Exhibit 99.1

Sun Hydraulics Reports $0.34 Earnings on $38 Million Sales

SARASOTA, FLA, November 8, 2010 – Sun Hydraulics Corporation (NASDAQ: SNHY) reported financial results for the third quarter 2010 as follows:

(Dollars in millions except net income per share)

	October 2, 2010		September 26, 2009		Increase
Three Months Ended
Net Sales	$	38.1	$	23.3		64	%
Net Income	$	5.7	$	0.6		850	%
Net Income per share:
Basic	$	0.34	$	0.03		1033	%
Diluted	$	0.34	$	0.03		1033	%
Nine Months Ended
Net Sales	$	108.9	$	70.1		55	%
Net Income	$	15.1	$	0.6		2417	%
Net Income per share:
Basic	$	0.89	$	0.03		2867	%
Fully Diluted	$	0.89	$	0.03		2867	%

“Business continued to rebound in all geographic regions in the third quarter,” said Allen Carlson, Sun Hydraulics’ president and CEO. “We continue to service new customers in all regions, which is great for our long-range outlook. Traditional segments that have been slow to recover appear to be regaining momentum, which bolsters our short- and mid-term outlook. The moderate softening we experienced in the third quarter was normal seasonal demand.”

Commenting on earnings, Carlson said, “We are extremely pleased with how quickly we have regained our operating leverage in 2010. This is the result of actions taken in late 2008 and throughout 2009 to retain and educate our workforce and invest in capabilities, as well as prospect for customers. We are currently operating at a level similar to 2006, but 2010 earnings are expected to be 25% better than 2006. We anticipate that 2011 will look a lot like 2007, also with the potential for stronger operational results. Third quarter 2010 earnings included a year-to-date retirement benefit adjustment which was not planned for in our previous third quarter estimates. Without this adjustment, earnings per share would have been 38 cents.”

In conclusion, Carlson said, “The long-term outlook remains bright for Sun Hydraulics. Our core business drivers are unchanged with an emphasis on delivery reliability and superior product and customer service performance. We expect to continue to outgrow our industry by both creating new markets and gaining market share. We believe the result will be better than average returns for our shareholders.”

Outlook

Fourth quarter 2010 revenues are expected to be approximately $38 million, up approximately 39% from the fourth quarter of 2009. Earnings per share are estimated to be $0.34 to $0.36 compared to $0.08 in the same period a year ago.

2010 year-end sales are estimated to be approximately $147 million, an approximately 51% increase over 2009 sales. Earnings per share for 2010 are estimated to be $1.23 to $1.25, compared to $0.11 in 2009.

Sun’s prior year fourth quarter results were based on a 14-week quarter resulting in a 53-week year for 2009.

Webcast

Sun Hydraulics Corporation will broadcast its Q3 financial results conference call live over the Internet at 9:00 A.M. E.T. tomorrow, November 9, 2010. To listen to the webcast, go to the Investor Relations section of www.sunhydraulics.com.

Webcast Q&A

If an individual wishes to ask questions directly during the webcast, the conference call may be accessed by dialing (888) 602-6363 and using 5302024 as the access code. Questions also may be submitted to the Company via email by going to the Sun Hydraulics website, www.sunhydraulics.com, and clicking on Investor Relations on the top menu. Scroll down to the bottom of the page and click on contact email: investor@sunhydraulics.com, which will open an email window to type in your message. Sun management will then answer these and other questions during the Company’s webcast. A copy of this earnings release is posted on the Investor Relations page of our website under “Press Releases.”

Sun Hydraulics Corporation is a leading designer and manufacturer of high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets. For more information about Sun, please visit our website at www.sunhydraulics.com.

FORWARD-LOOKING INFORMATION

Certain oral statements made by management from time to time and certain statements contained herein that are not historical facts are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management’s Discussion and Analysis of Financial Condition and Results of Operations are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company’s strategies regarding growth, including its intention to develop new products; (ii) the Company’s financing plans; (iii) trends affecting the Company’s financial condition or results of operations; (iv) the Company’s ability to continue to control costs and to meet its liquidity and other financing needs; (v) the declaration and payment of dividends; and (vi) the Company’s ability to respond to changes in customer demand domestically and internationally, including as a result of standardization. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur.

Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) the economic cyclicality of the capital goods industry in general and the hydraulic valve and manifold industry in particular, which directly affect customer orders, lead times and sales volume; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company’s revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (iv) changes in technology or customer requirements, such as standardization of the cavity into which screw-in cartridge valves must fit, which could render the Company’s products or technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (vi) changes relating to the Company’s international sales, including changes in regulatory requirements or tariffs, trade or currency restrictions, fluctuations in exchange rates, and tax and collection issues. Further information relating to

factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Form 10-Q for the quarter ended October 2, 2010, and under the heading “Business” and particularly under the subheading, “Business Risk Factors” in the Company’s Form 10-K for the year ended January 2, 2010. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)

	Three months ended
	October 2, 2010			September 26, 2009
	(unaudited)			(unaudited)
Net sales	$	38,073		$	23,316
Cost of sales		24,523			17,965
Gross profit		13,550			5,351
Selling, engineering and administrative expenses		5,368			4,928
Operating income		8,182			423
Interest income, net		(195	)		(146	)
Foreign currency transaction loss (gain), net		14			(88	)
Miscellaneous (income) expense, net		(46	)		87
Income before income taxes		8,409			570
Income tax provision		2,700			16
Net income	$	5,709		$	554
Basic net income per common share	$	0.34		$	0.03
Weighted average basic shares outstanding		16,961			16,883
Diluted net income per common share	$	0.34		$	0.03
Weighted average diluted shares outstanding		16,993			16,917
Dividends declared per share	$	0.090		$	0.090

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)

	Nine months ended
	October 2, 2010			September 26, 2009
	(unaudited)			(unaudited)
Net sales	$	108,923		$	70,131
Cost of sales		71,270			54,968
Gross profit		37,653			15,163
Selling, engineering and administrative expenses		15,369			14,570
Operating income		22,284			593
Interest income, net		(477	)		(427	)
Foreign currency transaction loss, net		56			243
Miscellaneous (income) loss, net		(175	)		387
Income before income taxes		22,880			390
Income tax provision (benefit)		7,747			(179	)
Net income	$	15,133		$	569
Basic net income per common share	$	0.89		$	0.03
Weighted average basic shares outstanding		16,952			16,806
Diluted net income per common share	$	0.89		$	0.03
Weighted average diluted shares outstanding		16,985			16,837
Dividends declared per share	$	0.270		$	0.360

SUN HYDRAULICS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)

	October 2, 2010		January 2, 2010
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	36,815	$	30,314
Restricted cash		134		132
Accounts receivable, net of allowance for doubtful accounts of $93 and $90		16,420		9,949
Inventories		9,761		7,799
Income taxes receivable		8		1,485
Deferred income taxes		575		575
Marketable securities		12,042		7,844
Other current assets		2,981		1,797
Total current assets		78,736		59,895
Property, plant and equipment, net		53,353		56,633
Other assets		2,763		3,405
Total assets	$	134,852	$	119,933
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	4,436	$	2,442
Accrued expenses and other liabilities		4,044		2,475
Dividends payable		1,527		1,524
Total current liabilities		10,007		6,441
Deferred income taxes		5,185		5,191
Other noncurrent liabilities		851		687
Total liabilities		16,043		12,319
Shareholders’ equity:
Common stock		17		17
Capital in excess of par value		43,388		42,210
Retained earnings		74,930		64,383
Accumulated other comprehensive income		474		1,004
Total shareholders’ equity		118,809		107,614
Total liabilities and shareholders’ equity	$	134,852	$	119,933

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Nine months ended
	October 2, 2010			September 26, 2009
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net income	$	15,133		$	569
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,116			5,269
Loss on disposal of assets		22			17
Provision for deferred income taxes		(6	)		25
Allowance for doubtful accounts		3			(17	)
Stock-based compensation expense		798			686
Stock options income tax benefit		(32	)		—
(Increase) decrease in:
Accounts receivable		(6,474	)		1,800
Inventories		(1,962	)		1,863
Income taxes receivable		1,509			(320	)
Other current assets		(1,184	)		(31	)
Other assets		622			457
(Increase) decrease in:
Accounts payable		1,994			271
Accrued expenses and other liabilities		1,569			558
Other noncurrent liabilities		164			153
Net cash provided by operating activities		17,272			11,300
Cash flows from investing activities:
Capital expenditures		(2,060	)		(4,549	)
Purchases of marketable securities		(11,626	)		(8,928	)
Proceeds from sale of marketable securities		7,326			1,451
Net cash used in investing activities		(6,360	)		(12,026	)
Cash flows from financing activities:
Repayment of debt		—			(261	)
Proceeds from exercise of stock options		44			7
Proceeds from stock issued		303			310
Dividends to shareholders		(4,583	)		(6,024	)
Stock options income tax benefit		32			—
Net cash used in financing activities		(4,204	)		(5,968	)
Effect of exchange rate changes on cash and cash equivalents		(205	)		1,634
Net decrease in cash and cash equivalents		6,503			(5,060	)
Cash and cash equivalents, beginning of period		30,446			35,303
Cash and cash equivalents, end of period	$	36,949		$	30,243
Supplemental disclosure of cash flow information:
Cash paid:
Interest	$	—		$	9
Income taxes	$	6,276		$	116
Supplemental disclosure of noncash transactions:
Common stock issued to ESOP through accrued expenses and other liabilities	$	—		$	2,797

	United States			Korea		Germany		United Kingdom		Elimination			Consolidated
Three Months
Ended October 2, 2010
Sales to unaffiliated customers	$	23,668		$	3,315	$	5,402	$	5,688	$	—		$	38,073
Intercompany sales		6,873			—		37		311		(7,221	)		—
Operating income		5,636			378		1,061		1,028		79			8,182
Depreciation		1,243			21		107		242		—			1,613
Capital expenditures		631			28		15		62		—			736
Three Months
Ended June 27, 2009
Sales to unaffiliated customers	$	13,890		$	2,621	$	3,429	$	3,376	$	—		$	23,316
Intercompany sales		3,881			—		43		217		(4,141	)		—
Operating income (loss)		(340	)		193		498		24		48			423
Depreciation		1,284			27		125		268		—			1,704
Capital expenditures		961			4		9		69		—			1,043
Nine Months
Ended October 2, 2010
Sales to unaffiliated customers	$	67,896		$	12,151	$	14,770	$	14,106	$	—		$	108,923
Intercompany sales		18,755			—		118		936		(19,809	)		—
Operating income		15,511			1,655		3,088		2,122		(92	)		22,284
Depreciation		3,891			66		320		727		—			5,004
Capital expenditures		1,712			141		20		187		—			2,060
Nine Months
Ended June 27, 2009
Sales to unaffiliated customers	$	42,078		$	6,966	$	11,041	$	10,046	$	—		$	70,131
Intercompany sales		11,581			—		118		915		(12,614	)		—
Operating income (loss)		(2,430	)		403		1,772		600		248			593
Depreciation		4,018			80		379		762		—			5,239
Capital expenditures		4,297			31		37		184		—			4,549

Contact:

Richard K. Arter

Investor Relations

941-362-1200

Tricia Fulton

Chief Financial Officer

941-362-1200