PennEngineering Announces Results for Q2 2001

    DANBORO, Pa.--July 25, 2001--PennEngineering today reported net income of $3,678,000 or $0.21 per diluted share, on quarterly net sales of $52,079,000 for the second quarter ended June 30, 2001.
    For the comparable 2000 quarterly period, net income was $6,231,000 or $0.36 per diluted share, on net sales of $64,651,000.
    For the six months ended June 30, 2001, net income was $11,232,000 or $0.63 per diluted share on net sales of $120,206,000 as compared to net income of $11,876,000 or $0.69 per diluted share, on net sales of $129,788,000 for the six months ended June 30, 2000.

    Cash Dividend:

    Today the Board of Directors declared a quarterly cash dividend of $0.08 per share on both classes of common stock, payable October 3, 2001 to stockholders of record, September 17, 2001.

                PENN ENGINEERING & MANUFACTURING CORP.
                         Income Statement Data
              Amounts in Thousands, Except Per Share Data
                              (Unaudited)

                                3 Months Ended       6 Months Ended
                               June 30,  June 30,   June 30, June 30, 
                                2001      2000       2001     2000
                              -------   ---------  --------- --------

Net Sales                     $52,079    $64,651   $120,206  $129,788
Cost of Goods
 Sold                          35,529     42,138     79,792    86,198
                              -------    -------   --------  ---------
Gross Profit                   16,550     22,513     40,414    43,590
                              -------    -------   --------  ---------

Selling Expenses                4,771      7,032     11,355    13,572
General and
 Administrative Expenses        6,307      6,111     12,737    11,837
                              -------    -------   --------  ---------
Operating Profit                5,472      9,370     16,322    18,181
                              -------    -------   --------  ---------

Other Income (Expenses):
 Interest income                   85        144        198       278
 Interest expense                (225)      (207)      (520)     (629)
 Other, net                       117        277        640       374
                              -------    -------   --------  ---------
Total Other Income
 (Expense)                        (23)       214        318        23
                              -------    -------   --------  ---------

Income before Income Taxes      5,449      9,584     16,640    18,204
Provision for Income Taxes      1,771      3,353      5,408     6,328
                              -------    -------   --------  ---------
Net Income                     $3,678     $6,231    $11,232   $11,876
                              =======    =======   ========  =========

Per Share Data:
 Basic earnings                 $0.21      $0.36      $0.65     $0.69
                              =======    =======   ========  =========
 Diluted earnings               $0.21      $0.36      $0.63     $0.69
                              =======    =======   ========  =========

Weighted Avg. Shares
 Outstanding
 Basic shares                  17,265     17,146     17,236    17,134
Diluted shares                 17,701     17,369     17,708    17,264