BRC-2013.1.31-EX 99.1

During the second quarter of fiscal 2013, the Company acquired Precision Dynamics Corporation (“PDC”) for $301 million. PDC is a leader in identification products primarily for the healthcare sector with annual revenues of approximately $173 million. In connection with this acquisition, the Company incurred certain acquisition-related costs including a non-cash tax charge of $25.0 million related to the repatriation of cash to the U.S. and $5.1 million of other acquisition-related expenses. During the second quarter of fiscal 2013, the Company also realized a $5.2 million pre-tax gain on the settlement of an insurance claim related to the 2011 flood in Thailand. In the second quarter of last fiscal year, the Company recorded a non-cash impairment charge of $115.7 million for the write down of goodwill in the Asia-Pacific region. Non-routine and other items, along with restructuring charges are quantified on pages 11-12 of this news release for comparability purposes.

The Identification Solutions business will focus on innovative identification solutions for a broad range of applications including wire identification, product identification, safety and facility identification and healthcare identification. The Workplace Safety business will be expanding its multi-channel direct marketing model by providing a broader set of workplace safety products with an increased focus on e-business. The Die-Cut business will continue to provide precision solutions primarily to the global electronics industry. Mr. Matthew Williamson will lead the global Identification Solutions business. Mr. Williamson has been with Brady for 34 years and is currently serving as Vice President of the Company and President - Brady Americas. Mr. Scott Hoffman will lead the global Workplace Safety business. Mr. Hoffman has been with Brady for 27 years and is currently serving as Vice President - Corporate and Business Development of the Company. Mr. Stephen Millar will lead the Die-Cut business. Mr. Millar has been with Brady for 14 years and is currently serving as Vice President of the Company and President - Asia-Pacific. Peter Sephton, currently president of Brady's EMEA region, will be retiring from Brady effective July 31, 2013. Mr. Sephton will remain in his current role as Vice President of Brady and President - Brady EMEA through April 30, 2013 when he will resign these positions and will then assist with the transition to the new global business platforms through his retirement on July 31, 2013.

Mr. Jaehnert continued, “We believe that our reorganization around global business platforms will create better alignment of resources required to deliver increasing levels of organic sales growth. We will also be able to create a leaner, flatter organization that is closer to the customer, allowing us to reduce costs by approximately $25 million to $30 million annually, some of which will be reinvested into growth initiatives. Costs to implement this reorganization are expected to range from $15 million to $18 million. The global business reorganization will be effective May 1, 2013 with most of the restructuring completed by the end of fiscal 2013. Looking forward, I am confident that the actions we are taking, including the acquisition of PDC and the reorganization around global businesses will accelerate future sales growth and increase future profitability.”

“We anticipate continuing pressure on organic sales for the remainder of fiscal 2013 as the global macro-economy remains sluggish,” said Brady's Chief Financial Officer, Thomas J. Felmer. “Based on what we see for the remainder of the year, and including $0.05 to $0.07 of anticipated earnings from PDC as well as some savings from restructuring activities in the fourth quarter, we expect earnings per diluted Class A Common Share to be towards the lower end of our prior guidance of between $2.20 and $2.40, exclusive of non-routine items, restructuring charges, and other items, for our full-year fiscal 2013, with the fourth quarter being stronger than the third quarter. This is based on exchange rates as of January 31, 2013 and a full-year income tax rate, excluding the impact of non-routine items, in the mid-to-upper 20 percent range.”

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Brady's products help customers increase safety, security, productivity and performance and include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials. Founded in 1914, the company has millions of customers in electronics, telecommunications, manufacturing, electrical, construction, education, medical and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of January 31, 2013 employed approximately 8,200 people at operations in the Americas, EMEA and Asia-Pacific. Brady's fiscal 2012 sales were approximately $1.32 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: the length or severity of the current worldwide economic downturn or timing or strength of a subsequent recovery; increased usage of e-commerce allowing for ease of price transparency; future financial performance of major markets Brady serves, which include, without limitation, telecommunications, hard disk drive, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, and transportation; future competition; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; Brady's ability to retain significant contracts and customers; fluctuations in currency rates versus the U.S. dollar; risks associated with international operations; difficulties associated with exports; risks associated with obtaining governmental approvals and maintaining regulatory compliance; Brady's ability to develop and successfully market new products; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; risks associated with restructuring plans; environmental, health and safety compliance costs and liabilities; technology changes and potential security violations to the Company's information technology systems; Brady's ability to maintain compliance with its debt covenants; increase in our level of debt; potential write-offs of Brady's substantial intangible assets; unforeseen tax consequences; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady's Form 10-K for the year ended July 31, 2012.



	(Unaudited)						(Unaudited)
	Three Months Ended January 31,						Six Months Ended January 31,
	2013			2012			2013			2012
Net sales	$	324,182		$	320,584		$	661,828		$	670,092
Cost of products sold	174,130			167,279			347,156			348,956
Gross margin	150,052			153,305			314,672			321,136
Operating expenses:
Research and development	8,551			9,972			17,036			19,781
Selling, general and administrative	117,240			104,843			225,501			213,775
Restructuring charges	4,031			—			4,031			—
Impairment charge	—			115,688			—			115,688
Non-routine items	(5,220		)	—			(1,782		)	—
Total operating expenses	124,602			230,503			244,786			349,244

Operating income (loss)	25,450			(77,198		)	69,886			(28,108		)

Other income and (expense):
Investment and other income (expense)	897			812			1,294			610
Interest expense	(4,406		)	(4,933		)	(8,569		)	(9,980		)

Income before income taxes	21,941			(81,319		)	62,611			(37,478		)

Income taxes	30,625			8,635			44,107			19,744

Net (loss) income	$	(8,684	)	$	(89,954	)	$	18,504		$	(57,222	)


Per Class A Nonvoting Common Share:
Basic net income	$	(0.17	)	$	(1.72	)	$	0.36		$	(1.09	)
Diluted net income	$	(0.17	)	$	(1.72	)	$	0.36		$	(1.09	)
Dividends	$	0.19		$	0.185		$	0.38		$	0.37

Per Class B Voting Common Share:
Basic net income	$	(0.17	)	$	(1.72	)	$	0.34		$	(1.11	)
Diluted net income	$	(0.17	)	$	(1.72	)	$	0.34		$	(1.11	)
Dividends	$	0.19		$	0.185		$	0.36		$	0.35

Weighted average common shares outstanding (in thousands):
Basic	51,177			52,447			51,108			52,552
Diluted	51,177			52,447			51,507			52,552

(Dollars in Thousands)



	(Unaudited)
	January 31, 2013			July 31, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	141,311		$	305,900
Accounts receivable—net	229,219			199,006
Inventories:
Finished products	75,040			64,740
Work-in-process	17,549			15,377
Raw materials and supplies	32,242			25,407
Total inventories	124,831			105,524
Prepaid expenses and other current assets	47,656			40,424
Total current assets	543,017			650,854
Other assets:
Goodwill	877,972			676,791
Other intangible assets	185,495			84,119
Deferred income taxes	6,032			45,356
Other	22,711			20,584
Property, plant and equipment:
Cost:
Land	9,145			8,651
Buildings and improvements	105,501			101,962
Machinery and equipment	313,512			292,130
Construction in progress	12,444			10,417
	440,602			413,160
Less accumulated depreciation	289,860			283,145
Property, plant and equipment—net	150,742			130,015
Total	$	1,785,969		$	1,607,719
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Notes payable	$	112,340		$	—
Accounts payable	103,197			86,646
Wages and amounts withheld from employees	40,564			54,629
Taxes, other than income taxes	8,313			9,307
Accrued income taxes	8,869			14,357
Other current liabilities	46,930			40,815
Current maturities on long-term debt	61,264			61,264
Total current liabilities	381,477			267,018
Long-term obligations, less current maturities	264,417			254,944
Other liabilities	102,225			76,404
Total liabilities	748,119			598,366
Stockholders’ investment:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 and 51,261,487 shares, respectively and outstanding 47,711,496 and 47,630,926 shares, respectively	513			513
Class B voting common stock—Issued and outstanding, 3,538,628 shares	35			35
Additional paid-in capital	315,425			313,008
Earnings retained in the business	731,294			732,290
Treasury stock—3,234,991 and 3,245,561 shares, respectively of Class A nonvoting common stock, at cost	(88,354		)	(92,600		)
Accumulated other comprehensive income	81,475			59,411
Other	(2,538		)	(3,304		)
Total stockholders’ investment	1,037,850			1,009,353
Total	$	1,785,969		$	1,607,719

(Dollars in Thousands)



	(Unaudited) Six Months Ended January 31,
	2013			2012
Operating activities:
Net income (loss)	$	18,504		$	(57,222	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,046			22,176
Non-cash portion of restructuring charges	200			—
Non-cash portion of stock-based compensation expense	6,868			5,506
Impairment charge	—			115,688
Loss (gain) on sales of businesses	3,138			—
Deferred income taxes	26,050			(4,831		)
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures):
Accounts receivable	(5,418		)	6,029
Inventories	(4,475		)	(11,814		)
Prepaid expenses and other assets	(2,772		)	(5,155		)
Accounts payable and accrued liabilities	(13,629		)	(36,297		)
Income taxes	(6,318		)	9,221
Net cash provided by operating activities	44,194			43,301
Investing activities:
Purchases of property, plant and equipment	(15,667		)	(11,100		)
Payments of contingent consideration	—			(2,580		)
Settlement of net investment hedges	—			(797		)
Acquisition of business, net of cash acquired	(300,757		)	—
Sales of businesses, net of cash retained	10,178			—
Other	(549		)	(128		)
Net cash used in investing activities	(306,795		)	(14,605		)
Financing activities:
Payment of dividends	(19,499		)	(19,452		)
Proceeds from issuance of common stock	4,409			2,301
Purchase of treasury stock	(5,121		)	(12,309		)
Proceeds from borrowings on credit revolver	220,000			—
Repayment of borrowings on credit revolver	(112,472		)	—
Income tax benefit from the exercise of stock options and deferred compensation distribution, and other	1,273			566
Net cash provided by (used in) financing activities	88,590			(28,894		)
Effect of exchange rate changes on cash	9,422			(9,442		)
Net decrease in cash and cash equivalents	(164,589		)	(9,640		)
Cash and cash equivalents, beginning of period	305,900			389,971
Cash and cash equivalents, end of period	$	141,311		$	380,331
Supplemental disclosures:
Cash paid during the period for:
Interest, net of capitalized interest	$	7,866		$	9,521
Income taxes, net of refunds	19,964			16,189
Acquisitions:
Fair value of assets acquired, net of cash	$	168,675		$	—
Liabilities assumed	(57,860		)	—
Goodwill	189,942			—
Net cash paid for acquisitions	$	300,757		$	—




Information by regional segment for the three and six months ended January 31, 2013 and 2012 is as follows:

(Dollars in Thousands)	Americas			EMEA			Asia-Pacific			Total Region			Corporate and Eliminations			Total
SALES TO EXTERNAL CUSTOMERS
Three months ended:
January 31, 2013	$	147,716		$	94,395		$	82,071		$	324,182		—			$	324,182
January 31, 2012	$	138,405		$	95,593		$	86,586		$	320,584		—			$	320,584

Six months ended:
January 31, 2013	$	296,408		$	187,628		$	177,792		$	661,828		—			$	661,828
January 31, 2012	$	292,267		$	192,949		$	184,876		$	670,092		—			$	670,092

SALES INFORMATION
Three months ended January 31, 2013:
Organic	0.6		%	(5.0		)%	(7.0		)%	(3.1		)%	—		%	(3.1		)%
Currency	(0.4		)%	(0.3		)%	1.8		%	0.2		%	—		%	0.2		%
Acquisitions/Divestitures	6.5		%	4.0		%	0.0		%	4.0		%	—		%	4.0		%
Total	6.7		%	(1.3		)%	(5.2		)%	1.1		%	—		%	1.1		%

Six months ended January 31, 2013:
Organic	(0.1		)%	(4.1		)%	(4.6		)%	(2.5		)%	—		%	(2.5		)%
Currency	(0.8		)%	(3.0		)%	0.8		%	(1.0		)%	—		%	(1.0		)%
Acquisitions/Divestitures	2.3		%	4.3		%	0.0		%	2.2		%	—		%	2.2		%
Total	1.4		%	(2.8		)%	(3.8		)%	(1.3		)%	—		%	(1.3		)%

SEGMENT PROFIT
Three months ended:
January 31, 2013	$	32,336		$	23,723		$	5,514		$	61,573		$	(1,794	)	$	59,779
January 31, 2012	$	35,798		$	26,562		$	7,733		$	70,093		$	(2,359	)	$	67,734
Percentage change	(9.7		)%	(10.7		)%	(28.7		)%	(12.2		)%				(11.7		)%

Six months ended:
January 31, 2013	$	76,969		$	47,290		$	17,569		$	141,828		$	(3,767	)	$	138,061
January 31, 2012	$	79,028		$	52,861		$	21,037		$	152,926		$	(5,622	)	$	147,304
Percentage change	(2.6		)%	(10.5		)%	(16.5		)%	(7.3		)%				(6.3		)%



NET INCOME RECONCILIATION (dollars in thousands)
	Three Months Ended January 31,						Six Months Ended January 31,
	2013			2012			2013			2012
Total profit for reportable segments	$	61,573		$	70,093		$	141,828		$	152,926
Corporate and eliminations	(1,794		)	(2,359		)	(3,767		)	(5,622		)
Unallocated amounts:
Administrative costs	(35,518		)	(29,244		)	(65,926		)	(59,724		)
Restructuring charges	(4,031		)	—			(4,031		)	—
Impairment charge	—			(115,688		)	—			(115,688		)
Non-routine items	5,220			—			1,782			—
Investment and other income	897			812			1,294			610
Interest expense	(4,406		)	(4,933		)	(8,569		)	(9,980		)
Income (loss) before income taxes	21,941			(81,319		)	62,611			(37,478		)
Income taxes	30,625			8,635			44,107			19,744
Net (loss) income	$	(8,684	)	$	(89,954	)	$	18,504		$	(57,222	)

Brady is presenting EBITDA because it is used by many of our investors and lenders, and is presented as a convenience to them. EBITDA represents net income before interest expense, income taxes, depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Income data. EBITDA should not be considered as an alternative to net income or operating income as an indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. The EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.



			Fiscal 2013
			Q1		Q2			Q3		Q4		Total
EBITDA:
	Net income (loss)		$	27,188	$	(8,684	)					$	18,504
		Interest expense	4,163		4,406							8,569
		Income taxes	13,482		30,625							44,107
		Depreciation and amortization	10,675		11,371							22,046

	EBITDA (non-GAAP measure)		$	55,508	$	37,718		—		—		$	93,226

			Fiscal 2012
			Q1		Q2			Q3		Q4		Total
EBITDA:
	Net income (loss)		$	32,732	$	(89,954	)	$	27,652	$	11,659	$	(17,911	)
		Interest expense	5,047		4,933			4,735		4,375		19,090
		Income taxes	11,109		8,635			9,676		11,241		40,661
		Depreciation and amortization	11,241		10,935			10,745		11,066		43,987
		Impairment charge	—		115,688			—		—		115,688

	EBITDA (non-GAAP measure)		$	60,129	$	50,237		$	52,808	$	38,341	$	201,515

Brady is presenting the Non-GAAP measure "Income Before Taxes Excluding Restructuring Charges, Non-Routine Items, and Other." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of Income (Loss) Before Taxes to Income Before Taxes Excluding Restructuring Charges, Non-Routine Items, and Other:



			Three Months Ended January 31,						Six Months Ended January 31,
			2013			2012			2013			2012
Income (loss) before taxes (GAAP measure)			$	21,941		$	(81,319	)	$	62,611		$	(37,478	)
Non-routine items - pre-tax
		Gain on Thailand insurance recovery	(5,220		)	—			(5,220		)	—
		Loss on the sale of Brady Medical	—			—			3,675			—
		Gain on the sale of Varitronics	—			—			(237		)	—
		Non-routine items - pre-tax	(5,220		)	—			(1,782		)	—

Other items - pre-tax
	Cost of goods sold
		Purchase accounting expense related to inventory	1,530			—			1,530			—
	Selling, general and administrative
		PDC acquisition-related expenses	3,600			—			3,600			—
	Restructuring charges		4,031			—			4,031			—
	Impairment charge		—			115,688			—			115,688
	Income taxes
		Non-cash tax charge	—			—			—			—
		Other items - pre-tax	9,161			115,688			9,161			115,688

Income Before Taxes Excluding Restructuring Charges,
	Non-Routine Items, and Other (Non-GAAP measure)		$	25,882		$	34,369		$	69,990		$	78,210

Brady is presenting the Non-GAAP measure "Income Taxes Excluding Restructuring Charges, Non-Routine Items, and Other." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of Income Taxes to Income Taxes Excluding Restructuring Charges, Non-Routine Items, and Other:



			Three Months Ended January 31,					Six Months Ended January 31,
			2013			2012		2013			2012
Income taxes (GAAP measure)			$	30,625		$	8,635	$	44,107		$	19,744
Non-routine items - tax effect
		Gain on Thailand insurance recovery	(1,201		)	—		(1,201		)	—
		Loss on the sale of Brady Medical	—			—		1,098			—
		Gain on the sale of Varitronics	—			—		(875		)	—
		Non-routine items - tax effect	(1,201		)	—		(978		)	—

Other items - tax effect
	Cost of goods sold
		Purchase accounting expense related to inventory	581			—		581			—
	Selling, general and administrative
		PDC acquisition-related expenses	641			—		641			—
	Restructuring charges		750			—		750			—
	Impairment charge		—			—		—			—
	Income taxes
		Non-cash tax charge	(25,000		)	—		(25,000		)	—
		Other items - tax effect	(23,028		)	—		(23,028		)	—

Income Taxes Excluding Restructuring Charges,
	Non-Routine Items, and Other (Non-GAAP measure)		$	6,396		$	8,635	$	20,101		$	19,744

Brady is presenting the Non-GAAP measure "Net Income Excluding Restructuring Charges, Non-Routine Items, and Other." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of Net (Loss) Income to Net Income Excluding Restructuring Charges, Non-Routine Items, and Other:



			Three Months Ended January 31,						Six Months Ended January 31,
			2013			2012			2013			2012
Net (loss) income (GAAP measure)			$	(8,684	)	$	(89,954	)	$	18,504		$	(57,222	)
Non-routine items - net of tax
		Gain on Thailand insurance recovery	(4,019		)	—			(4,019		)	—
		Loss on the sale of Brady Medical	—			—			2,577			—
		Gain on the sale of Varitronics	—			—			638			—
		Non-routine items - net of tax	(4,019		)	—			(804		)	—

Other items - net of tax
	Cost of goods sold
		Purchase accounting expense related to inventory	949			—			949			—
	Selling, general and administrative
		PDC acquisition-related expenses	2,959			—			2,959			—
	Restructuring charges		3,281			—			3,281			—
	Impairment charge		—			115,688			—			115,688
	Income taxes
		Non-cash tax charge	25,000			—			25,000			—
		Other items - net of tax	32,189			115,688			32,189			115,688

Net Income Excluding Restructuring Charges,
	Non-Routine Items, and Other (Non-GAAP measure)		$	19,486		$	25,734		$	49,889		$	58,466

Brady is presenting the Non-GAAP measure "Diluted Net Income Per Class A Nonvoting Common Share Excluding Restructuring Charges, Non-Routine Items, and Other." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Condensed Consolidated Statements of Income data. We do not view these items to be part of our sustainable results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of Diluted Net (Loss) Income Per Class A Nonvoting Common Share to Diluted Net Income Per Class A Nonvoting Common Share Excluding Restructuring Charges, Non-Routine Items, and Other:



			Three Months Ended January 31,						Six Months Ended January 31,
			2013			2012			2013			2012
Diluted Net (Loss) Income Per Class A Nonvoting Share			$	(0.17	)	$	(1.72	)	$	0.36		$	(1.09	)
	(GAAP measure)
Non-routine items
		Gain on Thailand insurance recovery	(0.08		)	—			(0.08		)	—
		Loss on the sale of Brady Medical	—			—			0.05			—
		Gain on the sale of Varitronics	—			—			0.01			—
		Non-routine items	(0.08		)	—			(0.02		)	—

Other items
	Cost of goods sold
		Purchase accounting expense related to inventory	0.02			—			0.02			—
	Selling, general and administrative
		PDC acquisition-related expenses	0.06			—			0.06			—
	Restructuring charges		0.06			—			0.06			—
	Impairment charge		—			2.21			—			2.21
	Income taxes
		Non-cash tax charge	0.49			—			0.49			—
		Other items	0.63			2.21			0.63			2.21

Diluted Net Income Per Class A Nonvoting Share Excluding
	Restructuring Charges, Non-Routine Items, and Other
	(Non-GAAP measure)		$	0.38		$	0.49		$	0.97		$	1.12