| East Hills, NY (October 3, 2006) -- Pall Corporation (NYSE: PLL), the global leader in filtration, separations and purification, announces plans to expand its Life Sciences manufacturing operations in Fajardo, Puerto Rico. The planned establishment of a Life Sciences Center of Excellence will significantly expand Pall¡¯s capacity on the island, enhancing its ability to meet the increasing demand for its high quality technologies by the world¡¯s leading pharmaceutical and biotechnology companies, blood centers and hospitals. Pall expects to invest around $50 million in facilities, machinery and equipment and add more than 250 full-time jobs in Puerto Rico by the year 2010. The Hon. An¨ªbal Acevedo-Vil¨¢, Governor of the Commonwealth of Puerto Rico and Eric Krasnoff, Chairman and CEO of Pall made the announcement today at the Pall Fajardo plant. The expansion in Puerto Rico is another step in Pall's standardization and consolidation of its global manufacturing footprint. The Company anticipates that Puerto Rico¡¯s competitive tax rate combined with its facilities optimization program will result in an incremental after tax benefit of more than $10 million annually in three years. ¡°Puerto Rico¡¯s attractive business climate and strong commitment to developing biopharmaceutical manufacturing capability are key factors in bringing numerous drug and biotechnology companies to the island. Expanding our operations in Puerto Rico is an important part of our strategic approach of aligning with customers worldwide and increasing production in lower tax rate jurisdictions,¡± says Mr. Krasnoff. Pall's BioPharmaceuticals business, which represents 15% of total sales, has been growing by double-digits as an increasing number of drugs go into production and the Company's market share grows. ¡°We are extremely pleased by Pall¡¯s decision to expand in Puerto Rico as it enables us to retain a preeminent supplier to the global biopharmaceutical manufacturing industry. We will continue to work together to assure Pall¡¯s welcome here as its presence is a critical component in helping us meet our roadmap goal of extending Puerto Rico capabilities across the entire life sciences value chain,¡± says Boris Jaskille, Executive Director of the Puerto Rico Industrial Development Company (PRIDCO). About Pall Corporation Pall Corporation is the global leader in the rapidly growing field of filtration, separation and purification. Pall is organized into two businesses: Life Sciences and Industrial. These businesses provide leading-edge products to meet the demanding needs of customers in biotechnology, pharmaceutical, transfusion medicine, energy, electronics, municipal and industrial water purification, aerospace, transportation and broad industrial markets. Total revenues for fiscal year 2006 were $2.0 billion. The Company headquarters is in East Hills, New York with extensive operations throughout the world. For more information visit Pall at www.pall.com. About PRIDCO The Puerto Rico Industrial Development Company (PRIDCO) is a government-owned corporation dedicated to promoting Puerto Rico as an investment destination for companies and industries worldwide. Since its establishment in the 1950, PRIDCO has been responsible for attracting over 6,000 manufacturing plants and creating more than 556,000 jobs throughout the island. PRIDCO continues to be a catalyst for Puerto Rico¡¯s economic development, leading the transformation from a traditional industrial economy to an economy based on knowledge. PRIDCO emphasizes on promoting industries with high intellectual content such as the life sciences, technology, computing and services that leverage on our people¡¯s extraordinary talent, experience and capacity for innovation. Forward-Looking Statements: Forward-looking statements contained in this and other written and oral reports are based on current Company expectations and are subject to risks and uncertainties, which could cause actual results to differ materially. All statements regarding future performance, earnings projections, earnings guidance, events or developments are forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in product mix and product pricing particularly as we expand our systems business in which we experience significantly longer sales cycles and less predictable revenue with no certainty of future revenue streams from related consumable product offerings and services; increases in costs of manufacturing and operating costs including energy and raw materials; the Company's ability to achieve the savings anticipated from cost reduction and margin improvement initiatives including the timing of completion of the facilities rationalization initiative; fluctuations in foreign currency exchange rates and interest rates; regulatory approval and market acceptance of new technologies; changes in business relationships with key customers and suppliers including delays or cancellations in shipments; success in enforcing patents and protecting proprietary products and manufacturing techniques; successful completion or integration of acquisitions; domestic and international competition in the Company's global markets; and global and regional economic conditions and legislative, regulatory and political developments. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them. Management uses certain non-GAAP measurements to assess Pall's current and future financial performance. The non-GAAP measurements do not replace the presentation of Pall's GAAP financial results. These measurements provide supplemental information to assist management in analyzing Pall's financial position and results of operations. Pall 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. Editor¡¯s Note: High resolution photos of the Governor of the Commonwealth of Puerto Rico with Pall Corporation Executives and the PRIDCO press release can be found at http://www.pall.com/fajardo |
