Leslie Loyet – Financial Relations Board Ron Moquist – President, Chief Executive Officer Dan Ryhkhus – Executive Vice President, Flow Controls General Manager Tom Iacarella – Vice President, Chief Financial Officer

Jeff Evanson – Dougherty & Co. Tom Hayes – Piper Jaffray [John Rankin – Baranco Management]

Good afternoon ladies and gentlemen and thank you for standing by, welcome to Raven Industries first quarter 2009 earnings conference call. (Operator instructions) At this time I would like to turn the conference over to Ms. Leslie Loyet of the Financial Relations Board. Please go ahead ma’am.

Thank you, I’d like to thank everyone for joining us today. Earlier in the day we sent out a press release outlining the results for first quarter of fiscal 2009. If anyone has not received the release please either call Han Huie at 312-640-6688 and she will send you a copy or visit Raven’s website at RavenInd.com to retrieve a copy. Joining us today from management of Raven Industries we have Ron Moquist, President and Chief Executive Officer, Tom Iacarella, Vice President, Chief Financial Officer and Dan Rykhus, Executive Vice President and Flow Controls Division Manager. Management will provide an overview of the quarter and then we’ll open the call to your questions. Before we begin we would like to remind participants that the information contained in this call is current only as of the date of this call, May 19, 2008 and the company assumes no obligation to update any statements including forward-looking statements made during this call. Statements made by the company that are not historical facts are forward-looking statements that are subject to the Safe Harbor disclaimer in today’s press release. With that said, I’d now like to turn the call over to Ron. Please go ahead.

Thanks Leslie and welcome everybody to our first quarter conference call. Well the year got on to a good start with sales up 29% and earnings up 27%. The earnings were probably better than what we were thinking when we talked with you in March, but the way we got there was pretty consistent with what we discussed with Flow Controls doing better and Electronic Systems doing somewhat less. The first quarter is important to set the tone for the year and also to test the strength of our agricultural markets and our Flow Controls division was expected to have a strong first quarter but they surpassed even that. Last year’s first quarter operating income for Flow Controls was up 38%. So we had a strong base that we have to build on and this year’s first quarter was up another 90%. With prices for corn and soybeans and what at or near record highs and with input costs such as fuel and fertilizer, seed and chemicals also topping out, the demand for our precision ag products with minimize input costs and maximize yield are I guess you could say just exploding, at the very least in very high demand. And these conditions really exist worldwide. Flow Controls got 20% of sales outside of the US in the first quarter versus 16% for last year. Keep in mind how large the increase was in the United States for this past quarter. You can see just how big that increase internationally really was for us. That’s been a fast growing part of our sales volume and we expect it to grow in the 30-50% range at minimum. Brazil, Canada, Europe and Eastern Europe all recognized the need to improve productivity through technology and with current commodity prices the way they are,…

(Operator instructions) Your first question comes from Jeff Evanson – Dougherty & Co. Jeff Evanson – Dougherty & Co.: Starting with Engineered Films, great job to Jim there getting that stabilized, I guess what I’d like to know, Ron, can you talk about some kind of percentage of sales in the quarter that came from new products, whether that’s introduced in the last 12 months or some period of time, it would be helpful if that would be a metric you could provide us on a quarterly basis but if you have some sense of that now, that would be helpful.

Yes as of today that’s not a big number at this point. As you know the equipment that we brought on stream was brought on stream about a year late and so what we brought on in terms of new product is in $1-$2 million type of category at this point. And so it’s not a huge percentage. Geo membrane films for example are about 5% of our total sales and these multi-layer barrier films that I talked about, they are just getting introduced now. House wrap which I’ve talked about too many times and we haven’t done much is getting reintroduced and has not generated much interest. But the interesting thing is that the construction market today is more receptive to those new products than they were three years ago. If we had introduced those same products three years ago, nobody would have wanted to talk to us because they had more business than they could handle, they had a backlog of work yet to do, they did have time to talk to suppliers and sales people. But today, they’re hungry, they’re looking for ways to differentiate themselves. So a radon barrier, an improved house wrap material, many of the things that we have going on right now are of interest to them because they’re able to talk about something new and differentiate themselves from the competition. So long answer but the short answer is it’s not a large number at this time in terms of products we’ve introduced in the last 12 months. Jeff Evanson – Dougherty & Co.: Could you talk about your sense of the level of channel inventory that might be out there in the Flow Controls division?

Very little. Jeff Evanson – Dougherty & Co.: And give us some sense of why you’re so confident about that, I’m sure you are but give us some sense of your visibility.

Well we’re just now starting to get back off of a four to five week reported delivery time on our products to our resellers. So we’re paring that down to maybe a two to three week timeframe now. So unfortunately our distributors and resellers and OEMs just have not had any excess raise in inventory to work from.

I think part of that Jeff is the level of frustration you start getting on the part of your customers when they call frequently and want to know where their deliveries are and why things are late and couldn’t we expedite and ship sooner. When you’re getting those calls they clearly are not moving through a long channel of distribution, they’re moving through very quickly and as the season starts as you know, once growers are out in the field planting, the buying slows down dramatically. So again, we just didn’t sense that any of this product was being built for stocking, it was being bought because it was sold and moving through the whole system right to the grower.

Your next question comes from Tom Hayes – Piper Jaffray. Tom Hayes – Piper Jaffray: In looking through the earnings announcement you had indicated that you’re moving some of the circuit board production from Flows over to the Electronic Systems, can you just give me or provide some idea of the percent of total volume or how much volume you’re recovering from the lost $7 million business?

That’s not going to be a huge amount in terms of covering that loss. Dan what does that amount to in terms of total volume?

I think it was about $1.5 million.

It was probably a little less than that, if you look on the tables right now we’ve got a new line item of intersegment eliminations which was $983,000 for the quarter, the majority of that was shipped from Electronic Systems to Flow Controls. And some of it is also some shipments from Engineered Films into Aerostar, but it’s primarily the shipments from Electronic Systems to Flow Controls. Tom Hayes – Piper Jaffray: In your discussion on the inventory you had indicated some increase in inventory on the films side. Can you just give us some magnitude, is that a seasonal buildup or just to match demand?

I would say that the higher inventory levels in Films really reflects the fact that a year ago their inventories were down quite a bit, probably the lowest they’ve been in a couple of years. And I think we’re just getting up to a more normal level of inventory today and that does reflect as I said a little bit of a sales increase as well, so they’ll move that inventory through.

Your next question comes from [John Rankin – Baranco Management]. [John Rankin – Baranco Management]: On page 9 of the annual report and this is discussing geo membranes and I’ll read this, another example is water conservation in the southwest, farmers want to line their irrigation canals with our geo membranes to ensure precious moisture is not lost into the soil. My question is or I guess my comment is I think you would want to pursue water companies because they’re the ones that have the money, especially where cities are buying up the water. I see a real big demand for this as most canals at least around here are 125 years and earthen. So my question is, could you give us a little more color on this, what is your strategy and do you have any cash flow and time projections?

Our strategy was to get several of these installed out there and then demonstrate that they work and that they were going to get a return on investment. Now we’ve got a couple of canals lined in California, we haven’t done as much as we had hoped. It’s going slower than we thought. So that’s a program that we’ve got to bump up right now. We’re not doing as well as we should. I agree with you that there should be tremendous demand for it out there because water is the most important thing on the West Coast and they’re short of it. So our strategy is not what it needs to be and we’re going to have to put more attention on that and do a better job but we have not done a good job up until this time.

Your next question comes from Jeff Evanson – Dougherty & Co. Jeff Evanson – Dougherty & Co.: So Ron I was wondering if you’d be willing to share with us roughly the pounds resin used in the quarter and what that price per pound was.

Less than 15 million pounds but I’m going to say somewhere between 12-15 million pounds. The price is going to be around $0.75-$0.76 a pound. And that was a little bit higher than Q4, maybe 3-4% higher. Jeff Evanson – Dougherty & Co.: And then my follow up to that is, will the tax rate remain at this level?

Our tax rate as I think we said in our annual report was going to be up at this level until such time as the R&D credit gets renewed. We’re waiting for that and until that’s been renewed, we’ll see a little bit higher tax rate.

Your next question is from [John Rankin – Baranco Management]. [John Rankin – Baranco Management]: My question on this is Flow Controls, the strip tillage map that farming is getting quite a bit of interest out in the ag community, what growth do you see in this farming method and do you have plans to serve it?

Well we see that that practice is definitely growing but it’s still a small part of the overall acreage but a growing part. And really just about everything we do benefits from, our products improve on that practice because that practice requires very precise placement of seed, fertilizer and actual field operations cultivating and so on and so forth. So it’s a growing segment, we’re well poised with the development of our farm pro system, our collaboration with Novariant Auto Farm which has brought us the dual frequency RTK two centimeter accuracy steering system. And then you couple that with all the other applications that we already deliver to the marketplace such as [section] control and variable rate application, [broomite] management. So it’s a factor that is helpful for us, we like broader adoption of strip tillage because it definitely increases the demand for our products.

Your last question is from Jeff Evanson – Dougherty & Co. Jeff Evanson – Dougherty & Co.: I noticed the corporate allocation was up fairly, I guess what to me historically seems fairly strong and I’m curious if you possibly have that front loaded this year or how I should think about that?

Well it is up a little bit more than we would expect on a percentage basis to be up for the year. There is certainly some seasonality to that or they tend to be stronger in the first half of the year. We also were impacted by a lawsuit settlement of let’s say the $100,000 range in the quarter. Jeff Evanson – Dougherty & Co.: You have some comments in the press release about labor transitions here from Electronic Systems to Flow Controls, I’m wondering if you could discuss how you feel that impacted operating margins in the quarter.

Well it’s always nice and we’ve done this ins past years so this isn’t just a recent thing that Electronic Systems often is a little bit slow in the first quarter and Flow Controls of course has their biggest quarter in the first quarter. So shifting people from one division to the other is fairly common practice. We did more of it this year simply because we got off to a slow start in Electronic Systems and anytime you can move experienced people from one division to the next it’s going to make a lot of difference in terms of their productivity and their quality and their ability to hit the production floor running. So it’s a good thing for the Flow Controls division but it’s also good for Electronic Systems because they maintain that core manufacturing base that they’re going to need later in the year. In terms of some of the other things we’re doing in Electronic Systems, we’re consolidating some facilities, we’re improving some processes and procedures, we’re right sizing the organization, we’re putting it in the shape it needs to be to be successful and we fully intend for it to be successful in the quarters ahead and certainly in the years ahead. So it’s going through a bump right now and we’ve had that happen in other divisions and we’ll get this turned around too. Jeff Evanson – Dougherty & Co.: One thing I just want to clarify, you made some comments about new distribution in Engineered Films, I didn’t quite catch that, what are you doing on that front?

Well the type of people that are going to be interest in things like radon barriers, they’re going to be that new breed that’s out there, and you can’t pick up a magazine or a newspaper today without reading some article about green construction, lead type of building where you’re lead certified as a green building, you can’t pick up a magazine or a construction publication without talking, hearing about healthy homes and how important that is. So the green movement, the healthy homes movement, the people that are playing in that area, the distributors, the architects, they’re not typical people we deal with which would be more lumber yards, general contractors, that type. And so we’re finding that we have to target a new group of people, people that are on the cutting edge and want to be differentiated and want to be part of that movement. They’re more susceptible to new ideas. I think as it becomes more commonplace that radon barriers in this part of the world at least will be kind of a standard product. Then it’ll start moving into the more standard distribution. But to start off with, you’re going to have to find people that are interested in those things. Jeff Evanson – Dougherty & Co.: And you’re starting to build that even in Q1 here or?

Yes, we’re already starting to build that and we’ve got one large shipment already of radon barrier that’s gone out. We’ve had one very large shipment of methyl bromide barrier that’s gone out. And we’ve got a lot of interest, we were just at a show, homebuilder show which had a green orientation to it and we had a tremendous amount of interest on the part of architects and contractors. So the interest is there, they know we’ve got a good product, they know they need it and they know it’s something that can make them a little different than their competitors.

We have no other questions at this time.

Thank you all for joining us today. We’ve got our annual meeting this Wednesday morning, we look forward to seeing you there and so have a good day everyone. Thanks for joining us.