National Presto Industries, Inc. Recommendation: Accumulate PRESENTED BY JOE NIEHAUS

Company Overview National Presto Industries, Inc. (NPK) and its consolidated subsidiaries consists of three well diversified business segments:  Housewares/ Small Appliances  Defense Products  Absorbent Products Market Cap: $506.6 Million Share Price 5/1/09: $73.98

Corporate Governance  Board of Directors  Maryjo Cohen: Chair, President, and CEO  Owns 31% of Common Stock  2008 Compensation $414,  Randy Lieble: VP, Secretary, CFO, Treasurer  2008 Compensation $92,  Richard Cardozo: Professor Univ. of Minnesota  Patrick Quin: Chair and President Ayres Assoc.  Joseph Stiensen: Accounting and Tax Advisor  Headquartered and Incorporated in Wisconsin

Segment Details: Housewares/Small Appliances  30.5% of Total Revenues ($136.8 Million)  Main Customers: Wal-Mart (11%), Costco, Target  Benefited from Recession  Little or No Advertising Necessary  Financed Acquisition of Defense and Absorbent Products Segments  Risks: Consumer Discretionary, Commodity Prices, Retailer Bankruptcies (Linens & Things, Mervyns, Circuit City)

Segment Details: Defense Products  53.3% of Total Revenues ($238.8 Million)  Source of Revenues: 1 of 2 suppliers of 40mm to DOD for Dept. of Army  Currently in 4 th year of 5 year DOD contract, 2009 Backlog of $265 Million, $66.9 Million awarded for 2010, Currently bidding for year contract  Continues to streamline production and add production capabilities  Risks: Revenues dependent upon the needs of the DOD 40mm Training CartridgeNon-lethal Sponge Grenade

Segment Details: Absorbent Products  16.2% of Total Revenues ($72.7 Million)  2009 Should be first year of positive operating profit, operating loss decreased 56% for FY 2008  Capital and manufacturing upgrades implemented in 2008  US adult incontinence market to reach $2.2 Billion by 2012 & worldwide market to reach $11.2 Billion by 2015*  Risks: Commodity Prices (Petroleum), Market Base Consists of Single Buyer, Competition * Global Industry Analysts

Financials Balance Sheet (Thousands) Current Assets$299,516$303,779 Capital$66,367$70,897 Total Assets$365,883$374,676 Current Liabilities$51,889$76,775 Long Term Debt$0 Total Liabilities$55,278$80,065 Shareholders Equity$310,605$294,611 Income Statement (Thousands) Net Sales$489,000 $448,227$420,716 Revenue Growth 9%7%38% Cost of Sales$399,294$368,013$344,361 Gross Profit$89,706$80,214$76,355 Selling and General Expenses$17,200$16,933$22,395 Operating Profit$72,506$63,281$53,960 Other Income$4,100$4,270$4,247 Provision for Income Taxes$26,812$23,368$19,584 Net Earnings$49,794$44,183$38,623 Earnings Growth13%14%38% Net Earnings Per Share$7.27$6.45$5.65 Dividends Per Share$5.96$5.55$4.24$3.80 Dividend Growth7%31%12%79% Payout Ratio82%86%75%93% Cash Flows (Thousands) Net Operating Cash Flows$9,026$11,619 Net Investing Cash Flows($2,528)($19,716) Net Financing Cash Flows($28,877)($25,917) Net Cash Decrease($22,379)($34,014) Beginning Cash Position$26,715$46,696 Ending Cash$4,336$12,682

Management Effectiveness Return on Equity Year ROE3.6%6.3%6.0%7.2%10.0%13.1%14.6%15.8%* Subsidiary Sales (in thousands) Year * Sales$17,697$21,498$52,796$72,578$180,226$289,449$311,413$350,000 Growth126.5%21.5%145.6%37.5%148.3%60.6%7.6%12.4%  Total Purchase Price of Acquisitions 2001 through 2008: $37 Million  Total Revenues of Acquisitions 2001 through 2008: $945,657 Million

Valuation  Competition: NPK operates in niche markets, no major public competition  Market Cap: $506.6M / Enterprise Value: $360.7M  Current P/E: 11.3, S&P 500 P/E: 14  Price to Sales (ttm): 1.09  Price to Book (mrq): 1.57  1 year discounted cash flow valuation:  Anticipated 2010 Dividend: $5.96  Anticipated 2010 Price  Estimated Earnings: $7.27 with a P/E of 12 = $87.24  $87.24+$5.96 = $93.20/1.11 = $83.96  $83.96-$73.98 = $9.98  $9.98/$73.98 = 13.5% HPR  Future cash flows dependent on contract awards and negotiations

Recommendation for Investment  Accumulate : Start picking up shares  Management’s effectiveness is most appealing  Impressive growth without debt  Income Generating  Should benefit from any positive market momentum

Questions?