Fluid Power Industry Receives National Science Foundation Grant to Establish Engineering Research Center

SARASOTA, FLA, June 2, 2006 – Sun Hydraulics Corporation (NASDAQ: SNHY) congratulates the National Fluid Power Association (NFPA) and their supporters for securing the award of a National Science Foundation (NSF) grant to establish an engineering research center at the University of Minnesota.

The center will work on a variety of projects, including, but not limited to: discovering ways to reduce fuel consumption, developing devices for people with mobility impairments and designing state-of-the-art rescue robots. In addition to research, the center will be involved in developing youth education programs, improving efforts to increase student diversity in engineering, designing internship and exchange programs for undergraduate and graduate students, and offering short courses and labs for industry workers.

"This center will advance fundamental knowledge, providing a platform for technology that will spawn new industries. We are impressed with the ambitious goals of the center for research and education and the strong partnership with industry," said Lynn Preston, leader of the Engineering Research Centers Program at NSF.

Commenting on the grant, Allen Carlson, Sun's President and CEO, said, "This will foster innovation and creativity and help to grow the fluid power industry. The research will provide both direct and indirect benefits and we are convinced new concepts will be discovered that will result in many exciting next generation products."

The five-year, $15 million grant will be augmented with a contribution of more than $3 million from a coalition of industry partners and an additional $3 million dollars from academic institutions. For more information regarding this exciting initiative, please visit the National Fluid Power Association website at http://www.nfpa.com.

NSF-funded Engineering Research Centers conduct pioneering research in emerging technologies and train the next generation of engineers to be leaders in innovation. Each center, while based at one university, is a collaborative partnership drawing together individuals and resources from other universities, industry partners, and pre-college teachers and students.

Sun Hydraulics Corporation is a leading designer and manufacturer of high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets. For more information about Sun, please visit our website at www.sunhydraulics.com.

Josh Chamot
National Science Foundation

Richard K. Arter
Sun Hydraulics