NEW YORK, Dec. 28 /PRNewswire/ -- Dolphin Limited Partnership III, L.P. and affiliates which hold approximately 3.2% of the outstanding shares of Bairnco Corporation (NYSE symbol: BZ), today announced that it had sent the following letter to Mr. Luke E. Fichthorn III, its Chairman and Chief Executive Officer. December 27, 2006 Via Fax and Federal Express Mr. Luke E. Fichthorn III Chairman and CEO Bairnco Corporation 300 Primera Blvd Suite 432 Lake Mary, FL 32746 Dear Luke, As you know, Dolphin Limited Partnership III, L.P. and affiliates continue to be significant shareholders in Bairnco Corporation. First, we commend you and your management team on continuing the operational turnaround that, if the third quarter 2006 performance is any indicator, is beginning to bear fruit. With the opening of the new China manufacturing facility and the synergistic Atlanta Sharptech acquisition, the Company appears to have built real momentum. However, as we have discussed, it appears that the Company's share price does not yet fully reflect the current and forecasted performance improvements outlined in your July Form 14D-9 filing and increased in your October 29, 2006 press release (For 2007, $13-$15 million of operating profit or approximately $20 to $22 million of EBITDA). One of the challenges for management is to close this apparent valuation gap. Accordingly, we encourage the Company to take additional steps, such as significantly increasing the quarterly dividend (currently a 2.3% annual yield) and/or recapitalizing the Company's strong balance sheet in order to return capital to its shareholders. Alternatively, we would support a sale of the Company at a price that reflects the benefits to be obtained from the elimination of the customary costs of being a public company as well as outlined operational improvements. We understand that a valuation of the company may consider the lesser trading liquidity of the shares (with only 7.3 million outstanding) and the Company's disparate businesses. The Company and its shareholders have benefited from your stewardship and we would welcome further discussion on how to more rapidly close the valuations gap. We remain available to be helpful. With Kindest Regards, Justin A. Orlando Managing Director DATASOURCE: Dolphin Limited Partnership III, L.P. CONTACT: Brooke L. Donatelli, +1-212-488-1590, for Dolphin Limited Partnership III, L.P.

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