“Our performance reflected slightly better than expected supply chain recovery assumptions as stated in the prior quarter call.”

Fourth Quarter Sales and Earnings Overview

Total Company:
Fourth quarter sales were $783.7 million compared to $780.4 million last year, an increase of 0.4% (+6.1% in local currency (“LC”)). Diluted earnings per share (“EPS”) were $0.73 in the quarter, compared to $0.82 last year. Pro forma diluted EPS⁽¹⁾ were $0.99 compared to $0.76 last year, an increase of 30%. Foreign currency translation negatively impacted fourth quarter EPS by $0.05.

Continuing Operations:⁽²⁾
Sales in the quarter were $722.4 million, an increase of about 1% (+6.4% LC). Diluted EPS were $0.64 in the quarter, compared to $0.76 last year. Pro forma EPS were $0.86 compared to $0.65 last year, an increase of 32%.

Larry Kingsley, President and CEO, said, “We executed a solid fourth quarter. We focused almost exclusively on restoring customer service levels and we have recovered from the ERP implementation challenges in the third quarter of FY12. We also closed the transaction with Haemonetics on August 1^st as planned. We have taken action to insure that we can achieve reasonable shareholder return in a choppy economic environment.

“Our BioPharmaceuticals, Machinery & Equipment, and Aerospace markets all performed very well in the quarter. On a regional basis, the Americas had strong growth while Europe and Asia were flat. System sales were negative in the quarter as a function of a very large comparison quarter in FY11, our decision to pare certain unprofitable system sales, and lower capital commitment in some markets.

“Consumable orders were strong globally with the exception of our Industrial markets in Europe where orders declined 7% year-on-year.

“Our performance reflected slightly better than expected supply chain recovery assumptions as stated in the prior quarter call.”

Full Year Sales and Earnings Overview

Total Company:
For the full year, sales increased 5.9% over last year (+6.9% LC). Diluted EPS were $2.71, compared to $2.67 for the same period last year. Pro forma EPS were $3.19, a 15% increase compared to $2.77 a year earlier. Foreign currency translation had an immaterial impact on full year EPS.

Continuing Operations:⁽²⁾
Sales from continuing operations for the full year increased 6.1% (+7.2% LC) over last year. Diluted EPS were $2.39 compared to $2.36. Pro forma EPS were $2.80, a 16% increase compared to $2.42 a year earlier.

BioPharmaceuticals: Within BioPharmaceuticals, our Pharmaceuticals sales increased 16%. Consumables sales to Pharmaceuticals customers grew 21%, with contributions from all regions, while systems sales declined 22%. Continued strength in the biotech market, as well as ForteBio’s BLItz^TM and Octet® instrumentation platforms, which added about 4%, drove consumables sales growth. Laboratory sales grew in all regions and increased about 15% overall.

Food and Beverage: Sales were down overall reflecting a divestiture in Italy which reduced sales by almost 5%. Consumables sales grew about 12%, excluding the divestiture. This growth reflects new products and growth in emerging markets. Systems sales were down reflecting decreased capital investment in Europe related to weak economic conditions in parts of the region.

Medical: Medical OEM sales grew 10% driven by the Americas and Europe. Hospital sales were up slightly. Other Medical markets were negatively impacted by channel changes.

Process Technologies: Machinery & Equipment sales increased 9%. Consumables sales grew in all regions reflecting growth in the mining, automotive in-plant and mobile OEM sectors.

Sales in Fuels & Chemicals decreased approximately 4% overall on weakness in Europe as well as tough comparables to a strong quarter in fiscal year 2011.

Power Generation sales increased 18%. Systems sales more than doubled, while consumables sales grew about 2%. Key growth drivers in the quarter include the recovery of the turbine OEM sector in Europe.

Municipal Water sales increased about 5%, driven by growth in the Americas.

Aerospace: Military Aerospace grew 28% in the quarter, with all regions contributing. Sales in the Americas were particularly strong. Commercial Aerospace sales increased 12%, with both Americas and Europe strong.

Microelectronics: The result year over year reflects continuing weakness in our customer end markets in Asia. Overall, orders were up 5%.

Conclusion/Outlook

Kingsley concluded, “I’m pleased with our execution in the quarter in that we were able to restore customer confidence. However, we have much to do to demonstrate that we can execute in a manner that is industry-leading and that we can be proud of. Our team is working hard to enable our strategy and build the necessary business processes to deliver consistent performance.

“As we look forward, the market environment is mixed. We anticipate challenges within our European Industrial markets, slower than previously expected global semiconductor end markets, and moderating growth in some emerging markets. Other markets, though, will continue to grow in the current economic environment. Our current assumptions are generally consistent with our third quarter characterization which assumes low to mid-single digit local currency sales growth. On that basis in 2013, we expect pro forma EPS in the $3.05 to $3.25 range, reflecting 9% to 16% earnings per share growth. Included within our guidance is the assumption of 22 - 24 cents of adverse currency associated impact.

“We will provide further details regarding our expectations for fiscal year 2013 on our Q4 call.”

Conference Call

On Thursday, September 13, 2012, at 8:30 am ET, Pall Corporation will host a conference call to review these results. The call can be accessed at www.pall.com/investor. The webcast will be archived for 30 days.

About Pall Corporation

Pall Corporation (NYSE:PLL) is a filtration, separation and purification leader providing solutions to meet the critical fluid management needs of customers across the broad spectrum of life sciences and industry. Pall works with customers to advance health, safety and environmentally responsible technologies. The Company’s engineered products enable process and product innovation and minimize emissions and waste. Pall Corporation is an S&P 500 company serving customers worldwide. Pall has been named a “top green company” by Newsweek magazine. To see how Pall is helping enable a greener, safer, more sustainable future, follow us on Twitter @PallCorporation or visit www.pall.com/green.

Forward-Looking Statements

The matters discussed in this release contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Results for fiscal year 2012 are preliminary until the Company's Form 10-K is filed with the Securities and Exchange Commission on or before October 1, 2012.

Forward-looking statements are those that address activities, events or developments that the Company or management intends, expects, projects, believes or anticipates will or may occur in the future. All statements regarding future performance, earnings projections, earnings guidance, management’s expectations about its future cash needs, dilution from the disposition or future allocation of capital and effective tax rate, and other future events or developments are forward-looking statements. Forward-looking statements are those that use terms such as “may,” “will,” “expect,” “believe,” “intend,” “should,” “could,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” “predict,” “potential,” and similar expressions. Forward-looking statements contained in this and other written and oral reports are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors.

The Company’s forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those envisaged by the Company’s forward-looking statements. Such risks and uncertainties include, but are not limited to, those discussed in Part I–Item 1A.–Risk Factors in the 2011 Form 10-K, and other reports the Company files with the Securities and Exchange Commission, including: the impact of legislative, regulatory and political developments globally; the impact of the uncertain global economic environment; the extent to which adverse economic conditions may affect the Company's sales volume and results; demand for our products and business relationships with key customers and suppliers, which may be impacted by their cash flow and payment practices; delays or cancellations in shipments; the Company's ability to develop and commercialize new technologies or obtain regulatory approval or market acceptance of new technologies; increase in costs of manufacturing and operating costs; the Company's ability to achieve and sustain the savings anticipated from its structural cost initiatives; the Company’s ability to meet its regulatory obligations; changes in product mix, market mix and product pricing, particularly relating to the expansion of the systems business; the Company's ability to successfully complete the Company's business improvement initiatives, which include supply chain enhancements and integrating and upgrading the Company's information systems; the effect of a serious disruption in the Company's information systems; fluctuations in the Company's effective tax rate; the Company’s ability to enforce patents and protect proprietary products and manufacturing techniques; the Company's ability to successfully complete or integrate any acquisitions; volatility in foreign currency exchange rates, interest rates and energy costs and other macroeconomic challenges currently affecting the Company; the impact of pricing and other actions by competitors; the effect of litigation and regulatory inquiries associated with the restatement of the Company's prior period financial statements; the Company's ability to attract and retain management talent or the loss of members of its senior management team; and the effect of the restrictive covenants in the Company's debt facilities. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them, whether as a result of new information, future developments or otherwise.

Management uses certain non-GAAP measurements to assess the Company’s current and future financial performance. The non-GAAP measurements do not replace the presentation of the Company’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing the Company’s financial position and results of operations. The Company has chosen to provide this information to facilitate meaningful comparisons of past, present and future operating results and as a means to emphasize the results of ongoing operations.

Notes to Release: