--  Net sales from continuing operations were $913 million, down 15% vs.       prior year as acquisition growth (+7%) and price (+3%) were offset by       unfavorable organic volume associated with weakness in global economic       conditions. Unit volume declined 19% and currency translation impacted       revenues unfavorably by 6%.     --  The 1Q'09 gross margin rate improved 170 bps versus 1Q'08 to 39.6%.        The increase was driven by pricing and acquisitions, as well as strong       performance in the Security segment.  SG&A expenses were 27.7% of       sales, down $22 million vs. the prior year.  Both gross margins and       SG&A expenses benefited from the company's proactive cost reduction       programs in 2008 and Q1'09.     --  The company had negative free cash flow of $18 million for the quarter       driven by lower net income and normal working capital seasonality.         Working capital turns improved slightly to 4.8 from 4.7 despite       significant unit volume declines as the Stanley Fulfillment System       continued to favorably impact results.     --  As previously communicated, a contingency cost reduction plan was       developed during the quarter to protect earnings and cash flow in the       event estimated full year 2009 volume declines were greater than       10-12%. Management elected to implement this plan as the quarter       progressed and it became apparent that full year unit volume declines       were more likely to be between 13-15%. The plan is expected to       generate annual savings of $100 million, $45 million of which will be       realized in 2009.  Restructuring and related charges for this program       are expected to total approximately $35 million.  In addition, the       company expects to reinvest approximately $15 million of the 2009       savings to fund investments in brand development and Security organic       growth initiatives.     --  The company also announced that Stanley Fastening Systems (Bostitch)       will be consolidated with the Stanley Consumer Tools & Storage       business under the leadership of Jeff Ansell. Both businesses have       significant channel and customer overlap and this combination will       allow Stanley to more fully and effectively leverage operations and       resources across both businesses.   

John F. Lundgren, Chairman and Chief Executive Officer, commented, "We took a number of strategic actions during the first quarter to reduce costs, strengthen our brands and invest for future growth. We believe that strong companies should find ways to grow market share and strengthen key franchises throughout the business cycle. Today's economic conditions afford us a unique opportunity to accelerate progress in these areas."

   Segment Results:                            1Q'09                       Versus 1Q'08   ($ millions)            Segment    Segment            Segment    Segment                 Sales     Profit  Profit Rate   Sales   Profit   Profit Rate    Security      $374        $71      18.9%       +12%    +33%     +290 bp    Industrial    $236        $25      10.4%       -29%    -50%     -420 bp    CDIY          $303        $29       9.5%       -25%    -39%     -210 bp       --  Security continued to post strong profits due to the stability of the       business as well as the benefits from acquisitions and well executed       integrations. Organic revenues for the segment declined 4%. For the       Convergent (Electronic) Security Solutions (CSS) business, organic       revenues were down mid-single digits as increased recurring monthly       revenue (RMR) and price partially offset lower installation revenues.       Mechanical Access Solutions (MAS) organic revenues decreased in-line       with the overall segment decline due to lower volume partially offset       by an increase in price.     --  Industrial revenues fell 29% versus prior year due to increased       weakness in Europe and the Americas where unit volume fell 29% and       25%, respectively. The impact of foreign exchange pushed European       revenues down a total of 38% versus prior year. The Industrial and       Automotive Tools businesses experienced significant customer inventory       corrections that accounted for approximately 1/3 of the unit volume       declines experienced in Europe and the U.S.  Segment profit rate       decreased significantly due to sales volume declines combined with the       timing of European cost savings which require a longer time to       realize.     --  Revenues for the CDIY segment dropped 25% versus prior year as volume       in both the Americas and Europe was down approximately 23%. Foreign       exchange had a 7% negative impact on the business, which was partially       offset by a 4% increase in price versus 1Q'08.  As with the Industrial       segment, the softness in Europe had a notable negative impact as       organic revenues from the region fell 23%. The positive impacts of       price and productivity on the segment profit rate were more than       offset by sales volume declines combined with the longer time frame       for the implementation of the cost reduction actions in Europe.   

James M. Loree, Executive Vice President and Chief Operating Officer stated, "We anticipated that 2009 was going to start on a difficult note, but we experienced even greater volume pressure in both our Industrial and CDIY businesses. Our Security businesses held up well in weak economic conditions and our large recurring revenue base, strong market positions and the benefits from recent acquisitions allowed Security to post double-digit top line growth and to achieve robust operating profit margins."

The Company now believes there is sufficient visibility into various end markets and other factors to provide 2009 earnings and free cash flow guidance. Anticipating that current sales volume weakness will continue through the remainder of the year with smaller volume declines in the back half as comparisons become easier, management expects full year 2009 EPS to be in the range of $2.00 - $2.50 and free cash flow of greater than $300 million based on the following assumptions:

   --  Unit volume shipments in 2009 will be down 13% -15% versus 2008,       resulting in a volume-related EPS decrease of $2.40 - $2.90. The steep       volume declines experienced in 1Q are expected to continue at or near       the same levels into 2Q and then begin to ease in the second half.   --  With the dollar at present exchange levels, assumed in the guidance is       a $0.50 negative impact to EPS and a 4% decline in revenue versus       prior year due to currency, most of which will be realized by       mid-year.   --  At present commodity cost levels, the company anticipates minimal, if       any, inflation for 2009. Due to the lagging nature of price increases,       the company will experience some favorable price carryover in the       first half of 2009, however the net impact of price recovery versus       inflation for the year is expected to be only modestly positive.   --  The per share benefit from the cost reduction program announced in       2008 is expected to be $1.75 in 2009.  The per share benefit from the       cost reduction program announced today, net of new growth and brand       investments, is expected to total $0.28 in 2009. Total restructuring       and related charges for 2009 are expected to be $45 million. This       includes $10 million of restructuring from the program initiated in       December 2008 and $35 million from the program announced today. The       majority of the remaining charges will be recorded in 2Q and 3Q. All       of these amounts have been factored into the 2009 guidance. For 2010,       the per share benefit of both programs is expected to be $0.75 ($0.24       from 4Q'08 and $0.51 from 1Q'09), which will be partially offset by a       number of factors, such as increased share count and cost pressures.    --  EPS accretion from acquisitions completed in 2008, and included in the       guidance, is expected to total approximately $0.10 per share in 2009.   

Donald Allan Jr., Vice President and Chief Financial Officer, commented, "Negative volume trends and the headwinds of unfavorable currency movements will impact our earnings potential this year, however, we have aligned the company's cost structure with the current economic environment and have positioned Stanley for growth as conditions improve. A major priority is to continue to build on the momentum we have created with the Stanley Fulfillment System to drive further improvements in working capital and to generate solid free cash flow."

The company will host a conference call with investors at 10:00am EDT, Friday, April 24th, 2009 to discuss quarterly results.