Boenning & Scattergood Announces Investment Opinion on The Gorman-Rupp Company.

WEST CONSHOHOCKEN, Pa. -- Boenning & Scattergood initiates coverage of The Gorman-Rupp Company (AMEX:GRC) with a Market Perform rating. Gorman-Rupp manufactures a wide variety of pumps, roughly 75% of which are used to move water for one purpose or other. Key end-markets include municipal, industrial, fire protection, OEM, petroleum, construction, government, and military.

* Gorman-Rupp well positioned for repair & rehabilitation of water infrastructure. Though Gorman-Rupp serves a wide array of end-markets, among the company's most important customers are municipal water systems, which utilize a vast array of pumps throughout their operations. The EPA estimates that substantial spending will be required in the coming decades to shore up water systems - with the bulk of this spending going toward distribution infrastructure, including pumps. This spending should provide a tailwind for pump makers, including Gorman-Rupp, for the foreseeable future.

* GRC shares surged along with earnings in 2006; Growth should moderate in 2007. GRC shares more than doubled in 2006, placing them among the water group's top performers, and the stock now sports a forward P/E multiple of 22 times - well ahead of the peer group. While we expect earnings to expand at a still-healthy 13% clip in 2007, multiple expansion will be difficult in the face of this sharp earnings growth deceleration, and we initiate coverage at Market Perform.

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This release is neither an offer to sell nor a solicitation to buy any securities mentioned herein. Please refer to the full report, which is available upon request, for additional details and disclosures.