MAR-07-2007

Valspar Makes Non-Cash EPS Adjustment For Huarun Minority Interest

MINNEAPOLIS, March 7, 2007 - As previously announced, The Valspar Corporation (NYSE-VAL) purchased an 80 percent interest in Huarun Paints Holdings Company Limited (Huarun Paints) for approximately $290 million on July 26, 2006. Of the remaining 20 percent minority interest shares held in Huarun Paints, most are subject to put/call rights that permit Valspar to acquire full ownership of those shares within the next five years.

Subsequent to its first quarter earnings release, and in consultation with its auditors, Valspar determined that current accounting guidance for this type of put/call instrument requires earnings per share available to common shareholders to be presented at $0.18 per diluted share for the first quarter of 2007. This non-cash adjustment of $0.05 per diluted share has no impact on first quarter net income or the first quarter balance sheet. All non-cash adjustments for redemption of the subject minority shares will be reversed in the quarter in which the puts or calls are exercised and will result in an increase in earnings per share at that time.

The company is reconfirming its full year guidance of $1.80 to $1.90, excluding an anticipated non-cash adjustment of $0.18. Including the non-cash adjustment, full year guidance would be $1.62 to $1.72. Inclusion of the non-cash adjustment assumes that Valspar will not purchase the subject minority shares in fiscal 2007. If Valspar were to purchase subject minority shares in fiscal 2007, all non-cash adjustments would be reversed.

"The value of the Huarun Paints business and the growth platform it provides for Valspar in China are outstanding, and Huarun's performance continues to exceed expectations," said William L. Mansfield, Valspar president and chief executive officer. "Valspar's fundamentals are sound, our overall business performance is consistent with our first quarter discussion with investors, and we remain on track to achieve our long-term business objectives."

Investor Contact: Lori A. Walker, (612) 375-7350

Media Contact: Mike Dougherty, (612) 375-7802

Note: Valspar will host a conference call to discuss this press release at 4:30 p.m. Eastern Time (3:30 p.m. Central Time) today, Wednesday, March 7. The call can be heard live over the Internet at Valspar's website at http://www.valsparglobal.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 9:15 p.m. Eastern Time (8:15 p.m. Central Time), using access code 866317.