L.B. Foster Reports First Quarter Operating Results

By L.b. Foster Company, PRNE
Sunday, May 1, 2011

PITTSBURGH, May 2, 2011 - L.B. Foster Company (NASDAQ: FSTR), a leading manufacturer, fabricator,
and distributor of products and services for rail, construction, energy and
utility markets, today reported its 2011 first quarter operating results,
including the following items:

(Logo: photos.prnewswire.com/prnh/20101222/MM21387LOGO )

    -- First quarter sales increased by $35.1 million or 42.8% due to a
       strong sales quarter by Portec Rail Products Inc., as well as a 14.4%
       sales  increase in the legacy L.B. Foster business.

    -- Gross Profit margin was 14.9%, 20 basis points better than the prior
       -- The Portec Rail Products business contributed a gross margin of
          21.7% which, as expected, included charges from purchase accounting
          related asset step-ups.
       -- The legacy Foster margins were lower than the prior year due to a
          weak first quarter in our precast buildings division, as well as
          unabsorbed plant costs at our Grand Island, NE concrete tie
          facility as a limited amount of production was concluded in the
          first quarter and we began dismantling the equipment.

    -- Selling and administrative expense increased $6.5 million, principally
       due to the inclusion of the Portec Rail Products results.

    -- First quarter net income was $0.7 million or $0.07 per diluted share
       compared to $1.8 million or $0.17 per diluted share last year. Factors
       negatively impacting net income for this quarter were:
       -- The recognition of expense related to the sale of Portec inventory
          that was written up to fair market value as of the acquisition date
          resulting in increased cost of goods sold of $2.5 million ($0.17
          per diluted share).
       -- Acquisition related amortization and depreciation of
          definitive-lived intangible and tangible assets stepped up to
          market value of $0.8 million ($0.06 per diluted share).
       -- LIFO adjustments were $0.4 million ($0.03 per diluted share)
          unfavorable compared to the prior year.

    -- Adjusted EBITDA was $6.5 million compared to $5.0 million in the prior
       year quarter.

    -- First quarter bookings were $163.8 million compared to $106.1 million
       last year, an increase of 54.4%. Excluding Portec, bookings were 27.3%
       higher than last year. At quarter end, our backlog was $237.1 million,
       15.8% higher than the prior year (4.9% without Portec).

Stan L. Hasselbusch, L. B. Foster's president and chief executive
officer, said, "Our performance in the first quarter, which is traditionally
our weakest quarter due to seasonality, was negatively impacted by expenses
related to the acquisition of Portec Rail Products, Inc. and to our Grand
facility. The most significant of these costs, a $2.5 million charge
to gross profit, is a non-recurring expense that relates to the requirement
to write-up inventory purchased in an acquisition to net realizable value,
which takes most of the margin away when it is sold. This negative adjustment
has been completely flushed through our results in the first quarter and will
not impact us the rest of the year." Mr. Hasselbusch went on to say, "Our
margins were not where we wanted them as they were negatively impacted by the
Grand Island shut down, a weak precast buildings performance and a
disadvantageous sales mix as distribution sales increased by 25% while
distribution margins declined by 120 basis points. With regard to the Portec
acquisition, we have moved past an intense 120 day integration period and are
planning to continue these efforts for the remainder of the year. We continue
to see many promising opportunities in the friction management and Salient
product lines and are excited about the long term prospects for these
businesses." Mr. Hasselbusch concluded by adding, "As we move through 2011,
we expect to continue to experience a highly competitive market environment
and we also anticipate significantly extended delays before a new
transportation bill is passed, but we are optimistic that the overall economy
is improving. Our bookings and backlog are very strong and we expect this
strength to be reflected in our results for the remainder of this year."

L.B. Foster Company will conduct a conference call and webcast to discuss
its first quarter 2011 operating results and general market activity and
business conditions on Monday, May 2, 2011 at 11:00am ET. The call will be
hosted by Mr. Stan Hasselbusch, President and Chief Executive Officer. Listen
via audio on the L.B. Foster web site: www.lbfoster.com, by accessing
the Investor Relations page. The replay can also be heard via telephone at
+1-888-286-8010 by entering pass code 17288494.

This release may contain forward-looking statements that involve risks
and uncertainties. Actual results could differ materially from the results
anticipated in any forward-looking statement. Factors that could cause or
contribute to these material differences include, but are not limited to, an
economic slowdown in the markets we serve; a decrease in freight or passenger
rail traffic; a lack of state or federal funding for new infrastructure
projects; an increase in manufacturing or material costs; and other factors
contained in the Company's filings with the Securities and Exchange
Commission. The Company urges all interested parties to read these reports to
gain a better understanding of the many business and other risks that the
Company faces. The forward-looking statements contained in this press release
are made only as of the date hereof, and the Company assumes no obligation to
update or revise these statements, whether as a result of new information,
future events or otherwise.

                    (In Thousands, Except Per Share Amounts)

                                      Three Months Ended
                                          March 31,
                                       2011          2010
                                       ----          ----

    NET SALES                      $117,104       $82,002

    Cost of goods sold               99,638        69,929
    Selling and administrative
      expenses                       15,696         9,190
    Amortization expense                704             3
    Interest expense                    138           245
    (Gain) loss on joint venture        (87)          147
    Interest income                     (56)          (74)
    Other expense (income)               87          (102)
                                    116,120        79,338
                                    -------        ------

    INCOME BEFORE INCOME TAXES          984         2,664

    INCOME TAX EXPENSE                  305           911
                                        ---           ---

    NET INCOME                         $679        $1,753
                                       ====        ======

     SHARE                            $0.07         $0.17
                                      =====         =====

     SHARE                            $0.07         $0.17
                                      =====         =====

    OUTSTANDING - BASIC              10,285        10,172
                                     ======        ======

    OUTSTANDING - DILUTED            10,401        10,315
                                     ======        ======

                     L.B. Foster Company and Subsidiaries
                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                              March 31,     December 31,
                                                2011            2010
                                                ----            ----
    ASSETS                                   (Unaudited)

       Cash and cash items                     $58,884        $74,800
       Accounts and notes receivable:
          Trade                                 60,890         66,908
          Other                                    956          2,789
       Inventories                             101,779         90,367
       Current deferred tax assets               1,660            911
       Prepaid income tax                        1,203            972
       Other current assets                      2,525          2,535
             Total Current Assets              227,897        239,282
                                               -------        -------

       Property, plant & equipment-net          47,130         46,336
       Goodwill                                 44,369         44,369
       Other intangibles - net                  44,413         45,079
       Investments                               2,074          1,987
       Other non-current assets                  1,445          1,663
                                                 -----          -----
              Total Other Assets               139,431        139,434
                                               -------        -------

                                              $367,328       $378,716
                                              ========       ========


       Current maturities on other long-term
        debt                                    $2,358         $2,402
       Accounts payable-trade and other         51,814         45,533
       Deferred revenue                         11,460         16,868
       Accrued payroll and employee
        benefits                                 5,735          9,054
       Other accrued liabilities                14,242         22,962
             Total Current Liabilities          85,609         96,819
                                                ------         ------

    OTHER LONG-TERM DEBT                         1,103          2,399
                                                 -----          -----
    DEFERRED TAX LIABILITIES                    12,065         11,863
                                                ------         ------
    OTHER LONG-TERM LIABILITIES                 11,274         11,888
                                                ------         ------

       Class A Common stock                        111            111
       Paid-in capital                          46,849         47,286
       Retained earnings                       233,701        233,279
       Treasury stock                          (23,090)       (23,861)
       Accumulated other comprehensive
        loss                                      (294)        (1,068)
                                                  ----         ------
            Total Stockholders' Equity         257,277        255,747
                                               -------        -------

                                              $367,328       $378,716
                                              ========       ========

                              L.B. Foster Company

             Reconciliation of GAAP to Non-GAAP Financial Measures

L.B. Foster (Foster) reports its financial results in accordance with
generally accepted accounting principles (GAAP). However, Foster believes
that certain non-GAAP financial measures are useful in managing our
performance. One such non-GAAP measure is Adjusted EBITDA.

Adjusted EBITDA, which Foster defines as net income before interest,
taxes, depreciation, amortization and other non-cash charges (principally
related to purchase accounting adjustments, such as the $2.5 million charge
taken in the first quarter of 2011 related to the write-up of inventory owned
by Portec to fair value less cost to sell on the date of acquisition) is used
due to its wide acceptance as a measure of operating profitability before
non-operating expenses (interest and taxes) and noncash charges (depreciation
and amortization and other noncash charges). Additionally, Adjusted EBITDA is
one of the performance measures used in Foster's debt covenant calculations
and incentive compensation plan.

This non-GAAP financial measure is not a substitute for GAAP financial
results and should only be considered in conjunction with Foster's financial
information that is presented in accordance with GAAP. A quantitative
reconciliation of GAAP net income to Adjusted EBITDA is provided in the table

             Reconciliation of GAAP Net Income to Adjusted EBITDA

                                           Three Months Ended
                                               March 31,
                                         2011              2010
                                         ----              ----
                                            ($ in thousands)

    Net income                           $679            $1,753

    Income tax expense                    305               911

    Interest, net                          82               171

    Depreciation and amortization       2,939             2,163

    EBITDA, Non-GAAP                    4,005             4,998

    Adjustments or charges

    Difference between net
     realizable value and cost basis
     of                                 2,493                 0
    inventory sold due to purchase
     accounting step-up

    Adjusted EBITDA                    $6,498            $4,998
                                       ======            ======

    David Russo      Phone: +1-412-928-3417             L.B. Foster
                     Email: Investors@Lbfosterco.com    415 Holiday Drive
                     Website: www.lbfoster.com   Pittsburgh, PA  15220


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