RE:	Raven Industries, Inc.
		P.O. Box 5107
		Sioux Falls, SD 57117-5107
FOR YOUR INFORMATION:		SIC Codes: 3672, 3081, 3829

AT THE COMPANY:	FRB | WEBER SHANDWICK:
Tom Iacarella	Dennis Waite	Leslie Loyet	Cindy Martin
VP & CFO	General Inquiries	Analyst Inquiries	Media Inquiries
(605) 336-2750	(708) 246-6265	(312) 640-6672	(312) 640-6741

FOR IMMEDIATE RELEASE
MONDAY, MAY 19, 2003

RAVEN INDUSTRIES REPORTS RECORD FIRST-QUARTER
EARNINGS UP 21% ON A 19% SALES GAIN

SIOUX FALLS, SD—May 19, 2003—With substantial gains in sales and profits in three of its four business segments, Raven Industries, Inc. (RAVN: Nasdaq) reported today that net income for its first quarter ended April 30, 2003, climbed 21 percent to $4.2 million, or a record 45 cents per diluted share, from $3.5 million, or 37 cents per diluted share, a year earlier. Sales grew 19 percent to $36.9 million. Earnings-per-share computations for both quarters reflect the company’s two-for-one stock split in January 2003.

Raven President and CEO Ronald M. Moquist noted that both the sales and earnings figures were first-quarter records. “Despite a tough market situation, all of our operating units performed at a high level and contributed to our outstanding first quarter.”

Segment Performance

Sales of the company’s Engineered Films Division (EFD) rose 35 percent to $11.1 million and operating income increased 25 percent to $3.0 million from the year-earlier’s $2.4 million. The addition of new extrusion capacity late last year helped support increased sales levels. Higher product prices and strong demand were factors in this division’s very strong sales performance, Moquist noted. A year ago, Raven had experienced a slowdown in sales of pit liners for oil exploration as well as a very mild winter across most of the United States, which had reduced the need for plastic sheeting enclosures for construction. The profit impact of the higher sales was partially offset by higher prices for raw materials.

Electronic Systems Division (ESD) sales for the first quarter jumped 34 percent to $10.1 million. Operating income rose to $1.1 million compared to $208,000 one year earlier. “Continuation of the trend in the past year’s third and fourth quarters of new major customers coming onstream were a significant factor in this strong first quarter,” CEO Moquist said, noting, “our Six Sigma initiatives continue to generate production efficiencies and stronger profitability.”

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FRB | Weber Shandwick Worldwide serves as financial relations counsel to this company, is acting on the company’s behalf in issuing this bulletin and receiving compensation therefor. The information contained herein is furnished for information purposes only and is not to be construed as an offer to buy or sell securities.

Raven Industries, Inc.
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Raven’s Flow Controls Division (FCD) reported relatively flat sales of $11.8 million but the segment’s operating income dipped to $3.6 million, down 14 percent, from $4.2 million a year earlier. Sales increases for the company’s precision agricultural products were offset by lower than expected deliveries under a special order for chemical injection systems. Sales of $2.1 million under this order compared to $2.6 million one year earlier. Operating profit margins were down in the quarter due to competitive pressures, a shift in product mix, and higher selling expenses resulting from support of Raven’s new precision-agriculture distribution plan.

After struggling through a major reorganization in the past year, Aerostar returned to profitability. Sales for the first quarter reached $4.0 million, compared to $2.4 million in the first quarter last year. The higher sales were due mostly to shipments of military cargo parachutes. First-quarter operating income was $312,000 versus a loss of $191,000 a year earlier. Operating income included gains of approximately $120,000 on hot-air balloon shipments related to a special promotion at the end of last fiscal year.

Cash Flow and Balance Sheet

Cash and short-term investments reached $12.2 million at April 30, 2003, compared to $10.2 million one year earlier. Accounts receivable and inventory levels increased as a result of sales growth. Cash flow from operations for the three-month period totaled $5.2 million, essentially unchanged from the $5.4 million one year ago. Dividends per share increased 14 percent effective April 15, 2003, our seventeenth consecutive annual increase.

First Half Outlook is Strong

Moquist said the company sees a strong first half with a better than expected second quarter due in part to final shipments under the special chemical-injection order in FCD. “We had budgeted a down second quarter,” the executive said, “but now expect to beat that projection. We continue to work hard to grow topline revenue, improve operations and generate cash. Our performance shows that we’re on the right track and we believe we will have another good year.”

Forward-Looking Statements

The Private Securities Litigation Reform Act provides a “safe harbor” for forward-looking statements. Certain information included in materials filed or to be filed by the Company with the Securities and Exchange Commission (as well as information included in statements made or to be made by the Company) contains statements that are forward looking. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there is no assurance that such expectations will be achieved. Such assumptions involve important risks and uncertainties that could significantly affect results in the future. These risks and uncertainties include, but are not limited to, those relating to general economic conditions, weather conditions, which could affect certain of the Company’s primary markets, such as agriculture and construction, or changes in competition, technology or the Company’s customer base, any of which could adversely impact any of the Company’s product lines.

On the Internet, information is available at FRB’s website, www.frbwebershandwick.com, or at www.ravenind.com, the company’s website.

-FINANCIAL TABLES FOLLOW-

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Raven Industries, Inc.
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RAVEN INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per-share)

			Three Months Ended April 30
							Percent
			2003		2002		Change
			(unaudited)		(unaudited)
Net sales			$	36,942	$	30,974		19	%
Cost of goods sold				27,505		22,824		21	%
		Gross profit		9,437		8,150		16	%
Selling, general & administrative expenses				2,902		2,846		2	%
Gain (loss) on sale of businesses and assets				9		—
		Operating income		6,544		5,304		23	%
Other income				12		16
		Income before income taxes		6,556		5,320		23	%
Income taxes				2,373		1,862		27	%
		Net income	$	4,183	$	3,458		21	%
Net income per common share:
	-basic		$	0.46	$	0.38		21	%
	-diluted		$	0.45	$	0.37		22	%
Weighted average common shares outstanding:
	-basic			9,074		9,189		(1	)%
	-diluted			9,245		9,423		(2	)%

RAVEN INDUSTRIES, INC.
SALES AND OPERATING INCOME BY SEGMENT
(In thousands)

			Three Months Ended April 30
									Percent
			2003			2002			Change
			(unaudited)			(unaudited)
NET SALES
	Flow Controls		$	11,761		$	11,772			0	%
	Engineered Films			11,139			8,222			35	%
	Electronic Systems			10,053			7,488			34	%
	Aerostar			3,989			2,431			64	%
	Sold Businesses			—			1,061			(100	)%
		TOTAL COMPANY	$	36,942		$	30,974			19	%
OPERATING INCOME (LOSS)
	Flow Controls		$	3,619		$	4,205			(14	)%
	Engineered Films			2,999			2,399			25	%
	Electronic Systems			1,097			208			427	%
	Aerostar			312			(191	)		263	%
	Sold Businesses			(20	)		70			(129	)%
	Corporate Expenses			(1,463	)		(1,387	)		(5	)%
		TOTAL COMPANY	$	6,544		$	5,304			23	%

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RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

		April 30,		January 31,		April 30,
		2003		2003		2002
ASSETS		(unaudited)		(audited)		(unaudited)
Cash, cash equivalents and short-term investments		$	12,248	$	9,217	$	10,216
Accounts receivable, net			17,422		16,468		14,882
Inventories			20,869		21,366		19,624
Prepaid expenses and other current assets			2,378		2,300		2,793
	Total current assets		52,917		49,351		47,515
Property, plant and equipment, net			15,918		16,455		14,281
Other assets, net			7,035		7,010		8,293
		$	75,870	$	72,816	$	70,089
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt		$	116	$	119	$	116
Accounts payable			3,440		5,291		4,611
Accrued and other liabilities			9,928		7,757		8,768
	Total current liabilities		13,484		13,167		13,495
Long-term debt, less current portion			125		151		247
Other liabilities			1,281		1,262		1,671
Stockholders’ equity			60,980		58,236		54,676
		$	75,870	$	72,816	$	70,089

RAVEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(In thousands)

				Three Months Ended April 30
				2003			2002
				(unaudited)			(unaudited)
Cash flows from operating activities
	Net income			$	4,183		$	3,458
	Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation and amortization		1,074			1,038
			Deferred income taxes		42			202
			Other operating activities, net		(123	)		689
		Net cash provided by operating activities			5,176			5,387
Cash flows from investing activities
		Capital expenditures			(433	)		(1,151	)
		Other investing activities, net			(120	)		2
		Net cash provided by (used in) investing activities			(553	)		(1,149	)
Cash flows from financing activities
		Dividends paid			(726	)		(643	)
		Purchase of treasury stock			(889	)		(841	)
		Long-term debt principal payments			(29	)		(44	)
		Other financing activities, net			52			28
		Net cash used in financing activities			(1,592	)		(1,500	)
Net increase (decrease) in cash and cash equivalents					3,031			2,738
Cash and cash equivalents at beginning of period					5,217			7,478
Cash and cash equivalents at end of period					8,248			10,216
Short-term investments					4,000			—
Cash, cash equivalents and short-term investments				$	12,248		$	10,216

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