Applied Industrial (AIT) 8-K Applied Industrial Technologies Reports Record Third Quarter Results, EPS of $0.49 on 5% Sales Gain

EXHIBIT 99

Applied Industrial Technologies Reports Record Third Quarter Results,
EPS of $0.49 on 5% Sales Gain

CLEVELAND, Ohio, April 18, 2007 — Applied Industrial Technologies (NYSE: AIT)today reported record sales and earnings for the fiscal 2007 third quarter ended March 31, 2007.

Net sales for the third quarter increased 4.8% to $521.1 million from $497.2 million in the comparable period a year ago. Earnings per share increased to $0.49 versus $0.43 last year, up 14%. Last year’s earnings included a $0.03 per share favorable impact that resulted from the timing of purchasing incentives relating to purchases made in prior periods.

For the nine-month period ended March 31, 2007, sales increased 6.4% to $1.486 billion from $1.397 billion in the same period last year. Operating income for the nine months was up 13.3%. Earnings per share increased to $1.37 versus $1.13 last year, up 21%.

Commenting on the results, Applied Chairman & Chief Executive Officer David L. Pugh said, “We are pleased with our quarterly results which showed improvement in sales growth compared to our second quarter. While the economic expansion is less robust than it was last fiscal year, our actions to reduce operating costs helped us continue our improvement in earnings.

“As we enter our fourth fiscal quarter, we maintain our annual earnings guidance of $1.80 to $1.85 per share on sales of $2.01 to $2.04 billion.”

During the quarter, the Company purchased 880,000 shares of its common stock in open market transactions for $21.6 million. At March 31, 2007, the Company had remaining authorization to repurchase 99,000 additional shares.

Applied will host its third quarter conference call for investors and analysts at 11 a.m. ET today (Wednesday, April 18). To join in the call, dial 1-800-822-4794. The call will be conducted by Chairman & CEO David L. Pugh, President Bill L. Purser and CFO Mark O. Eisele. The call will also be webcast and can be accessed live online athttp://www.applied.com and will be archived there for 14 days. A replay of the teleconference will be available for two weeks at 1-888-203-1112 (passcode 8530740).

With more than 440 facilities and 4,600 employee-associates across North America, Applied Industrial Technologies is an industrial distributor that offers more than 2 million parts critical to the operations of MRO and OEM customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial and fluid power applications, as well as customized mechanical, fabricated rubber and fluid power shop services. For its fiscal year ended June 30, 2006, Applied posted sales of $1.9 billion. Applied can be visited on the Internet athttp://www.applied.com.

This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as “guidance,” and similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector of the economy, and other risk factors identified in Applied’s most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.

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For investor relations information contact Mark O. Eisele, Vice President — Chief Financial Officer, at 216-426-4417. For corporate information, contact Richard C. Shaw, Vice President — Communications, at 216-426-4343.

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Amounts in Thousands, except per share data)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2007			2006			2007			2006
Net Sales	$	521,129		$	497,198		$	1,486,084		$	1,396,583
Cost of sales		380,557			360,383			1,080,227			1,016,067
		140,572			136,815			405,857			380,516
Selling, distribution and administrative expenses		106,467			104,730			309,446			295,415
Operating Income		34,105			32,085			96,411			85,101
Interest expense, net		749			1,000			2,006			2,736
Other (income) expense, net		(308	)		(405	)		(1,097	)		(569	)
Income Before Income Taxes		33,664			31,490			95,502			82,934
Income Tax Expense		11,967			11,500			34,120			30,800
Net Income	$	21,697		$	19,990		$	61,382		$	52,134
Net Income Per Share — Basic	$	0.50		$	0.45		$	1.40		$	1.17
Net Income Per Share — Diluted	$	0.49		$	0.43		$	1.37		$	1.13
Average Shares Outstanding — Basic		43,616			44,394			43,810			44,619
Average Shares Outstanding — Diluted		44,414			45,897			44,685			46,287

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(1) Cost of sales for interim financial statements is computed using estimated gross profit percentages which are adjusted throughout the year based upon available information. Adjustments to actual cost are primarily made based on periodic physical inventories and the effect of year-end inventory quantities on LIFO costs.

(2) All share and per share data have been restated to reflect a 3 for 2 stock split effective June 15, 2006.

(3) The Company’s $50 million in senior unsecured term notes mature in December 2007 and have been classified as a current liability as of December 31, 2006.

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

	March 31, 2007		June 30, 2006
Assets
Cash and cash equivalents	$	85,018	$	106,428
Accounts receivable, net of allowances of $6,146 and 6,000	$	250,336		231,524
Inventories		206,991		190,537
Other current assets		27,334		29,955
Total current assets		569,679		558,444
Property — net		67,620		70,794
Goodwill		56,676		57,222
Other assets		47,027		44,211
Total Assets	$	741,002	$	730,671
Liabilities
Accounts payable	$	99,702	$	109,440
Long-term debt payable within one year		50,593
Other accrued liabilities		78,125		78,991
Total current liabilities		228,420		188,431
Long-term debt		25,000		76,186
Other liabilities		55,846		51,232
Total Liabilities		309,266		315,849
Shareholders’ Equity		431,736		414,822
Total Liabilities and Shareholders’ Equity	$	741,002	$	730,671

APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(In Thousands)

	Nine Months Ended March 31,
	2007			2006
Cash Flows from Operating Activities
Net income	$	61,382		$	52,134
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation		10,208			10,000
Share-based compensation and amortization of intangibles and other assets		3,889			2,993
Gain on sale of property		(349	)		(3	)
Treasury shares contributed to employee benefit and deferred compensation plans		1,778			6,423
Changes in operating assets and liabilities, net of effects from acquisition of business		(42,451	)		(64,126	)
Other		(1,692	)		3,995
Net Cash provided by Operating Activities		32,765			11,416
Cash Flows from Investing Activities
Property purchases		(8,125	)		(6,805	)
Proceeds from property sales		999			330
Net cash paid for acquisition of businesses, net of cash acquired					(27,024	)
Deposits and other		(1,339	)		211
Net Cash used in Investing Activities		(8,465	)		(33,288	)
Cash Flows from Financing Activities
Purchase of treasury shares		(33,988	)		(28,623	)
Dividends paid		(15,799	)		(12,540	)
Excess tax benefits from share-based compensation		2,714			9,127
Exercise of stock options		2,323			1,878
Net Cash used in Financing Activities		(44,750	)		(30,158	)
Effect of Exchange Rate Changes on Cash		(960	)		1,119
Decrease in cash and cash equivalents		(21,410	)		(50,911	)
Cash and cash equivalents at beginning of period		106,428			127,136
Cash and Cash Equivalents at End of Period	$	85,018		$	76,225