WSI Industries, Inc. (Nasdaq: WSCI) today reported full year sales for fiscal 2008 ending August 31, 2008 of $25,882,000, an increase of 38% over the prior year amount of $18,808,000. Net income for fiscal year 2008 was $1,478,000 or $.52 per diluted share, an increase of 98% over the prior year of $747,000 or $.27 per diluted share.

For the fourth quarter ended August 31, 2008, the Company reported sales of $6,783,000 or an increase of 36% over the prior year quarter sales of $5,001,000. The Company’s net income in the current year’s fourth quarter was $301,000 or $.11 per diluted share, or an increase of 33% over the prior year’s quarter of $226,000 or $.08 per diluted share.

Michael J. Pudil, president and chief executive officer, commented: “Fiscal 2008 was a successful year highlighted by 38% sales growth and a near doubling of net income. Our energy sales, which were down from our prior projections due to delays in product start-ups, expanded to almost $8.9 million for the year or 34% of our total revenues.” Pudil went on to say: “WSI heavily invested in our plant and equipment in fiscal 2008 including $2.75 million in state of the art equipment. We are also nearing completion of a $1 million expansion of our facility which will increase our manufacturing floor space by 32%. Even with these expenditures, our financial resources remain strong with $1.8 million in cash and $4.2 million in working capital on our balance sheet.” Pudil concluded: “Our core business in the aerospace and recreational markets remains stable. Our energy business will have lower revenues in the first quarter of fiscal 2009 due to program changes. For the fiscal 2009 year however, we believe our energy business will be strong as it continues to evolve with different parts and programs from existing and new customers. We will continue to work on expanding our business with our current customer base as well as identifying and securing new customers. Our outlook for fiscal 2009 remains positive as we anticipate future growth in sales and earnings.”

The Company also announced today that its Board of Directors has declared a dividend of $.0375 per share. The dividend will be payable November 5, 2008 to holders of record on October 22, 2008.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.

WSI Industries, Inc.
Michael J. Pudil (CEO), 763-295-9202
or
Paul D. Sheely (CFO), 763-295-9202