Roper (ROP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Roper Industries, Inc.

Contact Information:
Investor Relations
+1 (770) 495-5100
investor-relations@roperind.com

FOR IMMEDIATE RELEASE

Roper Industries Announces Record Second Quarter Results

Sales Performance Led by Internal Growth; Four Acquisitions Complement Existing Platforms

Duluth, Georgia, July 27, 2006 … Roper Industries, Inc. (NYSE: ROP) reported record results for its second quarter ended June 30, 2006. Diluted earnings per share (DEPS) were $0.53, an increase of 29% over the comparable period in the prior year. Current year results include the effects from implementation of SFAS 123R and related equity compensation costs, as well as dilution from the Company’s senior subordinated convertible notes. Net sales were up 18% to $425 million, which included 12% internal growth. Operating income increased 37% to $85 million and net earnings grew 35% to $48 million. Net orders increased 19% over prior year levels to $433 million, which included 13% internal growth.

“We are pleased to report strong internal sales and order growth during the quarter,” said Brian Jellison, Roper’s Chairman, President and CEO. “Our operating margins improved to 20.1% from 17.3% in the second quarter 2005. This combination of internal growth and operational execution allowed us to grow EBITDA by 33% to $106 million.“

In the second quarter, Roper completed the acquisitions of Sinmed BV, which provides patient positioning systems for medical diagnostic and therapeutic applications, and Intellitrans LLC, a provider of services and software for track and trace logistics. Earlier this week, the Company also completed the acquisition of Lumenera, which engineers and produces high performance digital cameras. The Company expects to close a fourth transaction within the next two weeks. Total consideration for the four transactions approximates $94 million. The Company expects these acquisitions to produce 2007 net sales in excess of $70 million with 20% EBITDA margins. We expect these acquisitions to be accretive in 2007.

Mr. Jellison commented, “The acquisition of Sinmed, based in the Netherlands, increases the reach of our medical platform into Europe. The combination of Intellitrans’ unique software and services with TransCore’s RF and Satcom technology offers unparalleled track-and-trace functionality for rail customers. Lumenera, based in Canada, extends our imaging leadership into security markets and OEMs serving a variety of new applications. We welcome the employees of these businesses to the Roper family.“

The Company also reported second quarter EBITDA of $106 million, or 24.9% of sales, 290 basis points higher than the second quarter of the previous year. Net working capital was reduced by 270 basis points to 14.6% of second quarter annualized 2006 sales. Net debt (debt minus cash) was reduced to 37.4% of total net capitalization and represents 2.1 times twelve month trailing EBITDA.

As a result of its strong second quarter performance, Roper is increasing its full year DEPS guidance from $1.98-$2.08 to $2.05-$2.11, and establishing third quarter DEPS guidance of $0.52-$0.54. The Company is increasing its full year EBITDA guidance from $390+ million to $405+ million. The Company’s guidance does not include benefits from future acquisitions or the dilutive effects resulting from the Company’s convertible notes.

Conference Call to be Held at 10:00 AM (ET) Tomorrow

A conference call to discuss these results has been scheduled for 10:00 AM ET on Friday, July 28, 2006. The call can be accessed via webcast or by dialing (800) 811-0667 or +1 (913) 981-4901, using access code 8942814. Webcast information and conference call materials will be made available in the “Investor” section of Roper’s website (www.roperind.com) prior to the start of the call. Telephonic replays will be available for up to two weeks by calling +1 (719) 457-0820 and using the access code 8942814.

Table 1: EBITDA (Millions)

	Q2 2005		Q2 2006		2006 Full Year Estimates
Net Earnings	$	36	$	48	$	185
Add: Interest Expense		11		11		44
Add: Income Taxes		16		26		94
Add: Depreciation and Amortization		17		20		82
Rounding		0		1		0
EBITDA		80		106		405

Table 2: Net Debt-to-Net Capital Ratio (Millions)

	Q2 2006
Total Debt	$	869
Less: Cash		(53	)
Equals: Net Debt		816
Add: Shareholders' Equity		1,361
Equals: Net Capital	$	2,177
Net Debt Divided by Net Capital		37.4%

About Roper Industries

Roper Industries is a market-driven, diversified growth company with annual revenues of $1.5 billion, and is a component of the S&P MidCap 400 and the Russell 1000 Indexes. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. Additional information about Roper Industries is available on the Company’s website atwww.roperind.com.

The information provided in this press release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth and profit expectations. Forward looking statements may be indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes” or “intends” and similar words and phrases. These statements reflect management’s current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward looking statement. Such risks and uncertainties include our ability to integrate our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

_________________

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in thousands)

	June 30, 2006			December 31, 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	53,383		$	53,116
Accounts receivable		277,041			257,210
Inventories		147,332			131,838
Deferred taxes		19,120			19,145
Other current assets		48,543			36,898
Total current assets		545,419			498,207
PROPERTY, PLANT AND EQUIPMENT, NET		102,231			97,462
OTHER ASSETS:
Goodwill		1,407,958			1,353,712
Other intangible assets, net		501,839			501,365
Deferred taxes		22,214			25,852
Other assets		47,083			45,708
Total other assets		1,979,094			1,926,637
TOTAL ASSETS	$	2,626,744		$	2,522,306
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	84,183		$	71,693
Accrued liabilities		136,006			142,835
Income taxes payable		20,880			14,718
Deferred taxes		3,066			3,066
Current portion of long-term debt		284,676			273,313
Total current liabilities		528,811			505,625
NONCURRENT LIABILITIES:
Long-term debt		584,436			620,958
Deferred taxes		128,632			124,202
Other liabilities		23,412			21,733
Total liabilities		1,265,291			1,272,518
STOCKHOLDERS' EQUITY:
Common stock		893			883
Additional paid-in capital		690,227			670,322
Retained earnings		625,180			549,603
Accumulated other comprehensive earnings		67,710			51,731
Treasury stock		(22,557	)		(22,751	)
Total stockholders' equity		1,361,453			1,249,788
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,626,744		$	2,522,306

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in thousands, except per share data)

	Three months ended June 30,					Six months ended June 30,
	2006			2005		2006			2005
Net sales	$	425,310		$	361,564	$	808,033		$	695,401
Cost of sales		210,427			181,622		400,753			352,835
Gross profit		214,883			179,942		407,280			342,566
Selling, general and administrative expenses		129,491			117,550		254,412			228,310
Income from operations		85,392			62,392		152,868			114,256
Interest expense		11,313			10,957		22,112			21,334
Other income/(expense)		(31	)		231		(159	)		243
Earnings from continuing operations before
income taxes		74,048			51,666		130,597			93,165
Income taxes		25,955			16,104		44,818			29,592
Net Earnings	$	48,093		$	35,562	$	85,779		$	63,573
Earnings per share:
Basic	$	0.55		$	0.42	$	0.99		$	0.75
Diluted	$	0.53		$	0.41	$	0.95		$	0.73
Weighted average common and common
equivalent shares outstanding:
Basic		86,919			85,432		86,492			85,252
Diluted		91,043			86,928		90,350			86,694

Roper Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in thousands)

	Six months ended June 30,
	2006			2005
Net earnings	$	85,779		$	63,573
Depreciation		13,927			13,684
Amortization		25,536			21,008
Other, net		(19,486	)		3,118
Cash provided by operating activities		105,756			101,383
Business acquisitions, net of cash acquired		(63,454	)		(177,375	)
Capital expenditures		(16,807	)		(10,500	)
Other, net		(870	)		(1,600	)
Cash used by investing activities		(81,131	)		(189,475	)
Debt borrowings (payments), net		(29,322	)		32,893
Windfall tax benefit from exercise of stock options		2,483			--
Dividends		(10,189	)		(9,032	)
Other, net		10,931			8,785
Cash provided by/(used by) financing activities		(26,097	)		32,646
Effect of exchange rate changes on cash		1,739			(5,574	)
Net increase/(decrease) in cash and equivalents		267			(61,020	)
Cash and equivalents, beginning of period		53,116			129,419
Cash and equivalents, end of period	$	53,383		$	68,399

Roper Industries, Inc. and Subsidiaries
Selected Segment Financial Data (unaudited)
(Amounts in thousands and percents of net sales)

	Three months ended June 30,										Six months ended June 30,
	2006					2005					2006					2005
	Amount		%			Amount		%			Amount		%			Amount		%
Net sales:
Industrial Technology	$	136,783				$	126,943				$	261,580				$	245,387
Energy Systems & Controls		75,915					77,742					144,624					149,180
Scientific & Industrial Imaging		85,644					58,356					166,422					110,040
RF Technology		126,968					98,523					235,407					190,794
Total	$	425,310				$	361,564				$	808,033				$	695,401
Gross profit:
Industrial Technology	$	65,668		48.0	%	$	60,496		47.7	%	$	126,526		48.4	%	$	116,520		47.5	%
Energy Systems & Controls		41,641		54.9	%		41,628		53.5	%		77,664		53.7	%		78,200		52.4	%
Scientific & Industrial Imaging		48,212		56.3	%		32,600		55.9	%		92,708		55.7	%		61,461		55.9	%
RF Technology		59,362		46.8	%		45,218		45.9	%		110,382		46.9	%		86,385		45.3	%
Total	$	214,883		50.5	%	$	179,942		49.8	%	$	407,280		50.4	%	$	342,566		49.3	%
Operating profit*:
Industrial Technology	$	32,174		23.5	%	$	27,082		21.3	%	$	59,742		22.8	%	$	50,430		20.6	%
Energy Systems & Controls		19,037		25.1	%		18,788		24.2	%		33,969		23.5	%		33,657		22.6	%
Scientific & Industrial Imaging		18,027		21.0	%		10,330		17.7	%		33,871		20.4	%		18,991		17.3	%
RF Technology		24,596		19.4	%		12,573		12.8	%		43,024		18.3	%		23,746		12.4	%
Total	$	93,834		22.1	%	$	68,773		19.0	%	$	170,606		21.1	%	$	126,824		18.2	%
Net Orders:
Industrial Technology	$	151,791				$	121,411				$	286,794				$	246,256
Energy Systems & Controls		77,928					75,176					142,347					145,644
Scientific & Industrial Imaging		79,307					65,258					159,382					117,832
RF Technology		124,395					101,799					237,501					185,084
Total	$	433,421				$	363,644				$	826,024				$	694,816

        * Operating profit is before unallocated corporate general and administrative expenses. Such expenses were $8,442 and $6,381 for the three months ended June 30, 2006 and 2005, respectively, and $17,738 and $12,568 for the six months ended June 30, 2006 and 2006, respectively.