Press release dated March 8,2010

Exhibit 99.1

Sun Hydraulics Reports Strong Finish to 2009

Profitable for the 38^thConsecutive Year

Board Declares First Quarter Dividend

SARASOTA, FLA, March 8, 2010 – Sun Hydraulics Corporation (NASDAQ: SNHY) reported financial results for the year and fourth quarter 2009 as follows:

(Dollars in millions except net income per share)


	January 2, 2010		December 27, 2008		Increase/Decrease

Twelve Months Ended
Net Sales	$	97.4	$	178.3	-45	%
Net Income	$	1.9	$	25.7	-93	%
Net Income per share:
Basic	$	0.11	$	1.55	-93	%
Diluted	$	0.11	$	1.55	-93	%

Three Months Ended
Net Sales	$	27.3	$	32.9	-17	%
Net Income	$	1.3	$	2.5	-48	%
Net Income per share:
Basic	$	0.08	$	0.15	-47	%
Diluted	$	0.08	$	0.15	-47	%

“The fourth quarter finished strong, and we have now seen sequential quarterly growth since Q2,” said Allen Carlson, Sun’s CEO and President. “We believe the worst of last year’s recession is over. Sun’s order rates, capital goods inventory conditions, and indicators like PMI and Capacity Utilization are all showing signs of strength. We are optimistic about 2010. As expressed in our forecast, we estimate the first quarter will show continued improvement.”

“We are pleased to have remained profitable for 2009, despite a drop in revenues of 45%,” Carlson continued. “We did this without sacrificing our capacity or capabilities. We continued to make capital investments, develop and release new products, and, perhaps most critical, maintain workforce readiness.”

“We are encouraged by customer inquiries and the prototype activity we have experienced at all Sun locations,” commented Carlson. “Some prototypes have already led to production orders. We are confident that our prototype activities will continue to drive new business.”

Concluding, Carlson said, “As we have frequently stated, we believe market share gains are taken on the upturn of the cycle by those companies that are able to respond to the market demand and opportunities created. Sun’s depth and breadth of products, our ability to provide complete systems solutions, and deliver reliably will allow us to gain share during this recovery.”

Outlook

In 2010, weekly order rates have increased compared to Q4. First quarter 2010 sales are expected to be approximately $30 million, a 19% increase over last year and 10% over the last quarter. First quarter earnings per share are estimated to be between $0.17 and $0.19 per share, compared to $0.03 per share in the first quarter last year and $0.08 last quarter.

Dividend

The Board of Directors of Sun Hydraulics Corporation declared a $0.09 per share cash dividend on Sun’s common stock. The dividend is payable on April 15, 2010, to shareholders of record as of March 31, 2010.

Sun Hydraulics advises all shareholders to familiarize themselves with rules regarding dividends, payment dates and ex-dividend dates. See the following website for more information http://www.sec.gov/answers/dividen.htm.

Webcast

Sun Hydraulics Corporation will broadcast its 2009 financial results conference call live over the Internet at 9:00 A.M. E.T. tomorrow, March 9, 2010. To listen to the webcast, go to http://investor.sunhydraulics.com/eventdetail.cfm?eventid=76500.

Webcast Q&A

If an individual wishes to ask questions directly during the webcast, the conference call may be accessed by dialing 1-877-212-8518. Questions also may be submitted to the Company via email by going to the Sun Hydraulics website, www.sunhydraulics.com, and clicking on Investor Relations on the top menu. Scroll down to the bottom of the page and click on contact email: investor@sunhydraulics.com, which will open an email window to type in your message. Sun management will then answer these and other questions during the Company’s webcast. A copy of this earnings release is posted on the Investor Relations page of our website under “Press Releases.”

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.

FORWARD-LOOKING INFORMATION

Certain oral statements made by management from time to time and certain statements contained herein that are not historical facts are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management’s Discussion and Analysis of Financial Condition and Results of Operations are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company’s strategies regarding growth, including its intention to develop new products; (ii) the Company’s financing plans; (iii) trends affecting the Company’s financial condition or results of operations; (iv) the Company’s ability to continue to control costs and to meet its liquidity and other financing needs; (v) the declaration and payment of dividends; and (vi) the Company’s ability to respond to changes in customer demand domestically and internationally, including as a result of standardization. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur.

Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) the economic cyclicality of the capital goods industry in general and the hydraulic valve and manifold industry in particular, which directly affect customer orders, lead times and sales volume; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company’s revenue

and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (iv) changes in technology or customer requirements, such as standardization of the cavity into which screw-in cartridge valves must fit, which could render the Company’s products or technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (vi) changes relating to the Company’s international sales, including changes in regulatory requirements or tariffs, trade or currency restrictions, fluctuations in exchange rates, and tax and collection issues. Further information relating to factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Form 10-Q for the quarter ended September 26, 2009, and under the heading “Business” and particularly under the subheading, “Business Risk Factors” in the Company’s Form 10-K for the year ended January 2, 2010. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)


	Three Months Ended
	January 2, 2010			December 27, 2008

Net sales	$	27,262		$	32,936

Cost of sales		20,468			24,726


Gross profit		6,794			8,210

Selling, engineering and administrative expenses		5,245			5,536


Operating income		1,549			2,674

Interest income, net		(135	)		(293	)
Foreign currency transaction (gain) loss, net		22			(309	)
Miscellaneous expense, net		36			122


Income before income taxes		1,626			3,154

Income tax provision		340			674


Net income	$	1,286		$	2,480


Basic net income per common share	$	0.08		$	0.15

Weighted average basic shares outstanding		16,927			16,647

Diluted net income per common share	$	0.08		$	0.15

Weighted average diluted shares outstanding		16,962			16,675

Dividends declared per share	$	0.090		$	0.090

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)


	Twelve Months Ended
	January 2, 2010			December 27, 2008
Net sales	$	97,393		$	178,278

Cost of sales		75,436			119,161


Gross profit		21,957			59,117

Selling, engineering and administrative expenses		19,814			22,740


Operating income		2,143			36,377

Interest income, net		(562	)		(793	)
Foreign currency transaction (gain) loss, net		265			(467	)
Miscellaneous income, net		423			(92	)


Income before income taxes		2,017			37,729

Income tax provision		161			11,994


Net income	$	1,856		$	25,735


Basic net income per common share	$	0.11		$	1.55

Weighted average basic shares outstanding		16,837			16,603

Diluted net income per common share	$	0.11		$	1.55

Weighted average diluted shares outstanding		16,870			16,634

Dividends declared per share	$	0.450		$	0.450

SUN HYDRAULICS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)


	January 2, 2010		December 27, 2008
Assets
Current assets:
Cash and cash equivalents	$	30,314	$	35,176
Restricted cash		132		127
Accounts receivable, net of allowance for doubtful accounts of $90 and $92		9,949		12,502
Inventories		7,799		9,960
Income taxes receivable		1,485		1,353
Deferred income taxes		575		259
Marketable Securities		7,844		—
Other current assets		1,797		1,290

Total current assets		59,895		60,667

Property, plant and equipment, net		56,633		57,726
Other assets		3,405		3,992


Total assets	$	119,933	$	122,385


Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	2,442	$	3,258
Accrued expenses and other liabilities		2,475		5,546
Long-term debt due within one year		—		147
Dividends payable		1,524		1,499

Total current liabilities		6,441		10,450

Long-term debt due after one year		—		125
Deferred income taxes		5,191		4,871
Other liabilities		687		383


Total liabilities		12,319		15,829

Shareholders’ equity:
Common stock		17		17
Capital in excess of par value		42,210		38,042
Retained earnings		64,383		70,099
Accumulated other comprehensive income		1,004		(1,602	)

Total shareholders’ equity		107,614		106,556


Total liabilities and shareholders’ equity	$	119,933	$	122,385

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)


	Twelve Months Ended
	January 2, 2010			December 27, 2008
Cash flows from operating activities:
Net income	$	1,856		$	25,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,968			7,096
Loss on disposal of assets		30			138
Stock-based compensation expense		960			896
Stock options income tax benefit		(9	)		(55	)
Allowance for doubtful accounts		(2	)		(123	)
Provision for slow moving inventory		(41	)		102
Provision for deferred income taxes		4			(195	)
(Increase) decrease in:
Accounts receivable		2,555			4,650
Inventories		2,202			1,359
Income taxes receivable		(123	)		(1,353	)
Other current assets		(507	)		(80	)
Other assets, net		560			465
Increase (decrease) in:
Accounts payable		(816	)		(2,410	)
Accrued expenses and other liabilities		(274	)		2,944
Income taxes payable		—			(619	)
Other liabilities		304			(23	)

Net cash from operating activities		13,667			38,527

Cash flows used in investing activities:
Capital expenditures		(5,096	)		(10,874	)
Proceeds from dispositions of equipment		—			99
Purchases of Marketable Securities		(10,600	)		—
Proceeds from Sale of Marketable Securities		2,863			—

Net cash used in investing activities		(12,833	)		(10,775	)

Cash flows used in financing activities:
Repayment of debt		(261	)		(416	)
Proceeds from exercise of stock options		11			87
Stock options income tax benefit		9			55
Proceeds from stock issued		392			359
Dividends to shareholders		(7,547	)		(7,465	)

Net cash used in financing activities		(7,396	)		(7,380	)

Effect of exchange rate changes on cash and cash equivalents		1,705			(4,406	)


Net (decrease) increase in restricted cash		5			(19	)
Net (decrease) increase in cash and cash equivalents		(4,862	)		15,985


Cash and cash equivalents, beginning of period		35,303			19,337


Cash and cash equivalents, end of period	$	30,446		$	35,303


Supplemental disclosure of cash flow information:
Cash paid:
Interest	$	9		$	31
Income taxes	$	289		$	14,216
Supplemental disclosure of noncash transactions:
Common stock issued to ESOP through accrued expenses and other liabilities	$	2,797		$	2,255


	United States			Korea			Germany			United Kingdom		Elimination			Consolidated
Three Months Ended January 2, 2010
Sales to unaffiliated customers	$	17,200		$	3,012		$	3,613		$	3,437	$	—		$	27,262
Intercompany sales		3,964			—			21			186		(4,171	)		—
Operating income		320			213			703			284		29			1,549
Depreciation and amortization		1,288			24			123			265		—			1,700
Capital expenditures		461			10			(7	)		84		—			548

Three Months Ended December 27, 2008
Sales to unaffiliated customers	$	22,345		$	1,782		$	4,789		$	4,020	$	—		$	32,936
Intercompany sales		4,552			—			53			472		(5,077	)		—
Operating income		1,752			(183	)		834			371		(100	)		2,674
Depreciation and amortization		1,389			27			129			254		—			1,799
Capital expenditures		1,412			3			9			220		—			1,644

Twelve Months Ended January 2, 2010
Sales to unaffiliated customers	$	59,278		$	9,978		$	14,654		$	13,483	$	—		$	97,393
Intercompany sales		15,545			—			139			1,101		(16,785	)		—
Operating income		(2,110	)		616			2,475			884		278			2,143
Depreciation and amortization		5,335			104			502			1,027					6,968
Capital expenditures		4,758			41			30			267					5,096

Twelve Months Ended December 27, 2008
Sales to unaffiliated customers	$	111,180		$	17,455		$	27,356		$	22,287	$	—		$	178,278
Intercompany sales		28,656			—			245			2,282		(31,183	)		—
Operating income		24,531			1,148			7,693			3,231		(226	)		36,377
Depreciation and amortization		5,139			151			572			1,234					7,096
Capital expenditures		9,904			39			298			633					10,874