Flowserve Announces Final Bookings and Record Backlog for Second Quarter 2006

Second quarter 2006 organic bookings of $910 million compare withsecond quarter 2005 organic bookings of $696 million, and secondquarter 2005 reported bookings of $723 million. Therefore, organicbookings increased about 31 percent in the second quarter of 2006compared with the second quarter 2005 organic bookings. Reportedbookings for the second quarter of 2006 increased by 26 percentcompared with the prior year period. On July 12, 2006, the company hadannounced preliminary bookings of approximately $900 million for thesecond quarter of 2006.

Organic bookings differ from reported bookings by excludingdivested operations, where applicable, in relevant periods and theeffect of currency in 2006 periods. The company divested its GeneralServices operations, which had 2005 bookings of $95 million, effectiveDec. 31, 2005. The company's second quarter 2006 bookings include a $2million currency benefit versus the prior year period.

Second quarter 2006 ending backlog increased approximately 13percent to approximately $1.39 billion, compared with $1.23 billion atMarch 31, 2006. Currency had a 3 percent positive impact on backlog inthe second quarter of 2006, primarily due to the appreciation of theEuro.

The increases in bookings and backlog were primarily due to strongpump project business, including oil-related business in the MiddleEast, and robust global markets in general for the company's products.

Flowserve President and Chief Executive Officer Lewis M. Klingsaid, "We are very pleased with our bookings growth, which has risensharply while we have exercised increased selectivity in pursuingcustomer business. In addition, our operational excellence programshave positioned us well to continue to meet our on-time deliverycommitments to customers and take advantage of very strong marketconditions. Our strong backlog, including the major projects, bodeswell for the remainder of 2006 as well as 2007."

Flowserve Corp. is one of the world's leading providers of fluidmotion and control products and services. Operating in 56 countries,the company produces engineered and industrial pumps, seals and valvesas well as a range of related flow management services.

SAFE HARBOR STATEMENT: This news release includes forward-lookingstatements. Forward-looking statements are all statements that are notstatements of historical facts and include, without limitation,statements relating to our business strategy and statements ofexpectations, beliefs, future plans and strategies and anticipateddevelopments concerning our industry, business, operations andfinancial performance and condition. The words "believe," "seek,""anticipate," "plan," "estimate," "expect," "intend," "project,""forecast," "predict," "potential," "continue," "will," "may,""could," "should," and other words of similar meaning are intended toidentify forward-looking statements. The forward-looking statementsmade in this news release are made pursuant to safe harbor provisionsof the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements involve known and unknown risks,uncertainties and other factors that, in some cases, are beyond ourcontrol. These risks, uncertainties and factors may cause our actualresults, performance and achievements, or industry results and markettrends, to be materially different from any future results,performance, achievements or trends expressed or implied by suchforward-looking statements. Important risks, uncertainties and otherfactors that could cause actual results to differ from theseforward-looking statements include, but are not limited to, thefollowing: delays in future reports of the Company's management andoutside auditors on the Company's internal control over financialreporting and related certifications; continuing delays in theCompany's filing of its periodic public reports and any SEC, NYSE ordebt rating agencies' actions resulting therefrom; the possibility ofadverse consequences of the pending securities litigation; thepossibility of adverse consequences related to the investigations bythe SEC and foreign authorities regarding our participation in theUnited States Oil-for-Food program; the possibility of adverseconsequences of governmental tax audits of the Company's tax returns,including the upcoming IRS audit of the company's U.S. tax returns forthe years 2002 through 2004; the Company's ability to convertbookings, which are not subject to nor computed in accordance withgenerally accepted accounting principles, into revenues at acceptable,if any, profit margins, since such profit margins cannot be assurednor be necessarily assumed to follow historical trends; changes in thefinancial markets and the availability of capital; changes in thealready competitive environment for the Company's products orcompetitors' responses to the Company's strategies; the Company'sability to integrate acquisitions into its management and operations;political risks, military actions or trade embargoes affectingcustomer markets, including the continuing conflict in Iraq,uncertainties in certain Middle Eastern countries such as Iran, andtheir potential impact on Middle Eastern markets and global petroleumproducers; the Company's ability to comply with the laws andregulations affecting its international operations, including the U.S.export laws, and the effect of any noncompliance; the health of thepetroleum, chemical, power and water industries; economic conditionsand the extent of economic growth in the U.S. and other countries andregions; unanticipated difficulties or costs associated with theimplementation of systems, including software; the Company's relativegeographical profitability and its impact on the Company's utilizationof foreign tax credits; the recognition of significant expensesassociated with realigning operations of acquired companies with thoseof Flowserve; the Company's ability to meet the financial covenantsand other requirements in its debt agreements; any terrorist attacksand the response of the U.S. to such attacks or to the threat of suchattacks; technological developments in the Company's products ascompared with those of its competitors; changes in prevailing interestrates and the Company's effective interest costs; and adverse changesin the regulatory climate and other legal obligations imposed on theCompany. It is not possible to foresee or identify all the factorsthat may affect our future performance or any forward-lookinginformation, and new risk factors can emerge from time to time. Giventhese risks and uncertainties, you should not place undue reliance onforward-looking statements as a prediction of actual results. Allforward-looking statements included in this news release are based oninformation available to us on the date of this news release. Weundertake no obligation to revise or update any forward-lookingstatement or disclose any facts, events or circumstances that occurafter the date hereof that may affect the accuracy of anyforward-looking statement.