OLATHE, Kan. , Sept. 15 /PRNewswire-FirstCall/ -- Butler National Corporation (OTC Bulletin Board: BUKS), a leading manufacturer and provider of support systems for "Classic" commercial and military aircraft, announces its financial results for the first quarter fiscal 2009 for the period ended July 31, 2008 . In conjunction with the release, the Company has scheduled a conference call Monday, September 22, 2008 at 9:00 AM Central Daylight Time .

What: Butler National Corporation First Quarter Fiscal 2009 Financial Results Conference Call When: Monday, September 22, 2008 -- 9:00 AM Central Daylight Time How: Live via phone by dialing 800-624-7038. Code: Butler National Corporation. Participants to the conference call should call in at least 5 minutes prior to the start time.

Clark Stewart , President & CEO, Butler National Corp., will be leading the call and discussing results of the first quarter, the status of new and existing orders, gaming activities and an outlook on the balance of fiscal 2009.

Historical selected financial data related to all operations: Quarter Ended July 31 Quarter Ended April 30 (In thousands except per (In thousands except per share data) share data) 2009 2008 2007 2008 2007 2006 Net Sales $5,204 $4,707 $3,076 $4,446 $3,906 $3,072 Operating Income 656 410 164 1,015 627 187 Net Income 318 232 44 662 415 15 Total Assets 32,464 19,878 18,092 27,104 20,445 18,138 Long-term Obligations 6,276 2,426 1,759 6,416 2,521 1,844 Shareholders' Equity 12,509 10,879 9,873 12,190 10,648 9,829 New Product Research 620 570 499 520 439 416 and Development Cost nr = not reported

Management Comments:

"Our sales for the fiscal quarter-ended July 31, 2008 , increased 11% to $5.2 million as compared to $4.7 million for the same period in fiscal 2008. Net income increased 37% to $318,000 as compared to $232,000 for the same period in fiscal 2008. We continue our efforts to improve the profitability in the delivery of high-value "Classic Aviation" products.

We expensed $620,000, 12% of our sales, on product development. We feel this expenditure for the design and development engineering, testing, and certification of new products may stabilize our long-term revenues and enhance our profits.

Sales from Aircraft Modifications including modified aircraft increased $1.5 million (81.9%) from $1.9 million in the first quarter of fiscal year 2008 to $3.4 million in the current three months of fiscal 2009.

Sales from Avionics decreased 47.5%, from $1.7 million in first quarter of fiscal 2008, to $871,000 in the current three months of fiscal 2009. Operating profits decreased from $516,000 for the three months ended July 31, 2007 to a loss of $41,000 for the three months ended July 31, 2008 . This decrease in operating profit is related to additional material cost, material spoilage, additional labor requirements and rework labor costs on a major build-to-print contract. This contract was started in fiscal 2007 and is expected to be completed during the next quarter with less of an impact on operating profit. Management expects this business segment to increase in the future due to additions of new fuel system protection devices like the TSD, GFI, and other classic aviation defense products.