Pall 8-K Sales and Earnings Overview

Exhibit 99

Pall Corporation Reports Second Quarter EPS Up Over 50%
on Sales Increase of 15%

Port Washington, NY (March 10, 2011) -- Pall Corporation (NYSE:PLL) today reported financial results for the second quarter of fiscal 2011 which ended on January 31, 2011.

Sales and Earnings Overview

Second quarter sales were $645.2 million, a 15.1% gain over last year. Sales in local currency ("LC") increased 15.7%. Foreign currency translation reduced reported sales by 0.6%.

Diluted earnings per share (“EPS”) were $0.64, compared to $0.42 last year, an increase of 52%. Pro forma EPS were $0.68 excluding restructuring and other charges (“Discrete Items"). This compares to $0.42 last year, for an increase of 62%. The estimated impact of foreign currency translation increased both measures of fiscal year 2011 EPS by $0.01 in the quarter.

For the six months, sales increased 12.9% over last year. Sales in LC increased 14.0%. Foreign currency translation reduced reported sales in the six months by 1.1%. Diluted EPS were $1.25, a 28% increase compared to $0.98 for the same period last year. Pro forma EPS, excluding Discrete Items, were $1.29, a 57% increase compared to $0.82 a year earlier (which also excluded items reducing interest expense and provision for income taxes). The estimated impact of foreign currency translation increased both measures of fiscal year 2011 EPS in the six months by $0.01.

Eric Krasnoff, Chairman, CEO and President, said, “The Company’s execution of its strategic growth initiatives continues to yield positive results.

Sales growth from the first to the second quarter accelerated from 12% to over 15% in LC. Growth was broadly based by both market and geography. The BioPharmaceuticals and Microelectronics markets outperformed expectations in the quarter. All Industrial markets in the Western Hemisphere posted strong performance, collectively growing 42.5%.

Overall, sales increased 14% in LC in Life Sciences and nearly 18% in Industrial. Within Life Sciences, BioPharmaceuticals grew over 23%. Within Industrial, the Energy & Water and Microelectronics markets each grew over 20%. Sales in Aeropower increased more than 11%.

Orders remained strong. Life Sciences and Industrial orders increased 12% and 19%, respectively. At the end of the quarter, backlog growth was over 20%.

Operating margins continued their upward trend, reaching 17.8% as gross margin climbed to 51.5%.

These results demonstrate that Pall is on the right track and business is accelerating.”

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Life Sciences – Second Quarter Highlights

(Dollar Amounts in Thousands and Discussion of Sales and Orders Changes are in Local Currency)

					%	% CHANGE
Sales:	JAN. 31, 2011		JAN. 31, 2010		CHANGE	IN LC
BioPharmaceuticals	$	179,550	$	146,972	22.2	23.6
Medical		102,305		100,451	1.8	3.3
Food & Beverage		52,359		49,876	5.0	7.5
Total Life Sciences segment	$	334,214	$	297,299	12.4	14.0
Gross profit	$	184,726	$	166,661
% of sales		55.3		56.1
Operating profit	$	83,650	$	68,360
% of sales		25.0		23.0

BioPharmaceuticals: Sales in Pharmaceuticals increased 25.1% reflecting Pall’s leading position in the fast-growing biotech, vaccine and plasma markets. Consumables sales grew 20.2% and systems sales more than doubled compared to last year.

Sales in Laboratory increased 14.8% with solid growth in all regions.

Medical: Hospital Critical Care sales grew 14.7%. Sales of Pall-AquasafeTM water filters to hospitals in Europe were particularly strong.

OEM sales grew 6.9% on strong demand for I.V. filters in the Western Hemisphere. Blood Filtration sales were flat.

Food & Beverage: Consumables sales increased 4.3%, with all geographies contributing. Systems grew 25.1%. New products, including PROFi beer systems and an expanded offering of consumable filters, are driving growth.

Overall, Life Sciences operating margin improved by 200 basis points reflecting the business’ continued ability to leverage its sales growth with disciplined cost control. Operating profit increased 22.4% compared to a year ago to $83.7 million.

Industrial – Second Quarter Highlights

(Dollar Amounts in Thousands and Discussion of Sales and Orders Changes are in Local Currency)

					%	% CHANGE
Sales:	JAN. 31, 2011		JAN. 31, 2010		CHANGE	IN LC
Aeropower	$	106,614	$	96,651	10.3	11.6
Energy & Water		127,611		105,484	21.0	21.0
Microelectronics		76,793		60,967	26.0	21.4
Total Industrial segment	$	311,018	$	263,102	18.2	17.7
Gross profit	$	147,759	$	117,624
% of sales		47.5		44.7
Operating profit	$	47,942	$	23,424
% of sales		15.4		8.9

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Aeropower: Machinery & Equipment sales grew 15.0% with all geographies up. Demand in the mining and primary metals industries remained strong.

Sales in Aerospace increased 7.7% with 17.0% growth in Commercial Aerospace. Military Aerospace sales were flat.

Energy & Water: Sales in Fuels & Chemicals increased 6.4%. Robust activity in the oil and gas, chemicals, and polymers markets was seen in the Western Hemisphere and Europe.

Power Generation sales increased 16.3%. The wind turbine market in Asia and demand from fossil fuel and nuclear power stations in the Western Hemisphere were noteworthy contributors.

Municipal Water sales principally comprised of systems which can be lumpy, increased 82.3%. In the Western Hemisphere sales more than tripled from a year ago.

Microelectronics: Activity in the Microelectronics market remained high globally and in all end markets. We see continued high capacity utilization rates at chip producers and consumer demand for electronics.

Industrial’s operating margin improved 650 basis points reflecting leverage of a strong top line supported by productivity improvements in manufacturing. Operating profit more than doubled to $47.9 million compared to a year ago.

Conclusion/Outlook

Mr. Krasnoff concluded, “We have positioned the Company to benefit as the economy strengthens. Our first-half results attest to the demand for Pall technologies and solid execution of our growth plans. In light of our first half performance and our expectations for the rest of the year, we are raising guidance. Including an estimated $0.09 benefit from foreign currency translation, we now expect projected pro forma EPS to be in the range of $2.80 to $2.90 for fiscal 2011.

In closing, we see significant opportunities for sustained revenue and profit growth to continue to drive value creation for shareholders.”

Conference Call
On Friday, March 11, 2011, at 8:30 am EST, Pall Corporation will host a conference call to review these results. The call can be accessed at www.pall.com/investor. The webcast will be archived for 30 days.

About Pall Corporation
Pall Corporation (NYSE:PLL) is a filtration, separation and purification leader providing solutions to meet the critical needs of customers across the broad spectrum of life sciences and industry. Pall works with customers to advance health, safety and environmentally responsible technologies. The Company’s engineered products enable process and product innovation and minimize emissions and waste. Pall Corporation, with total revenues of $2.4 billion for fiscal 2010, is an S&P 500 company with more than 10,000 employees serving customers worldwide. To see how Pall is helping enable a greener, safer, more sustainable future, visit www.pall.com/green.

Forward-Looking Statements
The matters discussed in this report contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Results for the second quarter of fiscal year 2011 are preliminary until the Company's Form 10-Q is filed with the Securities and Exchange Commission on or before March 14, 2011. Forward-looking statements are those that address activities, events or developments that the Company or management intends, expects, projects, believes or anticipates will or may occur in the future. All statements regarding future performance, earnings projections, earnings guidance, management’s expectations about its future cash needs and effective tax rate, and other future events or developments are forward-looking statements. Forward-looking statements are those that use terms such as “may,” “will,” “expect,” “believe,” “intend,” “should,” “could,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” “predict,” “potential,” and similar expressions. Forward-looking statements contained in this and other written and oral reports are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors.

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The Company’s forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those envisaged by the Company’s forward-looking statements. Such risks and uncertainties include, but are not limited to, those discussed in Part I–Item 1A.–Risk Factors in the 2010 Form 10-K, and other reports the Company files with the Securities and Exchange Commission, including the effect of litigation and regulatory inquiries associated with the restatement of our prior period financial statements; the impact of legislative, regulatory and political developments globally and the impact of the uncertain global economic environment and the timing and strength of a recovery in the markets and regions we serve, and the extent to which adverse economic conditions may affect our sales volume and results; demand for our products and business relationships with key customers and suppliers, which may be impacted by their cash flow and payment practices, as well as delays or cancellations in shipments; our ability to obtain regulatory approval or market acceptance of new technologies; our ability to successfully complete our business improvement initiatives, which include integrating and upgrading our information systems and the effect of a serious disruption in our information systems; fluctuations in our effective tax rate; volatility in foreign currency exchange rates, interest rates and energy costs and other macro economic challenges currently affecting us; changes in product mix, market mix and product pricing, particularly relating to the expansion of the systems business; increase in costs of manufacturing and operating costs; our ability to achieve and sustain the savings anticipated from cost reduction and gross margin improvement initiatives; the effect of the restrictive covenants in our debt facilities; our ability to enforce patents and protect proprietary products and manufacturing techniques; our ability to successfully complete or integrate any acquisitions; and the impact of pricing and other actions by competitors. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them, whether as a result of new information, future developments or otherwise.

Management uses certain non-GAAP measurements to assess the Company’s current and future financial performance. The non-GAAP measurements do not replace the presentation of the Company’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing the Company’s financial position and results of operations. The Company 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 ongoing operations.

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

	JAN. 31, 2011		JULY 31, 2010
Assets:
Cash and cash equivalents	$	435,261	$	498,563
Accounts receivable		545,436		566,499
Inventories		464,047		415,046
Other current assets		226,076		222,651
Total current assets		1,670,820		1,702,759
Property, plant and equipment		734,353		706,435
Other assets		611,231		590,018
Total assets	$	3,016,404	$	2,999,212
Liabilities and Stockholders' Equity:
Short-term debt	$	170,836	$	42,028
Accounts payable, income taxes and other current liabilities		560,284		595,177
Total current liabilities		731,120		637,205
Long-term debt		485,637		741,353
Deferred taxes and other non-current liabilities		444,240		438,304
Total liabilities		1,660,997		1,816,862
Stockholders' equity		1,355,407		1,182,350
Total liabilities and stockholders' equity	$	3,016,404	$	2,999,212

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

	SECOND QUARTER ENDED						SIX MONTHS ENDED
	JAN. 31, 2011			JAN. 31, 2010			JAN. 31, 2011			JAN. 31, 2010
Net sales	$	645,232		$	560,401		$	1,250,709		$	1,107,340
Cost of sales		312,747			276,116			609,551			552,857
Gross profit		332,485			284,285			641,158			554,483
% of sales		51.5	%		50.7	%		51.3	%		50.1	%
Selling, general and administrative expenses		197,100			187,012			379,398			363,670
% of sales		30.5	%		33.4	%		30.3	%		32.8	%
Research and development		20,773			18,639			40,942			35,888
Earnings before restructuring and other charges,
net ("ROTC"), interest expense, net and income
taxes		114,612			78,634			220,818			154,925
% of sales		17.8	%		14.0	%		17.7	%		14.0	%
ROTC (a)		4,789			572			6,198			4,629
Interest expense, net (b)		5,814			5,694			13,108			3,088
Earnings before income taxes		104,009			72,368			201,512			147,208
Provision for income taxes (b)		28,345			22,749			54,439			30,606
Net earnings	$	75,664		$	49,619		$	147,073		$	116,602
Earnings per share:
Basic	$	0.65		$	0.42		$	1.26		$	0.99
Diluted	$	0.64		$	0.42		$	1.25		$	0.98
Average shares outstanding:
Basic		116,476			117,875			116,405			117,749
Diluted		118,266			119,290			118,102			119,028
Net earnings as reported	$	75,664		$	49,619		$	147,073		$	116,602
Discrete items:
Tax adjustments (b)		-			-			-			(14,188	)
Interest adjustments, after pro forma tax
effect (b)		-			-			-			(7,499	)
ROTC, after pro forma tax effect (a)		4,738			-			5,792			2,739
Total discrete items		4,738			-			5,792			(18,948	)
Pro forma earnings	$	80,402		$	49,619		$	152,865		$	97,654
Diluted earnings per share as reported	$	0.64		$	0.42		$	1.25		$	0.98
Discrete items:
Tax adjustments (b)		-			-			-			(0.12	)
Interest adjustments, after pro forma tax
effect (b)		-			-			-			(0.06	)
ROTC, after pro forma tax effect (a)		0.04			-			0.04			0.02
Total discrete items		0.04			-			0.04			(0.16	)
Pro forma diluted earnings per share	$	0.68		$	0.42		$	1.29		$	0.82

Pro forma earnings exclude the items below as they are deemed to be non-recurring in nature and/or not considered by management to be indicative of underlying operating performance. The pro forma tax effects disclosed were calculated using applicable entity-specific U.S. federal and/or foreign tax rates.

(a) ROTC in the quarter and six months ended January 31, 2011 of $4,789 ($4,738 after pro forma tax effect of $51) and $6,198 ($5,792 after pro forma tax effect of $406), respectively, primarily includes costs related to the Company's cost reduction initiatives.

ROTC in the six months ended January 31, 2010 of $4,057 ($2,739 after pro forma tax effect of $1,318), primarily includes costs related to the Company's cost reduction initiatives.

(b) Interest expense net, and provision for income taxes in the six months ended January 31, 2010 includes the reversal of accrued interest of $8,984 ($7,499 after pro forma tax effect of $1,485) and income taxes payable of $14,188, principally related to the resolution of a foreign tax audit.

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PALL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in Thousands)

	SIX MONTHS ENDED
	JAN. 31, 2011			JAN. 31, 2010
Net cash provided by operating activities	$	155,523		$	156,008
Investing activities:
Acquisitions, net of cash acquired		-			(8,984	)
Capital expenditures		(59,945	)		(63,459	)
Other		(14,005	)		(3,187	)
Net cash used by investing activities		(73,950	)		(75,630	)
Financing activities:
Dividends paid		(36,976	)		(33,913	)
Notes payable and long-term (repayments) / borrowings		(133,062	)		(1,815	)
Purchase of treasury stock		(29,538	)		(24,990	)
Other		34,777			10,113
Net cash used by financing activities		(164,799	)		(50,605	)
Cash flow for period		(83,226	)		29,773
Cash and cash equivalents at beginning of year		498,563			414,011
Effect of exchange rate changes on cash		19,924			(1,827	)
Cash and cash equivalents at end of period	$	435,261		$	441,957
Free cash flow:
Net cash provided by operating activities	$	155,523		$	156,008
Less capital expenditures		59,945			63,459
Free cash flow	$	95,578		$	92,549

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PALL CORPORATION
SUMMARY OPERATING PROFIT BY SEGMENT
(Unaudited)
(Dollar Amounts in Thousands)

	SECOND QUARTER ENDED						SIX MONTHS ENDED
	JAN. 31, 2011			JAN. 31, 2010			JAN. 31, 2011			JAN. 31, 2010
Life Sciences
Sales	$	334,214		$	297,299		$	645,794		$	585,426
Cost of sales		149,488			130,638			291,149			262,944
Gross profit		184,726			166,661			354,645			322,482
% of sales		55.3	%		56.1	%		54.9	%		55.1	%
Selling, general and administrative expenses		88,188			86,177			171,662			166,830
% of sales		26.4	%		29.0	%		26.6	%		28.5	%
Research and development		12,888			12,124			26,145			22,738
Operating profit	$	83,650		$	68,360		$	156,838		$	132,914
% of sales		25.0	%		23.0	%		24.3	%		22.7	%
Industrial
Sales	$	311,018		$	263,102		$	604,915		$	521,914
Cost of sales		163,259			145,478			318,402			289,913
Gross profit		147,759			117,624			286,513			232,001
% of sales		47.5	%		44.7	%		47.4	%		44.5	%
Selling, general and administrative expenses		91,932			87,685			178,435			171,243
% of sales		29.6	%		33.3	%		29.5	%		32.8	%
Research and development		7,885			6,515			14,797			13,150
Operating profit	$	47,942		$	23,424		$	93,281		$	47,608
% of sales		15.4	%		8.9	%		15.4	%		9.1	%
CONSOLIDATED:
Operating profit	$	131,592		$	91,784		$	250,119		$	180,522
General corporate expenses		16,980			13,150			29,301			25,597
Earnings before ROTC, interest expense, net and
income taxes		114,612			78,634			220,818			154,925
ROTC		4,789			572			6,198			4,629
Interest expense, net		5,814			5,694			13,108			3,088
Earnings before income taxes	$	104,009		$	72,368		$	201,512		$	147,208

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PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND GEOGRAPHY
(Unaudited)
(Dollar Amounts in Thousands)

						EXCHANGE			% CHANGE
						RATE			IN LOCAL
SECOND QUARTER ENDED	JAN. 31, 2011		JAN. 31, 2010		% CHANGE	IMPACT			CURRENCY
Life Sciences					|-------------- Increase/(Decrease) -------------|
By Market:
BioPharmaceuticals	$	179,550	$	146,972	22.2	$	(2,050	)	23.6
Medical		102,305		100,451	1.8		(1,495	)	3.3
Food & Beverage		52,359		49,876	5.0		(1,266	)	7.5
Total Life Sciences	$	334,214	$	297,299	12.4	$	(4,811	)	14.0
By Geography:
Western Hemisphere	$	118,477	$	101,616	16.6	$	136		16.5
Europe		153,725		147,593	4.2		(8,743	)	10.1
Asia		62,012		48,090	28.9		3,796		21.1
Total Life Sciences	$	334,214	$	297,299	12.4	$	(4,811	)	14.0
Industrial
By Market:
Aeropower	$	106,614	$	96,651	10.3	$	(1,295	)	11.6
Energy & Water		127,611		105,484	21.0		(28	)	21.0
Microelectronics		76,793		60,967	26.0		2,786		21.4
Total Industrial	$	311,018	$	263,102	18.2	$	1,463		17.7
By Geography:
Western Hemisphere	$	105,079	$	73,510	42.9	$	299		42.5
Europe		86,657		82,196	5.4		(5,552	)	12.2
Asia		119,282		107,396	11.1		6,716		4.8
Total Industrial	$	311,018	$	263,102	18.2	$	1,463		17.7

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PALL CORPORATION
SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND GEOGRAPHY
(Unaudited)
(Dollar Amounts in Thousands)

						EXCHANGE			% CHANGE
						RATE			IN LOCAL
SIX MONTHS ENDED	JAN. 31, 2011		JAN. 31, 2010		% CHANGE	IMPACT			CURRENCY
Life Sciences					|-------------- Increase/(Decrease) -------------|
By Market:
BioPharmaceuticals	$	340,959	$	290,195	17.5	$	(4,713	)	19.1
Medical		200,847		196,138	2.4		(3,359	)	4.1
Food & Beverage		103,988		99,093	4.9		(3,247	)	8.2
Total Life Sciences	$	645,794	$	585,426	10.3	$	(11,319	)	12.2
By Geography:
Western Hemisphere	$	228,128	$	196,686	16.0	$	280		15.8
Europe		299,113		295,336	1.3		(18,298	)	7.5
Asia		118,553		93,404	26.9		6,699		19.8
Total Life Sciences	$	645,794	$	585,426	10.3	$	(11,319	)	12.2
Industrial
By Market:
Aeropower	$	223,163	$	191,670	16.4	$	(2,925	)	18.0
Energy & Water		230,004		212,728	8.1		(1,548	)	8.8
Microelectronics		151,748		117,516	29.1		4,585		25.2
Total Industrial	$	604,915	$	521,914	15.9	$	112		15.9
By Geography:
Western Hemisphere	$	205,547	$	145,608	41.2	$	487		40.8
Europe		168,338		165,170	1.9		(11,299	)	8.8
Asia		231,030		211,136	9.4		10,924		4.2
Total Industrial	$	604,915	$	521,914	15.9	$	112		15.9

# # #

Contact:

Pall Corporation
Patricia Iannucci
V.P. Investor Relations & Corporate Communications
Telephone: 516-801-9848
Email: piannucci@pall.com

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