Pall 8-K Results of Operations and Financial Condition

Exhibit 99.1

Pall Corporation Second Quarter Sales Up 9 1/2%

East Hills, NY (March 1, 2005) –– Pall Corporation (NYSE: PLL) today reported sales and earnings results for the second quarter and six months ended January 31, 2005.

Sales for the quarter increased 9 1/2% to $469.5 million compared to $428.1 million last year. Reported earnings were $32 million or 26 cents per share as compared to $24.9 million or 20 cents per share last year. Excluding restructuring and other charges, earnings on a pro forma basis, net of related tax effect, increased 6% to $35.8 million or 29 cents per share as compared to $33.7 million or 26 cents per share last year.

Sales for the six months increased 10% to $884.2 million compared to $802.4 million last year. Reported earnings were $53.7 million or 43 cents per share as compared to $49.5 million or 39 cents per share last year. Excluding restructuring and other charges, earnings on a pro forma basis, net of related tax effect, increased 11% to $62.2 million or 50 cents per share as compared to $56 million or 44 cents per share last year. The effect of foreign currency translation added 4 1/2% to revenues and increased earnings per share by 1 cent for both the quarter and the six months.

Restructuring and other charges of approximately $5.4 million and $11 million were recorded in the quarter and six months, respectively, primarily related to the Company's ongoing cost reduction and business realignment programs and the write-down of a strategic investment in the first quarter.

Eric Krasnoff, Chairman and CEO, said, “We are pleased with our results for the quarter. Sales were up over 9%, while pro forma earnings increased 6%. Our CoRe cost reduction initiatives and business realignment are on track. SG&A improved 20 basis points over last year excluding the impact of foreign exchange. Our systems business, intrinsic to Pall's Total Fluid Management strategy, again saw explosive growth of over 25%. While depressing gross margins slightly, our growing installed systems base consumes higher margin Pall disposables for years to come.

The results by geography, with sales reported in local currency, are:

Sales in Asia increased 16 1/2% in the quarter, led by strong growth in Japan and China. The Asian growth was fueled by increases of 26 1/2% in General Industrial and 14% in Microelectronics. Sales in the Western Hemisphere grew 5 1/2% in the quarter, led by strong growth in BioPharmaceuticals, General Industrial and Microelectronics. In Europe, sales were flat primarily due to reduced sales in Aerospace and Microelectronics as well as the impact of the sale of our machine tool business last August.

The results reported in local currency by business are:

Overall Industrial sales grew 6 1/2% in the quarter driven by growth in General Industrial and Microelectronics. The Industrial operating profit margin was 12.2% at a strong $34.4 million.

Looking at the Industrial businesses by reporting segment, Microelectronics sales increased 8% in the quarter compared to last year. For the six months, sales are up 15 1/2%. Operating profit margin was 17.9% in the quarter. New products and increasing sales beyond our core chip manufacturing applications are driving growth.

General Industrial sales grew in the quarter by 8 1/2%. The operating profit margin was 9.3%, up from 8.4% in last year's second quarter. Within General Industrial, Water Processing sales grew 24 1/2% and Fuels and Chemicals sales increased 19%. Power Generation sales were up modestly. Food and Beverage sales, while down 3 1/2%, saw good orders growth in the quarter, particularly in Asia. Machinery and Equipment grew 9% and, on a pro forma basis subtracting the machine tool business, it grew 15 1/2%.

Aerospace sales were down 4% in the quarter due to the timing of large projects. Military sales were down 6%. Commercial sales, excluding the Marine Water portion of this business, were up 3 1/2% in the quarter. Aerospace operating margins at 17.4% in the quarter showed good improvement over quarter one.

Turning now to Life Sciences, sales increased 4% reflecting strong growth in BioPharmaceuticals. Life Sciences operating profit margins increased to 19.2% and operating profit dollars were up 17 1/2%. Sales in the BioPharmaceuticals segment increased 9% compared with last year and 9 1/2% sequentially. This reflects both particularly strong demand from the biotechnology sector and Pall's expanded array of products designed for this market. The BioPharmaceuticals operating profit margin was 24% and operating profit dollars were up 8 1/2%.

Within Medical, the BioSciences portion of the business grew 8% in the quarter reflecting strong Laboratory sales in all geographies. The blood filtration and hospital product sectors were down 2 1/2% in the quarter on weakness in North America. Medical operating profit margins improved to 15.9% and operating profit dollars were $17.5 million, up 29%. We plan to release our eagerly anticipated Leukotrap® Affinity Prion Reduction Filter for commercial sale in Europe this spring.”

Mr. Krasnoff concluded, “We continue to expand Pall's strong geographic presence especially in Asia and Eastern Europe. We are also expanding our product lines in key markets such as biotechnology, microelectronics and water processing. Alongside these commercial efforts, Pall's cost reduction programs are aggressively moving forward to the benefit of the bottom line. With our business realignment coming to fruition, Pall is in full stride.”

Tomorrow, March 2, 2005, at 8:30 am EST, 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 global 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, pharmaceutical, transfusion medicine, semiconductor, water purification, aerospace and broad industrial markets. Total revenues for fiscal 2004 were $1.8 billion. The Company headquarters are in East Hills, New York with extensive operations throughout the world. Visit Pall 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 the 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.

                                             Financial Tables Follow...

PALL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands)

		JAN. 31, 2005			Jul 31, 2004
Assets
Cash and short-term investments	$	227,136		$	207,277
Accounts receivable, net		443,217			468,905
Inventories, net		343,053			302,861
Other current assets		100,050			90,772
Total current assets		1,113,456			1,069,815
Property, plant and equipment, net		623,908			600,383
Other assets		497,105	(a)		470,185
Total assets	$	2,234,469		$	2,140,383
Liabilities and Stockholders' Equity
Short-term debt	$	63,046		$	59,482
Accounts payable, income taxes and other current liabilities		336,923			381,034
Total current liabilities		399,969			440,516
Long-term debt		543,515			488,686
Deferred taxes and other non-current liabilities		148,331			156,742
Total liabilities		1,091,815			1,085,944
Stockholders' equity		1,142,654			1,054,439
Total liabilities and stockholders' equity	$	2,234,469		$	2,140,383

(a) Includes $31,171 which represents the excess cost over the book value of the net assets acquired of Biosepra S.A. and Euroflow UK Ltd.

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

	SECOND QUARTER ENDED						SIX MONTHS ENDED
		JAN.31,			JAN.31,			JAN.31,			JAN.31,
		2005			2004			2005			2004
Net sales	$	469,473		$	428,085		$	884,205		$	802,371
Cost of sales		244,541			221,216			459,401			415,437
Gross profit		224,932			206,869			424,804			386,934
Selling, general and administrative expenses		157,765			143,638			303,445			275,545
Research and development		13,907			13,785			27,620			27,493
Restructuring and other charges, net		5,438	(a)		13,668	(b)		10,961	(a)		9,965	(b)
Interest expense, net		6,146			5,091			11,853			10,243
Earnings before income taxes		41,676			30,687			70,925			63,688
Provision for income taxes		9,631			5,831			17,181			14,164
Net earnings	$	32,045		$	24,856		$	53,744		$	49,524
Earnings per share:
Basic:	$	0.26		$	0.20		$	0.43		$	0.39
Diluted:	$	0.26		$	0.20		$	0.43		$	0.39
Average number of shares outstanding:
Basic:		124,482			126,288			124,400			125,886
Diluted:		125,457			127,422			125,330			127,025
Net earnings as reported	$	32,045		$	24,856		$	53,744		$	49,524
Restructuring and other charges, net,after pro forma tax effect		3,761			8,853			8,489			6,452
Pro forma earnings	$	35,806		$	33,709		$	62,233		$	55,976
Diluted earnings per share as reported	$	0.26		$	0.20		$	0.43		$	0.39
Restructuring and other charges, net		$ 0.03	(a)		$ 0.06	(b)		$ 0.07	(a)		$0.05	(b)
Pro forma diluted earnings per share	$	0.29		$	0.26		$	0.50		$	0.44

(a) Restructuring and other charges, net, includes $5,438 (3 cents per share, after pro forma tax effect) and $8,086 (5 cents per share, after pro forma tax effect) in the second quarter and six months, respectively, primarily comprised of severance and other costs related to the restructuring of operations into three integrated businesses and, in the six months, $2,875 (2 cents per share, after pro forma tax effect) related to the impairment of a strategic investment.

(b) Restructuring and other charges, net, include $11,500 (5 cents per share, after pro forma tax effect) to increase environmental reserves in the second quarter and $2,168 (1 cent per share, after pro forma tax effect) and $3,741 (2 cents per share, after pro forma tax effect) in the second quarter and six months, respectively, primarily related to the restructuring of operations in Europe and Japan. Offsetting this was a $5,276 (2 cents per share, after pro forma tax effect) adjustment to decrease a pension liability in the first quarter.

PALL CORPORATION MARKET SEGMENT AND GEOGRAPHIC INFORMATION (Unaudited)
(DOLLAR AMOUNTS IN THOUSANDS)

SALES SECOND QUARTER ENDED:	JAN. 31, 2005			JAN. 31, 2004			% CHANGE			% CHANGE IN LOCAL CURRENCY
MARKET SEGMENT
INFORMATION:
Medical(a)	$	110,358		$	106,587			3 ½			1/2
BioPharmaceuticals(a)		77,618			68,023			14			9
Total Life Sciences		187,976			174,610			7 ½			4
General Industrial		183,457			160,712			14			8 1/2
Aerospace		41,944			42,727			(2	)		(4	)
Microelectronics		56,096			50,036			12			8
Total Industrial		281,497			253,475			11			6 1/2
Total	$	469,473		$	428,085			9 ½			5
GEOGRAPHIC INFORMATION:
SALES
TO UNAFFILIATED CUSTOMERS
Western
Hemisphere	$	167,334		$	158,343			5 1/2			5 1/2
Europe		191,851			178,674			7 1/2			(1/2)
Asia		110,288			91,068			21			16 1/2
Total	$	469,473		$	428,085			9 ½			5
TOTAL SALES
Western
Hemisphere	$	217,992		$	202,092
Europe		223,013			200,030
Asia		111,715			92,176
Eliminations		(83,247	)		(66,213	)
Total	$	469,473		$	428,085

(a) Certain prior year amounts have been reclassified to conform to the current year presentation.

OPERATING PROFIT SECOND QUARTER ENDED:	JAN. 31, 2005			%		JAN. 31, 2004			%
MARKET SEGMENT
INFORMATION:
Medical(a)	$	17,534			15.9	$	13,588			12.7
BioPharmaceuticals(a)		18,624			24.0		17,149			25.2
Total Life Sciences		36,158			19.2		30,737			17.6
General Industrial		16,988			9.3		13,499			8.4
Aerospace		7,297			17.4		10,665			25.0
Microelectronics		10,069			17.9		10,454			20.9
Total Industrial		34,354			12.2		34,618			13.7
Subtotal		70,512			15.0		65,355			15.3
Restructuring and other charges		(5,438	)				(13,668	)
General corporate expenses		(17,252	)				(15,909	)
Interest expense, net		(6,146	)				(5,091	)
Earnings before income taxes	$	41,676				$	30,687
GEOGRAPHIC INFORMATION:
Western Hemisphere	$	34,810			16.0	$	24,001			11.9
Europe		20,497			9.2		24,644			12.3
Asia		16,453			14.7		16,985			18.4
Eliminations		(1,248	)				(275	)
Subtotal		70,512			15.0		65,355			15.3
Restructuring and other charges		(5,438	)				(13,668	)
General corporate expenses		(17,252	)				(15,909	)
Interest expense, net		(6,146	)				(5,091	)
Earnings before income taxes	$	41,676				$	30,687

(a) Certain prior year amounts have been reclassified to conform to the current year presentation.     

SALES SIX MONTHS ENDED:	JAN. 31, 2005			JAN. 31, 2004			% CHANGE			% CHANGE IN LOCAL CURRENCY
MARKET SEGMENT INFORMATION:
Medical(a)	$	205,823		$	198,868			3 1/2			1/2
BioPharmaceuticals(a)		148,407			128,036			16			10 1/2
Total Life Sciences		354,230			326,904			8 1/2			4
General Industrial		341,678			299,335			14			8 1/2
Aerospace		80,781			86,270			(6 1/2	)		(8 1/2	)
Microelectronics		107,516			89,862			19 1/2			15 1/2
Total Industrial		529,975			475,467			11 1/2			6 1/2
Total	$	884,205		$	802,371			10			5 1/2
GEOGRAPHIC INFORMATION:
SALES
TO UNAFFILIATED CUSTOMERS
Western
Hemisphere	$	319,612		$	300,330			6 1/2			6
Europe		361,609			338,397			7			(1 1/2	)
Asia		202,984			163,644			24			20
Total	$	884,205		$	802,371			10			5 1/2
TOTAL SALES
Western
Hemisphere	$	419,871		$	384,107
Europe		418,930			382,833
Asia		205,670			165,751
Eliminations		(160,266	)		(130,320	)
Total	$	884,205		$	802,371

(a) Certain prior year amounts have been reclassified to conform to the current year presentation.

OPERATING PROFIT SIX MONTHS ENDED:	JAN. 31, 2005			%		JAN. 31, 2004			%
MARKET SEGMENT INFORMATION:
Medical(a)	$	31,329			15.2	$	23,314			11.7
BioPharmaceuticals(a)		35,565			24.0		32,376			25.3
Total Life Sciences		66,894			18.9		55,690			17.0
General Industrial		30,180			8.8		26,323			8.8
Aerospace		12,386			15.3		22,037			25.5
Microelectronics		18,583			17.3		15,201			16.9
Total Industrial		61,149			11.5		63,561			13.4
Subtotal		128,043			14.5		119,251			14.9
Restructuring and other charges		(10,961	)				(9,965	)
General corporate expenses		(34,304	)				(35,355	)
Interest expense, net		(11,853	)				(10,243	)
Earnings before income taxes	$	70,925				$	63,688
GEOGRAPHIC INFORMATION:
Western Hemisphere	$	61,873			14.7	$	44,743			11.6
Europe		41,511			9.9		47,417			12.4
Asia		29,764			14.5		27,493			16.6
Eliminations		(5,105	)				(402	)
Subtotal		128,043			14.5		119,251			14.9
Restructuring and other charges		(10,961	)				(9,965	)
General corporate expenses		(34,304	)				(35,355	)
Interest expense, net		(11,853	)				(10,243	)
Earnings before income taxes	$	70,925				$	63,688

(a) Certain prior year amounts have been reclassified to conform to the current year presentation.

Contact:
Marc Wilson
Pall Corporation
Tel: (516) 801-9800

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