Brady StrategyClear and SimpleINVESTOR PRESENTATIONFebruary 2006

This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Acts of 1995 – that is, statements related to future, not past events. In this context forward-looking statements often address our expected future business and financial performance, and often contain certain words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “will”, or “may”. Forward-looking statements by their nature address matters that are, to different degrees uncertain. 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; future integration of and performance of acquired businesses; fluctuations in currency rates versus the US dollar; technology changes; interruptions to sources of supply; 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 and those identified in reports we file with the SEC. 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

Forward-looking Statements

BRADY BUSINESS –CLEAR AND SIMPLE:

We Identify and ProtectPremises, Products and People with

• Facility Identification, Safety and Complementary Products

• Wire Identification• High Performance Identification • Precision Die Cut parts

MarketsGeneral Manufacturing

MaintenanceSafety

Process IndustriesNew ConstructionSafety

Facility and Safety ID Products

CompetitionFragmented competitor baseLocal sign shopsNo other global competitorsRegional players (Accuform, National Marker, Panduit)

MarketsElectricalCable/telecomGeneral Mfg

Wire Identification Products

CompetitionConcentrated competitor base Tyco (Raychem/Critchley)PanduitDymoTyton-Hellermann

High Performance Identification

MarketsElectronicsWork-in-Process I.D.Laboratory/HealthcareAirline/TransportationSecurity/Brand Protection

CompetitionFragmented local and regional converters (3M/Avery)Tyco ZebraWorldmark

MarketsElectronicsTelecom/HandsetsHard Disk DriveGeneral Mfg

Precision Die-cut Parts

CompetitionVery fragmented by marketsegment and geographyTradexFabritechAdampakZephyrMarian Rubber

OUR VISION:To be the Leader in the Markets We Serve

World Class People Delivering Differentiated Solutions to Loyal Customers

Sustainable Top Tier Growth and Profitability

Enabled By

To Achieve

WE ACHIEVE THISTHROUGH:

• Materials Expertise• Operational Excellence • Global Presence• Premier Channels• Customer Application Expertise• Targeted Acquisitions • Focus and Discipline

2005 SALES BY REGION

Howwe’ll

manageour risk.

New

ness

of M

arke

ts

Newness of Technology

Portfolio Strategy

MARKETS/DRIVERS

Maintenance, Repair and Operational

Supplies -2/3 of

Brady sales

OEM/Electronics -1/3 of Brady

sales

• Facility ID, Safety andComplementaryProducts

• Wire ID

•Wire ID•High Performance ID•Precision Die Cut Parts

• Manufacturing• Construction• Services & Other

• Telecommunication• Data Communication• Electronics• Automotive• Medical• Hard Disk Drive

Market Type/Size Products End User Markets

Driven by legislation, safety, security, productivityGrowth prospects are GDP+

Driven by electronics and industrial markets, productivityGrowth prospects are 2 X GDP

GROWTH STRATEGIESCore Business

5%+New SolutionsNew TechnologyNew Markets

Core Business5%+

New SolutionsNew TechnologyNew Markets

Acquisitions5%+

Acquisitions5%+

OperationalExcellenceDifferentiatedSolutions

OperationalExcellenceDifferentiatedSolutions

ProductivityGross MarginsSG&AWorking Capital

ProductivityGross MarginsSG&AWorking Capital

Sales Growth10%+

Sales Growth10%+

Net Income of12% of sales

in 5 years

Net Income of12% of sales

in 5 years

Increased Shareholder ValueIncreased Shareholder Value

New Market Development

• Adjacent Spaces• Profitable niche markets

Innovative Differentiated Solutions

• Focus: Innovation not “me too”• Customer Application Expertise• Materials Expertise

CORPORATE GOVERNANCE

• Clear “Tone at the Top”• Honesty and integrity first• Effective, proactive Audit Committee supported

by a strong internal audit function

Brady’s Code of Ethics

• How to report non-compliance:• Discuss with management• Call the internal ethics line• Call the external ethics line

• Management’s support

Reporting Misconduct

Second QuarterFiscal 2006 Overview

Sales at $231M, up 18% vs. prior year• 10% base, 11% acquisitions, and –3.0% currency

Gross Margin – at 50.7%, down 280 bps from prior yearSG&A – at 34.2%, down 40 bps from prior yearOperating Income at 13.5%, down 230 bps from prior yearNet income• At $21.3M up 3.3% vs. prior year of $20.6M• At 9.2% of sales - down 130 bps from prior year

Diluted EPS of $0.43 vs. prior year of $0.41, up 5%

Q2 – Net Income – F’03 to F’06Q2 in F’05 was exceptionally strong

Q2 up 156% on prior year versus total year up 61%

Timing of expenses in Q2 - F’05 improved the Net Income, plus currency was significant plus

Purchase accounting adjustments favorableGross Margin and SG&A items favorableStrong Euro

Timing of expenses in Q2 - F’06 have impacted Net income

Deferred compensation expense – higher due to 40% increase in share priceGeographic expansionCost pressures to manage/mitigate

21.320.6

2.8

8.0

0.0

5.0

10.0

15.0

20.0

25.0

F03 F04 F05 F06

Year to Date Q2 Net Income – F’03 to F’06

Year to date – net income is up 25.7%Q2 Result on our path to guidance for the yearChallenges remain

Improve profitability of acquisitions. We are now buying companies that on average are not initially as profitable as we are. Also have purchase accounting impactsManage/Mitigate cost/price pressures in OEM Electronics in Asia

51.5

40.9

11.0

18.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

F03 F04 F05 F06

Total Sales Growth %Fiscal 2004 - 2006

Total growth 18%Base growth increased to 10%

By region Americas +5%Europe +3%Asia Pacific +39%

Currency -3%Acquisition growth 11%

TruMed, Stopware, Electromark, JAM Plastics, Personnel Concepts - USSigns & Labels, Texit -EuropeTPS, QDP - Thailand

Total Company Growth

-10%

0%

10%

20%

30%

40%

F04 Q1-F05 Q2-F05 Q3-F05 Q4-F05 Q1-F06 Q2-F06

Perc

ent G

row

th

Base Acquisitions Currency

Gross Margin %At 50.7%, 280 bps decrease over prior yearDriven by:

AcquisitionsMany initially have gross margins lower than total company

Product MixFaster growth in Global Die Cut business which has lower GM’s but lower SG&A

Cost pressures continue from suppliers especially in OEM/Electronics

Gross Margin % of SalesFiscal 2006 vs. 2005

45.0%

50.0%

55.0%

Q1 Q2 Q3 Q4F'05 F'06

SG&A %Product Mix

Growth of Asian OEM Electronics

Option ExpensingDeferred CompensationPurchase Accounting costs with acquisitions

SG&A% to salesFiscal 2006 vs. 2005

25.0%

27.0%

29.0%

31.0%

33.0%

35.0%

37.0%

39.0%

Q1 Q2 Q3 Q4

F05 F06

Currency ImpactTotal Currency Impact –3%

Europe –9% (Euro)Expect Similar Impact in 3rd

QtrAsia –0% Americas +1% (Brazilian-Real)

Toughest Comparisons expected to be Q2 and Q3

Euro/ExchangeFiscal 2005 through 2006

1.121.141.161.181.201.221.241.261.281.301.32

Q1 Q2 Q3 Q4

F'05 F'06

Cash Flow from Operations

05

1015202530354045

F'04Q1

Q2 Q3 Q4 F'05Q1

Q2 Q3 Q4 F'06Q1

Q2

Cash Balance WalkTotal

Beginning balance $73.0

Proceeds from Debt 100.0

CFOA 20.8

Purch./Sale ST Ivmts 7.1

Dividends (12.7)

Capital Exp (17.3)

Stock Repurchase (27.2)

Acquisitions (100.3)

Other 7.3

Jan. Ending Balance $50.7*CFOA – Cash Flow from Operating Activities

2nd Quarter YTD Cash Flow ($ in millions)

0

5

10

15

20

25

30

Q2 F05 Q2 F06

CFOA down 52% vs p/y Q2

43.7

20.8

Balance Sheet Strength

Assets

Cash & Equivalents $ 51Short Term Invest. 0Accounts Receivable 146Inventories 87Other Current Assets 32Other Assets 134Goodwill 404Net Property, Plant & 110Equipment

Total $964

Liabilities

Current Liabilities $140Other Liabilities 49Long- Term Debt 250Total Liabilities 439

EquityStockholders’ Investment 525

Total $964

January 31, 2006 (US $ Millions)

-1%

3%

5%5%

10%

6%

6 %

13%

3 %

-5%

0%

5%

10%

15%

20%

25%

30%

F03 F04 F05

Currency

Acquisitions

Base

Three Year Sales Growth(For the years ended July 31st)

7%7%

21%21% 22%22%

3 Year Profitability Metrics

48.0%49.0%50.0%51.0%52.0%53.0%54.0%

F03 F04 F05

32.0%

34.0%

36.0%

38.0%

40.0%

F03 F04 F05

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Restr. 1.7% 0.6%GAAP 5.6% 10.6% 15.0%

F03 F04 F05

50.3%

51.5%

53.1%Gross Margin %

39.6%

37.0%

35.0%

SG&A %

5.6%

10.6%

15.0%

Operating Income %

0102030405060708090

100

F03 F04 F05

$0.00$0.25$0.50$0.75$1.00$1.25$1.50$1.75$2.00

F03 F04 F05Share Count 46.8 47.8 49.9

Net IncomeNet Income

in $U.S. millions

Three Year Net Income and EPS(For the years ended July 31st)

$21$21

$51$51

$82$82

$0.46$0.46

$1.07$1.07

$1.64$1.64

EPSEPS

0

25

50

75

100

125

F03 F04 F05

Three Year Cash Flow ($ in millions)

88

119

CFOA

Improving cash flowfrom operations

Cash Balance WalkF03 F04 F05

Beg balance 8/1 $66.0 $68.6 $68.8

CFOA 57.3 87.7 119.1

Proceeds/(pymts) debt (0.3) 148.4 (2.6)

Proceeds com stock 4.6 19.4 15.7

Sale ST Ivmts 0.4 4.4 (1.9)

P&E (14.4) (14.9) (21.9)

Dividends (17.9) (19.8) (21.3)

Acquisitions (23.9) (228.9) (79.9)Other (3.2) 3.9 (3.0)

End Balance 7/31 $68.6 $68.8 $73.0

57

Disciplined and Comprehensive Capital Structure

Filed shelf registration statementSpent over $300 millions in acquisitions in last two fiscal years

Significant dividend increase ($0.52 per year, an 18% increase over the prior year)

Recognizing new level of profitability and cash flow generationAnnounced first-ever share repurchase program (BOD’s authorized up to 800,000 shares of common stock)

Introducing discipline of funding option program – limiting dilution to earnings per share

Enhancing shareholder returns and retaining flexibility to do deals

$34.20$34.20(stock price at 7/29/05)

For More Information

Contact:

Barbara BolensDirector, Investor Relations414-438-6940

barb_bolens@bradycorp.com

And see our Web site at www.investor.bradycorp.com

Back up slides

Total Sales Growth %Fiscal 2004 - 2006

Americas GrowthSales growth of 15%

Acquisitions 9%Base Growth 5%Currency 1%

Brady Brand double-digit growth

Electromark and TruMed acquisitions added 9% to Brady

Direct Marketing double-digit growth

Stopware, JAM Plastics and Personnel Concepts acquisitions added 11% to Direct Marketing

-10%

0%

10%

20%

30%

40%

F04 Q1-F05 Q2-F05

Q3-F05

Q4-F05

Q1-F06 Q2-F06

Perc

ent G

row

th

Base Acquisitions Currency

Total Sales Growth %Fiscal 2004 - 2006

Europe Growth

-10%

0%

10%

20%

30%

40%

F04 Q1-F05 Q2-F05 Q3-F05 Q4-F05 Q1-F06 Q2-F06

Perc

ent G

row

th

Base Acquisitions Currency

Growth at 8%Base +3%Currency –9%Acquisitions +14% (Signs & Labels, Texit)

Direct marketing brand solid outside of the UKBrady brand growth strengthens in core focus marketsIntegrating Texit and Signs & Labels

Total Sales Growth %Fiscal 2004 - 2006

Asia-Pacific GrowthGrowth at 49%

Base +39%Currency 0%Acquisitions +10%

Strong growth in consumer electronics Base growth strong across all areas, especially China and AustraliaContinue to grow capacity and capabilitiesIntegrating Thailand acquisitionsIndia expansion

0%

10%

20%

30%

40%

50%

60%

70%

F04 Q1-F05 Q2-F05 Q3-F05 Q4-F05 Q1-F06 Q2-F06

Perc

ent G

row

th

Base Acquisitions Currency

R&D Spending %Investment of 3.0% of salesIncreased spending of $0.7M vs. p/y Q2New Product Development continues to be major focus

R&D - % to SalesFiscal 2006 vs. 2005

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Q1 Q2 Q3 Q4

F05 F06

Quarterly Net Income

Net income of $21.3M, up 3% over prior year Q2Operating profit at 13.5% of sales down 230 bpsChange in Tax rate to 27% - down from 30% in prior yearNet Income as a % of sales was 9.2%

Net Income - $M’sFiscal 2006 vs. 2005

0.03.06.09.0

12.015.018.021.024.027.030.033.0

Q1 Q2 Q3 Q4F'05 F'06

Earnings Per Share - Diluted

Diluted EPS for the qtr of 43 cents vs. 41 cents in prior year –up 5%Diluted share count -49.8M vs. p/y 50.0M –we completed our 800K Share Repurchase

Earnings Per ShareFiscal 2006 vs. 2005

0.05

0.15

0.25

0.35

0.45

0.55

0.65

Q1 Q2 Q3 Q4

F'05 F'06

F06 Initiatives - Focusing On:Investment in R&D and proprietary productsInvestment in geographic expansion opportunities

Including India, Eastern Europe and ThailandInvestment in new markets

Such as medical die cut and laboratoryInvestment in acquisitions supporting our strategy to be the market leaderImproving Gross Margins %Reducing SG&A %Controlling Working Capital