BRADY CORPORATION ANNUAL SHAREHOLDERS MEETING

BRADY CORPORATION ANNUAL SHAREHOLDERS MEETING November 20, 2008

AGENDA Election of the Board of Directors President s Report Financial Report Summary Question & Answer Period

ELECTION OF BOARD OF DIRECTORS Patrick Allender Executive Vice President and Chief Financial Officer (Retired), Danaher Corporation Richard Bemis Co-chairman, Board of Directors, Bemis Manufacturing Robert Buchanan Chairman of the Board (Retired), Fox Valley Corporation Chan Galbato Consultant, CWG Hillside Investments Conrad Goodkind Attorney, Quarles & Brady

ELECTION OF BOARD OF DIRECTORS Dr. Frank Harris President and CEO, Akron Polymer Systems Frank Jarc Consultant Gary Nei Chairman, Nei-Turner Media Dr. Elizabeth Pungello Developmental Psychologist, Frank Porter Graham Child Development Institute, Univ. of North Carolina at Chapel Hill Bradley C. Richardson Executive Vice President, Corporate Strategy and Chief Financial Officer, Modine Manufacturing Frank Jaehnert President & CEO, Brady Corporation

ELECTION OF BOARD OF DIRECTORS Shareholders of 100% of the Class B Common Voting Stock vote in favor of the election of the director nominees and they are therefore elected to a one-year term.

FORWARD-LOOKING STATEMENTS We believe that certain statements in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements related to future, not past, events included in this presentation, including, without limitation, statements regarding our future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations are forward-looking statements. When used in this presentation, words such as may, will, expect, intend, estimate, anticipate, believe, should, project or plan or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions and other factors, some of which are beyond our control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For us, uncertainties arise from future financial performance of major markets we serve, which include, without limitation, telecommunications, manufacturing, electrical, construction, laboratory, education, governmental, public utility, computer, transportation; difficulties in making and integrating acquisitions; risks associated with newly acquired businesses; our ability to retain significant contracts and customers; future competition; our ability to develop and successfully market new products; changes in the supply of, or price for, parts and components; increased price pressure from suppliers and customers; interruptions to sources of supply; environmental, health and safety compliance costs and liabilities; our ability to realize cost savings from operating initiatives; our ability to attract and retain key talent; difficulties associated with exports; risks associated with international operations; fluctuations in currency rates versus the US dollar; technology changes; potential write-offs of our substantial intangible assets; risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products; business interruptions due to implementing business systems; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature contained from time to time in our U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the "Risk Factors" section located in Item 1A of Part II of our Annual Report on Form 10-K for the period ended July 31, 2008. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. We refer to certain non-gaap financial measures in this presentation. Reconciliations of these non-gaap financial measures to the most directly comparable GAAP financial measures can be found within this presentation.

BRADY'S MISSION We identify and protect premises, products and people 7

BRADY S VISION To Be the Leader in the Markets We Serve Enabled by World Class People Delivering Differentiated Solutions to Loyal Customers To Achieve Sustainable Long-Term Shareholder Value

HIGHLIGHTS OF F 08 Record sales, net income and cash flow for the year Sales of $1.523B up 12% Net Income of $132.2M up 21% Cash Flow from Operations of $226M up 66% Continued investment and improvement in new product development Continued geographic expansion and penetration 2 acquisitions Began roll-out of BBPS (Brady Business Performance System) to align initiatives and improve productivity across company 8 successful SAP implementations

DRIVING SHAREHOLDER VALUE CREATION Within five years, sales nearly tripled to $1.5 billion. Profit is more than six times higher with net income of $132 million in fiscal 2008, compared to $21 million in fiscal 2003. Revenue ($ in millions) Net Income ($ in millions) 22% 22% CAGR CAGR 44% 44% CAGR CAGR 7% CAGR

STRATEGIES TO DRIVE GROWTH New Product Development From refreshers and enhancements To proprietary new products and innovation Geographies From setting up operations in new locations To further penetrating the market where we are Acquisitions From acquiring competitors in our space To acquiring businesses in adjacent spaces Continuous Improvement From benchmarking and following best practices To leading the way with the Brady Business Performance System

NEW PRODUCT DEVELOPMENT R&D Investment $ s in millions Operating Margins Intellectual Property Focus on proprietary products Materials, Systems, Software Customer application expertise Helps us sell at premium prices Brady and other Trademarks 152 Active U.S. Patents 203 Active International Patents

NEW PRODUCTS IN F 08 IP 300/600 Printer Family Smart-cell technology for hassle-free, self-adjusting printing Passage Point Global Software Manage visitor identification and access Credential verification, database integration, photo and secure badge printing B-416 Polyimide Printed Circuit Board Labels 1 mil thick Innovative white printable top-coat formulation for thinner label construction

NEW PRODUCTS IN F 08 B-481 Slide Label Chemical-resistant, printable label for medical lab identification LOTO Ready Access Storage Station Durable, molded lockout/tag-out station boxes BBP 81 Printer High performance OEM thermaltransfer printer

GLOBAL PRESENCE Three Regions Americas (US, Canada, Mexico, Brazil) Europe Asia/Pacific Represents F 08 revenues More than 100 global sites More than 7,800 employees

GEOGRAPHIES F 08 HIGHLIGHTS Mexico Brazil US-Dallas, TX Malaysia Expanded custom label manufacturing and distribution São Paulo: relocated Asterisco business operations adjacent to Brady/Seton Expanded capacity, higher environmental standards, better work environment State-of-the-art Medical Die-cut manufacturing facility and clean room Upgraded manufacturing facility Installation of new tower coater, knife over roll coater, and test lab

ACQUISITIONS IN F 08 TRANSPOSAFE Specialists in security sealing Operations in the Netherlands, Belgium, Germany and Poland DAWG Direct Marketer of sorbents and spillcontrol products Increases market share of SPC acquired last year

CONTINUOUS IMPROVEMENT Leading the way with the Brady Business Performance System Building Organizational Capability - The Way We Work Systematic approach to eliminating waste throughout the company Proven methodology for deploying strategy throughout the company Building capability throughout the organization Hundreds of BBPS activities occurring worldwide throughout the company

WINNING THE RIGHT WAY Brady Corporation Foundation Now in its third year, gave more than $1M to programs and organizations that develop leadership at all levels in our communities Ethics Brady was featured for 8 years in a row as one of the 100 Best Corporate Citizens Sustainability Brady operations & products are already meeting or exceeding environmental standards. We continue to look for opportunities to preserve global resources.

2008 ANNUAL SHAREHOLDERS MEETING FINANCIAL OVERVIEW

FINANCIAL HIGHLIGHTS FISCAL 2008 Sales of $1.523B, up 12% vs. prior year Gross Margin at 48.9%, up 70 bps from prior year SG&A at 32.6%, down 40 bps from prior year Operating Income $207.7M, up 21% from prior year 13.6% of sales, up 100 bps from prior year Net Income $132.2M, up 21% from prior year 8.7% of sales, up 70 bps Diluted EPS of $2.41, up 21% from prior year Cash Flow from Operations $226M, up 66% from prior year Capital Expenditures at $26.4M, down 49% from prior year Depreciation & Amortization at $60.6M up 12% from prior year

FIVE YEAR SALES GROWTH (For the years ended July 31 st ) 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 34% 4% 25% 21% 22% 3% 6% 16% 26% 12% 13% 10% 6% 9% 6% 5% 4% 6% 1% 0% F04 F05 F06 F07 F08 Currency Acquisitions Organic

GLOBAL PRESENCE F 03 TO F 08 Americas Europe Asia/Pacific Sales ($ in millions) Sales ($ in millions) Sales ($ in millions) Segment Profit ($ in millions, pre-tax) 150 Segment Profit ($ in millions, pre-tax) Segment Profit ($ in millions, pre-tax) 100 50 0 146 158 123 98 60 2004 2005 2006 2007 2008

FIVE YEAR PROFITABILITY METRICS Gross Margin % Operating Income % 54% 53.1% 18% 52% 50% 48% 46% 51.5% 51.6% 48.2% 48.9% F04 F05 F06 F07 F08 15% 12% 9% 10.6% 15.0% 15.4% 12.6% 13.6% SG&A % 6% 38% 37.0% 3% 36% 35.0% 34% 32% 33.3% 33.0% 32.6% 0% F04 F05 F06 F07 F08 Cost Red. Charges 0.6% 0.8% GAAP 10.6% 15. 0% 15.4% 12. 6% 13. 6% 30% F04 F05 F06 F07 F08

FIVE YEAR DILUTED EPS (For the years ended July 31 st ) 23% CAGR Issued 4.6M shares in equity offering June 06

CASH FLOW FROM OPERATING ACTIVITIES $M Cash from Operating Activities F 08 Cash from Operating Activities was $226M, up 66% or $90M vs. p/y Incentives for fiscal 2008 and 2009 include an element for Working Capital Management focus is paying off Positive trend throughout F2008 Record Q4 cash flow

FOCUS ON WORKING CAPITAL Year-End R + I P - D as % of Q4 Annualized Net Sales F07 F08 ( R ) Accounts Receivable 16.3% 16.1% (260 bps) ( I ) Inventory 9.7% 8.4% 18.7% 16.1% ( P ) Accounts Payable 6.3% 7.5% ( D ) Deferred Revenue 1.0% 0.9% Total (R + I P D) 18.7% 16.1% F07 F08 +$40M Additional Cash Generation

FINANCIAL HIGHLIGHTS Q1 FISCAL 2009 Sales of $378M, down 0.5% vs. prior year Gross Margin at 47.9%, down 150 bps from prior year SG&A at 30.6%, down 110 bps from prior year Operating Income $56.2M, down 4% from prior year 14.9% of sales, down 40 bps from prior year Net Income $37.1M, up 2% from prior year 9.8% of sales, up 20 bps Diluted EPS of $0.69, up 5% from prior year Cash Flow from Operations at -$4.7M, down 114% from prior year Capital Expenditures at $6.4M, down 13% from prior year Depreciation & Amortization at $13.7M down 3% from prior year

Q1 TOTAL COMPANY GROWTH Percent Growth 40% 30% 20% 10% 0% -10% Q1- F08 Q2- F08 Q3- F08 Q4- F08 Q1- F09 Organic Acquisitions Currency Total Sales Growth % Fiscal 2008-2009 Total growth -1% Organic growth -3% By segment Americas -8% Europe -5% Asia-Pacific +11% Acquisition growth 2% By segment Americas +1% Europe +6% Asia-Pacific none Flat Currency

Q1 NET INCOME AND DEPS $M Net Income 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 Net income of $37.1M, up 2% 9.8% of sales, up 20 bps Tax rate 28.2% in Q1 F08 F09 $ Diluted Earnings Per Share Diluted EPS for the qtr a record 69 cents 0.70 vs. 66 cents in prior year 0.60 0.50 Up 5% 0.40 0.30 0.20 Includes affect of approximately 1.15M 0.10 shares purchased in the quarter 0.00 Q1 Q2 Q3 Q4 F08 F09

DIVIDEND HISTORY (per share) 23 Straight Years of Dividend Increases Year Dividend $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.10 $0.11 $0.13 $0.10 $0.07 $0.08 $0.03 $0.04$0.05 $0.02 $0.02 $0.20 $0.26 $0.30 $0.32$0.34 $0.36 $0.38$0.40 $0.44 $0.42 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 $0.52 $0.56 $0.60 $0.68 2009 $0.68 2008 $0.60 2007 $0.56 2006 $0.52 2005 $0.44 2004 $0.42 2003 $0.40 2002 $0.38 2001 $0.36 2000 $0.34 1999 $0.32 1998 $0.30 1997 $0.26 1996 $0.20 1995 $0.13 1994 $0.11 1993 $0.10 1992 $0.09 1991 $0.08 1990 $0.07 1989 $0.05 1988 $0.04 1987 $0.03 1986 $0.02 1985 $0.02

BALANCE SHEET STRENGTH Oct 31 st 2008 vs. July 31 st 2008 (US $ Millions) Assets Oct 31 July 31 Liabilities Oct 31 July 31 Cash & Equivalents $179 $258 Current Liabilities $233 $288 Short-Term Investments Other Liabilities 57 63 Accounts Receivable 243 262 Short-Term Debt 21 21 Inventories 131 135 Long- Term Debt 457 457 Other Current Assets 47 44 Total Liabilities 768 829 Other Assets 43 48 Goodwill & Intang. 849 934 Equity Net Property, Plant & Stockholders Invest. 880 1,022 Equipment 156 170 Total $1,648 $1,851 Total $1,648 $1,851 Continue to have strong balance sheet with strong cash balance and modest low-rate debt balance

DISCIPLINED CAPITAL STRUCTURE We maintain a conservative balance sheet with flexibility for future growth Q1 Ending Balances Debt / EBITDA vs. Net Debt/PF EBITDA $500 $400 $300 $200 $100 $0 Gross Debt Net Debt* Q1 TTM EBITDA Q1 TTM PF EBITDA $M's 479 300 272 273 2.5x 2.0x 1.5x 1.0x.5x.0x Q3 F'07 2.3x 2.2x2.1x2.0x1.9x 1.6x 1.4x1.3x Q4 F'07 Q1 F'08 1.2x Q2 F'08 1.8x 1.0x 0.8x Q3 F'08 Q4 F'08 Q1 F'09 1.8x 1.1x *ST plus LT Debt less Cash and Cash Equivalents and ST Investments

IMPACT OF THE CURRENT ECONOMY Brady does not have credit issues Brady does have good cash flow Currency fluctuations continue Customers are experiencing problems which are affecting us We are preparing for the storm by Global workforce reduction of approx. 10% Freezing salaries Reducing discretionary spending Increase in BBPS activities Continue investment for long-term strength R&D E-business Acquisitions BBPS Leadership Development

F 09 OUTLOOK AND PRIORITIES Taking the steps needed to deal with new economic challenges Execution of Brady s Business Performance System (BBPS) Organic growth Continue investment and improvements in new product development Focus on e-business Continue roll out of SAP and focus on E-business Nearly 70% of our business on SAP Leverage Shared Services and common practices Acquisition growth Substantively complete with integrations Execute our current pipeline and look for opportunities for adjacencies Focus on cost structure, profitability and working capital management

THE SILVER LINING Brady has a long tradition of growth and success We are positioned better than many others Brady will take advantage of opportunities Acquisitions Leadership development And will emerge from this economic downturn Even stronger More competitive

THANK YOU! To all our employees for their hard work, discipline and focus To Brady s Board of Directors for their support and encouragement And to you, our shareholders for your continued support

Questions & Answers Questions & Answers

FOR MORE INFORMATION Contact Barbara Bolens Director, Investor Relations 414-438-6940 barb_bolens@bradycorp.com And see our web site at www.investor.bradycorp.com