WSI Industries, Inc. (Nasdaq: WSCI) today reported sales for the fourth quarter ended August 30, 2009, of $3,993,000 versus the prior year fiscal 2008 fourth quarter of $6,783,000. The Company’s net income in the current year’s fourth quarter was $35,000 or $.01 per diluted share as compared to the prior year’s quarter of $301,000 or $.11 per diluted share.

For the full year, sales for fiscal 2009 were $18,766,000, down from the year earlier amount of $25,882,000. For fiscal 2009 the Company experienced a loss of $159,000 or $.06 per diluted share compared to the prior year’s net income of $1,478,000 or $.52 per diluted share.

Michael J. Pudil, chief executive officer, commented: “Like most companies this past year, we have experienced sales declines and the challenge of streamlining costs in order to regain profitability. We believe that WSI had success during the year as shown by our positive cash flow as well as a return to profitability for the second half of the year. As the country emerges out of the recession, we believe WSI is in a strong position with a state of the art facility, new equipment and a strong balance sheet.” Pudil went on to say: “WSI is fortunate that our customers are leaders in their respective industries and that when economic growth commences, they should be poised to capitalize on it.” Pudil concluded: “As announced last week, we are pleased with the addition of Benjamin Rashleger as our new President and Chief Operating Officer. We are looking forward to his fresh leadership and energy as WSI pursues new opportunities in the months and years ahead.”

WSI Industries, Inc. is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide range of industries, including avionics and aerospace, energy, recreational vehicles, small engines, marine, bioscience and the defense market.

The statements included herein which are not historical or current facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain important factors which could cause actual results to differ materially from those anticipated by some of the statements made herein, including the Company’s ability to retain current programs and obtain additional manufacturing programs, and other factors detailed in the Company’s filings with the Securities and Exchange Commission.