Burnham Holdings, Inc., (Pink Sheets: BURCA), a leading manufacturer of boilers, furnaces, radiators, air conditioning systems, and related accessories for residential, commercial and industrial applications, today reported its financial results for the period ended June 29, 2008, and announced a common stock dividend.

Second quarter and year-to-date sales were $44.8 million and $86.9 million, respectively. Prior year second quarter and year-to-date sales were $47.9 million and $94.5 million, respectively. First half sales have declined $7.6 million, or 8%, compared to a year ago. The decline has been experienced in both our residential and commercial products. With the economic conditions that continue to dominate the national news, namely declining housing and real estate markets, rising fuel prices, and tightening of credit, the residential industry is seeing a reluctance by both the end-consumer and distributors to over-extend themselves beyond immediate needs. Broad measures of the residential market such as the cast iron boiler industry and the gas warm air furnace industry are down 15% and 18%, respectively, on a unit basis. While economic concerns have not impacted our commercial business as dramatically, that portion of our business is down moderately from the strong first half it experienced in 2007. Although current conditions remain challenging, we are optimistic about longer-term prospects for the business. Existing boilers will continue to be replaced over time due to age or operating costs, and our new powerful lineup of high-efficiency residential and commercial products position us well in the market. As we approach the upcoming heating season, we are scheduling our manufacturing facilities for the normal pattern of higher demand in the second half.

The loss for the second quarter and year-to-date was $(1.0) million or $(0.22) per share, and $(2.2) million or $(0.50) per share, respectively. The 2007 second quarter gain was $197 thousand or $0.05 per share, while the year- to-date loss was $(508) thousand or $(0.11) per share. The lower sales levels discussed above have negatively impacted the 2008 first half results through both the loss of the gross profits on this volume, and through lower production requirements which lowers coverage of fixed costs. Additionally, as we discussed in our first quarter Report, the Burnham group of companies, like most users of steel products in the United States, is experiencing cost increases for raw steel and steel related products reminiscent of year 2004. In the first half, raw material price increases on new material purchases were over $2 million, or approximately 2.5% of net sales, higher than the last prices paid at the end of 2007. We have announced product price increases within all of our businesses to mitigate these cost impacts, while at the same time being cognizant of our need to remain cost competitive in this difficult market. Selling, administrative, and general expense was lower in dollars, and as a percentage of sales, compared to the prior year (both for the quarter and year-to-date) and is indicative of actions taken by Burnham to lower its cost structure. To further highlight this cost structure change, it may be useful to compare the current first half results with the first half results of 2005. In 2005, a year of normal price inflation, Burnham experienced first half sales of $94.0 million (similar to 2007 but $7 million higher than 2008) with a net loss of $(2.7) million (a greater loss than this year on substantially higher sales).

The Company's balance sheet remains strong with high liquidity and working capital at a level consistent with the business activity. Inventory levels are only slightly higher than last year at this time despite the sharp increase in raw material costs, increases resulting from our new product introductions, and increases within our commercial businesses that have experienced growth. We are able to maintain steady inventory levels, with a resulting stronger cash flow, because of the increased production flexibility provided by the facility expansions and equipment improvements made over the last several years. Total debt at June 29, 2008 is $42.3 million, or $2.2 million lower than at this point last year, and as a percentage of total capital (debt and equity) is 32.7% versus 35.9% last year.

At its meeting on July 17, 2008, the Burnham Holdings, Inc.'s Board of Directors declared a quarterly common stock dividend of $0.17 per share payable August 29, 2008, with a record date of August 8, 2008.