Applied Power announces record third quarter earnings.

MILWAUKEE--(BUSINESS WIRE)--June 24, 1997--Applied Power Inc. (NYSE:APW) reported record sales and net earnings for the third quarter ended May 31, 1997. Net earnings for the third quarter were $0.77 per share, an 18.5 percent improvement from the $0.65 per share reported for the same period last year. Sales for the third quarter were $173.8 million, an increase of 18 percent over the comparable prior year period.

For the first nine months of fiscal 1997, earnings were $2.10 per share, an increase of 20 percent over the $1.75 per share reported for the same period in fiscal 1996. Sales were $484.1 million, an increase of 14 percent over the comparable prior year period. Year-over-year operating profit margins increased to 11.0 percent from 9.9 percent.

Richard G. Sim, Chairman and CEO, stated, "We are pleased with the continuing strong growth in our earnings. Sales growth in the third quarter, excluding the effect of the stronger dollar, was 22 percent. Strength in our sustainable growth business units is powering sales and earnings improvements, despite softer market conditions in some of our cyclical units."

Sim continued, "As Applied Power completes its 10th year as a public company, we are pleased about our past and optimistic about our future. The compounded annual return to shareholders over this 10 year period is in excess of 20 percent. We will continue our strategy of selectively investing in our sustainable growth opportunities, supplemented with an acquisition strategy for all three of our business segments."

On a year-to-date basis, Technical Environments and Enclosures ("TEE") profits grew an impressive 119 percent on a strong 86 percent sales growth. Excluding acquisitions, TEE sales grew 36 percent. Engineered Solutions ("ES") profits grew 12 percent on a sales reduction of 6 percent. Excluding the sale of the mobile equipment valve line and the effect of the Cadillac valve contract which ended last fiscal year, sales in ES grew modestly. Distributed Products ("DP") profits were down 3 percent on sales growth of 5 percent. Steady profit improvement at GB Electrical was offset by weaker results at Enerpac, particularly in Europe, Japan and Korea.

The Company's debt declined $5.5 million to $139.5 million for the quarter ended May 31, 1997, with debt to total capitalization decreasing to 40 percent.

Applied Power is a global company comprised of three business segments. Technical Environments and Enclosures expertise is in configuring technical equipment for end users and in providing enclosures for electronic equipment. Engineered Solutions supplies components and systems based on hydraulic and vibration control technologies to a diverse group of OEM customers. Distributed Products provides industrial and electrical tools and supplies through various distributor and retail channels worldwide.

To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" service at 1-800-549-0679.

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Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)


                                     Three Months Ended May 31,
                                     __________________________
                                         1997          1996
                                      _________     _________
Sales                                 $ 173,839     $ 147,569
Cost of Goods Sold                      109,248        92,124
                                      _________     _________
  Gross Profit                           64,591        55,445

Engineering, Selling and
 Administrative Expense                  43,478        38,871
Amortization of Intangibles               1,750         1,096
                                      _________     _________
  Operating Profit                       19,363        15,478

Other Expense (Income)
  Interest Expense (Net)                  3,143         1,977
  Other (Net)                              (469)           37
                                      _________     _________
    Earnings Before Income Taxes         16,689        13,464

Income Tax Expense                        5,591         4,319
                                      _________     _________
Net Income                            $  11,098     $   9,145
                                      _________     _________
                                      _________     _________

Earnings per Share                    $    0.77     $    0.65
                                      _________     _________
                                      _________     _________
Average Shares Outstanding               14,404        13,994



Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)


                                     Nine Months Ended May 31,
                                     __________________________
                                        1997           1996
                                      _________     _________

Sales                                 $ 484,105    $  423,919
Cost of Goods Sold                      298,443       262,727
                                      _________     _________
  Gross Profit                          185,662       161,192

Engineering, Selling and
 Administrative Expense                 127,525       116,529
Amortization of Intangibles               5,046         2,804
                                      _________     _________
  Operating Profit                       53,091        41,859

Other Expense (Income)
  Interest Expense (Net)                  8,963         6,091
  Other (Net)                            (1,146)         (284)
                                      _________     _________
    Earnings Before Income Taxes         45,274        36,052

Income Tax Expense                       15,167        11,547
                                      _________     _________

Net Income                            $  30,107     $  24,505
                                      _________     _________
                                      _________     _________

Earnings per Share                    $    2.10     $    1.75
                                      _________     _________
                                      _________     _________

Average Shares Outstanding               14,313        13,968



Applied Power Inc.
Comparative Balance Sheet
(Dollars in Thousands)

                                        May 31,     August 31,
                                         1997          1996
                                      _________     _________
CURRENT ASSETS

Cash and Cash Equivalents             $   5,622     $   1,001
Accounts Receivable                      82,758        68,747
Inventories                             120,128       120,648
Prepaid Expenses                         15,963        16,509
                                      _________     _________
  Total Current Assets                  224,471       206,905

Other Assets                              6,433         6,370
Goodwill                                106,106        58,266
Intangible Assets                        31,163        33,464

Property, Plant & Equipment
  Gross Property, Plant & Equipment     194,050       168,125
  Less:  Accumulated Depreciation      (106,605)      (91,889)
                                      _________     _________
    Net Property, Plant & Equipment      87,445        76,236
                                      _________     _________
  TOTAL ASSETS                         $455,618      $381,241
                                      _________     _________
                                      _________     _________

LIABILITIES AND SHAREHOLDERS' EQUITY

Short-term Borrowings                  $ 17,136      $ 16,068
Trade Accounts Payable                   46,331        41,397
Accrued Compensation and Benefits        20,905        20,805
Income Taxes Payable                      4,880         7,081
Other Current Liabilities                21,157        22,378
                                      _________     _________
  Total Current Liabilities             110,409       107,729

Long-term Debt                          122,351        76,548
Deferred Income Taxes                    13,774        15,395
Other Long-term Liabilities              14,697        13,114

SHAREHOLDERS' EQUITY
  Common Stock                            2,759         2,730
  Additional Paid-in Capital             37,886        34,383
  Retained Earnings                     155,259       126,392
  Cumulative Translation Adjustments     (1,517)        4,950
                                      _________     _________
    Total Shareholders' Equity          194,387       168,455
                                      _________     _________

  TOTAL LIABILITIES AND
    SHAREHOLDERS' EQUITY               $455,618      $381,241
                                      _________     _________
                                      _________     _________

CONTACT: Applied Power Inc.

Robert C. Arzbaecher, 414/781-6600