Parker Acquires Cabett Subsea


Adds Strength to Portfolio of Solutions for Oil and Gas Market

CLEVELAND, Dec. 4 -- Parker Hannifin (NYSE: PH), the world leader in motion and control technologies, today announced the acquisition of Cabett Subsea, a designer and manufacturer of fluid handling systems and services used in deepwater oil and gas exploration and production. Revenues of the acquired business totaled approximately $25.1 million in 2005. Earnings are expected to be accretive to Parker in the first full year. Terms of the deal were not disclosed.

Commencing operations in 1985, Cabett Subsea is headquartered in Houston, Texas and employs approximately 35 people. The company produces steel tube hydraulic and electro-hydraulic umbilicals, typically made in three to sixteen mile continuous lengths, at its 85,000 square foot dock-side manufacturing plant in Freeport, Texas. The Port of Freeport offers rapid access to the open waters of the Gulf of Mexico, a jumping-off point for the world oil market. Cabett's location is extremely attractive to clients for ease of logistics, mobilization of related equipment, and it supports factory acceptance and system integration testing programs that are common to almost all major oil projects.

Cabett Subsea will be integrated into Parker's worldwide Fluid Connectors Group within the company's Industrial North America segment. Commenting on the transaction, Parker Fluid Connectors Group President Bob Bond said, "The acquisition of Cabett Subsea brings outstanding technology, along with a world class manufacturing facility, to Parker's upstream oil and gas market platform. Their proven engineered umbilical designs that are being used globally complement our hose technology and will expand our systems offering to key customers that discover and produce the world's energy."

John Martin, CEO of Cabett Subsea stated, "Becoming part of the world's leading motion and control company provides Cabett Subsea with all the tools necessary to grow the business to the next level. Our customers, employees, and many valued business partners are looking forward to the many opportunities that a growing world class company like Parker can offer."

With annual sales exceeding $9 billion, Parker Hannifin is the world's leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets. The company employs more than 57,000 people in 43 countries around the world. Parker has increased its annual dividends paid to shareholders for 50 consecutive years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company's web site at www.parker.com/, or its investor information site at http://www.phstock.com/.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO
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SOURCE: Parker Hannifin Corporation

CONTACT: Media, Christopher M. Farage, Vice President, Corp. Communications, +1-216-896-2750, or cfarage@parker.com, or Financial Analysts, Pamela Huggins, Vice President - Treasurer , +1-216-896-2240, or phuggins@parker.com, both of Parker Hannifin Corporation

Web site: http://www.phstock.com/

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