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

Roper Industries Announces Record Third Quarter Results

Diluted Earnings Per Share of $0.56;
Sales Up 17%; Net Earnings Up 30% to $51 Million

Duluth, Georgia, October 26, 2006 … Roper Industries, Inc. (NYSE: ROP) reported record results for its third quarter ended September 30, 2006. Net sales were up 17% to $427 million. Excluding acquisitions, sales were up 11%. Diluted earnings per share (DEPS) were $0.56, up from $0.45 in the third quarter 2005. Current year results include the effects from implementation of SFAS 123R and related equity compensation costs. The results also include the dilution from the Company’s senior subordinated convertible notes. Without this dilution DEPS would have been $0.57 in the quarter.

“We are pleased to report strong sales and income growth during the quarter,” said Brian Jellison, Roper’s Chairman, President and CEO. “Operating margins expanded in all four segments reaching 20.5% for the Company, up 140 basis points from the prior year. Our internal growth and operating improvements drove EBITDA margins up to 25.4% in the third quarter 2006. Business conditions continue to be strong, and we closed the third quarter with a record $431 million in backlog.”

Operating income was $88 million and net earnings grew 30% to $51 million. The Company reported third quarter EBITDA of $109 million. Net working capital was reduced 110 basis points to 16.3% of third quarter annualized 2006 sales. Net debt (debt minus cash) was reduced to 36.5% of total net capitalization.

Orders totaled $436 million for the quarter, up 7% and excluding the Radio Frequency (RF) segment, orders were up 18%. Industrial Technology was up 18%, Energy Systems up 12% and Scientific Imaging up 26%. While RF third quarter net orders were off 17% in the quarter, fourth quarter RF orders are expected to be up more than 30% from the comparable quarter in 2005. Despite the lumpy nature of RF segment quarterly net order numbers, the Company expects the 2006 RF segment net orders to be up 12% or more over 2005.

Roper is increasing its full year DEPS and EBITDA guidance, which does not include benefits from future acquisitions or the dilutive effects resulting from the Company’s convertible notes. The Company is increasing its full year DEPS guidance from $2.05-$2.11 to $2.11-$2.15. In the first three quarters of 2006 the dilutive effect resulting from the Company’s convertible notes totaled $0.03 per share or $0.01 per share per quarter. The Company is increasing its full year EBITDA guidance from $405+ million to $413+ million.

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, October 27, 2006. The call can be accessed via webcast or by dialing (800) 811-8824 or +1 (913) 981-4903, using access code 5472533. 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 5472533.

Table 1: EBITDA (Millions)

	Q3 2005		Q3 2006		2006 Full Year Estimates
Net Earnings	$	39	$	51	$	188	+
Add: Interest Expense		11		11		44
Add: Income Taxes		20		26		99	+
Add: Depreciation and Amortization		18		21		82
Rounding		1		0		0
EBITDA		89		109		413	+

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

	Q3 2006
Total Debt	$	856
Less: Cash		(41	)
Equals: Net Debt		815
Add: Shareholders' Equity		1,419
Equals: Net Capital	$	2,234
Net Debt Divided by Net Capital		36.5	%

Table 3: Diluted Earnings Per Share (Thousands, Except Earnings Per Share)

	Q1 2006		Q2 2006		Q3 2006
Net Earnings	$	37,686	$	48,093	$	50,814
Diluted Weighted Average Common Shares		89,711		91,043		90,963
Diluted Earnings Per Share (DEPS)	$	0.42	$	0.53	$	0.56
Diluted Weighted Average Common Shares,
Excluding Effect of Convertible Notes		87,887		88,699		88,843
DEPS, Excluding Dilution From Convertible Notes	$	0.43	$	0.54	$	0.57

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)

	September 30, 2006			December 31, 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	40,878		$	53,116
Accounts receivable		304,385			257,210
Inventories		161,616			131,838
Deferred taxes		19,827			19,145
Other current assets		48,548			36,898
Total current assets		575,254			498,207
PROPERTY, PLANT AND EQUIPMENT, NET		103,234			97,462
OTHER ASSETS:
Goodwill		1,436,161			1,353,712
Other intangible assets, net		496,609			501,365
Deferred taxes		25,323			25,852
Other assets		43,297			45,708
Total other assets		2,001,390			1,926,637
TOTAL ASSETS	$	2,679,878		$	2,522,306
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	91,076		$	71,693
Accrued liabilities		148,532			142,835
Income taxes payable		13,478			14,718
Deferred taxes		2,362			3,066
Current portion of long-term debt		291,458			273,313
Total current liabilities		546,906			505,625
NONCURRENT LIABILITIES:
Long-term debt		564,072			620,958
Deferred taxes		127,139			124,202
Other liabilities		22,282			21,733
Total liabilities		1,260,399			1,272,518
STOCKHOLDERS' EQUITY:
Common stock		895			883
Additional paid-in capital		699,220			670,322
Retained earnings		670,873			549,603
Accumulated other comprehensive earnings		70,958			51,731
Treasury stock		(22,467	)		(22,751	)
Total stockholders' equity		1,419,479			1,249,788
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,679,878		$	2,522,306

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

	Three months ended September 30,				Nine months ended September 30,
	2006		2005		2006		2005
Net sales	$	427,217	$	365,164	$	1,235,250	$	1,060,565
Cost of sales		208,967		180,407		609,720		533,242
Gross profit		218,250		184,757		625,530		527,323
Selling, general and administrative expenses		130,730		114,981		385,142		343,291
Income from operations		87,520		69,776		240,388		184,032
Interest expense		11,066		11,437		33,178		32,771
Other income/(expense)		267		867		108		1,110
Earnings from continuing operations before
income taxes		76,721		59,206		207,318		152,371
Income taxes		25,907		20,012		70,725		49,604
Net Earnings	$	50,814	$	39,194	$	136,593	$	102,767
Earnings per share:
Basic	$	0.58	$	0.46	$	1.58	$	1.20
Diluted	$	0.56	$	0.45	$	1.51	$	1.18
Weighted average common and common
equivalent shares outstanding:
Basic		87,050		85,431		86,679		85,380
Diluted		90,963		87,096		90,640		86,896

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

	Nine months ended September 30,
	2006			2005
Net earnings	$	136,593		$	102,767
Depreciation		21,632			20,791
Amortization		38,694			32,036
Other, net		(43,386	)		20,331
Cash provided by operating activities		153,533			175,925
Business acquisitions, net of cash acquired		(103,394	)		(181,086	)
Capital expenditures		(23,547	)		(16,059	)
Other, net		(1,383	)		(1,014	)
Cash used by investing activities		(128,324	)		(198,159	)
Debt payments, net		(43,856	)		(22,016	)
Windfall tax benefit from exercise of stock options		5,051			--
Dividends		(15,291	)		(13,593	)
Other, net		14,448			13,124
Cash used by financing activities		(39,648	)		(22,485	)
Effect of exchange rate changes on cash		2,201			(5,604	)
Net decrease in cash and equivalents		(12,238	)		(50,323	)
Cash and equivalents, beginning of period		53,116			129,419
Cash and equivalents, end of period	$	40,878		$	79,096

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

	Three months ended September 30,										Nine months ended September 30,
	2006					2005					2006					2005
	Amount		%			Amount		%			Amount		%			Amount		%
Net sales:
Industrial Technology	$	140,624				$	122,339				$	402,204				$	367,726
Energy Systems & Controls		88,485					76,208					233,109					225,388
Scientific & Industrial Imaging		83,501					65,781					249,923					175,821
RF Technology		114,607					100,836					350,014					291,630
Total	$	427,217				$	365,164				$	1,235,250				$	1,060,565
Gross profit:
Industrial Technology	$	65,863		46.8	%	$	57,203		46.8	%	$	192,389		47.8	%	$	173,723		47.2	%
Energy Systems & Controls		48,809		55.2	%		41,490		54.4	%		126,473		54.3	%		119,690		53.1	%
Scientific & Industrial Imaging		49,017		58.7	%		37,142		56.5	%		141,725		56.7	%		98,603		56.1	%
RF Technology		54,561		47.6	%		48,922		48.5	%		164,943		47.1	%		135,307		46.4	%
Total	$	218,250		51.1	%	$	184,757		50.6	%	$	625,530		50.6	%	$	527,323		49.7	%
Operating profit*:
Industrial Technology	$	32,747		23.3	%	$	25,697		21.0	%	$	92,489		23.0	%	$	76,127		20.7	%
Energy Systems & Controls		25,108		28.4	%		20,784		27.3	%		59,077		25.3	%		54,441		24.2	%
Scientific & Industrial Imaging		18,832		22.6	%		13,472		20.5	%		52,703		21.1	%		32,463		18.5	%
RF Technology		19,344		16.9	%		16,295		16.2	%		62,368		17.8	%		40,041		13.7	%
Total	$	96,031		22.5	%	$	76,248		20.9	%	$	266,637		21.6	%	$	203,072		19.1	%
Net Orders:
Industrial Technology	$	149,801				$	126,803				$	436,595				$	373,059
Energy Systems & Controls		89,003					79,654					231,350					225,298
Scientific & Industrial Imaging		85,758					68,317					245,140					186,149
RF Technology		111,113					133,221					348,614					318,305
Total	$	435,675				$	407,995				$	1,261,699				$	1,102,811

* Operating profit is before unallocated corporate general and administrative expenses. Such expenses were $8,511 and $6,472 for the three months ended September 30, 2006 and 2005, respectively, and $26,249 and $19,040 for the nine months ended September 30, 2006 and 2005, respectively.