NOV-20-2006

Valspar Reports Fourth Quarter and Full Year Results

The Valspar Corporation (NYSE-VAL), a leading global coatings company, today reported record sales and earnings for the fourth quarter and fiscal year ended October 27, 2006. Reported net income for the fourth quarter increased 2% to $52,141,000 or $0.51 per diluted share from $50,966,000 or $0.50 per diluted share last year. This year's results include expenses of $0.01 per diluted share for manufacturing rationalization and $0.02 per diluted share for stock based compensation, offset by favorable tax adjustments of $0.03 per diluted share. Last year's results for the fourth quarter included $0.04 per diluted share of favorable adjustments. Sales for the fourth quarter increased 8.1% to $784,105,000 compared to $725,387,000 a year ago.

Reported net income for the full year increased 18.7% to $175,252,000 from $147,618,000 last year and earnings per diluted share increased 20.4% to $1.71 from $1.42 last year. This year's results include expenses of $0.04 per diluted share for manufacturing rationalization and $0.05 per diluted share for stock based compensation, partially offset by favorable tax adjustments of $0.07 per diluted share. Last year's results included favorable net adjustments of $0.04 per diluted share. Sales for the year increased 9.7% to $2,978,062,000 compared to $2,713,950,000 in fiscal 2005.

Commenting on this year's results and the outlook for 2007, William L. Mansfield, President and Chief Executive Officer, said "We are very pleased with our progress in 2006. We made three strategic investments that will fuel our growth: We acquired an 80% interest in Huarun Paints in China; we improved the productivity of our global manufacturing base with the completion of our manufacturing rationalization plan and we strengthened our consumer paint brands. In the face of major raw material cost increases over the past two years, we continued to restore the profitability of our business. In addition, our increased cash flow from operations combined with $103 million of additional debt enabled us to fund $365 million of acquisitions and capital investments and $60 million of dividends and stock repurchases. We are cautiously optimistic on the outlook for next year. Based on the current outlook for Valspar's business, our plans to continue investing in Valspar's consumer paint brands and our expectations for our recent acquisitions, we expect another record year with fiscal 2007 earnings per share in the range of $1.80 to $1.90."

For further information, contact Lori A. Walker, Vice President, Treasurer and Controller at Valspar / 612-375-7350.

Note: Valspar will host a conference call on Monday, November 20th at 10:00 AM CST. The call can be heard live over the Internet at Valspar's website at http://www.valspar.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 replay of the call can also be accessed by dialing 1-800-475-6701 in the U.S. or 320-365-3844 outside the U.S. beginning at 3:15 PM, using access code 849068.