Parker Acquires SSD Korea Ltd. Strengthening Sales and Support Channel in Asia

SSD Korea reported sales of approximately $16 million for the company's year ended 2010. The acquired company will become a business unit of the Parker Korea Sales Company within the Asia Pacific Group and results will be reported within Parker's Industrial International reporting segment. Parker sees significant opportunities for growth in the Asia Pacific region and the acquisition of SSD Korea will help extend our channel and technical capabilities in local markets here, said Michael Chung, President of Parker's Asia Pacific Group. SSD Korea brings us local market expertise and systems design, fabrication and service competencies that will allow our Automation Group to grow its presence in Korea. We see opportunities to leverage these capabilities by adding to the product offering, expanding into other countries in the region and supporting regional growth strategies for hybrid electric applications.

With annual sales of $10 billion in fiscal year 2010, 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 mobile, industrial and aerospace markets. The company employs approximately 55,000 people in 46 countries around the world. Parker has increased its annual dividends paid to shareholders for 55 consecutive fiscal 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 web site at www.phstock.com.

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It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. A change in economic conditions in individual markets may have a particularly volatile effect on segment performance.

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