Sales for the quarter were $276.7 million compared to sales of $381.9 million in the fiscal 2008 third quarter, down 27.5 percent. Organic sales were down 19.9 percent compared to the prior year, and currency exchange had a negative impact of 7.7 percent on sales results in the quarter. Regionally, organic sales declined 22.2 percent in the Americas, 22.8 percent in Europe and 10.8 percent in Asia/Pacific.

Net income for the quarter was $18.0 million compared to $34.4 million in the same quarter last year, down 47.7 percent. Earnings per diluted Class A Common Share were $0.34 compared to $0.63 in the prior year. 2009 results include after-tax restructuring charges of $1.6 million or $0.03 per share in the quarter.

Sales for the nine months ended April 30, 2009 were $921.5 million compared to $1.126 billion in the same period last year, down 18.2 percent. Net income for the nine-month period was $50.9 million compared to $97.4 million in the prior year, down 47.7 percent. Nine-month earnings per share were $0.96 compared to $1.77 per share in the period last year. Results include after-tax restructuring charges of $16.8 million or $0.32 per share year-to-date.

"Business in the quarter continued to be weak across all geographies and all product lines. Our business seems to be stabilizing for now, however global economic conditions remain uncertain and our visibility is limited," said Brady President and Chief Executive Officer Frank M. Jaehnert. "We continue to take actions to reduce cost while investing in key initiatives that will drive growth when the economy improves."

"Brady continues to maneuver through this challenging economy by aggressively managing costs and improving on our already strong financial position. Cash flow from operations was $55 million in the quarter and we increased our cash position to $233 million. This cash, along with our untapped bank revolver, allows us to maintain flexibility for future opportunities," said Brady Chief Financial Officer Thomas J. Felmer. "Based on current economic conditions and currency exchange rates, our guidance remains unchanged at net income of between $65 and $75 million, including after-tax restructuring charges of approximately $20 million; and earnings per diluted share guidance of between $1.23 and $1.42. Excluding restructuring charges, we expect net income of between $85 and $95 million and earnings per diluted share of between $1.61 and $1.80."

A Web cast of a conference call regarding the company's fiscal 2009 third quarter results will be available at www.investor.bradycorp.com beginning at 7:00 a.m. Central Time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Its products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has more than 500,000 customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in Milwaukee and employs about 7,000 people at operations in the Americas, Europe and Asia/Pacific.

More information is available on the Internet at www.bradycorp.com.

###

Brady believes that certain statements in this Form 10-Q are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this Form 10-Q, including, without limitation, statements regarding Brady's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations are forward-looking statements. When used in this Form 10-Q, words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project" or "plan" or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from the length or severity of the current worldwide economic downturn or timing or strength of a subsequent recovery; future financial performance of major markets Brady serves, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; Brady's ability to retain significant contracts and customers; future competition; Brady's ability to develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; interruptions to sources of supply; environmental, health and safety compliance costs and liabilities; Brady's ability to realize cost savings from operating initiatives; Brady's ability to attract and retain key talent; difficulties associated with exports; risks associated with international operations; fluctuations in currency rates versus the US dollar; technology changes; potential write-offs of Brady's substantial intangible assets; Brady's ability to maintain its debt covenants; unforeseen tax consequences; risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products; business interruptions due to implementing business systems; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the "Risk Factors" section located in Item 1A of Part I of Brady's Form 10-K for the year ended July 31, 2008. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements.

                                                                                                                                                                       BRADY CORPORATION AND SUBSIDIARIES                                                                                                                                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                                                                                                                                                                                                                                                                               (Dollars in Thousands)                                                                                                                                                                                                                                                                                                                                                                                (Unaudited)                                                                                                                                                                                                                                                                                                                               Three Months Ended April 30,                        Nine Months Ended April 30,                                                                                         2009            2008         PercentageChange       2009            2008           PercentageChange   Net sales                                                   $  276,733      $  381,909      -27.5  %            $  921,499      $  1,126,167      -18.2  %           Cost of products sold                                          142,560         192,333      -25.9  %               480,038         573,901        -16.4  %           Gross margin                                                   134,173         189,576      -29.2  %               441,461         552,266        -20.1  %                                                                                                                                                                                Operating expenses:                                                                                                                                                  Research and development                                       7,766           10,274       -24.4  %               25,325          29,323         -13.6  %           Selling, general and administrative                            94,906          126,720      -25.1  %               302,776         369,579        -18.1  %           Restructuring charge                                           2,229           -            -                      23,276          -              -                  Total operating expenses                                       104,901         136,994      -23.4  %               351,377         398,902        -11.9  %                                                                                                                                                                                Operating income                                               29,272          52,582       -44.3  %               90,084          153,364        -41.3  %                                                                                                                                                                                Other income and (expense):                                                                                                                                          Investment and other income                                    989             920          7.5    %               1,143           3,307          -65.4  %           Interest expense                                               (6,307   )      (6,962   )   -9.4   %               (18,982  )      (20,429    )   -7.1   %                                                                                                                                                                                Income before income taxes                                     23,954          46,540       -48.5  %               72,245          136,242        -47.0  %                                                                                                                                                                                Income taxes                                                   5,994           12,187       -50.8  %               21,325          38,829         -45.1  %                                                                                                                                                                                Net income                                                  $  17,960       $  34,353       -47.7  %            $  50,920       $  97,413         -47.7  %                                                                                                                                                                                                                                                                                                                                                     Per Class A Nonvoting Common Share:                                                                                                                                  Basic net income                                            $  0.34         $  0.64         -46.9  %            $  0.97         $  1.79           -45.8  %           Diluted net income                                          $  0.34         $  0.63         -46.0  %            $  0.96         $  1.77           -45.8  %           Dividends                                                   $  0.17         $  0.15         13.3   %            $  0.51         $  0.45           13.3   %                                                                                                                                                                                Per Class B Voting Common Share:                                                                                                                                     Basic net income                                            $  0.34         $  0.64         -46.9  %            $  0.95         $  1.78           -46.6  %           Diluted net income                                          $  0.34         $  0.63         -46.0  %            $  0.95         $  1.76           -46.0  %           Dividends                                                   $  0.17         $  0.15         13.3   %            $  0.49         $  0.43           14.0   %                                                                                                                                                                                Weighted average common shares outstanding (in Thousands):                                                                                                           Basic                                                          52,286          54,021                              52,642          54,294                            Diluted                                                        52,594          54,627                              52,961          54,992                                                                                                                                                                                                  -------------------------------------------------------------------------------  

                                                                                                                                                                                                   BRADY CORPORATION AND SUBSIDIARIES                                                                                                                                                               CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                             (IN THOUSANDS)                                                                                                                                                                                                                                                                                                                                               (Unaudited)                                                                                                                                                                                      April 30, 2009       July 31, 2008                                                                                                                                                                                                    ASSETS                                                                                                                                                                                                                                                                                                                                                                                            Current assets:                                                                                                                                                                                  Cash and cash equivalents                                                                                                                                $  232,901           $  258,355         Accounts receivable, less allowance for losses ($8,138 and $10,059, respectively)                                                                           183,287              262,461         Inventories:                                                                                                                                                                                     Finished products                                                                                                                                           58,417               75,665          Work-in-process                                                                                                                                             15,569               21,187          Raw materials and supplies                                                                                                                                  32,201               37,767          Total inventories                                                                                                                                           106,187              134,619         Prepaid expenses and other current assets                                                                                                                   42,167               43,650                                                                                                                                                                                                           Total current assets                                                                                                                                        564,542              699,085                                                                                                                                                                                                          Other assets:                                                                                                                                                                                    Goodwill                                                                                                                                                    726,944              789,107         Other intangible assets, net                                                                                                                                116,275              144,791         Deferred income taxes                                                                                                                                       26,145               25,943          Other                                                                                                                                                       16,555               21,381                                                                                                                                                                                                           Total other assets                                                                                                                                          885,919              981,222                                                                                                                                                                                                          Property, plant and equipment:                                                                                                                                                                   Cost:                                                                                                                                                                                            Land                                                                                                                                                        6,215                6,490           Buildings and improvements                                                                                                                                  93,584               98,646          Machinery and equipment                                                                                                                                     274,091              282,232         Construction in progress                                                                                                                                    7,301                6,040                                                                                                                                                                                                                                                                                                                                                                        381,191              393,408         Less accumulated depreciation                                                                                                                               232,035              223,202                                                                                                                                                                                                          Net property, plant and equipment                                                                                                                           149,156              170,206                                                                                                                                                                                                          Total                                                                                                                                                    $  1,599,617         $  1,850,513                                                                                                                                                                                                        LIABILITIES AND STOCKHOLDERS' INVESTMENT                                                                                                                                                                                                                                                                                                                                                          Current liabilities:                                                                                                                                                                             Accounts payable                                                                                                                                         $  79,129            $  118,209         Wages and amounts withheld from employees                                                                                                                   40,722               82,354          Taxes, other than income taxes                                                                                                                              6,190                10,234          Accrued income taxes                                                                                                                                        2,533                21,523          Other current liabilities                                                                                                                                   43,413               54,810          Current maturities on long-term debt                                                                                                                        50,000               21,431                                                                                                                                                                                                           Total current liabilities                                                                                                                                   221,987              308,561                                                                                                                                                                                                          Long-term obligations, less current maturities                                                                                                              428,572              457,143                                                                                                                                                                                                          Other liabilities                                                                                                                                           57,359               63,001                                                                                                                                                                                                           Total liabilities                                                                                                                                           707,918              828,705                                                                                                                                                                                                          Stockholders' investment:                                                                                                                                                                        Common stock:                                                                                                                                                                                    Class A nonvoting common stock - Issued 48,747,494 and 51,261,487 shares, respectively and outstanding 50,170,581 and 50,005,296 shares, respectively       513                  513             Class B voting common stock - Issued and outstanding, 3,538,628 shares                                                                                      35                   35              Additional paid-in capital                                                                                                                                  298,172              292,769         Earnings retained in the business                                                                                                                           663,069              639,059         Treasury stock - 2,303,993 and 1,046,191 shares, respectively of Class A nonvoting common stock, at cost                                                    (70,841    )         (33,234    )    Accumulated other comprehensive income                                                                                                                      5,480                128,161         Other                                                                                                                                                       (4,729     )         (5,495     )                                                                                                                                                                                                     Total stockholders' investment                                                                                                                              891,699              1,021,808                                                                                                                                                                                                        Total                                                                                                                                                    $  1,599,617         $  1,850,513                                                                                                                                                                                                         -------------------------------------------------------------------------------  

                                                                                                                                   BRADY CORPORATION AND SUBSIDIARIES                                                                                               CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                            (Dollars in Thousands)                                                                             (Unaudited)                                                                                                                      Nine Months Ended                                                                                                                April 30,                                                                                                                        2009             2008         Operating activities:                                                                                                            Net income                                                                                      $  50,920        $  97,413       Adjustments to reconcile net income to net cash provided by operating activities:                                                Depreciation and amortization                                                                      40,672           45,682       Non-cash portion of restructuring charges                                                          2,229            -            Non-cash portion of stock-based compensation expense                                               6,281            7,797        Other                                                                                              1,495            (234     )   Changes in operating assets and liabilities (net of effects of business acquisitions):                                           Accounts receivable                                                                                52,276           4,014        Inventories                                                                                        16,793           15,012       Prepaid expenses and other assets                                                                  (3,593   )       (6,193   )   Accounts payable and accrued liabilities                                                           (73,381  )       (6,175   )   Income taxes                                                                                       (17,571  )       (6,358   )   Other liabilities                                                                                  908              1,157        Net cash provided by operating activities                                                          77,029           152,115                                                                                                                                       Investing activities:                                                                                                            Acquisition of businesses, net of cash acquired                                                    -                (28,871  )   Purchase price adjustment                                                                          3,514            -            Payments of contingent consideration                                                               (1,405   )       (5,798   )   Purchases of short-term investments                                                                -                (10,350  )   Sales of short-term investments                                                                    -                29,550       Purchases of property, plant and equipment                                                         (16,035  )       (19,029  )   Other                                                                                              2,893            1,808        Net cash used in investing activities                                                              (11,033  )       (32,690  )                                                                                                                                    Financing activities:                                                                                                            Payment of dividends                                                                               (26,910  )       (24,341  )   Proceeds from issuance of common stock                                                             1,321            9,517        Principal payments on debt                                                                         (3       )       (14      )   Purchase of treasury stock                                                                         (40,267  )       (28,531  )   Income tax benefit from the exercise of stock options and deferred compensation distribution       860              4,620        Net cash used in financing activities                                                              (64,999  )       (38,749  )   Effect of exchange rate changes on cash                                                            (26,451  )       3,837                                                                                                                                         Net (decrease) increase in cash and cash equivalents                                               (25,454  )       84,513       Cash and cash equivalents, beginning of period                                                     258,355          142,846                                                                                                                                       Cash and cash equivalents, end of period                                                           232,901          227,359                                                                                                                                       Supplemental disclosures:                                                                                                        Cash paid during the period for:                                                                                                 Interest, net of capitalized interest                                                           $  21,899        $  22,450       Income taxes, net of refunds                                                                       32,995           39,505       Acquisitions:                                                                                                                    Fair value of assets acquired, net of cash                                                      $  -             $  18,547       Liabilities assumed                                                                                -                (6,566   )   Goodwill                                                                                           -                16,890       Net cash paid for acquisitions                                                                  $  -             $  28,871                                                                                                                                         -------------------------------------------------------------------------------  

                                                                                                                                   Information by regional segment for the three and six months ended April 30, 2009 and 2008 is as follows:                        (in thousands)                       Americas   Europe     Asia-Pacific   Subtotals    Corporate andEliminations    Total        SALES TO EXTERNAL CUSTOMERS                                                                                                      Three months ended:                                                                                                              April 30, 2009                       $125,688   $85,172    $65,873        $276,733     -                            $276,733     April 30, 2008                       $166,407   $133,422   $82,080        $381,909     -                            $381,909                                                                                                                                      Nine months ended:                                                                                                               April 30, 2009                       $409,573   $280,589   $231,337       $921,499     -                            $921,499     April 30, 2008                       $497,803   $364,951   $263,413       $1,126,167   -                            $1,126,167                                                                                                                                    SALES GROWTH INFORMATION                                                                                                         Three months ended April 30, 2009:                                                                                               Base                                 -22.2%     -22.8%     -10.8%         -19.9%       -                            -19.9%       Currency                             -2.4%      -13.4%     -8.9%          -7.7%        -                            -7.7%        Acquisitions                         0.1%       0.0%       0.0%           0.1%         -                            0.1%         Total                                -24.5%     -36.2%     -19.7%         -27.5%       -                            -27.5%                                                                                                                                        Nine months ended April 30, 2009:                                                                                                Base                                 -16.4%     -15.6%     -8.7%          -14.3%       -                            -14.3%       Currency                             -1.7%      -9.4%      -3.5%          -4.7%        -                            -4.7%        Acquisitions                         0.4%       1.9%       0.0%           0.8%         -                            0.8%         Total                                -17.7%     -23.1%     -12.2%         -18.2%       -                            -18.2%                                                                                                                                        SEGMENT PROFIT                                                                                                                   Three months ended:                                                                                                              April 30, 2009                       $28,540    $23,773    $6,979         $59,292      ($1,717)                     $57,575      April 30, 2008                       $40,169    $36,245    $11,055        $87,469      ($1,816)                     $85,653      Percentage increase (decrease)       -29.0%     -34.4%     -36.9%         -32.2%       -5.5%                        -32.8%                                                                                                                                        Nine months ended:                                                                                                               April 30, 2009                       $86,104    $77,857    $33,502        $197,463     ($6,631)                     $190,832     April 30, 2008                       $116,312   $97,212    $43,105        $256,629     ($6,400)                     $250,229     Percentage increase (decrease)       -26.0%     -19.9%     -22.3%         -23.1%       3.6%                         -23.7%                                                                                                                                         -------------------------------------------------------------------------------  

                                                                                                                 NET INCOME RECONCILIATION (in thousands)                                                                                                              Three months ended:                   Nine months ended:                                                       April 30, 2009   April 30, 2008       April 30, 2009   April 30, 2008   Total profit for reportable segments   $59,292          $ 87,469             $197,463         $ 256,629        Corporate and eliminations             (1,717)          (1,816)              ($6,631)         (6,400)          Unallocated amounts:                                                                                           Administrative costs                   (26,074)         (33,071)             (77,472)         (96,865)         Restructuring costs                    (2,229)          -                    (23,276)         -                Investment and other income            989              920                  1,143            3,307            Interest expense                       (6,307)          (6,962)              (18,982)         (20,429)         Income before income taxes             23,954           46,540               72,245           136,242          Income taxes                           (5,994)          (12,187)             (21,325)         (38,829)         Net income                             $ 17,960         $ 34,353             $ 50,920         $ 97,413                                                                                                                         -------------------------------------------------------------------------------  

  RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   (in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Fiscal 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Q1          Q2             Q3          Q4     Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              EBITDA (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Net income                      $  36,370   $  26,690      $  34,353          $  97,413                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Interest expense                  6,720       6,747          6,962              20,429                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Income taxes                      15,366      11,276         12,187             38,829                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Depreciation and amortization     14,168      15,501         16,013             45,682                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       EBITDA (non-GAAP measure)       $  72,624   $  60,214      $  69,515   $  -   $  202,353                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Fiscal 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Q1          Q2             Q3          Q4     Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              EBITDA (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Net income (loss)               $  37,110   $  (4,150  )   $  17,960          $  50,920                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Interest expense                  6,361       6,314          6,307              18,982                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Income taxes                      14,575      756            5,994              21,325                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Depreciation and amortization     13,712      13,481         13,479             40,672                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       EBITDA (non-GAAP measure)       $  71,758   $  16,401      $  43,740   $  -   $  131,899                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    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