AUG-11-2008

Valspar Reports Third Quarter Results

Company Reaffirms FY 2008 Guidance, Announces Actions to Lower Cost Structure

MINNEAPOLIS, Minn., August 11, 2008 - The Valspar Corporation (NYSE-VAL) today reported its results for the third-quarter ended July 25, 2008.

Third-quarter sales totaled $957.7 million, a 7.2 percent increase from the third quarter of 2007. Net income for the third quarter was $47.0 million. Third-quarter adjusted net income per share was $0.50, which excludes a $0.03 per share charge related to restructuring actions and a $0.03 per share non-cash adjustment for Huarun minority interest. In 2007, third-quarter net income was $58.2 million, or adjusted net income per share of $0.57, excluding a non-cash adjustment of $0.05 per share for Huarun minority interest. Third-quarter reported earnings per share were $0.44 in 2008 and $0.52 in 2007.

The company has initiated a comprehensive series of actions to lower its cost structure and further increase the efficiency of its operations. These restructuring actions resulted in a $0.03 per share charge to third-quarter earnings, and are expected to result in additional charges to earnings of $0.10 to $0.12 per share in the fourth quarter of fiscal 2008. The impact on earnings in fiscal 2009 is expected to be neutral, with savings offsetting in-year costs. Beginning in fiscal 2010, these actions are expected to generate ongoing savings of $0.12 to $0.14 per share.

"Results for the quarter were in line with our expectations," said William L. Mansfield, Valspar chairman and chief executive officer. "Strong results from our international businesses, new business and pricing helped to partially offset the impact of substantially higher raw material costs and the weak U.S. economy."

Looking ahead, the company anticipates ongoing pressure on raw material costs and continued weakness in the U.S. economy. "We remain focused on improving our competitive position," said Mansfield. "We are moving forward with restructuring actions to further improve the efficiency of our business, implementing additional price increases and continuing to invest in our brands. We expect fiscal 2008 adjusted net income per share to be in the range of $1.55 to $1.65."

Mansfield and Lori A. Walker, senior vice president and chief financial officer, will conduct a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) today. The call can be heard live over the Internet at Valspar's website at www.Valsparglobal.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped delay of the call will also be available from 12:00 p.m. Central Time August 11 through Midnight on August 25 by dialing 1-800-475-6701 from within the U.S. or 320-365-3844 from outside of the U.S., using access code 956044.

Investor Contact: Tyler N. Treat, (612) 375-7358

Media Contact: Mike Dougherty, (612) 375-7802