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Mueller Water Products Inc. (MWA) is a manufacturer and marketer of a range of water infrastructure, flow control, and piping component system products for use in water distribution networks and treatment facilities. The Company also acts as a distributor, especially in Canada, for products that are manufactured by other companies. The Company's product portfolio includes engineered valves, fire hydrants, pipe fittings, water meters and ductile iron pipe. The Company operates through three business segments: Mueller Co., U.S. Pipe and Anvil.

Message Board Search for MWA: http://www.boardcentral.com/boards/MWA

In the report, the analyst notes:

"Net sales for the three months ended June 30, 2009, were $363.2 million compared to $528.5 million in the prior year period. Net sales decreased $176.0 million due to lower shipment volumes and $9.3 million due to unfavorable changes in Canadian currency exchange rates. These declines were partially offset by $20.0 million from price increases.

"Anvil International L.P., a wholly owned subsidiary of MWA and John Maneely Company have entered into a definitive purchase and sale agreement pursuant to which Anvil will sell certain of the assets of Picoma, its electrical fittings business, to JMC. Under the agreement, JMC will transfer certain of the assets of Seminole Tubular Products, its plumbing fittings business. The financial terms of the agreement were not disclosed. The companies expect the transaction to close in mid-November 2009, subject to customary closing conditions. Based in Waynesboro, Pennsylvania, Picoma manufactures electrical conduit fittings and couplings. Eighty-five employees are associated with the Picoma business."

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SOURCE: InvestorSoup

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Safe Harbor Statement

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results in future periods of the Company to differ materially from forecasted results. Those risks include, among others, changes in customer orders and demand for our products; the liquidity of the credit markets; changes in raw material, labor, equipment and transportation costs; pricing actions by the Company and its competitors; changes in law or the uncertainty of the application of law and regulation; the ability to attract and retain management and employees; the inability to successfully execute management strategies with respect to cost containment, production increases or decreases, inventory control, and the integration of acquired businesses; and general changes in economic and financial conditions, residential and non-residential construction, and municipal spending. Risks associated with forward-looking statements are more fully described in our filings with the Securities and Exchange Commission. The Company assumes no duty to update its forward-looking statements as of any future date.

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is a leading North American manufacturer and marketer of infrastructure and flow control products for use in water distribution networks and treatment facilities. Its broad product portfolio includes engineered valves, fire hydrants, ductile iron pipe and pipe fittings, which are used by municipalities, as well as the residential and non-residential construction, oil & gas, HVAC and fire protection industries. With latest 12 months net sales as of June 30, 2009 of $1.6 billion, the Company is comprised of three operating segments: Mueller Co., U.S. Pipe and Anvil. Based in Atlanta, Georgia, the Company employs approximately 5,300 people. Series A common stock trades on the New York Stock Exchange under the ticker symbol MWA. For more information about Mueller Water Products, Inc., please visit the Company's Web site at www.muellerwaterproducts.com.

    Investor Contact: Martie Edmunds Zakas
    Sr. Vice President - Strategic Planning & Investor Relations
    770-206-4237
    mzakas@muellerwp.com

    Media Contact: John Pensec
    Director - Corporate Communications & Public Affairs
    770-206-4240
    jpensec@muellerwp.com

SOURCE Mueller Water Products, Inc.

http://www.muellerwaterproducts.com

    --  Income from operations for the 2009 fourth quarter was $12.9 million
        compared to $48.1 million for the 2008 fourth quarter.  Adjusted income
        from operations for the 2009 fourth quarter was $14.8 million compared
        to $48.5 million in the 2008 fourth quarter.

    --  Adjusted EBITDA was $36.7 million in the 2009 fourth quarter compared to
        $72.3 million in the 2008 fourth quarter.

    --  Net loss per share was $0.09 for the 2009 fourth quarter compared to net
        income per share of $0.15 for the 2008 fourth quarter.  Adjusted net
        loss per share was $0.03 for the 2009 fourth quarter.

    --  During the 2009 fourth quarter, the Company reduced its total debt by
        $221.0 million to $740.2 million.

    --  Free cash flow was $36.6 million in the 2009 fourth quarter compared to
        $48.8 million in the 2008 fourth quarter.

"Production and shipment increases at Mueller Co. and U.S. Pipe in the fourth quarter contributed to significant sequential improvement in the financial performance of both business units. Strong operating leverage resulted in substantial incremental margin gains at both Mueller Co. and U.S. Pipe. Our fourth quarter performance reinforces our belief that, as our markets rebound, we will benefit from positive conversion margins," said Gregory E. Hyland, chairman, president and chief executive officer of Mueller Water Products. "We generated strong free cash flow in the fourth quarter and the full year as a result of our cost containment and working capital management initiatives. We reduced our debt by $221.0 million during the quarter and $355.3 million for the year, a 32 percent reduction, using free cash flow and the proceeds from our recent equity offering."

"We believe municipal water infrastructure spending began to improve over the last two quarters. We anticipate the typical lower seasonal demand pattern in the first half of fiscal 2010, but we should benefit from stimulus-related funding during the second half of fiscal 2010. While we believe residential construction markets have hit bottom, we expect to lag any recovery in this market in fiscal 2010. We believe commercial construction spending, which drives demand for our Anvil products, will continue to decline."

Fourth Quarter Consolidated Results

Net sales for the 2009 fourth quarter of $374.8 million declined $122.1 million from $496.9 million for the 2008 fourth quarter due to lower shipment volumes of $105.3 million across all business segments and net lower pricing of $12.3 million due to lower pricing at U.S. Pipe partially offset by higher pricing at Mueller Co. and Anvil. In addition, unfavorable Canadian currency exchange rates reduced net sales by $4.5 million.

Adjusted income from operations for the 2009 fourth quarter of $14.8 million declined $33.7 million from $48.5 million for the 2008 fourth quarter. Results were negatively impacted by significantly lower shipment volumes, higher per-unit overhead costs on products sold due to lower production, and lower pricing at U.S. Pipe. The quarter's results were positively impacted by reduced selling, general and administrative expenses, lower raw material costs and manufacturing cost savings.

Fourth Quarter Segment Results

Mueller Co. Segment

Net sales for the Mueller Co. segment of $158.1 million for the 2009 fourth quarter declined $26.5 million from $184.6 million for the 2008 fourth quarter. Lower shipment volumes of $29.4 million were partially offset by higher pricing of $4.2 million. Shipment volumes of iron gate valves, hydrants and brass service products in the quarter were all below the prior year period.

Adjusted income from operations of $25.4 million and adjusted EBITDA of $38.1 million in the 2009 fourth quarter compare to income from operations and EBITDA of $35.8 million and $48.7 million, respectively, in the 2008 fourth quarter. Adjusted income from operations decreased $10.7 million due to higher per-unit overhead costs on products sold due to lower production and $10.3 million due to lower shipment volumes. The decrease was partially offset by $4.2 million of higher sales pricing, $5.5 million of manufacturing cost savings and $3.7 million of reduced selling, general and administrative expenses.

U.S. Pipe Segment

Net sales for the U.S. Pipe segment of $105.3 million for the 2009 fourth quarter declined $48.1 million from $153.4 million for the 2008 fourth quarter. Net sales decreased $30.0 million due to lower shipment volumes and $18.1 million due to lower pricing.

Adjusted loss from operations of $7.1 million and an adjusted EBITDA loss of $2.6 million in the 2009 fourth quarter compare to adjusted loss from operations of $1.8 million and adjusted EBITDA of $4.2 million in the 2008 fourth quarter. The 2009 fourth quarter results were negatively impacted by $18.1 million due to lower sales pricing, $7.5 million due to lower shipment volumes and $6.5 million of higher per-unit overhead costs on products sold due to lower production. The decrease was partially offset by $16.7 million of lower raw material costs, $6.3 million of manufacturing cost savings and $4.5 million of lower selling, general and administrative expenses.

Anvil Segment

Net sales for the Anvil segment of $111.4 million for the 2009 fourth quarter declined $47.5 million from $158.9 million for the 2008 fourth quarter. The net sales decline was due to $45.9 million of lower shipment volumes and $3.2 million of unfavorable Canadian currency exchange rates, partially offset by higher pricing.

Adjusted income from operations of $3.2 million and adjusted EBITDA of $7.8 million in the 2009 fourth quarter compare to income from operations and EBITDA of $23.4 million and $28.1 million, respectively, in the 2008 fourth quarter. Adjusted income from operations decreased due to $13.6 million of lower shipment volumes, $9.6 million of higher raw material costs and $9.3 million due to higher per-unit overhead costs on products sold due to lower production. These items were partially offset by $9.3 million of lower selling, general and administrative expenses and $2.8 million of manufacturing cost savings.

Net Interest Expense

Net interest expense of $27.2 million increased from $17.6 million during the three months ended September 30, 2008. The increase was due to $6.3 million of premature interest rate swap settlements associated with debt prepayments as well as higher interest rates resulting from the June 2009 amendment to the 2007 Credit Agreement.

Loss on Early Extinguishment of Debt

The Company used the proceeds of its recent equity offering and other available cash to reduce debt during the quarter by $221.0 million, consisting of $218.0 million of prepayments and $3.0 million of scheduled payments. In connection with the debt prepayments, the Company expensed $3.0 million of related deferred financing costs as a loss on early extinguishment of debt.

Equity Offering

In September 2009, the Company completed a public offering of 37,122,000 shares of its Series A common stock at a public offering price of $4.75 per share. Net proceeds of $166.0 million (after offering expenses) were used to reduce outstanding debt under the 2007 Credit Agreement.

Use of Non-GAAP Measures

The Company presents adjusted income (loss) from operations, adjusted EBITDA, adjusted net loss and free cash flow as non-GAAP measures. Adjusted income (loss) from operations represents income (loss) from operations excluding impairment and restructuring charges. Adjusted EBITDA represents income (loss) before depreciation, amortization, debt-related transactions, interest income, income taxes, impairment and restructuring charges. The Company presents adjusted EBITDA because it is an important supplemental measure of performance, and management believes it is frequently used by securities analysts, investors and interested parties in the evaluation of financial performance. Adjusted EBITDA has limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company's results as reported under accounting principles generally accepted in the United States ("GAAP"). Adjusted net loss excludes impairment and restructuring charges, the loss on early extinguishment of debt, the cash expense to prematurely settle interest rate swap contracts, and the gain on repurchase of debt. These items are excluded because they are considered unusual and not indicative of recurring operations. Free cash flow, which represents cash flows from operating activities less capital expenditures, is presented as a measurement of cash flow because it is commonly used by the investment community. Further, management uses it as a reflection of the cash that the Company has available for ongoing business operations and discretionary purposes.

A reconciliation of non-GAAP to GAAP results is included as an attachment to this press release and has been posted online at www.muellerwaterproducts.com.

Conference Call Webcast

Mueller Water Products' quarterly earnings conference call will take place Wednesday, November 4, 2009 at 9:00 a.m. EST. Mueller Water Products' chairman, president and chief executive officer, Gregory E. Hyland, and members of the Company's leadership team will discuss the Company's recent financial performance and respond to questions from financial analysts. Mueller Water Products invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its Web site at www.muellerwaterproducts.com.

Investors interested in listening to the call should log on to the Web site several minutes before the start of the call. After selecting the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the accompanying presentation slides.

Safe Harbor Statement

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results in future periods of Mueller Water Products to differ materially from forecasted results. Those risks include, among others, changes in customer orders and demand for our products; changes in raw material, labor, equipment and transportation costs; pricing actions by the Company and its competitors; changes in law; the ability to attract and retain management and employees; the inability to successfully execute management strategies with respect to cost reductions, production increases or decreases, inventory control, and the integration of acquired businesses; and general changes in economic and financial conditions, residential and non-residential construction, and municipal spending. Risks associated with forward-looking statements are more fully described in our filings with the Securities and Exchange Commission. Mueller Water Products assumes no duty to update its forward-looking statements as of any future date.

About Mueller Water Products, Inc.

Mueller Water Products, Inc. is a leading North American manufacturer and marketer of infrastructure and flow control products for use in water distribution networks and treatment facilities. Its broad product portfolio includes engineered valves, fire hydrants, ductile iron pipe and pipe fittings, which are used by municipalities, as well as the residential and non-residential construction, oil & gas, HVAC and fire protection industries. With latest 12 months net sales as of September 30, 2009 of $1.4 billion, the Company is comprised of three operating segments: Mueller Co., U.S. Pipe and Anvil. Based in Atlanta, Georgia, the Company employs approximately 5,300 people. The Company's Series A common stock trades on the New York Stock Exchange under the ticker symbol MWA. For more information about Mueller Water Products Inc., please visit the Company's Web site at www.muellerwaterproducts.com.

                             MUELLER WATER PRODUCTS, INC.
                              CONSOLIDATED BALANCE SHEETS
                                      (UNAUDITED)
                                     (in millions)

                                             September 30,  September 30,
                                                 2009           2008
                                                 ----           ----
    Assets:
      Cash and cash equivalents                  $61.5         $183.9
      Receivables, net                           216.3          298.2
      Inventories                                342.8          459.4
      Deferred income taxes                       30.8           48.2
      Other current assets                        80.8           60.6
                                              --------       --------
        Total current assets                     732.2        1,050.3

      Property, plant and equipment, net         296.4          356.8
      Goodwill                                       -          871.5
      Identifiable intangible assets, net        664.9          789.8
      Other noncurrent assets                     33.4           21.8
                                              --------       --------
        Total noncurrent assets                  994.7        2,039.9
      Assets held for sale                        12.6              -
                                              --------       --------
        Total assets                          $1,739.5       $3,090.2
                                              ========       ========

    Liabilities and stockholders' equity:
      Current portion of long-term debt          $11.7           $9.7
      Accounts payable                           111.7          156.0
      Other current liabilities                   97.4          129.0
                                              --------       --------
        Total current liabilities                220.8          294.7

      Long-term debt                             728.5        1,085.8
      Deferred income taxes                      180.0          295.8
      Other noncurrent liabilities               173.9           85.0
                                              --------       --------
        Total liabilities                      1,303.2        1,761.3
                                              --------       --------

      Commitments and contingencies

      Series A common stock: 600,000,000
       shares authorized and 153,790,887
       shares outstanding at September 30,
       2009; 400,000,000 million shares
       authorized and 29,528,763 shares
       outstanding at September 30, 2008           1.5            0.3
      Series B common stock: 200,000,000 shares
       authorized and 85,844,920 shares
       outstanding at September 30, 2008             -            0.9
      Additional paid-in capital               1,599.0        1,428.9
      Accumulated deficit                     (1,078.3)         (81.6)
      Accumulated other comprehensive loss       (85.9)         (19.6)
                                              --------       --------
        Total stockholders' equity               436.3        1,328.9
                                              --------       --------

        Total liabilities and stockholders'
         equity                               $1,739.5       $3,090.2
                                              ========       ========



                        MUELLER WATER PRODUCTS, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (UNAUDITED)
                  (in millions, except per share amounts)

                                    Three months ended    Year ended
                                       September 30,     September 30,
                                       -------------     -------------
                                       2009     2008     2009      2008
                                       ----     ----     ----      ----

    Net sales                        $374.8   $496.9 $1,427.9  $1,859.3
    Cost of sales                     305.6    374.5  1,171.0   1,420.3
                                     ------    -----  -------     -----

      Gross profit                     69.2    122.4    256.9     439.0
                                     ------    -----  -------     -----

    Operating expenses:
      Selling, general and
       administrative                  54.4     73.9    239.1     274.6
      Impairment                          -        -    970.9         -
      Restructuring                     1.9      0.4     47.8      18.3
                                     ------    -----  -------     -----
        Total operating expenses       56.3     74.3  1,257.8     292.9
                                     ------    -----  -------     -----

    Income (loss) from operations      12.9     48.1 (1,000.9)    146.1
    Interest expense, net              27.2     17.6     78.3      72.4
    Loss on early extinguishment
     of debt                            3.0        -      5.3         -
    Gain on repurchase of debt            -        -     (1.5)        -
                                     ------    -----  -------     -----
    Income (loss) before income
     taxes                            (17.3)    30.5 (1,083.0)     73.7
    Income tax expense (benefit)       (6.4)    12.9    (86.3)     31.7
                                     ------    -----  -------     -----

      Net income (loss)              $(10.9)   $17.6  $(996.7)    $42.0
                                     ======    =====  =======     =====

    Net income (loss) per share:
      Basic                          $(0.09)   $0.15   $(8.55)    $0.36
                                    =======  =======  =======   =======
      Diluted                        $(0.09)   $0.15   $(8.55)    $0.36
                                    =======  =======  =======   =======

    Weighted average shares
     outstanding:
      Basic                           119.4    115.4    116.6     115.1
                                    =======  =======  =======   =======
      Diluted                         119.4    116.3    116.6     115.5
                                    =======  =======  =======   =======

    Dividends declared per share    $0.0175  $0.0175  $0.0700   $0.0700
                                    =======  =======  =======   =======



                          MUELLER WATER PRODUCTS, INC.
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                         YEAR ENDED SEPTEMBER 30, 2009
                                  (UNAUDITED)
                                 (in millions)

                                                    Accumulated
                           Additional                  other
                   Common   paid-in   Accumulated  comprehensive
                    stock   capital     deficit         loss        Total
                    -----   -------     -------    -------------    -----

    Balance at
     September 30,
     2008            $1.2   $1,428.9       $(81.6)        $(19.6) $1,328.9

    Net loss            -          -       (996.7)             -    (996.7)
    Sale of
     common stock
     in public
     offering         0.3      165.7            -              -     166.0
    Dividends
     declared           -       (8.1)           -              -      (8.1)
    Stock-based
     compensation       -       11.6            -              -      11.6
    Stock issued
     under stock
     compensation
     plans              -        0.9            -              -       0.9
    Net unrealized
     loss on
     derivative
     instruments        -          -            -           (3.8)     (3.8)
    Foreign currency
     translation        -          -            -           (3.4)     (3.4)
    Minimum pension
     liability          -          -            -          (59.1)    (59.1)
                    -----   --------     --------         ------    ------

    Balance at
     September 30,
     2009            $1.5   $1,599.0    $(1,078.3)        $(85.9)   $436.3
                    =====   ========    =========         ======    ======



                         MUELLER WATER PRODUCTS, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
                                (in millions)

                                                           Year ended
                                                          September 30,
                                                          -------------
                                                           2009    2008
                                                           ----    ----
    Operating activities:
      Net income (loss)                                  $(996.7)  $42.0
      Adjustments to reconcile net loss to net cash
       provided by operating activities:
          Depreciation                                      59.5    63.6
          Amortization                                      30.7    29.5
          Provision for doubtful receivables                 6.4     3.7
          Write-off of deferred financing fees               5.3       -
          Stock-based compensation                          11.6    13.2
          Gain on repurchase of debt                        (1.5)      -
          Deferred income tax benefit                      (57.8)   (4.2)
          Impairment and non-cash restructuring          1,009.4    14.8
          Other, net                                         5.2     2.0
      Changes in assets and liabilities:
        Receivables                                         68.8   (11.3)
        Inventories                                        109.8   (18.2)
        Other current assets and other noncurrent
         assets                                            (32.9)   11.4
        Accounts payable and other liabilities             (95.9)   35.5
                                                          ------  ------

            Net cash provided by operating activities      121.9   182.0
                                                          ------  ------

    Investing activities:
      Capital expenditures                                 (39.7)  (88.1)
      Acquisition of technology                             (8.7)      -
      Proceeds from sales of property, plant and
       equipment                                             5.5     9.6
                                                          ------  ------
            Net cash used in investing activities          (42.9)  (78.5)
                                                          ------  ------

    Financing activities:
      Increase (decrease) in outstanding checks              4.3    (6.9)
      Debt borrowings                                      539.4       -
      Debt paid or repurchased                            (893.1)   (5.0)
      Payment of deferred financing fees                   (10.1)      -
      Common stock issued                                  166.9     1.9
      Dividends paid                                        (8.1)   (8.1)
                                                          ------  ------

            Net cash used in financing activities         (200.7)  (18.1)
                                                          ------  ------

    Effect of currency exchange rate changes on cash        (0.7)   (0.4)
                                                          ------  ------
    Net change in cash and cash equivalents               (122.4)   85.0
    Cash and cash equivalents at beginning of period       183.9    98.9
                                                          ------  ------

    Cash and cash equivalents at end of period             $61.5  $183.9
                                                          ======  ======



                           MUELLER WATER PRODUCTS, INC.
       SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE
                                  MEASURES

                                   (UNAUDITED)
                     (in millions, except per share amounts)

                                  Three months ended September 30, 2009
                            -----------------------------------------------
                            Mueller Co. U.S. Pipe   Anvil  Corporate  Total
                            ----------- ---------   -----  ---------  -----
    GAAP results:
      Net sales               $158.1      $105.3    $111.4      $-    $374.8
                              ======      ======    ======   =====    ======

      Income (loss)
       from operations         $24.8       $(7.3)     $2.1   $(6.7)    $12.9
                              ======      ======    ======   =====
      Interest expense, net                                             27.2
      Loss on early
       extinguishment of debt                                            3.0
      Income tax benefit                                                (6.4)
                                                                      ------
      Net loss                                                        $(10.9)
                                                                      ======
      Net loss per
       diluted share                                                  $(0.09)
                                                                      ======

      Capital
       expenditures             $8.4        $4.1      $4.4    $0.1     $17.0
                              ======      ======    ======   =====    ======

    Non-GAAP results:
      Adjusted income
       (loss) from
       operations and EBITDA:
        Income (loss)
         from operations       $24.8       $(7.3)     $2.1   $(6.7)    $12.9
        Restructuring            0.6         0.2       1.1       -       1.9
                              ------      ------    ------   -----    ------
          Adjusted income
           (loss) from
           operations           25.4        (7.1)      3.2    (6.7)     14.8
        Depreciation and
         amortization           12.7         4.5       4.6     0.1      21.9
                              ------      ------    ------   -----    ------
          Adjusted EBITDA      $38.1       $(2.6)     $7.8   $(6.6)    $36.7
                              ======      ======    ======   =====    ======

      Adjusted net loss:
        Net loss                                                      $(10.9)
        Interest rate
         swap settlement
         costs, net of tax                                               3.8
        Restructuring, net
         of tax                                                          1.2
        Loss on early
         extinguishment of
         debt, net of tax                                                1.8
                                                                      ------
          Adjusted net loss                                            $(4.1)
                                                                      ======
          Adjusted net
           loss per
           diluted share                                              $(0.03)
                                                                      ======

      Free cash flow:
        Net cash
         provided by
         operating
         activities                                                    $53.6
        Capital expenditures                                           (17.0)
                                                                      ------
          Free cash flow                                               $36.6
                                                                      ======

      Net debt (end of period):
        Current portion of
         long-term debt                                                $11.7
        Long-term debt                                                 728.5
                                                                      ------
          Total debt                                                   740.2
        Less cash and
         cash equivalents                                              (61.5)
                                                                      ------
          Net debt                                                    $678.7
                                                                      ======



                                  Three months ended September 30, 2008
                            -----------------------------------------------
                            Mueller Co. U.S. Pipe   Anvil  Corporate  Total
                            ----------- ---------   -----  ---------  -----
    GAAP results:
      Net sales                $184.6    $153.4    $158.9      $-    $496.9
                               ======    ======    ======   =====    ======

      Income (loss)
       from operations          $35.8     $(2.2)    $23.4   $(8.9)    $48.1
                               ======    ======    ======   =====
      Interest expense, net                                            17.6
      Income tax expense                                               12.9
                                                                     ------
          Net income                                                  $17.6
                                                                     ======
          Net income per
           diluted share                                              $0.15
                                                                     ======

      Capital expenditures       $4.1     $20.2      $3.0      $-     $27.3
                               ======    ======    ======   =====    ======

    Non-GAAP results:
       Adjusted income
        (loss) from
        operations and EBITDA:
        Income (loss) from
         operations             $35.8     $(2.2)    $23.4   $(8.9)    $48.1
        Restructuring               -       0.4         -       -       0.4
                               ------    ------    ------   -----    ------
          Adjusted income
           (loss) from
           operations            35.8      (1.8)     23.4    (8.9)     48.5
        Depreciation and
         amortization            12.9       6.0       4.7     0.2      23.8
                               ------    ------    ------   -----    ------
          Adjusted EBITDA       $48.7      $4.2     $28.1   $(8.7)    $72.3
                               ======    ======    ======   =====    ======

      Adjusted net income:
        Net income                                                    $17.6
        Restructuring, net
         of tax                                                         0.2
                                                                     ------
          Adjusted net income                                         $17.8
                                                                     ======
          Adjusted net income
           per diluted share                                          $0.15
                                                                     ======

      Free cash flow:
        Net cash provided by
         operating activities                                         $76.1
        Capital expenditures                                          (27.3)
                                                                     ------
          Free cash flow                                              $48.8
                                                                     ======

      Net debt (end of
       period):
        Current portion of
         long-term debt                                                $9.7
        Long-term debt                                              1,085.8
                                                                    -------
          Total debt                                                1,095.5
        Less cash and
         cash equivalents                                            (183.9)
                                                                    -------
          Net debt                                                   $911.6
                                                                    =======



                            MUELLER WATER PRODUCTS, INC.
       SEGMENT RESULTS AND RECONCILIATION OF GAAP TO NON-GAAP PERFORMANCE
                                      MEASURES

                                     (UNAUDITED)
                      (in millions, except per share amounts)

                                      Year ended September 30, 2009
                          --------------------------------------------------
                          Mueller Co.  U.S. Pipe   Anvil   Corporate   Total
                          -----------  ---------   -----   ---------   -----
    GAAP results:
      Net sales              $547.1     $410.9    $469.9        $-   $1,427.9
                             ======     ======    ======    ======   ========

      Loss from operations  $(770.6)   $(142.4)   $(53.4)   $(34.5) $(1,000.9)
                             =======    =======   ======    ======
      Interest expense, net                                              78.3
      Loss on early
       extinguishment of debt                                             5.3
      Gain on repurchase
       of debt                                                           (1.5)
      Income tax benefit                                                (86.3)
                                                                      --------
      Net loss                                                        $(996.7)
                                                                      ========
      Net loss per
       diluted share                                                   $(8.55)
                                                                      =======

      Capital expenditures    $16.2      $11.2     $11.9      $0.4      $39.7
                             ======     ======    ======    ======   ========

    Non-GAAP results:
      Adjusted income
       (loss) from
       operations and
       EBITDA:
        Loss from
         operations         $(770.6)   $(142.4)   $(53.4)   $(34.5) $(1,000.9)
        Impairment            818.7       59.5      92.7         -      970.9
        Restructuring           2.0       41.6       4.0       0.2       47.8
                            -------    -------    ------    ------  ---------
          Adjusted income
           (loss) from
           operations          50.1      (41.3)     43.3     (34.3)      17.8
        Depreciation
         and amortization      50.9       21.1      17.6       0.6       90.2
                            -------    -------    ------    ------  ---------
          Adjusted EBITDA    $101.0     $(20.2)    $60.9    $(33.7)    $108.0
                            =======    =======    ======    ======  =========

      Adjusted net loss:
        Net loss                                                      $(996.7)
        Impairment, net
         of tax                                                         925.9
        Restructuring, net
         of tax                                                          29.0
        Interest rate
         settlement costs, net
         of tax                                                           3.8
        Loss on early
         extinguishment of
         debt, net of tax                                                 3.2
        Gain on repurchase
         of debt, net of tax                                             (0.9)
                                                                     --------
          Adjusted net loss                                            $(35.7)
                                                                     ========
          Adjusted net loss
           per diluted share                                           $(0.31)
                                                                     ========

      Free cash flow:
        Net cash used in
         operating activities                                          $121.9
        Capital expenditures                                            (39.7)
                                                                     --------
          Free cash flow                                                $82.2
                                                                     ========

      Net debt (end of
       period):
        Current portion of
         long-term debt                                                 $11.7
        Long-term debt                                                  728.5
                                                                     --------
          Total debt                                                    740.2
        Less cash and
         cash equivalents                                               (61.5)
                                                                     --------
          Net debt                                                     $678.7
                                                                     ========



                                      Year ended September 30, 2008
                          --------------------------------------------------
                          Mueller Co.  U.S. Pipe   Anvil   Corporate   Total
                          -----------  ---------   -----   ---------   -----
    GAAP results:
      Net sales              $718.1      $546.0   $595.2        $-   $1,859.3
                             ======      ======   ======    ======   ========

      Income (loss)
       from operations       $128.4      $(17.4)   $74.1    $(39.0)    $146.1
                             ======      ======    =====    ======
      Interest expense, net                                              72.4
      Income tax expense                                                 31.7
                                                                     --------
          Net income                                                    $42.0
                                                                     ========
          Net income per
           diluted share                                                $0.36
                                                                     ========

      Capital expenditures    $17.9       $58.5    $11.5      $0.2      $88.1
                             ======      ======   ======    ======   ========

    Non-GAAP results:
      Adjusted income
       (loss) from
       operations
       and EBITDA:
        Income (loss)
         from operations     $128.4      $(17.4)   $74.1    $(39.0)    $146.1
        Restructuring
         charges                  -        18.3        -         -       18.3
                             ------      ------   ------    ------   --------
          Adjusted income
           (loss) from
           operations         128.4         0.9     74.1     (39.0)     164.4
        Depreciation and
         amortization          50.1        22.7     19.7       0.6       93.1
                             ------      ------   ------    ------   --------
          Adjusted EBITDA    $178.5       $23.6    $93.8    $(38.4)    $257.5
                             ======      ======   ======    ======   ========

      Adjusted net income:
        Net income                                                      $42.0
        Restructuring, net
         of tax                                                          11.1
                                                                     --------
          Adjusted net income                                           $53.1
                                                                     ========
          Adjusted net income
           per diluted share                                            $0.46
                                                                     ========

      Free cash flow:
        Net cash provided by
         operating activities                                          $182.0
        Capital expenditures                                            (88.1)
                                                                     --------
          Free cash flow                                                $93.9
                                                                     ========

      Net debt (end of
       period):
        Current portion of
         long-term debt                                                  $9.7
        Long-term debt                                                1,085.8
                                                                      -------
          Total debt                                                  1,095.5
        Less cash and
         cash equivalents                                              (183.9)
                                                                      -------
          Net debt                                                     $911.6
                                                                      =======



                           MUELLER WATER PRODUCTS, INC.
                        SELECTED QUARTERLY SEGMENT RESULTS
                                    (UNAUDITED)
                         (in millions, except percentages)

                                  Three months ended
                      --------------------------------------------
                      December 31, March 31, June 30, September 30, Fiscal
                          2008       2009      2009        2009      2009
                          ----       ----      ----        ----      ----
    Net sales:
      Mueller Co.        $119.6     $114.8    $154.6      $158.1    $547.1
      U.S. Pipe           115.7       93.2      96.7       105.3     410.9
      Anvil               132.4      114.2     111.9       111.4     469.9
                         ------     ------    ------      ------  --------

                         $367.7     $322.2    $363.2      $374.8  $1,427.9
                         ======     ======    ======      ======  ========

    Adjusted income (loss)
     from operations:
      Mueller Co.          $8.5       $2.6     $13.6       $25.4     $50.1
      U.S. Pipe            (6.5)     (10.9)    (16.8)       (7.1)    (41.3)
      Anvil                21.3       12.1       6.7         3.2      43.3
      Corporate           (10.6)      (8.9)     (8.1)       (6.7)    (34.3)
                         ------     ------    ------      ------  --------

                          $12.7      $(5.1)    $(4.6)      $14.8     $17.8
                         ======     ======    ======      ======  ========

    Adjusted income (loss)
     from operations margin:
      Mueller Co.           7.1%       2.3%      8.8%       16.1%      9.2%
      U.S. Pipe            -5.6%     -11.7%    -17.4%       -6.7%    -10.1%
      Anvil                16.1%      10.6%      6.0%        2.9%      9.2%

      Consolidated          3.5%      -1.6%     -1.3%        3.9%      1.2%
                         ======     ======    ======      ======  ========

Investor Contact: Martie Edmunds Zakas

Sr. Vice President - Strategic Planning & Investor Relations

770-206-4237

mzakas@muellerwp.com

Media Contact: John Pensec

Director - Corporate Communications & Public Affairs

770-206-4240

jpensec@muellerwp.com

SOURCE Mueller Water Products, Inc.

http://www.muellerwaterproducts.com