Badger Meter reports record sales and earnings for 1996.

MILWAUKEE--(BUSINESS WIRE)--Jan. 30, 1997--Badger Meter, Inc. (AMEX:BMI) today reported record 1996 sales and earnings.

Net sales for the year ended December 31, 1996, were $116,018,000, up 6.8% from sales of $108,644,000 in 1995. Net earnings for the year rose 37.9% in 1996 to $5,127,000 from earnings of $3,719,000 in the prior year. Primary earnings per share were $2.77 in 1996, a 30.7% increase from earnings of $2.12 per share in 1995.

For the fourth quarter of 1996, net sales were $28,299,000, a 7.7% increase from sales of $26,281,000 for the same period in 1995. Earnings were $1,420,000 in the fourth quarter of 1996, a 58.5% increase from earnings of $896,000 for the comparable prior period. Primary earnings per share were $0.76 for the fourth quarter of 1996, up 49.0% from earnings of $0.51 per share for the same period last year.

"This was the fifth straight year of increased earnings for Badger Meter. Our earnings momentum is the result of a long-range strategic plan initiated in the late 1980s which included making substantial investments in new technology, manufacturing equipment and systems, and marketing. Our strong 1996 performance was not due to any one significant factor but to a combination of factors including higher sales, shifts in the product mix toward new products and new technologies, and lower manfuacturing costs," said James L. Forbes, president and chief executive officer of Badger Meter.

Forbes said the increase in 1996 sales was due to increased sales of the TRACE(R) radio frequency automated meter reading system; sales of other advanced meter reading technology systems; increased sales of flow tubes for industrial applications; and stronger European sales, primarily lubrication meters. "By offering a complete range of meter reading technologies, Badger Meter is in a good position as the utility industry continues to move from manual to automated and automatic meter reading systems," Forbes noted.

The gain in earnings for 1996 was due to the higher sales and an increase in the profit margin from 36.0% for 1995 to 36.7% in 1996. Forbes said the higher profit margin reflected improved pricing and lower manufacturing costs resulting from the company's ongoing cost improvement programs. Interest expense was reduced from $721,000 in 1995 to $368,000 in 1996, as cash generated by operations was used to reduce debt and interest rates were lower in 1996 than in 1995.

Badger Meter is a leading marketer and manufacturer of products using flow measurement and control technology serving industrial and utility markets worldwide. -0-

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

                Twelve Months Ended December 31,

                                      1996           1995(a)
                                      ____           ____

Net sales                        $116,018,000     $108,644,000
Gross profit                      $42,528,000      $39,144,000
Earnings before income taxes       $8,167,000       $5,911,000
Provision for income taxes         $3,040,000       $2,192,000
Net earnings                       $5,127,000       $3,719,000
Earnings per common share:
  Primary                               $2.77            $2.12
  Fully Diluted(a)                      $2.71            $2.12
Average shares outstanding:
  Primary                           1,849,231        1,754,225
  Fully diluted(a)                  1,890,890        1,754,225


                  Three Months Ended December 31,

                                      1996           1995(a)
                                      ____           ____

Net sales                         $28,299,000      $26,281,000
Gross profit                      $10,481,000       $9,922,000
Earnings before income taxes       $2,291,000       $1,409,000
Provision for income taxes           $871,000         $513,000
Net earnings                       $1,420,000         $896,000
Earnings per common share:
  Primary                               $0.76            $0.51
  Fully Diluted(a)                      $0.76            $0.51
Shares used in computation:
  Primary                           1,867,291        1,756,392
  Fully diluted(a)                  1,871,090        1,756,392

(a) In 1995, dilution was less than 3%.

CONTACT: Badger Meter, Inc., Milwaukee

Richard A. Meeusen, 414/355-0400