Common use of Results of Operations Clause in Contracts

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on page 18 and the Company's Statements of Consolidated Operations on page 23. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. The Pump Products Group designs, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The Dispensing Equipment Group designs, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The Other Engineered Products Group designs, produces and distributes proprietary engineered products for industrial and commercial markets including fire and rescue, transportation equipment, oil and gas, electronics, communications, and traffic and commercial signs. PERFORMANCE IN 2000 COMPARED TO 1999 IDEX achieved record orders, sales, net income and earnings per share in 2000. Incoming orders totaled $699 million, 7% higher than in 1999. Recent acquisitions (FAST-June 1999, Ismatec-April 2000 and Trebor-May 2000) added 5% to full-year orders and base business orders increased by 5%, while foreign currency translation had a 3% negative effect. All three groups showed year-over-year improvements. Net sales for 2000 reached $704.3 million and increased $49.3 million, or 8%, over 1999. Base business sales were up 6% and acquisitions added 5%, while foreign currency translation had a 3% negative effect. Sales to customers outside the U.S. were 41% of total sales in 2000, up from 39% in 1999. International sales increased by 12% for 2000, while domestic sales increased by 4%. Excluding the recent acquisitions and foreign currency translation, international sales increased by 11%, reflecting higher sales volume in all international markets. Pump Products Group sales of $395.0 million in 2000 increased by $22.6 million, or 6%, from 1999 principally reflecting 3% higher base business sales and the Ismatec and Trebor acquisitions, which added 4% to the sales growth. Foreign currency translation had a 1% negative effect on the group's sales comparison to 1999. International sales grew by 13%, while domestic sales increased by 3%. As a result, sales to customers outside the U.S. increased to 33% of total group sales in 2000 from 31% in 1999, principally due to higher sales in Europe. Dispensing Equipment Group sales of $166.4 million increased by $25.4 million, or 18%, compared with 1999. Overall base business increased by 13% and the FAST acquisition added 11%, while foreign currency translation had a 6% negative effect. International sales grew by 34%, while domestic sales increased by 3%. The increase in international sales reflected FAST in 2000 for a full year and higher base business volume. Sales to customers outside the U.S. were 55% of total group sales in 2000, up from 48% in 1999, resulting primarily from the additional international sales from the FAST acquisition. Other Engineered Products sales of $145.8 million increased by $1.3 million, or 1%, compared with 1999. Overall base business increased by 5% and foreign currency translation had a 4% negative effect. Domestic sales increased by 10% and international sales were 8% lower (1% excluding foreign currency translation). Sales to customers outside the U.S. were 46% of total group sales in 2000, down from 51% in 1999, reflecting a change in sales mix and the effects of foreign currency translation. Gross profit of $278.0 million in 2000 increased by $21.5 million, or 8%, from 1999. Gross profit as a percent of sales was 39.5% in 2000, up slightly from 39.2% in 1999. Selling, general and administrative expenses increased to $149.6 million in 2000 from $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.4% in 1999. Goodwill amortization increased by 4% to $11.8 million in 2000 from $11.3 million in 1999. As a percent of sales, goodwill amortization remained flat at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousands) For the years ended December 31, (0) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2) $ 394,999 $ 372,440 $ 375,692 Operating income (3) 73,557 65,673 74,812 Operating margin 18.6% 17.6% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 Depreciation and amortization 19,658 19,327 19,326 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP Net sales (2) $ 166,362 $ 140,996 $ 122,844 Operating income (3) 32,496 25,614 22,483 Operating margin 19.5% 18.2% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 Depreciation and amortization 8,845 8,124 7,132 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP Net sales (2) $ 145,823 $ 144,486 $ 144,004 Operating income (3) 27,437 26,660 24,596 Operating margin 18.8% 18.5% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 Depreciation and amortization 6,474 6,769 6,275 Capital expenditures 4,796 3,739 5,328 COMPANY Net sales $ 704,276 $ 655,041 $ 640,131 Operating income 116,516 104,677 109,543 Operating margin 16.5% 16.0% 17.1% Income before interest expense and income taxes $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 Depreciation and amortization (4) 36,480 34,464 32,935

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on page 18 10 and the Company's Statements of Consolidated Operations on page 23included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. The Pump Products Group designs, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The Dispensing Equipment Group designs, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The Other Engineered Products Group designs, produces and distributes proprietary engineered products for industrial and commercial markets including fire and rescue, transportation equipment, oil and gas, electronics, communications, and traffic and commercial signs. PERFORMANCE IN THE THIRD QUARTER ENDED SEPTEMBER 30, 2000 COMPARED TO THE SAME PERIOD OF 1999 IDEX achieved reported record orders, sales, net income and earnings per share in for the third quarter ended September 30, 2000. Incoming orders totaled orders, $699 164.0 million, 7were unchanged from 1999 with 3% higher than in 1999. Recent growth from recent acquisitions (FAST-June 1999, Ismatec-April 2000 and Trebor-May April 2000) offset by a 3% decline from base business which was totally attributable to the negative effect from foreign currency translation. Net sales for the three months ended September 30, 2000 were $176.2 million, a 4% increase over the $169.9 million for the comparable 1999 period. Acquisitions added 54% to full-year orders third quarter sales and base business orders increased by 5volume was up 3%, while foreign currency translation had a 3% negative effect. All three groups showed year-over-year improvements. Net sales for 2000 reached income was $704.3 million and increased $49.3 16.6 million, or 8%, over 15% higher than the $14.5 million earned in the third quarter of 1999. Base business Diluted earnings per share rose 6 cents to 54 cents, up 13% compared with the same period a year ago. In the third quarter of 2000, the Pump Products Group contributed 56% of sales and 55% of operating income, the Dispensing Equipment Group accounted for 24% of sales and 25% of operating income, and the Other Engineered Products Group represented both 20% of sales and operating income. International sales were up 6% and acquisitions added 5%, while foreign currency translation had a 3% negative effect. Sales to customers outside the U.S. were 4142% of total sales in 2000sales, up from 3940% in the same quarter of 1999. International sales increased by 12% for In the third quarter of 2000, international sales grew by 9% while domestic sales increased by 4%1% compared with last year. Excluding the recent acquisitions and foreign currency translation, international sales increased by 11%, % reflecting higher sales volume increases in all international markets. Pump Products Group sales of $395.0 100.0 million in for the three months ended September 30, 2000 increased by $22.6 6.5 million, or 67%, from 1999 principally reflecting 3% higher base business sales and the Ismatec and Trebor acquisitions, acquisitions which added 46% to the third quarter sales. Base business sales growth. Foreign volume was up 2% from last year while foreign currency translation had a 1% negative effect on the groupGroup's sales comparison to 1999. International In the third quarter of 2000, international sales grew by 1319%, while domestic sales increased by 32%. As a result, sales to customers outside the U.S. increased to 33% of total group sales in 2000 from 3130% in 1999, principally 1999 due to higher sales in Europeall international markets. Dispensing Equipment Group sales of $166.4 41.7 million increased by $25.4 0.2 million, or 181%, in the third quarter of 2000 compared with 1999last year's third quarter. Overall base Base business increased by 13volume was up 6% from 1999 and the FAST acquisition acquisitions added 11%1% to this Group's sales growth, while foreign currency translation had a 6% negative effect. International In the third quarter of 2000, international sales grew by 349%, while domestic sales increased decreased by 38%, principally reflecting a temporary change in market conditions in the paints and coatings markets. The increase business environment for the Group's dispensing equipment, which primarily serves the paints and coatings markets, remains robust in international sales reflected FAST Europe, due to the European Union-mandated change to water-based pigments. However, this strength is being offset as some paint manufacturers and retailers in 2000 the U.S. have reduced their short-term demand for a full year and higher base business volumepaint dispensing equipment. Sales to customers outside the U.S. were 5556% of total group sales in 2000, up from 4852% in 1999, resulting 1999 primarily from reflecting a change in sales mix due to the additional international stronger European sales from the FAST acquisitionincrease in 2000. Other Engineered Products Group sales of $145.8 35.2 million increased decreased by $1.3 0.3 million, or 1%, in the third quarter of 2000 compared with 1999. Overall base business increased by 53% and foreign currency translation had a negative effect of 4% negative effecton this Group's sales volume. Domestic In the third quarter of 2000, domestic sales increased by 106% and international sales were decreased by 8% with the lower (1% excluding international sales resulting from foreign currency translation). Excluding foreign currency, international sales increased by 1% in 2000 compared to last year. Sales to customers outside the U.S. were 46% of total group sales in 2000, down from 5150% in 1999, 1999 principally reflecting a change in sales mix and the effects of foreign currency translationtranslation effect on international sales in 2000. Gross profit of $278.0 70.2 million in the third quarter of 2000 increased by $21.5 4.4 million, or 87%, from 19991999 reflecting higher sales volume at the Pump Products Group. Gross profit as a percent of sales was 39.539.8% in 2000, up slightly 2000 and increased from 39.238.7% in 1999. Selling, general and administrative expenses increased to $149.6 million in 2000 from $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.4% in 1999. Goodwill amortization increased by 4% to $11.8 million in 2000 from $11.3 million in 1999. As a percent of sales, goodwill amortization remained flat 1999 principally reflecting productivity improvements at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION the Company's IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousandsIN THOUSANDS) For the years ended December 31THIRD QUARTER ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- ------------------- 2000 1999 2000(1) 1999(2) -------- -------- -------- (0UNAUDITED) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2UNAUDITED) $ 394,999 $ 372,440 $ 375,692 Operating income (3) 73,557 65,673 74,812 Operating margin 18.6% 17.6% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 Depreciation and amortization 19,658 19,327 19,326 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP Net sales (2) $ 166,362 $ 140,996 $ 122,844 Operating income (3) 32,496 25,614 22,483 Operating margin 19.5% 18.2% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 Depreciation and amortization 8,845 8,124 7,132 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP Net sales (2) $ 145,823 $ 144,486 $ 144,004 Operating income (3) 27,437 26,660 24,596 Operating margin 18.8% 18.5% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 Depreciation and amortization 6,474 6,769 6,275 Capital expenditures 4,796 3,739 5,328 COMPANY Net sales $ 704,276 $ 655,041 $ 640,131 Operating income 116,516 104,677 109,543 Operating margin 16.5% 16.0% 17.1% Income before interest expense and income taxes $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 Depreciation and amortization (4) 36,480 34,464 32,935Pump Products Group

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on the following page 18 and the Company's Statements of Consolidated Operations on page 23included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. The Pump Products Group designs, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The Dispensing Equipment Group designs, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The Other Engineered Products Group designs, produces and distributes proprietary engineered products for industrial and commercial markets including fire and rescue, transportation equipment, oil and gas, electronics, communications, and traffic and commercial signs. PERFORMANCE IN 2000 THE THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO 1999 THE SAME PERIOD OF 2000 IDEX achieved reported record orderssales; however, sales, recorded lower net income and earnings per share in 2000for the first quarter of 2001 compared with last year. Incoming orders totaled of $699 million, 7189.7 million were 2% higher lower than 2000 as a result of an 11% decrease in 1999. Recent acquisitions (FAST-June 1999, Ismatec-April 2000 the base businesses and Trebor-May 2000) added 5a 2% to full-year orders and base business orders increased by 5%, while negative effect from foreign currency translation had a 3partially offset by 11% negative effect. All three groups showed year-over-year improvementsgrowth from recent acquisitions. Net sales for 2000 reached the three months ended March 31, 2001 were $704.3 million and increased $49.3 187.4 million, or 8%, over 1999. Base business sales were up a 6% increase over the $176.7 million for the comparable 2000 period. Acquisitions accounted for a 13% improvement, which was partially offset by a 5% decline in base sales activity and acquisitions added 5%a 2% unfavorable currency translation. Net income was $7.2 million, while foreign currency translation had 54% lower than the $15.8 million earned in the first quarter of 2000. Diluted earnings per share decreased 29 cents to 23 cents, down 56% compared with the same period a 3year ago. Excluding the one-time restructuring charge, net income was $10.7 million, 32% negative effectlower than the $15.8 million earned in last year's first quarter, and diluted earnings per share were 35 cents, down 33% from 52 cents last year. Sales to customers outside In the U.S. were 41first three months of 2001, the Pump Products Group contributed 58% of total sales in 2000and 60% of operating income, up from 39the Dispensing Equipment Group accounted for 19% in 1999of sales and 17% of operating income, and the Engineered Products Group represented both 23% of sales and operating income. International In the first three months of 2001, international sales increased grew by 129% for 2000, while domestic sales increased by 4%% compared with last year. Excluding the recent acquisitions and foreign currency translationAs a result, international sales increased by 11%were 41% of total sales, reflecting higher sales volume up from 40% in all international marketsthe same quarter of 2000. Pump Products Group sales of $395.0 109.7 million in 2000 for the three months ended March 31, 2001 increased by $22.6 10.8 million, or 611%, from 1999 2000 principally reflecting 3% higher base business sales the Ismatec, Trebor and the Ismatec and Trebor acquisitions, Liquid Controls acquisitions which added 416% to the first quarter sales. Base business sales growth. Foreign volume was down 4% from last year and foreign currency translation had a 1% negative effect on the groupGroup's sales comparison to 19992000. International In the first quarter of 2001, international sales grew by 13%, while 24% and domestic sales increased by 35% principally reflecting the recent acquisitions. Excluding acquisitions and foreign currency, base international sales increased 1%, while base U.S. sales volume decreased 7% due to weak conditions in the U.S. manufacturing sector. As a result, sales Sales to customers outside the U.S. United States increased to 3335% of total group sales in 2000 2001 from 31% in 1999, 2000 principally due to higher recent acquisitions and the change in sales mix caused by the weaker domestic sales in Europe2001. Dispensing Equipment Group sales of $166.4 35.8 million increased by decreased $25.4 4.1 million, or 1810%, in the first quarter of 2001 compared with 1999last year's first quarter. Overall base Base business increased by 13% and the FAST acquisition added 11%, while foreign currency translation had a volume was down 6% negative effect. International sales grew by 34%, while domestic sales increased by 3%. The increase in international sales reflected FAST in from 2000 for a full year and higher base business volume. Sales to customers outside the U.S. were 55% of total group sales in 2000, up from 48% in 1999, resulting primarily from the additional international sales from the FAST acquisition. Other Engineered Products sales of $145.8 million increased by $1.3 million, or 1%, compared with 1999. Overall base business increased by 5% and foreign currency translation had a 4% negative effect. Domestic sales increased by 10% and In the first quarter of 2001, international sales were 8essentially equal to last year, while domestic sales decreased by 21% lower (1% excluding foreign currency translation)due to continuing weak conditions in the U.S. manufacturing sector, which caused significant year-over-year volume declines. Sales to customers outside the U.S. United States were 4657% of total group sales in 20002001, down up from 51% in 1999, 2000 primarily reflecting a change in sales mix due to the weaker domestic sales in 2001. Other Engineered Products sales of $42.3 million increased by $3.9 million, or 10%, in the first quarter of 2001 compared with 2000 principally reflecting the Class 1 acquisition which added 18% to the first quarter sales. Overall base business sales decreased by 5% and foreign currency translation had a negative effect of 3%. In the effects first quarter of 2001, domestic sales increased by 24% and international sales decreased by 6% with the lower international sales resulting from foreign currency translation. Gross profit Excluding foreign currency and acquisitions, international base sales increased by 1% in 2001, while the base U.S. sales volume decreased 10% compared to last year due to the weak conditions in the U.S. manufacturing markets. Sales to customers outside the United States were 41% of $278.0 million total group sales in 2001, down from 48% in 2000 increased by $21.5 million, or 8%, from 1999principally reflecting the change in sales mix due to the Class 1 acquisition. Gross profit as a percent of sales was 39.5% in 2000, up slightly from 39.2% in 1999. Selling, general and administrative expenses increased to $149.6 million in 2000 from $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.4% in 1999. Goodwill amortization increased by 4% to $11.8 million in 2000 from $11.3 million in 1999. As a percent of sales, goodwill amortization remained flat at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousandsIN THOUSANDS) For the years ended December FOR THE THREE MONTHS ENDED MARCH 31, 2001(1) 2000 (0UNAUDITED) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2) $ 394,999 $ 372,440 $ 375,692 Operating income (3) 73,557 65,673 74,812 Operating margin 18.6% 17.6% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 Depreciation and amortization 19,658 19,327 19,326 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP Net sales (2) $ 166,362 $ 140,996 $ 122,844 Operating income (3) 32,496 25,614 22,483 Operating margin 19.5% 18.2% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 Depreciation and amortization 8,845 8,124 7,132 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP Net sales (2) $ 145,823 $ 144,486 $ 144,004 Operating income (3) 27,437 26,660 24,596 Operating margin 18.8% 18.5% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 Depreciation and amortization 6,474 6,769 6,275 Capital expenditures 4,796 3,739 5,328 COMPANY Net sales $ 704,276 $ 655,041 $ 640,131 Operating income 116,516 104,677 109,543 Operating margin 16.5% 16.0% 17.1% Income before interest expense and income taxes $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 Depreciation and amortization (4) 36,480 34,464 32,935Pump Products Group

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on page 18 11 and the Company's Statements of Consolidated Operations on page 23included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. The Pump Products Group designs, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The Dispensing Equipment Group designs, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The Other Engineered Products Group designs, produces and distributes proprietary engineered products for industrial and commercial markets including fire and rescue, transportation equipment, oil and gas, electronics, communications, and traffic and commercial signs. PERFORMANCE IN 2000 THE SECOND QUARTER ENDED JUNE 30, 2001 COMPARED TO 1999 THE SAME PERIOD OF 2000 IDEX achieved record orders, sales, reported increased orders and sales and lower net income and earnings per share in 2000for the second quarter of 2001 compared with last year. Incoming orders totaled orders, $699 191.4 million, 7were 6% higher than in 1999. Recent 2000 as a result of recent acquisitions (FAST-June 1999Ismatec -- April 2000, Ismatec-April 2000 and Trebor-Trebor -- May 2000, Class 1 -- January 2001, Liquid Controls -- January 2001 and Versa-Matic -- June 2001) added 5% to full-year orders and base business orders increased by 5contributing growth of 15%, while partially offset by a 7% decrease in the base businesses and a 2% negative effect from foreign currency translation had a 3% negative effect. All three groups showed year-over-year improvementstranslation. Net sales in the second quarter grew 4% to $192.6 million from $185.3 million for the comparable 2000 reached period. Acquisitions accounted for a 13% improvement, which was partially offset by a 7% decline in base business activity and a 2% unfavorable currency translation. Net income was $704.3 million and increased $49.3 13.0 million, or 8%26% lower than the record $17.5 million earned in last year's second quarter. Diluted earnings per share, over 1999at 42 cents, also were down 26% from last year's record 57 cents. Base business In the second quarter of 2001, the Pump Products Group contributed 57% of sales and 56% of operating income, the Dispensing Equipment Group accounted for 22% of sales and operating income, and the Engineered Products Group represented 21% of sales and 22% of operating income. International sales were up 6% and acquisitions added 5%, while foreign currency translation had a 3% negative effect. Sales to customers outside the U.S. were 4143% of total sales in 2000sales, up from 3941% in 1999the same quarter of 2000. International In the second quarter of 2001, international sales increased grew by 128% for 2000, while domestic sales increased by 4%1% compared with last year. Excluding the recent acquisitions and foreign currency translation, international sales increased by 111% while domestic sales decreased 13%, reflecting higher sales volume in all international markets. Pump Products Group sales of $395.0 110.4 million in 2000 for the three months ended June 30, 2001 increased by $22.6 8.5 million, or 68%, from 1999 2000 principally reflecting 3% higher base business sales the Ismatec, Trebor, Liquid Controls and the Ismatec and Trebor acquisitions, Versa-Matic acquisitions which added 416% to the second quarter sales. Base business sales growth. Foreign volume was down 7% from last year and foreign currency translation had a 1% negative effect on the groupGroup's sales comparison to 19992000. International In the second quarter of 2001, international sales grew by 13%, while 22% and domestic sales increased by 32% principally reflecting the recent acquisitions. Excluding acquisitions and foreign currency, base international sales decreased 2%, while base U.S. sales volume decreased 10% with the lower U.S. sales principally caused by weak conditions in the U.S. manufacturing sector. As a result, sales to customers outside the U.S. increased to 3337% of total group sales in 2000 2001 from 3133% in 1999, 2000 principally due to higher sales in Europerecent acquisitions. Dispensing Equipment Group sales of $166.4 41.6 million increased by decreased $25.4 5.6 million, or 1812%, in the second quarter of 2001 compared with 1999last year's second quarter. Overall base Base business increased by 13volume was down 8% and the FAST acquisition added 11%, while foreign currency translation had a 6% negative effect. International sales grew by 34%, while domestic sales increased by 3%. The increase in international sales reflected FAST in from 2000 for a full year and higher base business volume. Sales to customers outside the U.S. were 55% of total group sales in 2000, up from 48% in 1999, resulting primarily from the additional international sales from the FAST acquisition. Other Engineered Products sales of $145.8 million increased by $1.3 million, or 1%, compared with 1999. Overall base business increased by 5% and foreign currency translation had a 4% negative effect. Domestic sales increased by 10% and In the second quarter of 2001, international sales essentially were 8equal to last year, while domestic sales decreased by 25% lower (1% excluding foreign currency translation)due to continuing weak conditions in the U.S. manufacturing sector, which caused significant year-over-year volume declines in U.S. markets. Sales to customers outside the U.S. were 4660% of total group sales in 20002001, down up from 5153% in 1999, 2000 primarily reflecting a change in sales mix and the effects of foreign currency translationdue to weaker U.S. sales in 2001. Gross profit Other Engineered Products sales of $278.0 41.3 million in 2000 increased by $21.5 4.4 million, or 812%, from 1999in the second quarter of 2001 compared with 2000 principally reflecting the Class 1 acquisition which added 19% to the second quarter sales. Gross profit as Overall base business decreased by 6% and foreign currency translation had a percent negative effect of 1% on this Group's sales was 39.5volume. In the second quarter of 2001, domestic sales increased by 26% and international sales decreased by 4%. Excluding foreign currency and acquisitions, international base sales decreased by 3% in 20002001, up slightly while the base U.S. sales volume decreased 8% compared to last year. Sales to customers outside the U.S. were 40% of total group sales in 2001, down from 39.247% in 19992000 principally reflecting the change in sales mix due to the Class 1 acquisition. SellingSECOND QUARTER ENDED SIX MONTHS ENDED JUNE 30, general and administrative expenses increased to JUNE 30, -------------------- -------------------- 2001(1) -------- 2000(2) -------- 2001(1) -------- 2000(2) -------- Pump Products Group Net sales(3)................................ $149.6 million in 2000 from 110,433 $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.4% in 1999. Goodwill amortization increased by 4% to 101,906 $11.8 million in 2000 from 220,175 $11.3 million in 1999. As a percent of sales, goodwill amortization remained flat at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousands) For the years ended December 31, (0) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2) $ 394,999 $ 372,440 $ 375,692 200,893 Operating income (3) 73,557 65,673 74,812 Operating margin 18.6% 17.6% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 before restructuring(4).... 16,721 18,942 32,946 38,265 Depreciation and amortization 19,658 19,327 19,326 amortization............... $ 6,146 $ 5,047 $ 12,319 $ 10,022 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP expenditures........................ 2,656 1,867 5,283 3,833 Dispensing Equipment Group Net sales (2) sales(3)................................ $ 166,362 41,577 $ 140,996 47,172 $ 122,844 77,411 $ 87,092 Operating income (3) 32,496 25,614 22,483 Operating margin 19.5% 18.2% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 before restructuring(4).... 6,626 10,715 11,274 17,932 Depreciation and amortization 8,845 8,124 7,132 amortization............... $ 2,247 $ 2,244 $ 4,657 $ 4,382 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP expenditures........................ 1,591 1,382 2,703 2,483 Other Engineered Products Group Net sales (2) sales(3)................................ $ 145,823 41,333 $ 144,486 36,978 $ 144,004 83,612 $ 75,381 Operating income (3) 27,437 26,660 24,596 Operating margin 18.8% 18.5% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 before restructuring(4).... 6,627 6,549 12,674 13,988 Depreciation and amortization 6,474 6,769 6,275 amortization............... $ 1,910 $ 1,737 $ 3,987 $ 3,505 Capital expenditures 4,796 3,739 5,328 COMPANY expenditures........................ 1,429 889 2,919 2,156 Company Net sales sales(3)................................ $192,622 $185,258 $380,017 $361,920 Before restructuring: operating income...... 26,241 31,756 48,738 61,719 After restructuring: operating income....... $ 704,276 26,241 $ 655,041 31,756 $ 640,131 Operating income 116,516 104,677 109,543 Operating margin 16.5% 16.0% 17.1% Income before interest expense and income taxes 43,077 $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 61,719 Depreciation and amortization (4) 36,480 34,464 32,935amortization(5)............ $ 10,865 $ 9,429 $ 22,090 $ 18,394 Capital expenditures........................ 5,807 4,219 11,110 8,567 ---------------

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on page 18 11 and the Company's Statements of Consolidated Operations on page 23included in the Financial Statements section. IDEX consists of three reporting groupsreportable business segments: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE SAME PERIOD OF 1998 Net sales for the three months ended March 31, 1999, were $156.5 million, a decrease of 2% from the sales of $159.1 million for the first quarter of 1998. Net income from continuing operations for the quarter amounted to $11.9 million, 14% lower than the $13.9 million earned in last year's first quarter. Diluted earnings per share from continuing operations were 40 cents versus 46 cents in the same quarter last year. New orders from continuing operations totaled $165.9 million and exceeded shipments by more than $9 million in the first quarter of 1999. The Company ended the first quarter with a typical unfilled orders backlog of about 1 1/3 months' sales. In the first quarter of 1999, the Pump Products Group designscontributed 60% of sales and 63% of operating income, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The the Dispensing Equipment Group designsaccounted for 17% of sales and 14% of operating income, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The the Other Engineered Products Group designsrepresented 23% of both sales and operating income. The inclusion of Xxxx, produces acquired on January 21, 1998, for a full quarter of 1999 added 4% to the quarterly sales growth but was offset by a 6% decline in base business activity. International sales were 37% of total sales in the first quarter of 1999, down from 40% in last year's first quarter. A portion of this reduction came from including Xxxx for a full quarter in 1999, which only has about 20% of its sales outside of the United States. Certain international markets, particularly Europe and distributes proprietary engineered products for industrial and commercial markets including fire and rescueLatin America, transportation equipmentexperienced softer economic conditions this quarter compared to the first quarter of last year, oil and gaswhich also contributed to the reduction in the international sales. Partially offsetting this international decline were shipments to Asia, electronics, communications, and traffic and commercial signs. PERFORMANCE IN 2000 COMPARED TO 1999 IDEX achieved record orders, sales, net income and earnings per share in 2000. Incoming orders totaled $699 million, 7which were about 5% higher than in 1999either the first or fourth quarters of 1998. Recent acquisitions (FAST-June 1999Compared to the first quarter of last year, Ismatec-April 2000 and Trebor-May 2000) added 5% to full-year orders and base business orders total domestic sales increased by 52%, while foreign currency translation had a 3% negative effect. All three groups showed year-over-year improvements. Net international sales for 2000 reached $704.3 million and increased $49.3 million, or declined 8%. Pump Products Group sales of $94.3 million for the three months ended March 31, over 1999, were essentially equal to the sales of $94.5 million in same period of 1998. Base The inclusion of Xxxx for a full quarter of 1999 added 8% to the quarterly sales growth but was offset by a decline in base business sales were up 6% and acquisitions added 5%, while foreign currency translation had a 3% negative effectactivity of the Pump Products Group. Sales to customers outside the U.S. were 41declined to 30% of total sales in 2000, up the first quarter of 1999 from 3932% in 1999. International sales increased by 12% for 2000, while domestic sales increased by 4%. Excluding the recent acquisitions and foreign currency translation, international sales increased by 11%, reflecting higher sales volume in all international markets. Pump Products Group sales of $395.0 million in 2000 increased by $22.6 million, or 6%, from 1999 principally reflecting 3% higher base business sales and the Ismatec and Trebor acquisitions, which added 4% to the sales growth. Foreign currency translation had a 1% negative effect on the group's sales comparison to 1999. International sales grew by 13%, while domestic sales increased by 3%. As a result, sales to customers outside the U.S. increased to 33% of total group sales in 2000 from 31% in 19991998, principally due to higher sales in Europethe inclusion of Xxxx for the full first quarter of 1999. Dispensing Equipment Group sales of $166.4 26.3 million increased decreased by $25.4 3.7 million, or 1812%, in the first quarter of 1999 compared with 1999last year's first quarter principally due to lower sales volume in certain international markets, particularly Europe and Latin America. Overall base business increased by 13% and As a result of the FAST acquisition added 11%, while foreign currency translation had a 6% negative effect. International sales grew by 34%, while domestic sales increased by 3%. The increase decrease in international sales reflected FAST in 2000 for a full year and higher base business volume. Sales sales, shipments to customers outside the U.S. decreased to 40% of total Dispensing Equipment Group sales in the first quarter of 1999, down from 44% in the first quarter of 1998. Other Engineered Products Group sales of $36.6 million increased by $1.2 million, or 3%, in the first quarter of 1999 compared with 1998. The increase principally reflected higher sales in the U.S. fire and rescue markets. As a result of the strengthening in U.S. sales, international sales were 5552% of total group sales in 2000, up from 48% in the first quarter of 1999, resulting primarily from the additional international sales from the FAST acquisition. Other Engineered Products sales of $145.8 million increased by $1.3 million, or 1%, compared with 1999. Overall base business increased by 5% and foreign currency translation had a 4% negative effect. Domestic sales increased by 10% and international sales were 8% lower (1% excluding foreign currency translation). Sales to customers outside the U.S. were 46% of total group sales in 2000, down from 5154% in 1999, reflecting a change in sales mix and the effects same quarter of foreign currency translation1998. Gross profit of $278.0 million in 2000 increased by $21.5 million, or 8%, from 1999. Gross profit as a percent of sales was 39.5% in 2000, up slightly from 39.2% in 1999. Selling, general and administrative expenses increased to $149.6 million in 2000 from $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.4% in 1999. Goodwill amortization increased by 4% to $11.8 million in 2000 from $11.3 million in 1999. As a percent of sales, goodwill amortization remained flat at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousandsIN THOUSANDS) For the years ended December FOR THE THREE MONTHS ENDED MARCH 31, (0--------------------- 1999 1998(1) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2) )............................................. $ 394,999 94,308 $ 372,440 $ 375,692 94,471 Operating income (3) 73,557 65,673 74,812 )...................................... 17,253 20,625 Operating margin 18.6margin.......................................... 18.3% 17.621.8% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 Depreciation and amortization 19,658 19,327 19,326 amortization............................. $ 4,909 $ 4,597 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP expenditures...................................... 1,863 2,236 spensing Equipment Group Net sales (2) )............................................. $ 166,362 26,259 $ 140,996 $ 122,844 29,973 Operating income (3) 32,496 25,614 22,483 )...................................... 3,676 5,333 Operating margin 19.5margin.......................................... 14.0% 18.217.8% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 Depreciation and amortization 8,845 8,124 7,132 amortization............................. $ 1,699 $ 1,732 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP expenditures...................................... 1,197 629 her Engineered Products Group Net sales (2) )............................................. $ 145,823 36,569 $ 144,486 $ 144,004 35,392 Operating income (3) 27,437 26,660 24,596 )...................................... 6,315 5,770 Operating margin 18.8margin.......................................... 17.3% 18.516.3% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 Depreciation and amortization 6,474 6,769 6,275 amortization............................. $ 1,729 $ 1,569 Capital expenditures 4,796 3,739 5,328 COMPANY expenditures...................................... 1,017 1,463 mpany Net sales $ 704,276 $ 655,041 $ 640,131 sales................................................. $156,488 $159,084 Operating income 116,516 104,677 109,543 income.......................................... 23,625 28,392 Operating margin 16.5margin.......................................... 15.1% 16.017.8% 17.1% Income before interest expense and income taxes $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 Depreciation and amortization (4) 36,480 34,464 32,935)......................... $ 8,415 $ 7,963 Capital expenditures...................................... 4,104 7,096 Pump Products Group Di Ot Co - -------------------------

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on page 18 11 and the Company's Statements of Consolidated Operations on page 23included in the Financial Statements section. IDEX consists of three reporting groupsreportable business segments: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE SECOND QUARTER ENDED JUNE 30, 1999 COMPARED TO THE SAME PERIOD OF 1998 Net sales for the three months ended June 30, 1999, were $161.5 million, a decrease of 5% from the sales of $169.5 million for the second quarter of 1998. Foreign currency translation accounted for 1% of this difference. Net income from continuing operations for the quarter amounted to $14.1 million, 7% lower than the $15.1 million earned in last year's second quarter. Diluted earnings per share from continuing operations were 47 cents versus 50 cents in the same quarter last year. Second quarter diluted earnings per share were the third highest in the Company's history but fell short of the record performance set in the same quarter last year. New orders from continuing operations totaled $161.3 million and essentially equaled shipments, maintaining the $9 million backlog build which occurred during the first quarter of the year. The Company ended the second quarter with a typical unfilled orders backlog of about 1 1/3 months' sales. In the second quarter of 1999, the Pump Products Group designscontributed 59% of sales and 57% of operating income, produces and distributes a wide range of engineered industrial pumps, compressors, flow meters and related controls for process applications, including mixing and metering paints, inks, chemicals, foods, lubricants and fuels, as well as in medical, pharmaceutical and semiconductor applications, water treatment, and industrial production operations. The the Dispensing Equipment Group designsaccounted for 20% of sales and 24% of operating income, manufactures and distributes precision-engineered equipment for dispensing, metering and mixing paints and coatings in retail and commercial markets; refinishing equipment; and centralized lubrication systems. The the Other Engineered Products Group designsrepresented 21% of sales and 19% of operating income. International sales were 38% of total sales in the second quarter of 1999, produces and distributes proprietary engineered products for industrial and commercial markets including fire and rescuedown from 39% in last year's second quarter. Compared to the second quarter of last year, transportation equipmenttotal domestic sales decreased 2%, while international sales declined 9%. Certain international markets, especially Europe, experienced softer economic conditions this quarter compared to the second quarter of last year. Pump Products Group sales of $94.9 million decreased by $4.4 million, or 4%, in the second quarter of 1999 compared with last year's second quarter chiefly due to lower sales from certain business units that serve the chemical processing, oil and gas, electronicsand pulp and paper markets. Sales to customers outside the U.S. declined to 30% of total sales in the first quarter of 1999 from 31% in 1998. Dispensing Equipment Group sales of $33.1 million for the three months ended June 30, communications, and traffic and commercial signs. PERFORMANCE IN 2000 COMPARED TO 1999 IDEX achieved record orders, sales, net income and earnings per share in 2000. Incoming orders totaled $699 million, 7% higher than in 1999. Recent acquisitions (FAST-June 1999, Ismatec-April 2000 and Trebor-May 2000) added 5% were essentially equal to full-year orders and base business orders the sales of $33.4 million in the same period of 1998. Compared to the second quarter of last year, domestic sales increased by 56%, while foreign currency translation had international sales declined 8%. As a 3result of the decrease in international sales, sales to customers outside the U.S. decreased to 45% negative effectof total Dispensing Equipment Group sales in the second quarter of 1999 down from 49% in the second quarter of 1998 principally due to lower sales volume in Europe. All three groups showed year-over-year improvements. Net Other Engineered Products Group sales for 2000 reached of $704.3 34.2 million and increased decreased by $49.3 3.1 million, or 8%, over 1999in the second quarter of 1999 compared with 1998. Base business The decrease principally reflected lower international sales were up 6% in the fire, rescue and acquisitions added 5%, while foreign currency translation had a 3% negative effectbanding and clamping markets. Sales to customers outside the U.S. were 41% of total sales in 2000, up from 39% in 1999. International sales increased by 12% for 2000, while domestic sales increased by 4%. Excluding the recent acquisitions and foreign currency translation, international sales increased by 11%, reflecting higher sales volume in all international markets. Pump Products Group sales of $395.0 million in 2000 increased by $22.6 million, or 6%, from 1999 principally reflecting 3% higher base business sales and the Ismatec and Trebor acquisitions, which added 4% to the sales growth. Foreign currency translation had a 1% negative effect on the group's sales comparison to 1999. International sales grew by 13%, while domestic sales increased by 3%. As a result, sales to customers outside the U.S. increased to 3349% of total group sales in 2000 the second quarter of 1999, down from 3152% in 1999, same quarter of 1998 principally due to higher lower sales volume in Europe. Dispensing Equipment Group sales of $166.4 million increased by $25.4 million, or 18%, compared with 1999. Overall base business increased by 13% certain international markets including Europe and the FAST acquisition added 11%, while foreign currency translation had a 6% negative effect. International sales grew by 34%, while domestic sales increased by 3%. The increase in international sales reflected FAST in 2000 for a full year and higher base business volume. Sales to customers outside the U.S. were 55% of total group sales in 2000, up from 48% in 1999, resulting primarily from the additional international sales from the FAST acquisition. Other Engineered Products sales of $145.8 million increased by $1.3 million, or 1%, compared with 1999. Overall base business increased by 5% and foreign currency translation had a 4% negative effect. Domestic sales increased by 10% and international sales were 8% lower (1% excluding foreign currency translation). Sales to customers outside the U.S. were 46% of total group sales in 2000, down from 51% in 1999, reflecting a change in sales mix and the effects of foreign currency translationAsia. Gross profit of $278.0 64.7 million in 2000 increased the second quarter of 1999 decreased by $21.5 2.6 million, or 84%, from 19991998 and primarily reflects the lower sales volume. Gross profit as a percent of sales was 39.5% in 2000, up slightly from 39.240.1% in 1999. Selling, general and administrative expenses increased to $149.6 million in 2000 up from $140.5 million in 1999, and as a percent of net sales, decreased to 21.2% from 21.439.7% in 19991998. Goodwill amortization increased The increase in year-to-year gross profit margins was caused primarily by 4% to $11.8 million in 2000 from $11.3 million in 1999sales mix. As a percent of sales, goodwill amortization remained flat at about 1.7% for both years. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATION IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (in thousandsIN THOUSANDS) For the years ended December 31SECOND QUARTER ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1999 1998 1999 1998 (01) 0000 0000 ------------------------------------ --------- ---------- PUMP PRODUCTS GROUP 1998 --------- Net sales (2UNAUDITED) $ 394,999 $ 372,440 $ 375,692 Operating income (3) 73,557 65,673 74,812 Operating margin 18.6% 17.6% 19.9% Identifiable assets $ 391,831 $ 355,983 $ 370,578 Depreciation and amortization 19,658 19,327 19,326 Capital expenditures 10,656 8,616 8,652 DISPENSING EQUIPMENT GROUP Net sales (2) $ 166,362 $ 140,996 $ 122,844 Operating income (3) 32,496 25,614 22,483 Operating margin 19.5% 18.2% 18.3% Identifiable assets $ 204,891 $ 216,273 $ 151,380 Depreciation and amortization 8,845 8,124 7,132 Capital expenditures 5,175 5,896 4,000 OTHER ENGINEERED PRODUCTS GROUP Net sales (2) $ 145,823 $ 144,486 $ 144,004 Operating income (3) 27,437 26,660 24,596 Operating margin 18.8% 18.5% 17.1% Identifiable assets $ 148,753 $ 154,490 $ 158,930 Depreciation and amortization 6,474 6,769 6,275 Capital expenditures 4,796 3,739 5,328 COMPANY Net sales $ 704,276 $ 655,041 $ 640,131 Operating income 116,516 104,677 109,543 Operating margin 16.5% 16.0% 17.1% Income before interest expense and income taxes $ 117,547 $ 105,245 $ 110,022 Total assets 758,854 738,567 695,811 Depreciation and amortization (4) 36,480 34,464 32,935UNAUDITED)