Graham Corporation Announces $8.8 Million in New Contracts.

BATAVIA, N.Y. -- Graham Corporation (AMEX: GHM) announced today that it has received two separate letters of intent for purchase orders totaling approximately $8.8 million. The letters of intent represent eight ejector systems and two surface condensers.

Qatar Gas-to-Liquids Facility

The first letter of intent, valued at $6 million, is for a series of eight ejector systems to be installed in a gas-to-liquids facility in Qatar. This gas-to-liquids petrochemical complex converts natural gas to synthetic fuels and base oils. The project will consist of two phases, with four ejector systems approximating 50% of the total order value, planned for shipment in the fourth quarter of fiscal year 2008, ending March 31, 2008. The remaining four ejector systems, representing the remaining order value, are scheduled for shipment in the third quarter of fiscal year 2009, ending December 31, 2008.

James R. Lines, Graham's President and Chief Operating Officer, commented, "Capacity in the gas-to-liquids market is expected to expand from 200,000 to 1.5 million barrels per day over the next ten years. We are specifically targeting this emerging market because of the significant demand we believe that it represents for our differentiated, value-based products and services. This award also helps solidify our reputation in the gas-to-liquids market, and we anticipate more sales opportunities in the future as new facilities are being planned."

Thailand Ethylene Facility

The second letter of intent, valued at $2.8 million, was awarded to Graham by Map Ta Phut Olefins, a joint venture between Siam Cement and Dow Chemicals, and consists of two surface condensers to be installed in an ethylene production plant in Thailand. Graham has supplied this customer with condenser systems for similar facilities also located in Thailand. Delivery of the condenser systems is scheduled for the first quarter of fiscal year 2009, ending June 30, 2008.

Mr. Lines commented, "Construction of new facilities in the petrochemical industry remains active and a key focus of our sales efforts, although we believe petrochemical capacity expansion has reached the mid-point of the current cycle. Our Asia-based team negotiated this particular project and also worked closely with the client to define the technical specifications. Lengthy delivery terms of up to 18 months, as this contract demonstrates, are becoming more common as customers are willing to commit to preferred equipment suppliers such as Graham sooner in their procurement process to ensure the timely delivery of quality equipment."

ABOUT GRAHAM CORPORATION

With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a designer, manufacturer and global supplier of ejectors, pumps, condensers, vacuum systems and heat exchangers. Over the past 70 years, Graham Corporation has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principle markets for Graham's equipment are the petrochemical, oil refining and electric power generation industries, including cogeneration and geothermal plants. Graham equipment can be found in diverse applications, such as metal refining, pulp and paper processing, ship-building, water heating, refrigeration, desalination, food processing, drugs, heating, ventilating and air conditioning.

Graham's reach spans the globe. Its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. More information regarding Graham can be found at its website: www.graham-mfg.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Graham's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include Graham's ability to successfully execute the contract, that the estimated value of the production contract will be realized, customer preferences and changes in market conditions in the industries in which Graham operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.