Gardner Denver, Inc. Reports Solid Revenue and Earnings Growth for the Second Quarter of 2008

QUINCY, IL, Jul 23 (MARKET WIRE) --
Gardner Denver, Inc. (NYSE: GDI)

Compared to the second quarter of 2007:

-- Revenues increased 13 percent
-- Net income increased 11 percent
-- Diluted earnings per share increased 12 percent

Gardner Denver, Inc. (NYSE: GDI) announced that revenues and net
income for the three months ended June 30, 2008 were $518.1 million and
$49.6 million, respectively. For the six-month period of 2008, revenues
and net income were $1.0 billion and $100.4 million, respectively.
Diluted earnings per share ("DEPS") for the three-month period were
$0.93, 12 percent higher than the comparable period of 2007, and included
a $3.9 million pretax charge for non-recurring retirement expenses, which
decreased DEPS by $0.05 in the second quarter. For the six-month period
of 2008, DEPS were $1.87, 15 percent higher than the comparable period of
the previous year. The Company's DEPS improvement for the three months
ended June 30, 2008 was attributable to organic revenue growth in the
Compressor and Vacuum Products segment, operational improvements,
including benefits from cost reduction efforts, favorable changes in
foreign currency exchange rates, lower interest expense, and a lower
effective tax rate. Cash provided by operating activities was $52 million
in the three-month period of 2008, the highest level ever posted in the
second quarter by the Company, and included a $5.2 million reduction in
inventory since March 31, 2008. For the six-month period of 2008, cash
provided by operating activities exceeded $117 million.

Subsequent Event

On Monday, July 21, 2008, Gardner Denver announced that it has entered
into separate share purchase agreements with the holders of 100 percent
of the outstanding shares of CompAir Holdings Limited ("CompAir"), a
leading global manufacturer of compressed air and gas solutions, for a
total enterprise value of GBP 197.5 million (approximately $395 million),
which will be paid through a combination of cash and the assumption of
existing CompAir debt. The closing of this acquisition, which is expected
to occur in the fourth quarter of 2008, is subject to regulatory approval
and certain other closing conditions. The CompAir acquisition will be
further addressed during the Company's second quarter 2008 earnings
conference call scheduled for Thursday, July 24, 2008 at 9:30 a.m.
Eastern time.

Review of Results

"I am very pleased with Gardner Denver's performance in the second quarter
of 2008, which reflects the Company's flexibility and drive to improve
results in the face of many dynamic changes," said Barry L. Pennypacker,
Gardner Denver's President and Chief Executive Officer. "During the
quarter, we achieved record shipment levels, furthered our understanding
and application of lean methodologies, and negotiated the Company's most
significant acquisition since 2005. The acquisition of CompAir is intended
to strengthen Gardner Denver's position as a leading global provider of
compressor and vacuum products, further diversify the Company's end market
segments served, and expand product technologies available to our
customers. We believe the synergies between the two organizations are very
compelling.

"The second quarter results reflect continued strength in most of our
compressor and vacuum end market segments and a slight reacceleration in
demand for drilling pumps," said Mr. Pennypacker. "While demand for
compressor and vacuum products was broad-based during the quarter, both
regionally and across product lines, certain areas of our business have
begun to show weakness and our outlook remains cautious for the second
half of this year. In particular, demand for standard industrial
compressors in the U.S. and U.K. has continued to slow in recent months.
Demand for compressors tends to follow changes in industrial capacity
utilization rates and when this key indicator declines below 80%, which
occurred in the U.S. during the second quarter of 2008, historically
orders for compressors decline six months later. Demand for compressor
and vacuum products remains strong in Asia, while Europe is still
growing, but at a lower rate. Demand for our engineered products
continues to be robust throughout the world, including environmental and
oil and gas refining applications in the U.S. On balance, the economic
climate appears consistent with our expectations that orders for our
compressor and vacuum products will continue to grow through the balance
of the year, but at a lower rate. In response to elevated prices for oil
and natural gas, demand for our petroleum products has demonstrated an
improvement, although not to levels realized in 2006.

"For the three months ended June 30, 2008, compared to the same period of
2007, revenues increased 13 percent, reflecting the favorable impact of
foreign currency exchange rates and strong organic growth in Europe and
Asia," said Mr. Pennypacker. "As expected, gross profit as a percentage of
revenues declined in the second quarter of 2008, when compared to the
second quarter of 2007, as a result of the Company's product mix shifting
away from petroleum pumps. Operating income as a percentage of revenues
also declined year-over-year, primarily reflecting the gross profit as a
percentage of revenues decline and the non-recurring retirement expenses.
We are in the process of rapidly expanding our lean enterprise techniques,
which creates near-term pressure on operating margins and production as
processes are improved and inventory is reduced. The benefit is realized
in manufacturing lead-time reduction, with operating margin improvements
attributable to lean initiatives expected to begin in 2009.

"The strong operating performance of the Company, combined with a $5.2
million inventory reduction, resulted in $52 million in cash provided by
operating activities during the second quarter, despite receivables
expanding in response to revenue growth. The Company used this cash
primarily to repay $43.0 million of debt during the three-month period.
Cash provided by operating activities in the first six months of 2008
exceeded $117 million. As of June 30, 2008, debt to total capital was 16.2
percent, compared with 19.4 percent at March 31, 2008. We believe that our
balance sheet will remain strong, even after the incremental debt added to
complete the acquisition of CompAir," said Mr. Pennypacker.

Compressor and Vacuum Products segment orders and revenues grew by 13
percent and 18 percent, respectively, in the second quarter of 2008,
compared with the same period of 2007, reflecting favorable changes in
foreign currency exchange rates and increased global demand for engineered
packages and products used in original equipment manufacturer ("OEM")
applications. Manufacturing integration projects completed in 2007
resulted in year-over-year operating margin expansion in this reportable
segment and investments in lean enterprise techniques have resulted in
manufacturing lead-time reductions, allowing for increased output.
Compressor and Vacuum Products segment operating income(1) as a percentage
of revenues (segment operating margin(1)) increased to 12.4 percent in the
second quarter of 2008, compared to 11.5 percent in the same quarter of
2007.

Fluid Transfer Products segment revenues declined 5 percent in the three
months ended June 30, 2008, compared to the same period of 2007, primarily
due to reduced petroleum pump shipments, partially offset by increased
shipments of loading arms. Orders decreased 24 percent in the second
quarter, compared with the same period of 2007, primarily reflecting two
unusually large contracts that were received in 2007 for liquid natural
gas and compressed natural gas loading arms destined for South America
that did not recur in 2008. In the second quarter of 2008, drilling pump
orders reaccelerated as a result of investments in rigs by key customers
and on-going international demand for drilling pumps.

Fluid Transfer Products segment operating margin(1) was 21.8 percent in
the three months ended June 30, 2008, compared to 28.6 percent in the same
period of the prior year. The year-over-year decrease in segment operating
margin primarily reflects the expected decline in petroleum pump
shipments, some of the Company's most profitable product lines.

"I would like to extend a special thank you to Gardner Denver's employees
in Quincy, Illinois. In June, this team successfully faced 500-year flood
conditions and still achieved our production and shipment commitments. I
would also like to thank the Quincy community for their outstanding
support," said Mr. Pennypacker.

Outlook

"We continue to expect global economic growth to slow for the balance of
2008, although demand in Eastern Europe and Asia is expected to remain
strong through the end of the year. Growth in Compressor and Vacuum
Products orders slowed slightly in the second quarter, reflecting reduced
demand for our lower horsepower industrial products. Demand for Gardner
Denver's engineered packages and products designed for OEM applications
has remained strong and is expected to remain robust through the
remainder of 2008. Overall, we expect Compressor and Vacuum Products
revenue to continue to grow, albeit at a lower rate, through the balance
of 2008," said Mr. Pennypacker.

"The Company's backlog of petroleum pumps and related aftermarket parts
increased slightly during the three-month period ended June 30, 2008, the
second consecutive quarter of increasing backlog in these product lines.
Although demand for petroleum pumps has improved slightly during the
course of the year, we are not expecting a significant increase in volume
related to recent increases in oil and gas prices. We believe there is
excess capacity in North American well servicing firms that will be
absorbed in the coming months, which could result in near-term downward
pressure on well servicing pump demand. Furthermore, although drilling
pump demand is improving, the rate of new rig build is not expected to
reach the quantity completed during the previous three years. Therefore,
the Company expects Fluid Transfer Product shipments to increase slightly
compared to its previous forecast, but remain level with that of 2007.

"Gardner Denver is also renewing its focus on the aftermarket business
that is available for each of our product lines. Although we have been
relatively successful in capturing aftermarket revenues, I have challenged
my management team to develop action plans to gain additional market
share. I expect that these programs will begin to show benefits in 2009,"
said Mr. Pennypacker.

"Based on our current economic outlook, existing backlog, and the expected
benefit of operational improvement projects, we are raising our full-year
2008 net income outlook. As a result of the pending CompAir acquisition,
the Company does not anticipate completing its share repurchase program in
the current year, which was previously expected to increase DEPS by $0.05
in 2008. Accordingly, we are maintaining our previously provided full-year
2008 DEPS guidance range of $3.65 to $3.75. Our third quarter DEPS is
expected to be $0.84 to $0.88," said Mr. Pennypacker. The midpoint of the
DEPS range for the third quarter of 2008 ($0.86) represents a $0.13 DEPS
(13 percent) decrease from the same period of 2007. The financial results
in the third quarter of 2007 included $10.5 million of non-recurring
reductions in the tax provision, which benefited DEPS by $0.19 for the
quarter. The midpoint of the DEPS range for the full-year 2008 ($3.70)
represents a $0.10 DEPS (3 percent) decrease from the 2007 results. The
financial results in 2007 included $19.5 million of non-recurring
reductions in the tax provision, which benefited DEPS by $0.36 for the
year. The DEPS outlook range for the full-year 2008 assumes 53.9 million
diluted weighted average shares are outstanding in 2008, compared to 54.0
million in 2007. The 2008 DEPS guidance does not take into account the
effect of the CompAir acquisition.

"The effective tax rate assumed in the DEPS guidance for 2008 is 28.0
percent, compared to 23.6 percent for 2007. The income before income taxes
implied by the midpoint of the DEPS range for 2008 reflects a 3 percent
increase from the amount realized in 2007," said Mr. Pennypacker.

The Company invested approximately $10.6 million in capital expenditures
during the second quarter of 2008, compared to $9.6 million in the
comparable period of 2007. Depreciation and amortization expense was
approximately $15.4 million in the three-month period of 2008, compared to
$13.7 million in the same period of 2007. For the full-year 2008, the
Company expects capital spending to be approximately $45 million to $50
million, excluding any investments in CompAir in the fourth quarter of
2008.

Second Quarter Results

Revenues increased $58.2 million (13 percent) to $518.1 million for the
three months ended June 30, 2008, compared to the same period of 2007.
Compressor and Vacuum Products segment revenues increased 18 percent for
the three-month period of 2008, compared to the same period of the
previous year, driven by organic volume growth in nearly all product
lines and geographic regions and favorable changes in foreign currency
exchange rates. Fluid Transfer Products segment revenues decreased 5
percent for the three months ended June 30, 2008, compared to the same
period of 2007, primarily resulting from lower shipments of petroleum
pumps, partially offset by increased volume in all other product lines
and favorable changes in foreign currency exchange rates (see the
Selected Financial Data Schedule set forth below).

Compressor and Vacuum Products orders of $404.0 million for the
three-month period ended June 30, 2008 were $45.9 million (13 percent)
higher than the same period of the previous year due to favorable changes
in foreign currency exchange rates and organic growth. Backlog for
Compressor and Vacuum Products increased 19 percent compared to June 30,
2007, but is approximately 3 percent less than the level as of March 31,
2008, primarily due to improved manufacturing execution.

Fluid Transfer Products orders of $95.2 million for the three months ended
June 30, 2008 were $29.9 million (24 percent) lower than the same period
of the previous year. Fluid Transfer Products orders for the second
quarter of 2007 included the receipt of approximately $37.4 million of
contracts for liquid natural gas and compressed natural gas loading arms
that were delivered to South America in the fourth quarter of 2007 and
the first quarter of 2008. As of June 30, 2008, backlog for Fluid
Transfer Products was approximately 31 percent lower than the level as of
June 30, 2007, primarily due to the timing of large orders for well
stimulation pumps and loading arms, partially offset by increased demand
for drilling pumps in the second quarter of 2008 and favorable changes in
foreign currency exchange rates. Compared to the level as of March 31,
2008, backlog declined approximately 4 percent due to the timing of
orders and shipments of loading arms.

Gross profit increased $14.0 million (9 percent) to $167.9 million for the
three months ended June 30, 2008, compared to the same period of 2007, as
a result of the higher revenue. Gross profit as a percentage of revenues
declined to 32.4 percent in the three-month period of 2008, from 33.5
percent in the same period of 2007, due primarily to product mix,
partially offset by operational improvements and leveraging fixed and
semi-fixed costs over additional sales volume.

As a percentage of revenues, selling and administrative expenses increased
to 18.2 percent for the three-month period ended June 30, 2008, compared
to 18.0 percent for the same period of 2007. Selling and administrative
expenses increased $11.4 million in the three-month period of 2008, as
compared to the same period of the previous year, to $94.3 million. The
increase is primarily due to the unfavorable impact of changes in foreign
currency exchange rates (approximately $5.9 million) and $3.9 million in
non-recurring retirement expenses. Inflationary selling and administrative
expense increases were partially offset by cost reductions realized
through integration initiatives.

The Company's effective tax rate was reduced primarily as a result of
corporate income tax rate changes in Germany and the U.K., which became
effective in 2008. The Company's effective tax rate was 28 percent for the
three-month period of 2008, compared to 31 percent for the three-month
period of 2007.

Net income for the second quarter of 2008 increased $4.8 million (11
percent) to $49.6 million, compared to $44.8 million in same period of
2007, due to revenue growth, cost reductions, reduced interest expense,
favorable changes in foreign currency exchange rates, and a lower
effective tax rate, partially offset by the non-recurring retirement
expenses. DEPS for the three months ended June 30, 2008 were $0.93, 12
percent higher than the comparable period of the previous year.

Six Month Results

Revenues in the first six months of 2008 increased $112.5 million (12
percent) to $1,013.8 million, compared to $901.3 million in the same
period of 2007. This increase resulted from volume growth, price
increases, and favorable changes in foreign currency exchange rates.

Gross profit increased $26.4 million (9 percent) to $329.2 million in the
six months ended June 30, 2008, compared to 2007, as a result of the
higher revenue. Gross profit as a percentage of revenues decreased to 32.5
percent in the first six months of 2008, compared with 33.6 percent in
2007, due primarily to product mix, partially offset by operational
improvements and leveraging fixed and semi-fixed costs over additional
sales volume (see the Selected Financial Data Schedule set forth below).

As a percentage of revenues, selling and administrative expenses improved
to 17.7 percent in the six months ended June 30, 2008, from 18.2 percent
in 2007, as a result of cost control initiatives and leveraging revenue
growth. Selling and administrative expenses increased $15.8 million in the
first six months of 2008 to $179.7 million, due to unfavorable changes in
foreign currency exchange rates ($10.7 million) and other selling and
administrative expense increases, partially offset by cost reductions
realized through integration initiatives.

Operating income increased $10.7 million (8 percent) to $149.5 million in
the six-month period of 2008, compared to the same period of 2007.
Operating income as a percentage of revenues declined to 14.8 percent in
the first six months of 2008, from 15.4 percent in the same period of
2007. The reduced operating income as a percentage of revenues primarily
reflects the Company's changing product mix and higher selling and
administrative expense, partially offset by cost reductions realized to
date through acquisition integration initiatives.

The income tax impact of higher pretax income was offset by a lower
effective tax rate for the first six months of 2008 (28 percent) than the
comparable period of 2007 (31 percent), which was primarily due to
corporate income tax rate changes in Germany and the U.K., which became
effective in early 2008.

Net income increased $12.8 million (15 percent) to $100.4 million in the
first six months of 2008, compared to $87.6 million in the same period of
2007. DEPS for the six months ended June 30, 2008 were $1.87, 15 percent
higher than the same period of the previous year.

Cautionary Statement Regarding Forward-Looking Statements

All of the statements in this release, other than historical facts, are
forward-looking statements, including, without limitation, the statements
made under the "Review of Results," "Subsequent Event," "Outlook," "Second
Quarter Results," and "Six Month Results" sections. As a general matter,
forward-looking statements are those focused upon anticipated events or
trends, expectations, and beliefs relating to matters that are not
historical in nature. The words "anticipate," "preliminary," "expect,"
"believe," "intent," "plan to," "will," "foresee," "project," "forecast,"
and similar expressions identify forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a "safe harbor" for
these forward-looking statements. In order to comply with the terms of
the safe harbor, the Company notes that forward-looking statements are
subject to known and unknown risks, uncertainties, and other factors
relating to the Company's operations and business environment, all of
which are difficult to predict and many of which are beyond the control
of the Company. These known and unknown risks, uncertainties, and other
factors could cause actual results to differ materially from those
matters expressed in, anticipated by or implied by such forward-looking
statements.

These risks and factors include, but are not limited to: (1) the Company's
exposure to economic downturns and market cycles, particularly the level
of oil and natural gas prices and oil and natural gas drilling and
production, which affect demand for the Company's petroleum products, and
industrial production and manufacturing capacity utilization rates, which
affect demand for the Company's compressor and vacuum products; (2) the
risks associated with intense competition in the Company's market
segments, particularly the pricing of the Company's products; (3) the
risks of large or rapid increases in raw material costs or substantial
decreases in their availability, and the Company's dependence on
particular suppliers, particularly iron casting and other metal
suppliers; (4) the occurrence of any event, change or other circumstance
that would result in the termination or delay of the proposed CompAir
acquisition; (5) the inability to complete the proposed acquisition due
to the failure of the Company or CompAir to satisfy any of the conditions
to the closing of the acquisition, including the failure to obtain
necessary regulatory approvals; (6) the risks that the CompAir
acquisition disrupts the plans and operations of the Company, CompAir, or
both and the potential difficulties of employee retention as a result of
the acquisition; (7) the risks that the Company will not realize the
expected financial and other benefits from the proposed acquisition of
CompAir; (8) the ability to continue to identify and complete other
strategic acquisitions and effectively integrate such acquired companies
to achieve desired financial benefits; (9) economic, political, and other
risks associated with the Company's international sales and operations,
including changes in currency exchange rates (primarily between the U.S.
dollar, the euro, the British pound, and the Chinese yuan); (10) the
ability to attract and retain quality executive management and other key
personnel; (11) the risks associated with potential product liability and
warranty claims due to the nature of the Company's products; (12) the
risk of regulatory noncompliance; (13) the risks associated with
environmental compliance costs and liabilities; (14) the risks associated
with pending asbestos and silicosis personal injury lawsuits; (15) the
risk of possible future charges if the Company determines that the value
of goodwill and other intangible assets, representing a significant
portion of its total assets, is impaired; (16) the risk that
communication or information systems failure may disrupt our business and
result in financial loss and liability to our customers; (17) the risks
associated with enforcing the Company's intellectual property rights and
defending against potential intellectual property claims; and (18) the
ability to avoid employee work stoppages and other labor difficulties.
The foregoing factors should not be construed as exhaustive and should be
read together with important information regarding risks and factors that
may affect the Company's future performance set forth in the Company's
Annual Report on Form 10-K for the fiscal year ending December 31, 2007
and other public reports filed with the Securities and Exchange
Commission.

These statements reflect the current views and assumptions of management
with respect to future events. The Company does not undertake, and hereby
disclaims, any duty to update these forward-looking statements, although
its situation and circumstances may change in the future. The inclusion of
any statement in this release does not constitute admission by the Company
or any other person that the events or circumstances described in such
statement are material.

Comparisons of the financial results for the three and six-month periods
ended June 30, 2008 and 2007 follow.

Gardner Denver will broadcast a conference call to discuss second quarter
earnings and the Company's acquisition of CompAir Holdings Limited on
Thursday, July 24, 2008 at 9:30 a.m. Eastern time through a live webcast.
There will be an accompanying presentation posted to Gardner Denver's
website (www.gardnerdenver.com) prior to the conference call. This free
webcast will be available in listen-only mode and can be accessed, for up
to ninety days following the call, through the Investor Relations page on
the Gardner Denver website or through Thomson StreetEvents at
www.earnings.com.

Gardner Denver, Inc., with 2007 revenues of $1.9 billion, is a leading
worldwide manufacturer of reciprocating, rotary and vane compressors,
liquid ring pumps and blowers for various industrial and transportation
applications, pumps used in the petroleum and industrial market segments,
and other fluid transfer equipment serving chemical, petroleum, and food
industries. Gardner Denver's news releases are available by visiting the
Investor Relations page on the Company's website (www.gardnerdenver.com).

(1) Segment operating income (defined as income before interest expense,
other income, net, and income taxes), and segment operating margin
(defined as segment operating income divided by segment revenues) are
indicative of short-term operational performance and ongoing
profitability. For a reconciliation of segment operating income to
consolidated operating income and consolidated income before income
taxes, see "Business Segment
Results."

GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
% %
2008 2007 Change 2008 2007 Change
--------- --------- --- ----------- --------- ---

Revenues $ 518,112 $ 459,869 13 $ 1,013,782 $ 901,287 12
Cost of sales 350,236 306,037 14 684,580 598,528 14
--------- --------- ----------- ---------
Gross profit 167,876 153,832 9 329,202 302,759 9
Selling and
administrative
expenses 94,281 82,848 14 179,659 163,870 10
--------- --------- ----------- ---------
Operating income 73,595 70,984 4 149,543 138,889 8
Interest expense 5,041 6,858 (26) 10,641 13,595 (22)
Other income, net (336) (760) (56) (577) (1,506) (62)
--------- --------- ----------- ---------
Income before income
taxes 68,890 64,886 6 139,479 126,800 10
Provision for
income taxes 19,324 20,115 (4) 39,054 39,213 -
--------- --------- ----------- ---------

Net income $ 49,566 $ 44,771 11 $ 100,425 $ 87,587 15
========= ========= =========== =========

Basic earnings per
share $ 0.94 $ 0.84 12 $ 1.90 $ 1.65 15
========= ========= =========== =========
Diluted earnings per
share $ 0.93 $ 0.83 12 $ 1.87 $ 1.63 15
========= ========= =========== =========

Basic weighted
average number of
shares outstanding 52,753 53,147 52,891 52,951
========= ========= =========== =========
Diluted weighted
average number of
shares outstanding 53,464 54,043 53,606 53,890
========= ========= =========== =========

Shares outstanding
as of June 30 53,217 53,456
========= =========

GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)

%
6/30/2008 3/31/2008 Change 12/31/2007
----------- ----------- ---------- -----------

Cash and equivalents $ 127,134 $ 111,105 14 $ 92,922
Accounts receivable, net 329,003 324,038 2 308,748
Inventories, net 262,586 266,921 (2) 256,446
Total current assets 769,929 748,385 3 701,528

Total assets 2,009,099 1,990,215 1 1,905,607

Short-term borrowings and
current maturities of
long-term debt 30,642 28,997 6 25,737
Accounts payable and
accrued liabilities 295,070 305,398 (3) 286,465
Total current liabilities 325,712 334,395 (3) 312,202
Long-term debt, less
current maturities 219,980 264,416 (17) 263,987

Total liabilities 716,747 769,727 (7) 745,894

Total stockholders' equity $ 1,292,352 $ 1,220,488 6 $ 1,159,713

GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
% %
2008 2007 Change 2008 2007 Change
--------- --------- --- --------- --------- ---
Compressor and Vacuum
Products
Revenues $ 418,126 $ 354,394 18 $ 803,204 $ 693,251 16
Operating income 51,790 40,834 27 97,241 79,529 22
% of revenues 12.4% 11.5% 12.1% 11.5%
Orders 403,987 358,091 13 825,502 725,569 14
Backlog 470,108 393,487 19 470,108 393,487 19

Fluid Transfer
Products
Revenues 99,986 105,475 (5) 210,578 208,036 1
Operating income 21,805 30,150 (28) 52,302 59,360 (12)
% of revenues 21.8% 28.6% 24.8% 28.5%
Orders 95,189 125,075 (24) 198,624 199,657 (1)
Backlog 122,779 178,839 (31) 122,779 178,839 (31)

Reconciliation of
Segment Results to
Consolidated Results
Compressor and Vacuum
Products operating
income $ 51,790 $ 40,834 $ 97,241 $ 79,529
Fluid Transfer
Products
operating income 21,805 30,150 52,302 59,360
--------- --------- --------- ---------
Consolidated operating
income 73,595 70,984 149,543 138,889
% of revenues 14.2% 15.4% 14.8% 15.4%
Interest expense 5,041 6,858 10,641 13,595
Other income, net (336) (760) (577) (1,506)
--------- --------- --------- ---------
Income before income
taxes $ 68,890 $ 64,886 $ 139,479 $ 126,800
========= ========= ========= =========
% of revenues 13.3% 14.1% 13.8% 14.1%
========= ========= ========= =========

The Company has determined its reportable segments in accordance with SFAS
No. 131, "Disclosures about Segments of an Enterprise and Related
Information" and evaluates the performance of its reportable segments based
on operating income, which is defined as income before interest expense,
other income, net, and income taxes. Reportable segment operating income
and segment operating margin (defined as segment operating income divided
by segment revenues) are indicative of short-term operating performance and
ongoing profitability. Management closely monitors the operating income
and operating margin of each business segment to evaluate past performance
and identify actions required to improve profitability.

GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
$ % $ %
Millions Change Millions Change
-------- -------- -------- --------
Compressor and Vacuum Products
2007 Revenues 354.4 693.3
Effect of currency exchange rates 28.6 8 50.9 7
Organic growth 35.1 10 59.0 9
-------- -------- -------- --------
2008 Revenues 418.1 18 803.2 16

2007 Orders 358.1 725.6
Effect of currency exchange rates 27.8 8 52.5 7
Organic growth 18.1 5 47.4 7
-------- -------- -------- --------
2008 Orders 404.0 13 825.5 14

Backlog as of 06/30/07 393.5
Effect of currency exchange rates 33.4 8
Organic growth 43.2 11
-------- --------
Backlog as of 06/30/08 470.1 19

Fluid Transfer Products
2007 Revenues 105.5 208.0
Effect of currency exchange rates 4.2 4 8.9 4
Organic growth (9.7) (9) (6.3) (3)
-------- -------- -------- --------
2008 Revenues 100.0 (5) 210.6 1

2007 Orders 125.1 199.7
Effect of currency exchange rates 3.2 3 8.2 4
Organic growth (33.1) (27) (9.3) (5)
-------- -------- -------- --------
2008 Orders 95.2 (24) 198.6 (1)

Backlog as of 06/30/07 178.8
Effect of currency exchange rates 6.1 3
Organic growth (62.1) (34)
-------- --------
Backlog as of 06/30/08 122.8 (31)

Consolidated Revenues
2007 459.9 901.3
Effect of currency exchange rates 32.8 7 59.8 6
Organic growth 25.4 6 52.7 6
-------- -------- -------- --------
2008 518.1 13 1,013.8 12

Contact:
Christian E. Rothe
Director, Strategic Planning and Development
(217) 228-8224

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