Pall 8-K Financial statements and exhibits

Exhibit 99.1

Pall Corporation Third Quarter Sales Up 10%

East Hills, NY (June 1, 2004) –– Pall Corporation (NYSE: PLL) today reported sales and earnings results for the third quarter and nine months ended April 30, 2004.

Sales for the quarter increased 10% to $463.9 million compared to $421.5 million last year. Earnings on a pro forma basis increased 5.3% to $47.0 million or 37 cents per share as compared to $44.6 million or 36 cents per share last year. The effect of foreign currency translation added $29.7 million to revenues and increased pro forma earnings per share by approximately 2 cents.

Sales for the nine months increased 11% to $1.27 billion compared to $1.14 billion last year. Pro forma earnings for the nine months increased 10.9% to $103.0 million or 81 cents per share as compared to $92.8 million or 75 cents per share last year. Foreign currency translation increased sales by $90.1 million and pro forma earnings per share by approximately 6 cents.

Eric Krasnoff, Chairman and CEO, said, “The third quarter showed a broad resurgence in our non-Aerospace Industrial businesses. Asia posted spectacular results and the Western Hemisphere shared in the industrial recovery.

The overall Industrial business in Europe outside of Aerospace also grew. Non-repeating sales related to the Iraqi conflict contributed to a drop of $7.7 million in Aerospace operating profit or 5 cents per share in the quarter.

The major investment in our CoRe (cost reduction) programs is gaining traction. I am pleased to report that S, G & A as a percentage of sales reduced by 100 basis points compared to last year and by 170 basis points sequentially. This is the last quarter to sustain substantial consulting costs related to these programs. The CoRe efforts are on track to deliver the savings expected for the fourth quarter and should build next year as manufacturing savings become more significant.

Now we will report sales in local currency starting with the Industrial segments. The third quarter showed a broad resurgence in our Industrial business with Microelectronics and the General Industrial segments posting broad gains.

Microelectronics sales increased 24½% compared to last year. Sales in Asia and the Western Hemisphere grew 31% and 25½%, respectively. In the quarter, operating profit margins were 20.4% and operating profit dollars increased 50%.

General Industrial sales grew 6%. General Industrial’s operating profit margin was 14.0% and operating profit dollars increased 23.6% to $24.2 million. Within General Industrial, Water Processing grew 29½% and its orders increased 39½%. Power Generation’s sales increased 13½% and Fuels and Chemicals grew 5%. Food and Beverage sales were flat, though orders increased 15½% over last year. Machinery and Equipment sales increased 3½% in the quarter. Excluding a tools business we sold last quarter, our base Machinery and Equipment sales grew 7%. This is another confirmation of the generally strengthening industrial landscape.

Aerospace was down 20½% with nearly all of the reduction caused by non-repeating military sales, primarily in Europe. Military Aerospace sales decreased nearly 37% while Commercial Aerospace posted modest growth. Aerospace operating margins were 20.3% in the quarter.

This adds up to an overall Industrial business sales increase of 3½%. Industrial’s operating profit margin was 16.3% with operating profit dollars increasing about 2% to $44.5 million.

Turning now to Life Sciences, sales were up 2% with good growth in Medical and the core Blood Business offset by lower sales in BioPharmaceuticals. Life Sciences operating profit margins were 21.6% and operating profit dollars were $41.4 million, up 4.3%.

Sales in Medical increased 7% with blood product sales and profits up strongly. Operating profit margins were 20.6% and operating profit dollars grew 17.8% to $19.3 million. Pall’s new eBDS Bacterial Detection System has had a positive market reception and should contribute significantly next year.

Sales in BioPharmaceuticals were down 2% as stagnation in the plasma fractionation segment and the timing of capital equipment sales offset continuing growth in Biotechnology. The BioPharmaceuticals operating profit margin was a healthy 22.6%. Overall sales are expected to improve in the current quarter.

Looking at overall sales by region, Asia continued on a torrid pace. Sales were up 18½% in the quarter following a 15½% increase last quarter and a 16% increase in the first quarter. Asia’s third quarter sales were propelled by a 13% increase in BioPharmaceuticals sales, a 22½% increase in General Industrial sales, and a 31% increase in Microelectronics sales. Sales in the Western Hemisphere grew 4% while sales in Europe declined 4½% due primarily to Aerospace.”

Looking at the company’s balance sheet Mr. Krasnoff said, “Our strong cash flow enabled us to reduce net debt by $39 million in the nine months and to repurchase $45 million of our stock in the quarter.”

Mr. Krasnoff concluded, “Orders are trending well and the company’s backlog is at an all-time high. We are confident that our expectations for the full fiscal year will be achieved. ”

Tomorrow, June 2, 2004, at 8:30 am ET, Pall Corporation will host its quarterly earnings conference call. Individuals can access the webcast on the home page of the Company’s website, www.pall.com. Listening to the webcast requires speakers and Microsoft Windows Media Player software. The webcast will be archived for 30 days.

About Pall Corporation:

Pall Corporation is the leader in the rapidly growing field of filtration, separations and purification. Pall’s business is organized around two broad markets: Life Sciences and Industrial. The Company provides leading-edge products to meet the demanding needs of customers in biotechnology, pharmaceuticals, transfusion medicine, semiconductors, municipal drinking water, aerospace and broad industrial markets. Total revenues are $1.6 billion. The Company headquarters are in East Hills, New York with operations in more than 30 countries. Further information is available at www.pall.com.

This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current Company expectations and are subject to risks and uncertainties which could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: fluctuations in foreign currency exchange rates; regulatory approval and market acceptance of new technologies; changes in product mix and product pricing and in interest rates and cost of raw materials; the Company’s success in enforcing its patents and protecting its proprietary products and manufacturing techniques and its ability to achieve the savings anticipated from its cost reduction initiatives; global and regional economic conditions and legislative, regulatory and political developments; and domestic and international competition in the Company’s global markets. Additional information regarding these and other factors is available on the Web at www.pall.com and is included in the Company’s reports filed with U.S. Securities and Exchange Commission. Copies of such reports can be obtained, without charge, at: www.sec.gov.

Management uses certain non-GAAP measurements to assess Pall’s current and future financial performance. The non-GAAP measurements do not replace the presentation of Pall’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing Pall’s financial position and results of operations. Pall has chosen to provide this information to facilitate meaningful comparisons of past, present and future operating results and as a means to emphasize the results of on-going operations.

PALL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(Amounts in thousands)

		APR. 30, 2004		AUG. 2, 2003
Assets
Cash and short-term investments	$	192,514	$	149,753
Accounts receivable, net		427,652		423,467
Inventories, net		302,300		274,442
Other current assets		98,976		90,772
Total current assets		1,021,442		938,434
Property, plant and equipment, net		591,916		600,153
Other assets		479,214		478,139
Total assets	$	2,092,572	$	2,016,726
Liabilities and Stockholders’ Equity
Short-term debt	$	53,599	$	63,791
Accounts payable, income taxes
and other current liabilities		335,161		357,705
Total current liabilities		388,760		421,496
Long-term debt		500,957		489,870
Deferred taxes and other
non-current liabilities		173,897		170,824
Total liabilities		1,063,614		1,082,190
Stockholders’ equity		1,028,958		934,536
Total liabilities and stockholders’ equity	$	2,092,572	$	2,016,726

PALL CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(Amounts in thousands, except per share data)

	THIRD QUARTER ENDED							NINE MONTHS ENDED
		APR. 30, 2004			MAY 3, 2003			APR. 30, 2004			MAY 3, 2003
Net sales	$	463,921		$	421,491		$	1,266,292		$	1,142,223
Cost of sales		233,634			205,587			649,071			579,933
Gross profit		230,287			215,904			617,221			562,290
Selling, general and administrative expenses		147,972			138,664			423,517			384,361
Research and development		15,707			14,255			43,200			39,715
Restructuring and other charges, net		681	(a)		5,036	(b)		10,646	(a)		46,335	(b)
Interest expense, net		4,797			5,765			15,040			19,238
Earnings before income taxes		61,130			52,184			124,818			72,641
Provision for income taxes		14,616			11,829			28,780			24,045
Net earnings	$	46,514		$	40,355		$	96,038		$	48,596
Earnings per share:
Basic:	$	0.37		$	0.33		$	0.76		$	0.40
Diluted:	$	0.37		$	0.33		$	0.76		$	0.39
Average number of shares outstanding:
Basic:		126,053			123,146			125,856			122,983
Diluted:		127,190			123,891			126,960			123,745
Net earnings as reported	$	46,514		$	40,355		$	96,038		$	48,596
Restructuring and other charges, net, after pro forma tax effect		463			4,277			6,915			44,205
Pro forma earnings	$	46,977		$	44,632		$	102,953		$	92,801
Diluted earnings per share as reported	$	0.37		$	0.33		$	0.76		$	0.39
Restructuring and other charges, net	$	—	(a)	$	0.03	(b)	$	0.05	(a)	$	0.36	(b)
Pro forma diluted earnings per share	$	0.37		$	0.36		$	0.81		$	0.75

(a)

Restructuring and other charges, net for the nine months includes $11,500 (5 cents per share, after pro forma tax effect) to increase environmental reserves and $4,481 (2 cents per share, after pro forma tax effect) primarily related to the restructuring of operations in Europe and Japan (of which $681 relates to the third quarter), that were offset by a $5,335 (2 cents per share, after pro forma tax effect) adjustment to decrease a pension liability.

(b)

Restructuring and other charges, net for the nine months includes $37,600 (30 cents per share) of acquired in-process research and development and restructuring costs of $8,735 (6 cents per share, after pro forma tax effect) inclusive of $5,036 (3 cents per share, after pro forma tax effect) incurred in the third quarter.

PALL CORPORATION MARKET SEGMENT AND GEOGRAPHIC INFORMATION (Unaudited) (Dollar Amounts in Thousands)
									% CHANGE
SALES							%		IN LOCAL
THIRD QUARTER ENDED:		APR. 30, 2004			MAY 3, 2003		CHANGE		CURRENCY
MARKET SEGMENT
INFORMATION:
Medical	$	93,975		$	83,985		12		7
BioPharmaceuticals		97,805			93,295		5		(2	)
Total Life Sciences		191,780			177,280		8		2
General Industrial		172,476			150,050		15		6
Aerospace		42,479			51,060		(17	)	(20	½)
Microelectronics		57,186			43,101		32	½	24	½
Total Industrial		272,141			244,211		11	½	3	½
Total	$	463,921		$	421,491		10		3
GEOGRAPHIC INFORMATION:
SALES
TO UNAFFILIATED CUSTOMERS
Western Hemisphere	$	171,716		$	164,410		4	½	4
Europe		191,928			178,536		7	½	(4	½)
Asia		100,277			78,545		27	½	18	½
Total	$	463,921		$	421,491		10		3
TOTAL SALES
Western Hemisphere	$	221,223		$	206,492
Europe		219,166			202,241
Asia		101,810			79,680
Eliminations		(78,278	)		(66,922	)
Total	$	463,921		$	421,491

OPERATING PROFIT
THIRD QUARTER ENDED:	APR. 30, 2004			%		MAY 3, 2003			%
MARKET SEGMENT
INFORMATION:
Medical	$	19,337			20.6	$	16,413			19.5
BioPharmaceuticals		22,060			22.6		23,269			24.9
Total Life Sciences		41,397			21.6		39,682			22.4
General Industrial		24,207			14.0		19,582			13.1
Aerospace		8,641			20.3		16,354			32.0
Microelectronics		11,647			20.4		7,761			18.0
Total Industrial		44,495			16.3		43,697			17.9
Subtotal		85,892			18.5		83,379			19.8
Restructuring and other charges		(681	)				(5,036	)
General corporate expenses		(19,284	)				(20,394	)
Interest expense, net		(4,797	)				(5,765	)
Earnings before income taxes	$	61,130				$	52,184
GEOGRAPHIC INFORMATION:
Western Hemisphere	$	33,767			15.3	$	31,801			15.4
Europe		35,517			16.2		36,996			18.3
Asia		18,694			18.4		13,858			17.4
Eliminations		(2,086	)				724
Subtotal		85,892			18.5		83,379			19.8
Restructuring and other charges		(681	)				(5,036	)
General corporate expenses		(19,284	)				(20,394	)
Interest expense, net		(4,797	)				(5,765	)
Earnings before income taxes	$	61,130				$	52,184

PALL CORPORATION MARKET SEGMENT AND GEOGRAPHIC INFORMATION (Unaudited)
(Dollar Amounts in Thousands)

SALES NINE MONTHS ENDED:	APR. 30, 2004			MAY 3, 2003			% CHANGE		% CHANGE IN LOCAL CURRENCY
MARKET SEGMENT
INFORMATION:
Medical	$	249,798		$	221,070		13		7	½
BioPharmaceuticals		268,886			249,010		8		—
Total Life Sciences		518,684			470,080		10	½	3	½
General Industrial		471,811			417,317		13		2	½
Aerospace		128,749			134,032		(4	)	(8	)
Microelectronics		147,048			120,794		21	½	14	½
Total Industrial		747,608			672,143		11		2	½
Total	$	1,266,292		$	1,142,223		11		3
GEOGRAPHIC INFORMATION:
SALES
TO UNAFFILIATED CUSTOMERS
Western
Hemisphere	$	472,046		$	453,569		4		3	½
Europe		530,325			479,556		10	½	(3	½)
Asia		263,921			209,098		26		16	½
Total	$	1,266,292		$	1,142,223		11		3
TOTAL SALES
Western
Hemisphere	$	605,330		$	573,848
Europe		601,999			541,140
Asia		267,561			211,953
Eliminations		(208,598	)		(184,718	)
Total	$	1,266,292		$	1,142,223

OPERATING PROFIT NINE MONTHS ENDED:	APR. 30, 2004			%		MAY 3, 2003			%
MARKET SEGMENT
INFORMATION:
Medical	$	39,978			16.0	$	33,605			15.2
BioPharmaceuticals		57,109			21.2		54,480			21.9
Life Sciences		97,087			18.7		88,085			18.7
General Industrial		50,530			10.7		44,619			10.7
Aerospace		30,678			23.8		37,593			28.0
Microelectronics		26,848			18.3		19,821			16.4
Industrial		108,056			14.5		102,033			15.2
Subtotal		205,143			16.2		190,118			16.6
Restructuring and other charges		(10,646	)				(46,335	)
General corporate expenses		(54,639	)				(51,904	)
Interest expense, net		(15,040	)				(19,238	)
Earnings before income taxes	$	124,818				$	72,641
GEOGRAPHIC INFORMATION:
Western Hemisphere	$	78,510			13.0	$	76,477			13.3
Europe		82,934			13.8		83,994			15.5
Asia		46,187			17.3		31,509			14.9
Eliminations		(2,488	)				(1,862	)
Subtotal		205,143			16.2		190,118			16.6
Restructuring and other charges		(10,646	)				(46,335	)
General corporate expenses		(54,639	)				(51,904	)
Interest expense, net		(15,040	)				(19,238	)
Earnings before income taxes	$	124,818				$	72,641

Contact:
John Adamovich
Pall Corporation
Tel: (516) 801-9808

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