AUG-14-2006

Valspar Reports Third Quarter Earnings

The Valspar Corporation (NYSE-VAL), a leading global coatings company, today reported net income for the 3rd quarter ended July 28, 2006 of $52,635,000 or $0.51 per diluted share versus net income of $45,713,000 or $0.44 per diluted share for the comparable period last year. This year's results include expenses of $0.01 per diluted share associated with Valspar's manufacturing rationalization plan and $0.01 per diluted share for stock based compensation. Also included in this year's results is a favorable tax adjustment of $0.03 per diluted share. Last year's results for the 3rd quarter included expenses of $0.02 per share for manufacturing rationalization. Sales for the quarter increased 9.9% to $797,376,000, compared to $725,477,000 last year.

Net income for the first nine months of fiscal 2006 was $123,111,000 or $1.20 per diluted share, compared with $96,652,000 or $0.92 per diluted share for the same period a year ago. Sales for the first nine months increased 10.3% to $2,193,957,000 versus sales of $1,988,563,000 for the comparable period a year ago.

Commenting on the 3rd quarter, William L. Mansfield, President and CEO, said, "Our sales growth for the quarter was driven by continued strength in our architectural, industrial and resin product lines. Volume growth, improved manufacturing efficiencies and year-over-year price increases contributed to our margin improvement, but recent raw material cost increases will necessitate additional price initiatives. During the quarter, we increased our investment in promotional and advertising spending for the Cabot Stains brand, which accelerated new business sales growth across Cabot's customer base. On July 26th, we acquired an 80% interest in Huarun Paints, a leading Chinese supplier of furniture, decorative wood and architectural coatings. Based on mid-year results, we expect Huarun to achieve full year sales of $200 - $210 million in calendar 2006. We believe our investments in Cabot and China are excellent long term growth vehicles that will generate strong returns for Valspar."

This press release contains certain "forward-looking" statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; risks related to any future acquisitions, including risks of adverse changes in the results of acquired businesses and the assumption of unforeseen liabilities; risks of disruptions in business resulting from the integration process and higher interest costs resulting from further borrowing for any such acquisitions; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; risks of disruptions in business resulting from the Company's relationships with customers and suppliers; unusual weather conditions adversely affecting sales; changes in raw materials pricing and availability; delays in passing along cost increases to customers; changes in governmental regulation, including more stringent environmental, health and safety regulations; the nature, cost and outcome of pending and future litigation and other legal proceedings; the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.