# Exhibit 99.7

UNITED
STATESSECURITIES AND EXCHANGE COMMISSION450 Fifth Street, N.W.Washington,
D.C. 20549

(SEAL)

TELEFACSIMILE TRANSMITTAL

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|------------------------------------------------ | ------------ | -----------------------------------------------------------------
|PLEASE DELIVER THE FOLLOWING PAGES TO:          
|                                                 |              |                                                                  
|Name:                                            |              | Marty Lybecker                                                   
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|Organization:                                    | WilmerHale  
|                                                 |              |                                                                  
|Telecopier
  Number:                             | 202-663-6363
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|Total Number of Pages, Including Cover
  Sheet:4
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|                                                 | From:        | Brian D.
Bullard                                                 
|                                                 |              | Chief Accountant                                                 
|                                                 |              |                                                                  
|                                                 |              | DIVISION
OF INVESTMENT MANAGEMENT                                
|                                                 |              |                                                                  
|                                                 |              | Telephone
Number: (202) 551-6918 Facsimile
Number: (202) 772-9283

Comments:

Marty,

The following is a certified letter sent to you today and a
copy of a certified letter sent to Grant Thornton LLP. Please call if you have any questions.

BrianIf you do not receive all pages,
please telephone the above number for assistance.

Note:THIS
DOCUMENT MAY CONTAIN PRIVILEGED AND NONPUBLIC INFORMATION. IT ISINTENDED
ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY NAMED ABOVE, AND OTHERSWHO
SPECIFICALLY HAVE BEEN AUTHORIZED TO RECEIVE IT. If you are not the intendedrecipient
of this facsimile, or the agent responsible for delivering it to the intended
recipient, you hereby are notified that any review, dissemination,
distribution, or copying of this communication strictly isprohibited.
If you have received this communication in error, please notify us immediately
by telephoneand return the original to the above address by
regular postal service without making a copy. Thank youfor
your cooperation.

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|------------------------------------ | ------------------------------------------------------------------------------- | 
|(SEAL)                               | UNITED STATES 
  SECURITIES
  AND EXCHANGE COMMISSION 
  WASHINGTON, D.C. 20549 | 
|                                     |                                                                                 | 
|DIVISION  OF
  INVESTMENT MANAGEMENT |                                                                                 | 

April 11, 2006 CERTIFIED MAIL RETURN RECEIPT REQUESTED 
AND FACSIMILE Martin E. Lybecker, Esq.
WilmerHale
2445 M Street, NW
Washington,
DC 20037 Re:     National
Presto Industries, Inc. Dear Mr. Lybecker: We
have received your letter dated April 4, 2006 responding to our letter dated March 28, 2006 to you in which we raised
several concerns regarding the Form 10-K filed by National Presto Industries, Inc. (the Company) on March 15, 2006. We
have considered the arguments made in your letter and your representation of
your understanding of our conversations. We
disagree with the substance of your footnote disclosure. It was and remains misleading to suggest
that the staff would not object to the Company filing financial statements and related information as an
operating company rather than as an investment company. As a registered investment company, the Company is obligated to
present its financial statements in accordance with Article 6 of Regulation
S-X. We
have referred this matter to the Division of Enforcement for further
consideration. Sincerely,-s- Brian D. BullardBrian
  D. BullardChief
  Accountant  Cc:
Maryjo
  CohenNational Presto
  Industries, Inc.


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|------------------------------------- | ------------------------------------------------------------------------------- | 
|(SEAL)                                | UNITED STATES 
  SECURITIES
  AND EXCHANGE COMMISSION 
  WASHINGTON, D.C. 20549 | 
|                                      |                                                                                 | 
|DIVISION
  OF
  INVESTMENT MANAGEMENT |                                                                                 | 

April 11, 2006 CERTIFIED MAIL RETURN RECEIPT REQUESTEDAND FACSIMILE Tom Walters
Managing Partner 
Grant Thornton LLP 
500 US Bank Plaza North 
200 South Sixth Street 
Minneapolis, MN 55402 Re:     National
Presto Industries, Inc. Dear Mr. Walters: We
have received your letter dated April 4, 2006 in response to our letter dated
March 28, 2006 in which we raised concern regarding the audit opinion issued by
Grant Thornton LLP (Grant) on the financial statements included in the Form
10-K filed by National Presto Industries, Inc. (the Company) on March 15,
2006, You represent that you were not fully aware of our views regarding the
financial statements of the Company. All future communications regarding Grants audit opinion on the Company
will be made directly with you to ensure
that you are aware of our views. We
have considered the arguments made in your letter regarding the basis for Grant
issuing
an unqualified audit opinion on the financial statements. We are not aware of
any authoritative guidance
indicating pro forma footnote disclosure is unaudited in nature, and our e-mail communication referred to in your letter
did not indicate that we would accept the pro forma footnote disclosure on an unaudited basis. Further to that point,
our e-mail communication stated; the
  staff would not object if, for the period ending December 31, 2005, National
  Presto Industries, Inc., continued to file financial statements that are
  consistent with financial reporting requirements for operating companies
  on Forms 10-K provided those financial
  statements also include an additional footnote with pro forma financial
  statement information consistent with investment company financial reporting
  requirements pursuant to Article 6 of
  Regulation S-X and Form N-CSR. (emphasis added)


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Tom Walters 
Grant Thornton LLP 
April 10, 2006 
Page 2

The Companys presentation,
however, did not comply with the conditions under which we indicated we would not object.

The
authoritative guidance for preparing and auditing financial statements for
registered investment companies is contained in Article 6 of Regulation S-X and the AICPA Audit and Accounting Guide for
Investment Companies.
The Companys presentation in its Form
10-K has no basis in authoritative GAAP.1 We therefore do not
understand how Grant could have
concluded, acknowledging that legal counsel for the Company may have
misrepresented the staffs views in internal discussions between the Company
and Grant, that the financial statements;

| |                                                                                                                                                                                                                                                                                                                                                                                                      
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| | present fairly, in all
  material respects, the financial position of National Presto Industries, Inc,
  and subsidiaries as of December 31, 2005 and 2004 and the results of their operations
  and their cash flows for each of the three years in the period ended December 31, 2005 in conformity with accounting principles
generally accepted in theUnited States of America (emphasis added)

We
note that in the last sentence to your conclusions, you indicated that Grant
will revisit the issues highlighted
in your (SEC) March 28 letter. We are unclear exactly what is meant by that statement. In light of this and
previous communications among the Company, Grant, and us, please respond within 5 business days of this letter,
indicating whether Grant will withdraw its opinion on the financial statements
of the Company.

Should
you have any questions on this matter, please contact me at 202-551 -6918.

| |                     
| | --------------------
| | Very truly yours,   
| |                     
| | -s- Brian D. Bullard
| | Brian D. Bullard    
| | Chief Accountant    

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|Cc: | John Archambault, Managing
  Partner, National Professional Standards Group
|    | Tracy Berry, Deputy General
  Counsel Ken Cunningham, Senior Legal Counsel 
|    | Michael Santay, Regional Partner,
  Professional Standards                 



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|1 | As a registered investment company, the Company is obligated to present
its financial statements in accordance with Article 6 of Regulation S-X. In
addition to Article 6, the AICPA Audit and Accounting Guide for Investment Companies,
chapter 7,outlines the form and
content of financial statements for investment companies and chapter 11
provides the form and content of auditor reports for audits on registered
investment companies, Neither the financial statements nor audit opinion included in the Companys 10-K comply with the
guidance in either chapter. SeeAmerican
Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies,May 1, 2004.

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