ANN ARBOR, Mich.–(EMWNews)–Kaydon Corporation (NYSE:KDN) today announced that its Board of

Directors declared a 13.3 percent increase in its regular quarterly

dividend, to $.17 per share from $.15 per share. The dividend is payable

on September 29, 2008 to shareholders of record as of the close of

business on September 8, 2008. The indicated annual dividend rate will

now be $.68 per share.

The Company expects to periodically reevaluate the cash dividend in

future periods and will consider its future earnings and cash flow,

on-going capital needs, and alternatives for shareholder returns when

determining the actual amount of future dividends.

Kaydon Corporation is a leading designer and manufacturer of

custom-engineered, performance-critical products, supplying a broad and

diverse group of alternative-energy, industrial, aerospace, medical and

electronic equipment, and aftermarket customers.

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