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Apogee Reports Improved Q4 and Full-Year Earnings of $0.19 and $0.85 Per Share, Respectively; Apogee Well-Positioned for FY07 Growth

MINNEAPOLIS--April 5, 2006--Apogee Enterprises, Inc. today announced fiscal 2006 fourth quarter and full-year earnings. Apogee develops and delivers value-added glass products and services for the architectural, large-scale optical and automotive industries.


   --  Revenues increased 11 percent to $696.7 million.

   --  Earnings were $0.85 per share, up significantly from earnings
        of $0.60 per share a year ago. 

       --  Earnings include a one-time net tax benefit of $0.07 per
            share in the third quarter.

   --  Architectural segment revenues were up 11 percent, and
        operating income increased 18 percent versus the prior-year

   --  Large-scale optical segment revenues increased 14 percent, and
        operating income increased 53 percent versus the prior-year


   --  Revenues of $181.5 million were up 4 percent versus the strong
        prior-year period.

   --  Earnings were $0.19 per share versus $0.13 per share a year

   --  Architectural segment revenues were up 6 percent, and
        operating income more than doubled versus the prior-year

   --  As expected, large-scale optical segment revenues declined 3
        percent, and operating income decreased 21 percent versus the
        strong prior-year period.


"We built momentum throughout fiscal 2006, as our architectural markets further strengthened, and we are solidly positioned for fiscal 2007," said Russell Huffer, Apogee chairman and chief executive officer. "We saw strong growth in revenues and earnings due to improved results in our strategic architectural and picture framing businesses.

"Our full-year expectations for the architectural segment operating margin fell slightly short at 3.2 percent, versus our guidance of 3.4 to 3.6 percent," he said. "Although we had improved operational performance in the rest of the architectural segment, our margin was adversely impacted by the glass installation business. As certain glass installation projects neared completion late in the year, our project costs were higher than anticipated, and we also had a higher mix of lower margin, older projects in this business. We are confident that our improved project selection process and improved market conditions will help us deliver better performance in fiscal 2007.

"Our architectural segment overall did see continued improvement in operations, commercial construction markets and pricing in the fourth quarter," said Huffer. "Large-scale optical segment results for the quarter reflected the unusual first-half inventory and promotion activities at some of our national retail accounts. Our fourth quarter picture framing sales and earnings were down compared to the prior-year period as the strong fiscal 2006 first half displaced value-added sales in the current quarter."


   Architectural Products and Services

   --  Revenues of $153.1 million were up 6 percent over the strong
        prior-year period primarily due to higher pricing.

   --  Operating income was $5.1 million, more than double that of a
        year ago as improved pricing and product mix offset the higher
        costs of materials, energy and health insurance.

       --  Fiscal 2006 fourth quarter operating margin was 3.3
            percent, compared to 1.8 percent in the prior-year period.

       --  The prior-year period included a pre-tax charge of $0.6
            million for disposition of certain assets.

       --  Segment backlog was $321.0 million, compared to a backlog
            of $220.1 million in the prior-year period and $316.6
            million at the end of the third quarter.

   --  Apogee's new architectural glass plant, which is expected to
        begin operations in the first quarter of fiscal 2008, will be
        located in St. George, Utah, to serve the robust demand in the
        Southwest market for value-added glass. At a cost of
        approximately $30 million, it is expected to add approximately
        $40 million of additional annual sales capacity to Apogee's
        glass fabrication at full production.

   Large-Scale Optical Technologies

   --  Revenues of $22.6 million were down 3 percent from the strong
        prior-year period.

   --  As expected, operating income was $3.4 million, down 21
        percent from the prior-year period.

       --  Operating margin in the fourth quarter was 15.2 percent,
            versus 18.6 percent the prior-year period. In a shift from
            traditional seasonality, the first half of the current
            year had an unusually high value-added product mix,
            reducing higher-margin product sales in the fourth

   Automotive Replacement Glass and Services

   --  Revenues of $5.8 million decreased 25 percent compared to the
        prior-year period. Sales of aftermarket automobile windshields
        were lower.

   --  There was an operating loss of $0.7 million, compared to
        operating income of $0.3 million in the prior-year period.

   Equity in Affiliates

   --  Earnings were $0.1 million from investment in PPG Auto Glass,
        LLC. This compares to a loss of $0.7 million in the prior-year
        period. Volume, pricing and operations continue to improve.

   Financial Condition

   --  Long-term debt was $45.2 million at the end of the fourth
        quarter, compared to $44.0 million at the end of the third
        quarter and $35.2 million at the end of fiscal 2005.

       --  Long-term debt-to-total-capital ratio remained at 18.5
            percent compared to the third quarter and was up slightly
            compared to the prior-year period.

   --  Non-cash working capital (current assets, excluding cash, less
        current liabilities) was $71.1 million, compared to $73.7
        million in the third quarter and $61.6 million at the end of
        fiscal 2005.

   --  Year-to-date depreciation and amortization were $17.9 million,
        up slightly from the prior year.

   --  Capital expenditures for fiscal year 2006 were $30.2 million,
        including investments in architectural glass capacity
        expansions. This compares to capital expenditures of $26.4
        million in the prior year, which included spending for an
        architectural glass expansion and a $6.8 million acquisition.

   --  Stock repurchases totaled $1.6 million, or 101,500 shares, in
        the quarter.


"We are looking forward to another year of improved performance, as commercial construction markets continue to strengthen and we provide value-added products and services to meet energy-efficient, hurricane- and blast-resistant building requirements," said Huffer. "Our strong architectural backlog of more than $300 million in work, which is almost half of our expected fiscal 2007 architectural revenues, gives us confidence in our outlook for the year.

"We are poised for strong improvement in architectural segment operating margins in fiscal 2007," he said. "Strong markets and backlog, combined with our new capacity and improved factory operations, support our achievement of higher margins. In addition, we expect improved execution and project selection in our glass installation business.

"We also anticipate another year of solid performance in our large-scale optical segment, with continued conversion of the market to value-added picture framing glass that reduces fading and reflection," said Huffer. "We are seeing some recent changes in national retail chains that offer custom framing, which raise some uncertainty as we enter fiscal 2007.

"We are anticipating earnings of $0.88 to $0.94 per share for fiscal 2007, which includes $0.05 per share for the non-cash expensing of options. This is strong earnings growth compared to fiscal 2006, which included the impact of one-time net tax benefits of $0.07 per share in the third quarter," he said. "These anticipated earnings are based on expected revenue growth of 5 to 9 percent. This outlook will help us achieve our longer-term goals of 8 percent annual growth in revenues and 20 percent growth in earnings per share over our current five-year strategic plan."

The following statements are based on current expectations for fiscal 2007. These statements are forward-looking, and actual results may differ materially.

   --  Overall fiscal 2007 revenues for the year are expected to
        increase 5 to 9 percent.

       --  Architectural segment revenues are expected to increase 6
            to 9 percent for the year.

           --  Growth is expected due to market improvement and some
                market share gain despite capacity constraints.

       --  Large-scale optical segment revenues are expected to be up
            3 to 5 percent, with continued mix shift in picture
            framing glazing products.

       --  Auto glass segment revenues are expected to be flat
            compared to fiscal 2006.

   --  Annual gross margins are expected to be up in fiscal 2007 from
        fiscal 2006 as pricing, operational improvements and cost
        reductions are somewhat offset by higher costs for wages,
        energy, materials and freight.

       --  Expected annual operating margins by segment are:
            architectural, 4.4 to 4.6 percent; large-scale optical,
            approximately 14 percent; and auto glass, slightly better
            than breakeven.

   --  Selling, general and administrative expenses as a percent of
        sales are projected to continue to be slightly more than 14
        percent, including the impact of expensing options.

   --  Equity in affiliates, which reflects Apogee's portion of the
        results of the PPG Auto Glass joint venture, is expected to
        report earnings of approximately $3 million due to increased
        volume and operational improvements.

   --  Capital expenditures are projected to be $40 to $45 million,
        including an estimated $25 million related to building the new
        architectural glass plant.

   --  Depreciation and amortization are estimated at $19 million for
        the year.

   --  Debt is expected to be approximately $50 to $60 million at
        year end, reflecting borrowings for the new architectural
        glass facility.

   --  The effective tax rate for the full year is anticipated to be
        approximately 35 percent.

   --  Earnings per share from continuing operations are expected to
        range from $0.88 to $0.94, including the $0.05 per share
        impact of expensing options.

The discussion above, including all statements in the Outlook section, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect Apogee management's expectations or beliefs as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the operating results of the company, including the following: operational risks within (A) the architectural segment: i) competitive, price-sensitive and changing market conditions, including unforeseen delays in project timing and work flow; ii) economic conditions and the cyclical nature of the North American commercial construction industry; iii) product performance, reliability or quality problems that could delay payments, increase costs, impact orders or lead to litigation; iv) the segment's ability to fully utilize production capacity; and v) construction and ramp-up to full production of the announced third Viracon plant in a timely and cost-efficient manner; (B) the large-scale optical segment: i) markets that are impacted by consumer confidence and trends; ii) dependence on a relatively small number of customers; iii) changing market conditions, including unfavorable shift in product mix; and iv) ability to utilize manufacturing facilities; and (C) the auto glass segment: i) transition of markets served as Viracon/Curvlite focuses on selling to aftermarket manufacturers following the end of its long-term supply agreement with PPG Industries in the second quarter of fiscal 2006; ii) changes in market dynamics; iii) market seasonality; iv) highly competitive, fairly mature industry; and v) performance of the PPG Auto Glass, LLC joint venture. Additional factors include: i) revenue and operating results that are volatile; ii) the possibility of a material product liability event; iii) the costs of compliance with governmental regulations relating to hazardous substances; iv) management of discontinued operations exiting activities; and v) foreign currency risk related to discontinued operations. The company cautions readers that actual future results could differ materially from those described in the forward-looking statements. The company wishes to caution investors that other factors may in the future prove to be important in affecting the company's results of operations. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For a more detailed explanation of the foregoing and other risks and uncertainties, see Exhibit 99.1 to the company's Annual Report on Form 10-K for the fiscal year ended February 26, 2005.


Analysts, investors and media are invited to listen to Apogee's live teleconference or webcast at 10 a.m. Central Time tomorrow, April 6. To participate in the teleconference, call 1-800-299-6183 toll free or 617-801-9713 international, access code 79492126. The replay will be available from noon Central Time on Thursday, April 6, through midnight Central Time on Thursday, April 13 by calling 1-888-286-8010 toll free, access code 39108767. To listen to the live conference call over the internet, go to the Apogee web site at and click on "investor relations" and then the webcast link at the top of that page. The webcast also will be archived on the company's web site.

Apogee Enterprises, Inc., headquartered in Minneapolis, is a world leader in technologies involving the design and development of value-added glass products and services. The company is organized in three segments:

   --  Architectural products and services companies design,
        engineer, fabricate, install, maintain and renovate the walls
        of glass and windows comprising the outside skin of commercial
        and institutional buildings. Businesses in this segment are:
        Viracon, the leading fabricator of coated, high-performance
        architectural glass for global markets; Harmon, Inc., one of
        the largest U.S. full-service building glass installation,
        maintenance and renovation companies; Wausau Window and Wall
        Systems, a manufacturer of custom aluminum window systems and
        curtainwall; and Linetec, a paint and anodizing finisher of
        window frames and PVC shutters.

   --  Large-scale optical segment consists of Tru Vue, a value-added
        glass and acrylic manufacturer for the custom framing and
        pre-framed art markets, and a producer of optical thin film
        coatings for consumer electronics displays.

   --  Automotive replacement glass and services segment consists of
        Viracon/Curvlite, a U.S. fabricator of aftermarket foreign and
        domestic car windshields.

                Apogee Enterprises, Inc. & Subsidiaries
              Consolidated Condensed Statement of Income

Dollar amounts in               Thirteen          Thirteen
thousands, except for per      Weeks Ended       Weeks Ended      %
share amounts               February 25, 2006 February 26, 2005 Change
                            ----------------- ----------------- ------

Net sales                           $181,451          $174,809      4%
Cost of goods sold                   147,219           143,161      3%
                            ----------------- -----------------
  Gross profit                        34,232            31,648      8%
Selling, general and
 administrative expenses              27,263            25,063      9%
                            ----------------- -----------------
  Operating income                     6,969             6,585      6%
Interest income                          215                77    179%
Interest expense                         674               571     18%
Other income, net                         46                36     28%
Equity in income (loss) of
 affiliated companies                     53              (724)   N/M
                            ----------------- -----------------
  Earnings from continuing
   operations before income
   taxes and other items
   below                               6,609             5,403     22%
Income taxes                           1,263             1,792    -30%
                            ----------------- -----------------
  Earnings from continuing
   operations                          5,346             3,611     48%
Earnings from discontinued
 operations                                -                 -      -
                            ----------------- -----------------
  Net earnings                        $5,346            $3,611     48%
                            ================= =================

Net earnings per share -
 basic:                                $0.20             $0.13     54%
Average common shares
 outstanding                      27,365,065        27,082,692      1%

Net earnings per share -
 diluted:                              $0.19             $0.13     46%
Average common and common
 equivalent shares
 outstanding                      28,107,836        27,663,312      2%

Cash dividends per common
 share                               $0.0650           $0.0625      4%

Dollar amounts in               Fifty-two         Fifty-two
thousands, except for per      Weeks Ended       Weeks Ended      %
share amounts               February 25, 2006 February 26, 2005 Change
                            ----------------- ----------------- ------

Net sales                           $696,733          $628,813     11%
Cost of goods sold                   566,671           513,095     10%
                            ----------------- -----------------
  Gross profit                       130,062           115,718     12%
Selling, general and
 administrative expenses              99,845            89,440     12%
                            ----------------- -----------------
  Operating income                    30,217            26,278     15%
Interest income                          805             1,963    -59%
Interest expense                       2,480             3,218    -23%
Other income, net                         66               230    -71%
Equity in income (loss) of
 affiliated companies                  2,623            (1,272)   N/M
                            ----------------- -----------------
  Earnings from continuing
   operations before income
   taxes and other items
   below                              31,231            23,981     30%
Income taxes                           7,463             7,403      1%
                            ----------------- -----------------
  Earnings from continuing
   operations                         23,768            16,578     43%
Earnings from discontinued
 operations                                -                67   -100%
                            ----------------- -----------------
  Net earnings                       $23,768           $16,645     43%
                            ================= =================

Net earnings per share -
 basic:                                $0.87             $0.61     43%
Average common shares
 outstanding                      27,406,504        27,071,278      1%

Net earnings per share -
 diluted:                              $0.85             $0.60     42%
Average common and common
 equivalent shares
 outstanding                      28,003,040        27,715,530      1%

Cash dividends per common
 share                               $0.2550           $0.2450      4%

                    Business Segments Information
                                Thirteen          Thirteen
                               Weeks Ended       Weeks Ended      %
                            February 25, 2006 February 26, 2005 Change
                            ----------------- ----------------- ------
Architectural                       $153,105          $143,789      6%
Large-Scale Optical                   22,554            23,331     -3%
Auto Glass                             5,808             7,696    -25%
Eliminations                             (16)               (7)  -129%
                            ----------------- -----------------
Total                               $181,451          $174,809      4%
                            ================= =================

Operating income (loss)
Architectural                         $5,060            $2,517    101%
Large-Scale Optical                    3,420             4,333    -21%
Auto Glass                              (691)              274    N/M
Corporate and other                     (820)             (539)   -52%
                            ----------------- -----------------
Total                                 $6,969            $6,585      6%
                            ================= =================

                                Fifty-two         Fifty-two
                               Weeks Ended       Weeks Ended      %
                            February 25, 2006 February 26, 2005 Change
                            ----------------- ----------------- ------
Architectural                       $576,189          $516,879     11%
Large-Scale Optical                   89,313            78,399     14%
Auto Glass                            31,404            33,581     -6%
Eliminations                            (173)              (46)  -276%
                            ----------------- -----------------
Total                               $696,733          $628,813     11%
                            ================= =================

Operating income (loss)
Architectural                        $18,424           $15,575     18%
Large-Scale Optical                   15,122             9,862     53%
Auto Glass                              (677)            3,237    N/M
Corporate and other                   (2,652)           (2,396)   -11%
                            ----------------- -----------------
Total                                $30,217           $26,278     15%
                            ================= =================
                Consolidated Condensed Balance Sheets
                              February 25,      February 26,
                                  2006              2005
                            ----------------- -----------------
Current assets                      $203,134          $187,106
Net property, plant and
 equipment                           113,198           100,539
Other assets                          87,252            80,820
                            ----------------- -----------------
Total assets                        $403,584          $368,465
                            ================= =================

Liabilities and
 shareholders' equity
Current liabilities                 $127,336          $119,492
Long-term debt                        45,200            35,150
Other liabilities                     31,995            35,743
Shareholders' equity                 199,053           178,080
                            ----------------- -----------------
Total liabilities and
 shareholders' equity               $403,584          $368,465
                            ================= =================

N/M = Not meaningful

                Apogee Enterprises, Inc. & Subsidiaries
            Consolidated Condensed Statement of Cash Flows
                                       Fifty-two         Fifty-two
                                      Weeks Ended       Weeks Ended
Dollar amounts in thousands        February 25, 2006 February 26, 2005
                                   ----------------- -----------------

Net earnings                                $23,768           $16,645
Net loss from discontinued
 operations                                       -               (67)
Depreciation and amortization                17,871            17,501
Results from equity investments              (2,623)            1,272
Other, net                                    1,068             1,003
Changes in operating assets and
 liabilities                                 (9,627)           (2,904)
                                   ----------------- -----------------
  Net cash provided by continuing
   operating activities                      30,457            33,450
                                   ----------------- -----------------

Capital expenditures and
 acquisition of intangibles                 (29,739)          (19,618)
Proceeds on sale of property                    200             1,044
Acquisition of businesses, net of
 cash acquired                                 (420)           (6,804)
Net purchases of marketable
 securities                                  (4,127)             (149)
Other investing activities                        -               (12)
                                   ----------------- -----------------
  Net cash used in investing
   activities                               (34,086)          (25,539)
                                   ----------------- -----------------

Net proceeds from (payments on)
 long-term debt and revolving
 credit agreement                             9,900            (4,658)
Proceeds from issuance of common
 stock, net of cancellations                  4,685               831
Repurchase and retirement of
 common stock                                (4,044)           (1,859)
Dividends paid                               (7,093)           (6,695)
Other, net                                     (350)                -
                                   ----------------- -----------------
  Net cash provided by (used in)
   financing activities                       3,098           (12,381)
                                   ----------------- -----------------

Cash (used in) provided by
 discontinued operations                       (760)            2,615
                                   ----------------- -----------------

Decrease in cash and cash
 equivalents                                 (1,291)           (1,855)
Cash and cash equivalents at
 beginning of year                            5,967             7,822
                                   ----------------- -----------------
Cash and cash equivalents at end
 of period                                   $4,676            $5,967
                                   ================= =================