------------------- TOTAL REPORTED RESULTS $20,722 $20,172 $25,178 $24,267 $90,339 ============================================= OPERATING PROFIT % TOOLS & SUPPLIES SEGMENT 14.9% 15.2% 16.0% 16.1% 15.6% ENGINEERED SOLUTIONS SEGMENT 12.5% 10.0% 13.2% 13.8% 12.4% TOTAL (INCLUDING CORPORATE) 12.4% 11.5% 12.8% 12.9% 12.4% EBITDA EXCLUDING SPECIAL ITEMS TOOLS & SUPPLIES SEGMENT $16,668 $17,511 $19,618 $19,378 $73,175 ENGINEERED SOLUTIONS SEGMENT 9,921 8,986 12,753 13,285 44,945 CORPORATE / GENERAL (2,386) (2,709) (3,632) (3,677) (12,404) --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 24,203 23,788 28,739 28,986 105,716 SPECIAL ITEMS (1) (15,069) (2,268) (9,940) (9,458) (36,735) --------------------------------------------- EBITDA (2) $9,134 $21,520 $18,799 $19,528 $68,981 ============================================= EBITDA % TOOLS & SUPPLIES SEGMENT 17.3% 16.9% 17.8% 18.2% 17.6% ENGINEERED SOLUTIONS SEGMENT 14.1% 12.4% 14.7% 16.3% 14.5% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 14.5% 13.5% 14.6% 15.4% 14.5% FISCAL 2005 ---------------------------------------------- Q1 Q2 Q3 Q4 TOTAL ---------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $112,537 $138,546 $251,083 ENGINEERED SOLUTIONS SEGMENT 87,140 96,721 183,861 ---------------------------------------------- TOTAL REPORTED SALES $199,677 $235,267 $- $- $434,944 ============================================== % SALES GROWTH TOOLS & SUPPLIES SEGMENT 16.8% 33.8% ENGINEERED SOLUTIONS SEGMENT 24.0% 33.5% TOTAL REPORTED SALES 19.9% 33.7% OPERATING PROFIT TOOLS & SUPPLIES SEGMENT $17,718 $19,928 $37,646 ENGINEERED SOLUTIONS SEGMENT 12,205 10,960 23,165 CORPORATE / GENERAL (2,644) (2,994) (5,638) ---------------------------------------------- TOTAL REPORTED RESULTS $27,279 $27,894 $- $- $55,173 ============================================== OPERATING PROFIT % TOOLS & SUPPLIES SEGMENT 15.7% 14.4% 15.0% ENGINEERED SOLUTIONS SEGMENT 14.0% 11.3% 12.6% TOTAL (INCLUDING CORPORATE) 13.7% 11.9% 12.7% EBITDA EXCLUDING SPECIAL ITEMS TOOLS & SUPPLIES SEGMENT $19,487 $22,866 $42,353 ENGINEERED SOLUTIONS SEGMENT 13,509 13,503 27,012 CORPORATE / GENERAL (400) (2,816) (3,216) ---------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 32,596 33,553 - - 66,149 SPECIAL ITEMS (1) - - - ---------------------------------------------- EBITDA (2) $32,596 $33,553 $- $- $66,149 ============================================== EBITDA % TOOLS & SUPPLIES SEGMENT 17.3% 16.5% 16.9% ENGINEERED SOLUTIONS SEGMENT 15.5% 14.0% 14.7% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 16.3% 14.3% 15.2% (1) First, third and fourth quarter 2004 special items represents charges related to the early redemption of debt. Second quarter 2004 special items represents the non-cash charge attributable to the write-off of remaining debt issuance costs associated with the senior secured credit facility that was replaced during February 2004. (2) EBITDA excludes discontinued operations. ACTUANT CORPORATION Reconciliation of GAAP measures to non-GAAP measures (In thousands, except per share amounts) FISCAL 2004 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 9,795 1,479 6,791 7,084 25,149 --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $10,088 $10,237 $14,257 $14,457 $49,039 ============================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $0.01 $0.33 $0.29 $0.67 $1.32 DISCONTINUED OPERATIONS (NET OF TAX) - - - (0.39) (0.39) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.01 0.33 0.29 0.28 0.93 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 0.40 0.05 0.24 0.25 0.91 --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $0.41 $0.38 $0.53 $0.53 $1.84 ============================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (2) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 NET FINANCING COSTS 4,391 3,877 2,900 2,391 13,559 INCOME TAX EXPENSE 283 4,660 4,428 5,305 14,676 DEPRECIATION & AMORTIZATION 3,934 4,254 4,066 4,343 16,597 MINORITY INTEREST 233 (29) (61) 116 259 --------------------------------------------- EBITDA (NON-GAAP MEASURE) 9,134 21,520 18,799 19,528 68,981 SPECIAL ITEMS (3) 15,069 2,268 9,940 9,458 36,735 --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $24,203 $23,788 $28,739 $28,986 $105,716 ============================================= FISCAL 2005 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $17,506 $15,819 $33,325 DISCONTINUED OPERATIONS (NET OF TAX) - - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 17,506 15,819 - - 33,325 DEBT EXTINGUISHMENT COSTS (NET OF TAX) - - - --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $17,506 $15,819 $- $- $33,325 ============================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $0.64 $0.54 $1.17 DISCONTINUED OPERATIONS (NET OF TAX) - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.64 0.54 - - 1.17 DEBT EXTINGUISHMENT COSTS (NET OF TAX) - - --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $0.64 $0.54 $- $- $1.17 ============================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (2) NET EARNINGS (GAAP MEASURE) $17,506 $15,819 $33,325 DISCONTINUED OPERATIONS (NET OF TAX) - - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 17,506 15,819 - - 33,325 NET FINANCING COSTS 1,938 3,907 5,845 INCOME TAX EXPENSE 9,110 8,357 17,467 DEPRECIATION & AMORTIZATION 4,098 5,699 9,797 MINORITY INTEREST (56) (229) (285) --------------------------------------------- EBITDA (NON-GAAP MEASURE) 32,596 33,553 - - 66,149 SPECIAL ITEMS (3) - - - --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS (NON-GAAP MEASURE) $32,596 $33,553 $- $- $66,149 ============================================= (1) Net earnings and diluted earnings per share excluding discontinued operations and special items represent net earnings and diluted earnings per share per the Consolidated Statement of Earnings net of charges or credits for items that are not representative of the normal recurring operations of the current portfolio of Actuant companies. These items include results from discontinued operations and expenses recorded to extinguish debt entered into at the time of the spin-off. These measures should not be considered as an alternative to net earnings or diluted earnings per share as an indicator of the company's operating performance. However, this presentation is important to investors for understanding the operating results of the current portfolio of Actuant companies. (2) EBITDA represents net earnings before net financing costs, income tax expense, depreciation & amortization and minority interest. EBITDA excluding discontinued operations and special items is net of charges or credits that are not representative of the normal recurring operations of the current portfolio of Actuant companies. These special items include results from discontinued operations and expenses recorded to extinguish debt entered into at the time of the spin-off. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Consolidated Statements of Earnings data. EBITDA should not be considered as an alternative to net earnings or operating profit as an indicator of the company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Actuant has presented EBITDA because it regularly reviews this as a measure of the company's ability to incur and service debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. (3) First, third and fourth quarter 2004 special items represents charges related to the early redemption of debt. Second quarter 2004 special items represents the non-cash charge attributable to the write-off of remaining debt issuance costs associated with the senior secured credit facility that was replaced during February 2004. CONTACT: Actuant Corporation Andrew Lampereur, 414-352-4160