Badger Meter reports record results.

MILWAUKEE--(BUSINESS WIRE)--July 16, 1996--Badger Meter, Inc. (AMEX:BMI) today reported record sales and earnings for both the second quarter and six months ended June 30, 1996.

Net sales for the second quarter of 1996 were $30,542,000, a 6.9% increase from sales of $28,579,000 for the same period in 1995. Net earnings for the second quarter of 1996 were $1,389,000, a 32.2% increase from earnings of $1,051,000 for the comparable prior period. Earnings per share rose 26.7% in the second quarter of 1996 to $0.76 from $0.60 per share in the second quarter of 1995.

For the first six months of 1996, net sales were $57,177,000, up 1.2% from sales of $56,508,000 for the same period in 1995. Net earnings for the first half of 1996 were $2,277,000, a 19.3% increase from earnings of $1,908,000 for the first six months of 1995. Earnings per share were $1.25 for the first half of 1996, up 14.7% from earnings of $1.09 per share for the comparable prior period.

"This was an excellent quarter for Badger Meter. We achieved healthy increases in sales of TRACE(R) radio frequency automated meter reading systems, Research Control(R) valves and lubrication meters," said James L. Forbes, president and chief executive officer of Badger Meter.

Forbes said the substantial increase in second quarter earnings reflected record sales and an increase in the profit margin, from 35.0% for the second quarter of 1995 to 35.4% for the same period in 1996. The profit margin improvement was the result of increased manufacturing efficiencies and favorable pricing, primarily in the utility market. Earnings also benefited from a decline in interest expense in the second quarter, reflecting lower interest rates and a substantially reduced level of debt. Forbes noted that selling, general and administrative expenses rose slightly in the second quarter of 1996 as the newly-created international division moves forward with its staffing and development plans.

Two new products were introduced at trade shows during the quarter. A new line of bronze Orion(R) valves was introduced in April. This new product extends the company's successful Research Control valve line with a larger model designed primarily for paper and pulp, pharmaceutical and food applications. In June, the company introduced a new line of turbo meters for commercial and utility customers. The new meters are designed to offer the highest field performance and reliability in the industry.

"These two new products are a result of our ongoing investments in research and development. They strengthen existing product lines and are designed to meet the specific needs of customers in our markets," Forbes said.

Badger Meter is a leading marketer and manufacturer of products using flow measurement and control technology serving industrial and utility markets worldwide.

Badger Meter company news is available 24 hours a day, on-line at: http://www.businesswire.com/cnn/bmi.htm -0-

                           BADGER METER, INC.
                CONSOLIDATED STATEMENT OF OPERATIONS(a)

                        Six Months Ended June 30,

                                  1996(b)         1995
Net sales                      $57,177,000     $56,508,000
Gross profit                   $20,724,000     $19,728,000
Earnings before income taxes    $3,620,000      $3,019,000
Provision for income taxes      $1,343,000      $1,111,000
Net earnings                    $2,277,000      $1,908,000
Earnings per common share            $1.25           $1.09
Average shares outstanding       1,765,138       1,752,792

                     Three Months Ended June 30,

                                  1996(b)         1995
Net sales                      $30,542,000     $28,579,000
Gross profit                   $10,803,000      $9,991,000
Earnings before income taxes    $2,229,000      $1,636,000
Provision for income taxes        $840,000        $585,000
Net earnings                    $1,389,000      $1,051,000
Earnings per common share            $0.76           $0.60
Average shares outstanding       1,769,489       1,754,092

(a)Unaudited

(b)Earnings per share include dilutive options in 1996

CONTACT: Badger Meter, Inc.

Richard A. Meeusen, 414/355-0400