PORT WASHINGTON, N.Y.,- Pall Corporation (NYSE:PLL) today reported financial results for the second quarter of fiscal year 2012 which ended on January 31, 2012.

Second Quarter and Six Months Sales and Earnings Overview

Second quarter sales were $698 million, an increase of 8.2% over last year. Sales in local currency (“LC”) increased 8.0%. Orders in LC increased 3.4%.

Diluted earnings per share (“EPS”) were $0.72 in the quarter, compared to $0.64 last year. Pro forma EPS were $0.76 (excluding restructuring and other charges defined as “Discrete Items”). This compares to $0.68 last year, for an increase of 12%.

For the six months, sales increased 12.2% over last year. Sales in LC increased 9.9%. Orders in LC increased 6.9%. Foreign currency translation increased reported sales and orders in the six months by 2.3% and 2.6%, respectively.

Diluted EPS were $1.31 in the six months, compared to $1.25 for the same period last year. Pro forma EPS, excluding Discrete Items, were $1.50, a 16% increase compared to $1.29 a year earlier.

Larry Kingsley, president and CEO, said, “The sales increase in the quarter reflects good growth in both the Life Sciences and Industrial segments. On a global basis, emerging market sales grew over 20% in local currency driven by the Energy markets in MENA and Latin America. We continue to invest to grow in the emerging markets which represented about 20% of second quarter sales compared to about 17% a year ago.

“Organic orders growth for the quarter was mixed against a tough comparison for the same quarter in 2011. Consumables orders were up 5%, while systems orders decreased 6% driven by Food & Beverage, which experienced unusually high order volume in the second quarter of last year. Our current outlook supports our previously stated sales assumptions for the full year which is mid-single digit organic sales growth.

“Operating profit is up about 8%. This reflects continued unfavorable mix in the Industrial segment and planned spending associated with our enterprise system implementation. Restructuring activities underway will improve margin in the second half.

“Operating cash flow for the first half of the year improved to $204 million from $156 million in the prior year. Working capital improvement drove most of the year-over-year gain.

“Results for the first half are reasonable given the continued choppy environment. While we expect some EPS headwind in the second half as sales growth moderates and foreign exchange impacts our consolidated results, we should be able to offset most of the impact with cost and productivity actions underway. The previously announced ForteBio acquisition closed last week. That will be slightly dilutive to our 2012 results.

“With assumptions of the macro market, particularly the European economy and currency impact, we believe that the bottom end of our guided range is achievable and that our task is to deliver the previously stated midpoint of $3.20 or better.”

Effective in the second quarter of fiscal year 2012, the Company reorganized its Industrial markets as follows:

Energy & Water and the Machinery & Equipment submarket (previously reported as part of the Aeropower market) are now being combined and reported as the Process Technologies market.

With the exclusion of Machinery & Equipment from Aeropower, Aerospace is now the stand-alone descriptor for that part of the business.

Sales information by market for prior periods has been restated to reflect these changes. All discussions and amounts reported in this release are based on the reorganized structure. A table outlining the restated sales by market for the first quarter of fiscal year 2012 and all of fiscal year 2011 is appended to this earnings release.

Process Technologies: Sales in Fuels & Chemicals increased approximately 39%. Growth in all regions was strong driven by robust growth in the oil & gas, refining and alternative energy sectors.

Power Generation sales decreased about 17%. This reflects timing of systems projects and decreased demand from wind turbine OEMs in Asia.

Municipal Water sales decreased about 19% largely driven by sales in the Americas, which were down 37%.This was related to the timing of shipments.

Machinery & Equipment sales were up 18%, with all regions strong. The mining and mobile OEM sectors were key growth drivers.

Aerospace: Military Aerospace grew over 31% in the quarter, with all regions contributing. CH-47 helicopter program sales in the Americas were particularly strong. Commercial Aerospace sales were flat.

Microelectronics: Sales reflect continued weakness in the marketplace, particularly in the display, data storage and ink jet sectors. Sales to the semiconductor sector were flat.

Other Matters

The Company reached an agreement related to the securities class-action lawsuit filed in August 2007. Under the terms of the proposed settlement, the lawsuit will be dismissed and the Company and all individual defendants will be relieved of any liability. The settlement cost will be $22.5 million, substantially all of which is covered by insurance.

Conference Call

On Thursday March 8, 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 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, with total revenues of $2.7 billion for fiscal year 2011, is an S&P 500 company with almost 11,000 employees 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.