Morgan Chairman Chayanne President and Chief Executive

Morgan, Chairman, assesses Chayanne President and america chayanne indicates Chief Executive Officer of Zep Inc.,stated, "We are facing a new economic reality - a broad-based recession that issignificantly impacting most of the customer segments we serve, resulting inweaker demand for our products. Additionally, continued high raw material pricesand the ongoing implementation of our strategic initiatives adversely impactedour profitability during the quarter. While we planned for a challenging firstquarter, the depth and breadth of this recession is much more severe than whatwe had anticipated. However, we continue to maintain a strong balance sheet andliquidity position, which together we believe provide adequate resources tooperate the business and continue executing our strategic initiatives." Mr. Morgan continued, "Furthermore, despite very recent declines in oil prices,the cost of chemical commodities affecting our business did not decline in thequarter. While some of our existing suppliers have found ways to reduce prices,these efforts have proven insufficient.

Therefore, we have aggressively begun toevaluate potential new suppliers and expect to see some benefit from theseefforts as we enter our third fiscal quarter chayanne joel . The price increases we have beenable to implement have not been sufficient to offset the continued rise in rawmaterial costs that we experienced in our recent quarter, thereby putting addedemphasis on our efforts to achieve additional reductions in raw material costs.""During the past fiscal year, we reduced non-sales headcount by 7.3%, and in thefirst quarter of fiscal year 2009 initiated additional actions to reducenon-sales headcount by at least another 5% by the end of our second quarter.While we will continue to aggressively examine all options to reduce cost, weare currently planning to make continued investments in our overall business,with a particular emphasis on our sales force and product innovation to enhanceour long-term value" added Mr Morgan aqui en mi alma chayanne . First Quarter ResultsNet sales were $129.2 million during the first three months of fiscal year 2009compared with $143.6 million in the comparable prior year period, representing adecrease of $14.4 million, or 10.0% biography chayanne . During the quarter, the Company realizedhigher year-over-year selling prices of approximately $5.2 million, primarilyfrom its domestic markets biography of chayanne . However, weakening demand in each of its marketsresulted in volume-related sales declines of $16.2 million. Unfavorable foreigncurrency translation on international sales negatively impacted total net salesby $3.4 million compared with the prior year period. Gross profit margins were 52.5% in the first three months of fiscal year 2009compared with 58.1% in the prior year comparable period.

The cost of rawmaterials used in its production increased throughout fiscal year 2008 chayanne concert 2009 . Theimpact of numerous months of escalating raw material costs, which have onlypartially been recaptured through price adjustments, began fully impacting theCompany`s operating results during the first quarter of fiscal year 2009 Strategic Initiatives UpdateMr boom boom chayanne . Morgan said, "Although the current economy creates a difficult businessenvironment, we remain confident that our transformation, which began followinga successful spin-off last year, will create long-term value for shareholders.Specifically, we are continuing to invest in simplifying and growing the corebusiness in support of our Zep Rep model, we are expanding our retail sales, andwe are continuing our entry into industrial distribution." "While decentralizing our business has undoubtedly added costs in the short-run,I remain confident that bringing decision making authority closer to ourcustomers will improve results and encourage a culture of continuousimprovement boom chayanne . We will continue our efforts to grow our Industrial andInstitutional sales force, focusing on recruiting sales representatives withproven track records cantante chayanne .

We look forward to expanding growth opportunities for theZep Commercial brand into retail channels Chayanne . Finally, while the currentenvironment makes it difficult for distributors to add inventory, we remainconfident and committed to growing our Zep Professional product sales,"concluded Mr Morgan caprichosa chayanne . The unaudited consolidated and combined financial statements presented inaccordance with accounting principles generally accepted in the United States("GAAP") are supplemented by a table of adjusted operating results, whichincludes non-GAAP financial information referenced in this press release,including adjusted operating profit casa chayanne . This non-GAAP financial information isprovided to enhance the overall understanding of the Company`s current financialperformance and prospects for the future casa de chayanne . Specifically, management believes thenon-GAAP financial information provides useful information to investors byexcluding or adjusting certain items affecting reported operating results thatwere unusual and not indicative of the Company`s core operating results. Thisnon-GAAP financial information should be considered in addition to, and not as asubstitute for or superior to, results prepared in accordance with GAAP. Thenon-GAAP financial information included in this earnings release has beenreconciled to the nearest GAAP measure.

A full discussion of the Company`s long-term objectives and financial goals maybe found in its Forms 10-K and 10-Q filed with the Securities and ExchangeCommission . The Forms 10-K and 10-Q are available via the Company`s website at chayane . Conference CallAs previously announced, the Company will host a conference call to discussfirst quarter results on Monday, January 12 at 8:30 AM ET chayanee . Interested partiesmay listen to this call live or hear a replay at the Company`s website: . About Zep Inc.Zep Inc., with fiscal year 2008 net sales of over $575 million, is a leadingproducer, marketer, and service provider of a wide range of cleaning andmaintenance solutions for commercial, industrial, institutional, and consumerend-markets. Zep's product portfolio includes anti-bacterial and industrial handcare products, cleaners, degreasers, deodorizers, disinfectants, floor finishes,sanitizers, and pest and weed control products. The Company markets theseproducts and services under well recognized and established brand names, such asZep(R), Zep Commercial(R), Zep Professional, Enforcer(R), National Chemical(R),and Selig(TM), some of which have been in existence for more than 70 years Zepis headquartered in Atlanta, Georgia Visit the Company's website at