GOOD NEWS-Penn Engineering Announces Financial Results for First Quarter of 2001

    DANBORO, Pa.--April 26, 2001--PennEngineering today announced results for the first quarter of 2001.
    In addition, the Board of Directors declared a quarterly cash dividend of 8 cents per share on both classes of stock outstanding after distribution of additional shares on May 1, 2001 resulting from a 2 for 1 stock split.
    For the quarter ended March 31, 2001, consolidated sales increased 5% to $68,127,000 as compared to $65,137,000 in the comparable 2000 quarter.
    Consolidated net income increased 34% to $7,555,000 in the first quarter of 2001 from $5,645,000 reported in the corresponding 2000 quarter. Diluted earnings per share increased 29% to $0.85 from $0.66 reported in the corresponding quarter.

    Cash Dividend

    Today, the Board of Directors declared a quarterly cash dividend of 8 cents per share on both classes of common stock, payable on July 6, 2001 to stockholders of record on June 15, 2001. This dividend will be paid on all shares resulting from the 2 for 1 stock split.
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                PENN ENGINEERING & MANUFACTURING CORP.                
                         Income Statement Data
              Amounts in Thousands, Except Per Share Data


                                            (Unaudited)
                                        Three Months Ended
                               March 31, 2001          March 31, 2000
                               --------------          --------------

Net Sales                         $68,127                  $65,137
Cost of Products Sold              44,262                   44,060
                                  -------                  -------
Gross Profit                       23,865                   21,077
Selling, General, and 
 Admin Expenses                    13,015                   12,266
                                  -------                  -------
Operating Income                   10,850                    8,811
Other Income (Expense)                342                     (191)
                                  -------                  -------
Income Before Income Taxes         11,192                    8,620
Income Taxes                        3,637                    2,975
                                  -------                  -------
Net Income                        $ 7,555                  $ 5,645
                                  =======                  =======

Pre Stock Split
Weighted Average 
 Shares Outstanding:
  Basic                             8,603                    8,562
  Diluted                           8,848                    8,596

Earnings Per Share
  Basic                           $  0.88                  $  0.66
  Diluted                         $  0.85                  $  0.66

Post Stock Split
----------------
Weighted Average 
 Shares Outstanding:
  Basic                            17,206                   17,124
  Diluted                          17,696                   17,192

Earnings Per Share
  Basic                           $  0.44                  $  0.33
  Diluted                         $  0.43                  $  0.33

Note: On January 31, 2001 the Board of Directors approved a 2 for
1 stock split of its Common Stock and Class A Common Stock in the form
of a 100 percent stock dividend. The stock dividend is subject to
approval, by holders of the voting Class A Common Stock, of an
amendment to the Company's Certificate of Incorporation to increase
the authorized shares of both classes of the Company's stock at the
Company's Annual Meeting of Stockholders to be held today.