TULSA, OK -- (Marketwire) -- 08/06/10 -- AAON, Inc. (NASDAQ: AAON) today announced its operating results for the second quarter and six-month period ended June 30, 2010.

In the quarter, net sales decreased 6% to $64.5 million from $68.6 million and net income decreased 18% to $5.8 million from $7.1 million in the second quarter of 2009. Earnings per diluted share were $0.34, down 17% from $0.41 for the same period a year ago, based upon 17.0 million and 17.3 million diluted shares outstanding for the three months ended June 30, 2010, compared to June 30, 2009, respectively. Net sales for the first six months of 2010 decreased 14% to $113.8 million from $132.6 million in 2009, and net income decreased 21% to $10.9 million from $13.8 million. Earnings per diluted share were $0.64, down 20% from $0.80, based upon 17.2 million and 17.3 million diluted shares outstanding for the six months ended June 30, 2010, compared to June 30, 2009, respectively.

Norman H. Asbjornson, President and CEO, stated, "The decreases in sales and earnings were attributable to a continuation of poor economic conditions. Even though we expect the second half of 2010 to be challenging, we continue to significantly invest in our equipment and facilities and introduce new products which are enabling AAON to gain market share and position us to benefit from any upturn in the industry."

The Company will host a conference call today at 10:00 A.M. ET to discuss the second quarter results. To participate, call 1-877-737-1669 (Pass code VA16176).

AAON, Inc. is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air handling units, condensing units, heat recovery units, commercial self-contained units and coils. Its products serve the new construction and replacement markets. The Company has successfully gained market share through its "semi-custom" product lines, which offer the customer value, quality, function, serviceability and efficiency.

Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements.

                       AAON, Inc., and Subsidiaries
                    Consolidated Statements of Income


                     Three Months Ended              Six Months Ended
                June 30, 2010  June 30, 2009   June 30, 2010  June 30, 2009
                -------------  -------------  --------------  -------------
                           (in thousands, except per share data)

Net sales       $      64,531  $      68,597  $      113,840  $     132,562

Cost of sales          49,025         50,493          85,340         97,524
                -------------  -------------  --------------  -------------

  Gross profit         15,506         18,104          28,500         35,038

Selling, general
 and
 administrative
 expenses               6,598          6,793          11,426         13,328
                -------------  -------------  --------------  -------------

  Income from
   operations           8,908         11,311          17,074         21,710

Interest expense            -              -               -             (9)

Interest income           112              7             118              7

Other income
 (expense), net           (62)           (71)           (122)           174
                -------------  -------------  --------------  -------------

Income before
 income taxes           8,958         11,247          17,070         21,882

Income tax
 provision              3,137          4,150           6,131          8,057
                -------------  -------------  --------------  -------------

  Net income    $       5,821  $       7,097  $       10,939  $      13,825
                =============  =============  ==============  =============

Earnings per
 share:
  Basic         $        0.34  $        0.41  $         0.64  $        0.80
                =============  =============  ==============  =============
  Diluted       $        0.34  $        0.41  $         0.64  $        0.80
                =============  =============  ==============  =============
Cash dividends
 declared per
 common share:  $        0.18  $        0.18  $         0.18  $        0.18
                =============  =============  ==============  =============

Weighted average
 shares
 outstanding:
  Basic                16,940         17,170          17,063         17,179
                =============  =============  ==============  =============
  Diluted              17,030         17,315          17,150         17,325
                =============  =============  ==============  =============

                       AAON, Inc., and Subsidiaries
                       Consolidated Balance Sheets


                                          June 30, 2010    December 31, 2009
                                       ------------------ ------------------
                                        (in thousands, except share and per
                                                    share data)
Assets
Current assets:
  Cash and cash equivalents            $            4,101 $           25,639
  Certificates of deposit                           1,785                  -
  Investments held to maturity at
   amortized cost                                  10,630                  -
  Accounts receivable, net                         36,459             33,381
  Inventories, net                                 34,242             28,788
  Prepaid expenses and other                          661              1,087
  Financial derivative asset                          989              2,200
  Assets held for sale, net                         1,532              1,522
  Deferred tax assets                               4,580              3,623
                                       ------------------ ------------------
Total current assets                               94,979             96,240

Property, plant and equipment
  Land                                              1,328              1,328
  Buildings                                        43,522             41,697
  Machinery and equipment                          94,549             90,213
  Furniture and fixtures                            7,470              7,225
                                       ------------------ ------------------
    Total property, plant and equipment           146,869            140,463
    Less: Accumulated depreciation                 85,312             80,567
                                       ------------------ ------------------
Property, plant and equipment, net                 61,557             59,896

Note receivable, long-term                             75                 75
Certificates of deposit                               240                  -
Investments held to maturity at
 amortized cost                                     2,462                  -
                                       ------------------ ------------------
Total assets                           $          159,313 $          156,211
                                       ================== ==================

Liabilities & Stockholders' Equity
Current liabilities:
  Revolving credit facility            $                - $                -
  Current maturities of long-term debt                 30                 76
  Accounts payable                                 18,537              8,524
  Dividends payable                                     -              3,100
  Accrued liabilities                              23,594             19,186
                                       ------------------ ------------------
Total current liabilities                          42,161             30,886

Long-term debt, less current maturities                 -                  -
Deferred tax liabilities                            6,999              7,326
Commitments and contingencies

Stockholder's Equity
  Preferred stock, $.001 par value,
   7,500,000 shares authorized, no
   shares issued                                        -                  -
  Common stock, $.004 par value,
   75,000,000 shares issued authorized,
   16,576,022 and 17,214,979 issued and
   outstanding at June 30, 2010 and
   December 31, 2009, respectively                     69                 71
  Additional paid-in capital                            -                644
  Accumulated other comprehensive
   income, net of tax                               1,084              1,077
  Retained earnings                               109,000            116,207
                                       ------------------ ------------------
Total stockholders' equity                        110,153            117,999
                                       ------------------ ------------------
Total liabilities and stockholders'
 equity                                $          159,313 $          156,211
                                       ================== ==================

                      AAON, Inc., and Subsidiaries
                 Consolidated Statements of Cash Flows


                                                 Six Months     Six Months
                                                 Ended June     Ended June
                                                  30, 2010       30, 2009
                                               -------------  -------------
                                                      (in thousands)
Operating Activities
  Net income                                   $      10,939  $      13,825

  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                       4,812          4,564
    Provision for losses on accounts
     receivable, net of adjustment                      (164)           634
    Share-based compensation                             421            419
    Excess tax benefits from stock options
     exercised and restricted stock awards
     vested                                             (342)          (180)
    Deferred income taxes                             (1,284)        (1,103)
    Changes in assets and liabilities:
      Accounts receivable                             (2,914)        (3,047)
      Inventories                                     (5,454)         5,058
      Prepaid expenses and other                         426           (290)
      Financial derivative asset                       1,211
      Accounts payable                                10,012            808
      Accrued liabilities                              4,745          5,763
                                               -------------  -------------
  Net cash provided by operating activities           22,408         26,451
                                               -------------  -------------

Investing Activities
  Investment in certificates of deposit               (2,025)             -
  Investments held to maturity at amortized
   cost                                              (13,092)             -
  Capital expenditures                                (6,472)        (5,803)
                                               -------------  -------------
  Net cash used in investing activities              (21,589)        (5,803)
                                               -------------  -------------

Financing Activities
  Borrowings under revolving credit facility               -          9,972
  Payments under revolving credit facility                 -        (12,873)
  Payments of long-term debt                             (46)           (45)
  Stock options exercised                                976            323
  Excess tax benefits from stock options
   exercised and restricted stock awards vested          342            180
  Repurchase of stock                                (17,439)        (1,862)
  Cash dividends paid to stockholders                 (6,192)        (2,773)
                                               -------------  -------------
  Net cash used in financing activities              (22,359)        (7,078)
                                               -------------  -------------
Effect of exchange rate on cash                            2             81
                                               -------------  -------------
Net increase (decrease) in cash and cash
 equivalents                                         (21,538)        13,651
                                               -------------  -------------
Cash and cash equivalents, beginning of year          25,639            269
                                               -------------  -------------
Cash and cash equivalents, end of period       $       4,101  $      13,920
                                               =============  =============