AUG-15-2005

VALSPAR ANNOUNCES THIRD QUARTER RESULTS, PLANS TO RATIONALIZE MANUFACTURING CAPACITY

MINNEAPOLIS, MINNESOTA - The Valspar Corporation (NYSE-VAL), a leading paint and coatings manufacturer, today reported net income for the third quarter ended July 29, 2005 of $45,713,000 or $0.88 per diluted share versus net income of $44,913,000 or $0.85 per diluted share for the comparable period last year. This year's third quarter results include after tax charges of $2.0 million or $0.04 per share associated with the planned closure of 7 manufacturing facilities. Last year's results for the comparable period include an after tax charge of $1.2 million or $0.02 per share for the closure of one manufacturing facility. Sales for the quarter increased 10.7% to $725,477,000 compared to $655,598,000 last year.

Net income for the first nine months of fiscal 2005 was $96,652,000 or $1.85 per diluted share, compared with $102,389,000 or $1.94 per diluted share for the same period a year ago. Sales for the first nine months increased 10.7% to $1,988,563,000 compared to $1,795,576,000 during the comparable period a year ago.

Commenting on third quarter results and the outlook for the year, William L. Mansfield, President and Chief Executive Officer, said, "While the reduction of retail inventory levels and continued raw material cost pressures constrained the performance of our Paints segment, our Coatings segment made significant progress in restoring operating margins due to continued sales strength, pricing actions and tight expense control. We expect that raw material costs will remain a challenge for the balance of the year. Nevertheless, we anticipate continued improvement in our year-over-year results in the fourth quarter."

"The third quarter charge associated with closing 7 facilities is the first phase of a broad-based strategy to reduce our manufacturing capacity and enable us to better utilize our remaining plants. Our plans call for reducing our manufacturing capacity worldwide by approximately 10% in order to focus our capital investments on our best facilities, increase efficiency and improve our ability to service and support our customers. This manufacturing rationalization is expected to be completed by the end of 2006. We expect the costs of this initiative will include additional net charges to earnings of $0.20 to $0.25 per share in 2006, generating annual savings of $0.20 to $0.25 per share starting in 2007. We're continuing to finalize the details of our plan and will provide periodic updates on our progress. We are confident this initiative will strengthen Valspar's financial performance and position us for significant growth."

Note: Valspar will host a conference call on Monday, August 15th at 10:00 AM CDT. The call can be heard live over the Internet at Valspar's website at http://www.valspar.com under Investor Relations. Those unable to participate during the live broadcast can access an archive of the call on the Valspar website. A taped replay of the call can also be accessed by dialing 1-800-475-6701 in the U.S. or 320-365-3844 outside the U.S. beginning at 1:30 PM, using access code 792084.

For further information, contact Lori A. Walker, Vice President, Controller and Treasurer at Valspar / 612-375-7350.