EXHIBIT 99.1

                  FOURTH AMENDMENT TO CREDIT FACILITY AGREEMENT


                  THIS FOURTH AMENDMENT, dated as of the 10th day of June, 2005,
to that certain Amended and Restated Credit Facility Agreement dated as of
November 3, 1999, as amended by an Amendment Number 1 dated as of November 1,
2002, Second Amendment dated as of March 31, 2004,and the Third Amendment dated
as of March 11, 2005 (the "Agreement"), between FLEET NATIONAL BANK, a national
banking association with an office at One East Avenue, Rochester, New York 14638
(the "Bank"), and GRAHAM CORPORATION, a corporation formed under the laws of the
State of Delaware with offices at 20 Florence Avenue, Batavia, New York 14020
(the "Borrower").

         The parties hereby agree as follows:

         i) Agreement Ratified. Except as expressly amended hereby, the
Agreement is in all respects ratified and confirmed, and all of the terms,
provisions and conditions thereof shall be and remain in full force and effect,
and this Amendment and all of its terms, provisions and conditions shall be
deemed to be a part of the Agreement. All capitalized terms used herein and not
defined shall have the meanings given them in the Agreement.

         2. Section 3.1. Section 3.1 of the Agreement shall be amended as
follows:

                  Subject to the terms and conditions of this Agreement, the
         Bank will make Letters of Credit available for the account of the
         Borrower in an aggregate stated face amount not exceeding the lesser of
         (a) Eight Million Dollars ($8,000,000.00), or (b) the remaining
         availability under the Revolving Line for the purposes of issuing
         Letters of Credit. Letters of Credit will be made promptly available
         for the Borrower's work in process (to support customer progress
         payments) or as otherwise reasonably requested by the Borrower with
         respect to customer contracts, for warranty work on completed products.
         The stated amount outstanding under all Letters of Credit at all times
         shall reduce, dollar for dollar, the amount available for advances
         under the Letters of Credit Line. The Letters of Credit shall be in
         form satisfactory to the Bank. Up to $4,000,000 face amount of Letters
         of Credit may have maturity dates which are not more than four (4)
         years after the Revolving Line Termination Date.


         3. Representations and Warranties. The Borrower confirms the accuracy
of and remakes as of the date hereof all of its representations, warranties
contained in the Agreement. The Borrower further represents and warrants to the
Bank that all necessary action on the part of the Borrower relating to
authorization of the execution and delivery of this Amendment, and the
performance of the Obligations of the Borrower thereunder has been taken. This
Amendment constitute legal, valid and binding obligations of the Borrower,
enforceable in accordance with their respective terms. The Borrower has no
defenses, offsets, claims, or counterclaims with respect to its obligations
arising under the Amendment. The execution and delivery by the Borrower of the
Amendment, and the performance by the Borrower of the Amendment, will not
violate any provision of law or the Borrower's Certificate of Incorporation or
By-laws or


organizational or other documents or agreements. The execution, delivery and
performance of the Amendment, and the consummation of the transactions
contemplated thereby will not violate, be in conflict with, result in a breach
of, or constitute a default under any agreement to which the Borrower is a party
or by which any of its properties is bound, or any order, writ, injunction, or
decree of any court or governmental instrumentality, and will not result in the
creation or imposition of any lien, charge or encumbrance upon any of its
properties.

         4. No Events of Default. The Borrower confirms that as of the date
hereof, there exists no condition or event that constitutes (or that would after
expiration of applicable grace or cure periods constitute) an Event of Default
as described in Article 14 of the Agreement.

         5. No Offsets. As of the date hereof, the Borrower has no defenses,
offsets, claims or counterclaims with respect to its obligations arising under
the Agreement or this Amendment and all related documents and instruments.

         6. Governing Law. This Amendment, together with all of the rights and
obligations of the parties hereto, shall be construed and interpreted in
accordance with the laws of the State of New York, excluding the laws applicable
to conflicts or choice of law.

         IN WITNESS WHEREOF, the parties have executed this Amendment on the
date first above written.

FLEET NATIONAL BANK                             GRAHAM CORPORATION



By:    /s/ Colleen O'Brien                      By:   /s/ J. Ronald Hansen

Title:   Vice President                         Title: Chief Financial Officer