Woodhead Industries Reports Fiscal First Quarter Results; 10% Revenue Growth

Woodhead Industries, Inc., (NASDAQ:WDHD) today announced
financial results for its fiscal first quarter ended December 31,
2005. The company reported first quarter revenue of $53.4 million, up
$4.8 million, or 9.8%, compared to the same period last year. Income
from operations totaled $3.6 million, up from $0.2 million during the
first quarter of 2005. Net income was $2.2 million, or $0.18 per share
for the 2006 first quarter, compared to net income of $1.2 million, or
$0.10 per share for the same period in 2005.
   The previously announced litigation settlement contributed $1.6
million to revenue and $0.07 to earnings per share during the quarter,
while foreign exchange negatively impacted the year-over-year revenue
comparison by $1.8 million. Both items are included in the
Connectivity segment.
   Philippe Lemaitre, Woodhead Industries' Chairman and Chief
Executive Officer, commented, "We are pleased to report a solid start
to our 2006 fiscal year. Revenue from our North American Connectivity
business was up 22% (14% without the legal settlement), and we
realized significant improvement in our European markets. In addition
to our performance on the revenue line, we are diligently managing
costs, as evidenced by flat operating expenses on a year-over-year
basis."
   In the Connectivity segment, sales were $40.4 million, up 9.5%
from $36.9 million in 2005. Income from operations totaled $1.7
million, compared to $0.1 million last year. Operating margins in this
segment improved substantially as a result of higher volume, improved
utilization and the legal settlement, which added $0.6 million to
operating profit during the quarter.
   Electrical segment revenue increased 10.8% to $13.1 million, as
compared to $11.8 million last year. Income from operations was $1.2
million, up from $0.3 million during the same period last year. The
sizeable increase in profitability is primarily attributable to the
higher volume this year and the operating improvements made during the
last three quarters of 2005.
   Backlog grew $1.9 million, or 12% during the first quarter and has
grown an additional $2.3 million in January, to $20.5 million.

   Outlook

   Lemaitre noted, "Given our current view of the economic and
competitive conditions in our markets, we anticipate revenues during
the second quarter of $57 - $59 million, and earnings per share of
$0.18 - $0.21. For the full year, we anticipate revenues of $227 -
$231 million, and earnings per share of $0.79 - $0.85."
   This press release contains statements that are forward-looking.
These statements are based on current expectations that are subject to
risks and uncertainties. In particular, such risks include future
actions, prospective products, future performance or results of
current or anticipated products, sales efforts, expenses, the outcome
of contingencies such as legal proceedings, general economic and
business conditions, competition, and other issues discussed in our
Form 10-K and other SEC filings.

   Conference Call

   Woodhead Industries, Inc., will host a conference call today,
January 27, 2006, at 11:00 am Eastern Time to discuss performance and
financial results for the fiscal first quarter. To access a live
internet webcast of the conference call, visit the Company's website
at www.woodhead.com and select the webcast icon. The dial-in phone
number is 800-967-7134 or 719-457-2625. The Access code is 3640380. A
replay of the conference call will be archived and available on the
Company's website following the live event.

   About Woodhead Industries, Inc.

   Woodhead Industries (NASDAQ:WDHD) develops, manufactures and
markets network and electrical infrastructure products engineered for
performance in harsh, demanding, and hazardous industrial
environments. Woodhead is known in the global industrial market by its
recognized brands which include Brad Harrison(R), BradPower(TM),
BradControl(TM), SST(TM), Daniel Woodhead(R), mPm(R), applicom(R),
Aero-Motive(R) and RJ-Lnxx(R). Our expertise extends from mechanical,
electrical, and electronics to communication software products and
technologies. Woodhead operates from 21 locations in 10 countries
spanning North America, Europe and Asia/Pacific.
   For further information, contact: Robert Fisher, Vice President,
Finance and CFO, 847-317-2400, e-mail: [e-mail].

   (Tables to Follow)
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WOODHEAD INDUSTRIES, INC.  Consolidated Balance Sheet
(Amounts in thousands)

                                              ------------------------
Assets                                         12/31/2005   10/1/2005
                                              ------------------------
Current Assets
   Cash and short-term investments                $17,080     $13,887
   Accounts receivable                             36,109      39,040
   Inventories                                     21,512      21,173
   Prepaid expenses                                 6,041       5,785
   Refundable income taxes                            836       2,097
   Deferred income taxes                            2,516       2,164
----------------------------------------------------------------------
   Total current assets                            84,094      84,146
 Property, plant and equipment, net                53,172      54,758
 Goodwill, net                                     35,232      35,730
 Deferred income taxes                              2,526       2,746
 Other Assets                                       1,010       1,000
----------------------------------------------------------------------
Total Assets                                     $176,034    $178,380
----------------------------------------------------------------------

 Liabilities and Stockholders' Investment
 Current Liabilities
   Accounts payable                                $9,320     $11,080
   Accrued expenses                                11,556      11,531
   Income taxes payable                               737       1,053
  Current portion of long-term debt                 5,700       5,700
----------------------------------------------------------------------
 Total current liabilities                         27,313      29,364
 Long-term debt                                    19,500      19,500
 Deferred income taxes                              4,618       4,698
 Other liabilities                                  3,900       4,139
----------------------------------------------------------------------
 Total Liabilities                                 55,331      57,701

 Stockholders' investment:
   Common stock at par (shares issued: 12,380
    at 12/31/05, 12,260 at 10/1/05)                12,172      12,260
   Additional paid-in capital                      21,572      21,596
   Deferred stock compensation                          -        (397)
   Accumulated other comprehensive income           3,475       4,726
   Retained earnings                               83,484      82,494
----------------------------------------------------------------------
      Total stockholders' investment              120,703     120,679
----------------------------------------------------------------------
 Total Liabilities and Stockholders'
  Investment                                     $176,034    $178,380
----------------------------------------------------------------------



WOODHEAD INDUSTRIES, INC.  Consolidated Income Statement
(Amounts in thousands, except per share data)

                                         Quarter Ended:
                                     ---------------------- ----------
                                     12/31/2005   1/1/2005   % Change
                                     ---------------------- ----------

Net Sales                               $53,439    $48,676        9.8%
  Cost of Sales                          33,283     31,954        4.2%
                                     ----------------------
Gross Profit                             20,156     16,722       20.5%
  % of Net Sales                           37.7%      34.4%

Operating Expenses                       16,527     16,496        0.2%
  % of Net Sales                           30.9%      33.9%
                                     ----------------------
Income From Operations                    3,629        226
  % of Net Sales                            6.8%       0.5%

Other Expenses
  Interest Expense                          304        486     (37.4%)
  Other (Income)/Expenses, Net             (155)    (1,818)
                                     ----------------------
Other (Income) / Expenses                   149     (1,332)

Income Before Taxes                       3,480      1,558      123.4%
  % of Net Sales                            6.5%       3.2%

Provision For Income Taxes                1,264        342      269.6%
                                     ----------------------
Net Income                               $2,216     $1,216       82.2%
  % of Net Sales                            4.1%       2.5%
                                     ======================

Earnings per share
  Diluted                                 $0.18      $0.10       80.0%

Weighted-average common shares
 outstanding
  Diluted                                12,295     12,306      (0.1%)
                                     ======================
Dividends Per Share                       $0.10      $0.10        0.0%
                                     ======================



SEGMENT DATA                             Quarter Ended:
                                     ---------------------- ----------
                                     12/31/2005   1/1/2005   % Change
                                     ---------------------- ----------
Net Sales
---------
Connectivity                            $40,377    $36,886        9.5%
Electrical                               13,062     11,790       10.8%
                                     ----------------------
Total                                   $53,439    $48,676        9.8%
                                     ======================

Income From Operations
----------------------
Connectivity                             $1,708        $61
Electrical                                1,247        300
Corporate and Other                         674       (135)
                                     ----------------------
Total                                    $3,629       $226
                                     ======================
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