Actuant Reports Record 2006 Results.

MILWAUKEE -- Actuant Corporation (NYSE:ATU) today announced record sales and earnings for its fourth quarter and fiscal year ended August 31, 2006. Fourth quarter fiscal 2006 net earnings and diluted earnings per share ("EPS") were $25.2 million and $0.82, respectively, compared to $19.1 million and $0.63, respectively, for the fourth quarter of fiscal 2005. Fiscal 2006 fourth quarter results include a $4.9 million ($4.5 million net of tax, or $0.14 per diluted share) pre-tax charge covering a portion of the Company's previously announced restructuring of its European electrical business, offset by a $5.4 million ($0.17 per diluted share) income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding the restructuring charge and income tax benefit, fourth quarter EPS increased 25% to $0.79 per diluted share year-over-year (see attached reconciliation of earnings).

Net earnings for fiscal 2006 were $92.6 million, or $3.01 per diluted share, compared to $71.3 million, or $2.42 per diluted share for the prior year. These results include favorable tax reserve adjustments of $0.08 and $0.02 per diluted share in fiscal 2006 and 2005, respectively, as well as the $0.14 per diluted share European Electrical restructuring provision and $0.17 per diluted share tax benefit discussed above. Excluding these items, comparable EPS was $2.90 per diluted share in fiscal 2006, a 21% increase over the $2.40 per diluted share in the prior year.

Fourth quarter sales increased approximately 21% to $324.6 million compared to $269.4 million in the prior year, driven by strong base business growth and sales from acquired businesses. Excluding foreign currency exchange rate changes and sales from acquired businesses, fourth quarter sales increased approximately 13% from the comparable prior year period. Sales for the fiscal year ended August 31, 2006 were $1.2 billion, approximately 23% higher than the $976 million in the comparable prior year period, reflecting sales volume added through business acquisitions and strong base business growth. Excluding the impact of foreign currency rate changes and sales from acquired businesses, full year sales increased 9% year-over-year.

Commenting on the results, Robert C. Arzbaecher, Chief Executive Officer, stated, "Actuant finished fiscal 2006 strongly, driving another quarter of significant year-over-year sales and earnings growth. The continued profitable growth in our industrial tools businesses, Enerpac and Hydratight, led the record results. Additionally, as expected, automotive business revenues grew 63% for the quarter on sales related to new convertible model introductions."

Arzbaecher added, "We are very happy with Actuant's progress in fiscal 2006 as we continued to execute our business model to drive strong cash flow and earnings growth. Our team achieved 9% sales growth excluding currency and acquisitions, deployed approximately $129 million in aggregate on acquisitions that strengthened our existing business, and continued to drive LEAD (Lean Enterprise Across Disciplines) and organizational competency throughout the business. Fiscal 2006's 21% EPS growth was the fifth consecutive year of EPS growth in excess of 15% since Actuant's creation through a spin-off. We were also able to convert those strong earnings into cash, generating over $100 million of cash flow, which was again in excess of net income."

Regarding the outlook for fiscal 2007, Arzbaecher commented, "We have confidence in our ability to continue to generate solid earnings growth. We are increasing our previous fiscal 2007 guidance, and now are forecasting diluted earnings per share of $3.20-$3.40 on sales of $1.325-$1.345 billion, reflecting the Actown acquisition and current economic environment. Our guidance excludes the remaining $12-15 million of estimated European electrical restructuring costs and future acquisitions. First quarter sales are expected to be in the $325-335 million range, generating EPS of approximately $0.78-$0.81 per diluted share. We believe that the continued consistent execution of our business model will reward shareholders in fiscal 2007 and beyond."

Net debt at August 31, 2006 was approximately $455 million (gross debt of $480 million less approximately $25 million of cash), compared to $460 million at the beginning of the quarter. The reduction in net debt during the quarter was attributable to fourth quarter cash flow of approximately $29 million, partially offset by the $24 million of borrowings to fund the August 2006 Actown acquisition. Availability under the Company's revolving credit facility remained strong at approximately $170 million as of August 31, 2006.

Fourth quarter Tools & Supplies segment sales were $209 million, an approximate 20% increase over fiscal 2005. Excluding foreign currency exchange rate changes and sales from acquired businesses, segment sales increased approximately 9% from the comparable prior year period, driven by continued growth in the industrial tools and electrical markets. Fiscal 2006 fourth quarter Engineered Solutions segment sales increased approximately 22% year-over-year to $116 million. Excluding foreign currency exchange rate changes, Engineered Solutions sales increased 20%, driven by the 63% increase in automotive convertible top system sales.

Year-over-year, Actuant's fiscal 2006 fourth quarter and full fiscal year operating profit increased to $38.2 million and $154.1 million, respectively, including the fourth quarter European Electrical restructuring charge of $4.9 million. Year-over-year fourth quarter operating profit margins expanded from 13.1% to 13.3%, excluding the negative impact of the restructuring charge in fiscal 2006. Tools & Supplies segment margins expanded due to favorable sales mix, increased low cost country sourcing, and lower electrical buyback and reset costs. Fourth quarter Engineered Solutions segment margins declined primarily due to start-up inefficiencies in the automotive business as new platform production ramps up, as well as below average RV margins, partially offset by higher margins in the truck market.

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, 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, September 27, and may be listened to via web cast on Actuant's website at www.actuant.com.

About Actuant

Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to over $1 billion and its market capitalization from $113 million to over $1.2 billion. The Company employs a workforce of more than 6,300 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, visit the Company's website at www.actuant.com.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]