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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------
FORM 10-Q

(MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTER ENDED SEPTEMBER 30, 2001

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ____________ TO ____________

COMMISSION FILE NUMBER 1-10235

IDEX CORPORATION
(Exact Name of Registrant as Specified in its Charter)

<Table>

DELAWARE 36-3555336
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
630 DUNDEE ROAD, NORTHBROOK, ILLINOIS 60062
(Address of principal executive offices) (Zip Code)
</Table>

Registrant's telephone number: (847) 498-7070

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes X No __

Number of shares of common stock of IDEX Corporation ("IDEX" or the
"Company") outstanding as of October 31, 2001: 30,692,448.
- --------------------------------------------------------------------------------
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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IDEX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)

<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2001 2000
------------- ------------
(UNAUDITED)

ASSETS
Current assets
Cash and cash equivalents................................. $ 6,352 $ 8,415
Receivables -- net........................................ 109,274 104,950
Inventories............................................... 112,866 113,052
Other current assets...................................... 8,801 5,672
-------- --------
Total current assets................................. 237,293 232,089
Property, plant and equipment -- net........................ 146,681 128,283
Intangible assets -- net.................................... 471,756 388,163
Other noncurrent assets..................................... 12,196 10,319
-------- --------
Total assets......................................... $867,926 $758,854
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt........................................... $ -- $ 88,077
Trade accounts payable.................................... 46,290 43,342
Dividends payable......................................... 4,296 4,236
Accrued expenses.......................................... 49,140 42,156
-------- --------
Total current liabilities............................ 99,726 177,811
Long-term debt.............................................. 308,157 153,809
Other noncurrent liabilities................................ 60,312 52,732
-------- --------
Total liabilities.................................... 468,195 384,352
-------- --------
Shareholders' equity
Common stock, par value $.01 per share
Shares authorized: 2001 and 2000 -- 75,000,000
Shares issued and outstanding: 2001 -- 30,687,948;
2000 -- 30,258,231.................................... 307 303
Additional paid-in capital................................ 123,574 115,280
Retained earnings......................................... 295,488 279,907
Minimum pension liability adjustment...................... (2,127) (2,127)
Accumulated translation adjustment........................ (9,617) (10,489)
Unrealized losses on derivatives.......................... (225) --
Treasury stock............................................ (865) (144)
Unearned compensation on restricted stock................. (6,804) (8,228)
-------- --------
Total shareholders' equity........................... 399,731 374,502
-------- --------
Total liabilities and shareholders' equity........... $867,926 $758,854
======== ========
</Table>

See Notes to Consolidated Financial Statements.

IDEX CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONSOLIDATED OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

<Table>
<Caption>
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- --------------------
2001 2000 2001 2000
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)

Net sales........................................... $178,137 $176,218 $558,154 $538,138
Cost of sales....................................... 113,480 106,041 354,012 324,475
-------- -------- -------- --------
Gross profit........................................ 64,657 70,177 204,142 213,663
Selling, general and administrative expenses........ 42,302 36,593 126,080 112,542
Goodwill amortization............................... 3,571 3,006 10,540 8,824
Restructuring charge................................ -- -- 5,661 --
-------- -------- -------- --------
Operating income.................................... 18,784 30,578 61,861 92,297
Other income (expense) -- net....................... 24 (172) 429 (315)
-------- -------- -------- --------
Income before interest expense and income taxes..... 18,808 30,406 62,290 91,982
Interest expense.................................... 5,206 4,284 15,807 12,508
-------- -------- -------- --------
Income before income taxes.......................... 13,602 26,122 46,483 79,474
Provision for income taxes.......................... 5,418 9,557 18,077 29,564
-------- -------- -------- --------
Net income.......................................... $ 8,184 $ 16,565 $ 28,406 $ 49,910
======== ======== ======== ========
Basic earnings per common share..................... $ 0.27 $ 0.56 $ 0.94 $ 1.68
======== ======== ======== ========
Diluted earnings per common share................... $ 0.26 $ 0.54 $ 0.92 $ 1.63
======== ======== ======== ========
Share data:
Weighted average common shares outstanding.......... 30,331 29,740 30,155 29,700
======== ======== ======== ========
Weighted average common shares outstanding assuming
full dilution..................................... 31,225 30,899 31,026 30,618
======== ======== ======== ========
</Table>

See Notes to Consolidated Financial Statements.

IDEX CORPORATION AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED SHAREHOLDERS' EQUITY
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
<Table>
<Caption>
COMMON
STOCK & MINIMUM
ADDITIONAL PENSION ACCUMULATED
PAID-IN RETAINED LIABILITY TRANSLATION
CAPITAL EARNINGS ADJUSTMENT ADJUSTMENT
---------- -------- ---------- -----------

Balance, December 31,
2000...................... $115,583 $279,907 $(2,127) $(10,489)
-------- -------- ------- --------
Net Income.................. 28,406
--------
Other comprehensive income
(loss)
Cumulative effect of
accounting change.......
Unrealized derivative
losses..................
Unrealized translation
adjustment.............. 872
-------- --------
Other comprehensive
income (loss)......... 872
-------- --------
Comprehensive income
(loss)................ 28,406 872
-------- --------
Issuance of 429,717 shares
of common stock, net of
those surrendered......... 8,298
Amortization of restricted
stock.....................
Restricted shares
surrendered for tax
withholdings..............
Cash dividends declared on
common stock ($.42 per
share).................... (12,825)
-------- -------- ------- --------
Balance, September 30,
2001...................... $123,881 $295,488 $(2,127) $ (9,617)
======== ======== ======= ========

UNREALIZED UNEARNED
GAINS COMPENSATION TOTAL
(LOSSES) ON TREASURY ON SHAREHOLDERS'
DERIVATIVES STOCK RESTRICTED STOCK EQUITY
----------- -------- ---------------- -------------

Balance, December 31,
2000...................... $ -- $(144) $(8,228) $374,502
----- ----- ------- --------
Net Income.................. 28,406
--------
Other comprehensive income
(loss)
Cumulative effect of
accounting change....... 204 204
Unrealized derivative
losses.................. (429) (429)
Unrealized translation
adjustment.............. 872
----- --------
Other comprehensive
income (loss)......... (225) 647
----- --------
Comprehensive income
(loss)................ (225) 29,053
----- --------
Issuance of 429,717 shares
of common stock, net of
those surrendered......... 8,298
Amortization of restricted
stock..................... 1,424 1,424
Restricted shares
surrendered for tax
withholdings.............. (721) (721)
Cash dividends declared on
common stock ($.42 per
share).................... (12,825)
----- ----- ------- --------
Balance, September 30,
2001...................... $(225) $(865) $(6,804) $399,731
===== ===== ======= ========
</Table>

See Notes to Consolidated Financial Statements.

IDEX CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONSOLIDATED CASH FLOWS
(IN THOUSANDS)

<Table>
<Caption>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
2001 2000
---- ----
(UNAUDITED)

Cash flows from operating activities
Net income.................................................. $ 28,406 $ 49,910
Adjustments to reconcile to net cash provided by operations:
Depreciation and amortization............................. 20,582 17,033
Amortization of intangibles............................... 11,671 9,986
Amortization of unearned compensation..................... 1,424 791
Amortization of debt issuance expenses.................... 246 168
Restructuring charge...................................... 5,661 --
Deferred income taxes..................................... 3,434 --
Decrease (increase) in receivables........................ 7,817 (4,163)
Decrease (increase) in inventories........................ 13,477 (1,243)
Decrease in trade accounts payable........................ (2,069) (1,682)
Decrease in accrued expenses.............................. (2,608) (2,066)
Other -- net.............................................. (5,083) (5,724)
--------- --------
Net cash flows from operating activities............... 82,958 63,010
--------- --------
Cash flows from investing activities
Additions to property, plant and equipment................ (16,291) (13,825)
Acquisition of businesses (net of cash acquired).......... (129,762) (34,369)
--------- --------
Net cash flows from investing activities............... (146,053) (48,194)
--------- --------
Cash flows from financing activities
Borrowings under credit facilities for acquisitions....... 129,762 34,369
Net repayments under credit facilities.................... (58,210) (28,156)
Repayments of other long-term debt........................ (3,760) (3,517)
Decrease in accrued interest.............................. (2,151) (2,637)
Dividends paid............................................ (12,765) (12,566)
Proceeds from stock option exercises...................... 8,156 1,693
Purchase of common stock.................................. -- (46)
--------- --------
Net cash flows from financing activities............... 61,032 (10,860)
--------- --------
Net (decrease) increase in cash............................. (2,063) 3,956
Cash and cash equivalents at beginning of year.............. 8,415 2,895
--------- --------
Cash and cash equivalents at end of period.................. $ 6,352 $ 6,851
========= ========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for:
Interest.................................................. $ 18,204 $ 15,314
Income taxes.............................................. 9,459 30,116
Significant non-cash activities:
Debt acquired with acquisition of businesses.............. 2,931 --
</Table>

See Notes to Consolidated Financial Statements.

IDEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1. BUSINESS

IDEX Corporation ("IDEX" or the "Company") manufactures an extensive array
of proprietary engineered industrial products sold to customers in a variety of
industries around the world. The Company believes that each of its principal
business units holds the number-one or number-two market share position in it's
niche market. IDEX believes that its consistent financial performance has been
attributable to the manufacture of quality proprietary products designed and
engineered by the Company, coupled with its ability to identify and successfully
integrate strategic acquisitions. IDEX consists of three reportable business
segments: Pump Products Group, Dispensing Equipment Group, and Other Engineered
Products Group.

The Pump Products Group designs, produces and distributes a wide variety of
industrial pumps, compressors, flow meters and related controls for the movement
of liquids, air and gases. The devices and equipment produced by the group are
used by a large and diverse set of industries, including chemical processing,
machinery, water treatment, medical equipment, petroleum distribution, oil and
refining, and food processing.

The Dispensing Equipment Group produces highly engineered equipment for
dispensing, metering and mixing colorants, paints, inks and dyes; refinishing
equipment; and centralized lubrication systems. This proprietary equipment is
used in a variety of retail and commercial industries around the world. These
units provide componentry and systems for applications such as tinting paints
and coatings; providing industrial and automotive refinishing equipment; and the
precise lubrication of machinery and transportation equipment.

The Other Engineered Products Group manufactures engineered banding and
clamping devices, fire fighting pumps and rescue tools. The high-quality
stainless steel bands, buckles and preformed clamps and related installation
tools are used in applications including securing hoses, signals, pipes, poles,
electrical lines, sign-mounting systems and numerous other "hold-together"
applications. The group also includes a leading manufacturer of truck-mounted
fire pumps and rescue tool systems used by public and private fire and rescue
organizations and electronic devices and systems for the specialty vehicle
market.

Information follows about the operations of IDEX in different business
segments based on the nature of products and services offered. The Company's
basis of segmentation and basis of segment profit measurement for the nine
months ended September 30, 2001, are the same as those set forth under "Business
Segments and Geographic Information" on pages 30 and 31 of the 2000 Annual
Report to Shareholders. Intersegment sales are accounted for at fair value as if
the sales were to third parties. Amounts are in thousands, unless otherwise
specified.

IDEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)

<Table>
<Caption>
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- --------------------
2001 2000 2001 2000
---- ---- ---- ----

Net sales
Pump Products
External customers............................. $105,092 $ 99,304 $324,087 $298,754
Intersegment sales............................. 711 718 1,891 2,161
-------- -------- -------- --------
Total group sales......................... 105,803 100,022 325,978 300,915
-------- -------- -------- --------
Dispensing Equipment
External customers............................. 32,441 41,713 109,852 128,804
Intersegment sales............................. -- -- -- 1
-------- -------- -------- --------
Total group sales......................... 32,441 41,713 109,852 128,805
-------- -------- -------- --------
Other Engineered Products
External customers............................. 40,604 35,201 124,215 110,580
Intersegment sales............................. -- 1 1 3
-------- -------- -------- --------
Total group sales......................... 40,604 35,202 124,216 110,583
-------- -------- -------- --------
Intersegment elimination....................... (711) (719) (1,892) (2,165)
-------- -------- -------- --------
Total net sales........................... $178,137 $176,218 $558,154 $538,138
======== ======== ======== ========
Operating income
Pump Products..................................... $ 13,500 $ 18,783 $ 46,446 $ 57,048
Dispensing Equipment.............................. 3,380 8,538 14,654 26,470
Other Engineered Products......................... 5,720 7,042 18,394 21,030
Restructuring charge.............................. -- -- (5,661) --
Corporate Office and Other........................ (3,816) (3,785) (11,972) (12,251)
-------- -------- -------- --------
Total operating income.................... $ 18,784 $ 30,578 $ 61,861 $ 92,297
======== ======== ======== ========
</Table>

Operating income represents business segment operating income after noncash
amortization of intangible assets. The restructuring charge of $5,661 was not
assigned to the individual group segments. Had the Company allocated the
restructuring charge, the charge would have been assigned to the groups as
follows: Pump Products ($4,623), Dispensing Equipment ($592), and Other
Engineered Products ($446).

2. DERIVATIVE INSTRUMENTS

The Company adopted Statement of Financial Accounting Standards ("SFAS")
No. 133, "Accounting for Derivative Instruments and Hedging Activities," on
January 1, 2001. SFAS No. 133 establishes accounting and reporting standards for
derivative instruments and for hedging activities. SFAS No. 133 requires that
derivative financial instruments be recognized in the financial statements at
fair value. Changes in the fair value of derivative financial instruments are
either recognized periodically in income or shareholders' equity (as a component
of comprehensive income), depending on whether the derivative is being used to
hedge changes in fair value or cash flows. The adoption of SFAS No. 133 did not
have a material effect on IDEX's balance sheet or statement of operations, but
did initially increase comprehensive income by $0.2 million in the accompanying
statement of consolidated shareholders' equity.

IDEX uses derivative financial instruments principally to manage the risk
that changes in interest rates will affect either the fair value of its debt
obligations or the amount of its future interest payments. At September 30,
2001, the Company had two interest rate swaps, expiring in March 2002, which
effectively converted $52.8 million of floating rate debt into fixed rate debt
at interest rates approximating 5.6%. The fair market value of these interest
rate swaps was a net expense of $0.2 million at September 30, 2001 as reported
in accumulated other comprehensive income. Fair values relating to derivative
financial instruments reflect the estimated amounts that the Company would
receive or pay to terminate the contracts at the reporting date based on quoted
market prices of comparable contracts as of September 30, 2001. The net gain or
loss on these interest rate swap contracts was not material during the first
nine months of 2001.

IDEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)

3. ACQUISITIONS

The Company completed the acquisitions of Versa-Matic Tool, Inc. (June
2001); Liquid Controls L.L.C. (January 2001); and Class 1, Inc. (January 2001)
for an aggregate purchase price of $133 million, with financing provided by
borrowings under the U.S. Credit Facility. Versa-Matic, headquartered in Export,
Pennsylvania, is a leading manufacturer and distributor of air-operated double
diaphragm pumps and pump replacement parts. Liquid Controls, headquartered in
Lake Bluff, Illinois, is a leading manufacturer of positive displacement flow
meters, electronic registration and process control systems. Class 1,
headquartered in Ocala, Florida, is a leading manufacturer of electronic and
mechanical components and systems for the specialty vehicle market. Versa-Matic
and Liquid Controls are operated as part of the Pump Products Group, and Class 1
is operated as part of the Other Engineered Products Group.

The Company acquired Ismatec SA (April 2000) and Trebor International, Inc.
(May 2000) for a total purchase price of approximately $35 million with
borrowings under the Company's U.S. Credit Facility. Ismatec, with headquarters
near Zurich, Switzerland, is a leading European manufacturer of peristaltic
metering pumps, analytical process controllers and sample preparation systems.
These products typically are used for scientific research and development in the
pharmaceutical, medical, biotech and institutional laboratory markets. Trebor,
with headquarters near Salt Lake City, is a leading designer and manufacturer of
high-purity fluid handling products, including air-operated diaphragm pumps and
deionized water-heating systems. Trebor's products are incorporated into wet
chemical processing and chemical delivery and blending systems. Ismatec and
Trebor are being operated as part of the Pump Products Group.

All acquisitions were accounted for as purchases, and operating results
include the acquisitions from the dates of purchase. Cost in excess of net
assets acquired is amortized on a straight-line basis up to 40 years.

4. RESTRUCTURING CHARGE

In April 2001, the Company announced a restructuring program with
aggressive actions to properly size its operations to current business
conditions. These actions were designed to reduce costs and improve operating
efficiencies. The program included, among other items, severance of employees,
fringe benefits, outplacement fees, and the plant consolidation of two
facilities. The restructuring, affected all three business groups, reduced the
Company's current workforce by approximately 250 employees, representing 6% of
the total workforce, and consolidates Gast Manufacturing's two production
facilities in southwest Michigan.

The restructuring program costs are shown as a separate item in the
accompanying income statement and resulted in a charge to operations of $5,661
($3,509 after taxes), or $0.11 per share. Excluding the charge, fully diluted
earnings per share would have been $1.03 per share for the nine months ended
September 30, 2001. At September 30, 2001, the amount remaining in the accruals
for the restructuring program was approximately $2.6 million. It is estimated
that the restructuring accrual will be approximately $2.5 million at December
31, 2001 and that the remainder of the accrual will be utilized by March 31,
2003.

5. DEBT

During June 2001, IDEX entered into a new five-year Credit Agreement
replacing the former Credit Facility which was to expire on July 1, 2001.
Accordingly, the Company's borrowings thereunder, along with accrued interest,
have been classified as long-term debt at September 30, 2001.

IDEX CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)

6. EARNINGS PER COMMON SHARE

Earnings per common share (EPS) are computed by dividing net income by the
weighted average number of shares of common stock (basic) plus common stock
equivalents and unvested restricted shares (diluted) outstanding during the
year. Common stock equivalents consist of stock options and have been included
in the calculation of weighted average shares outstanding using the treasury
stock method. Basic weighted average shares reconciles to fully diluted weighted
average shares as follows:

<Table>
<Caption>
THIRD QUARTER NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------- ----------------
2001 2000 2001 2000
---- ---- ---- ----

Basic weighted average common shares
Outstanding............................... 30,331 29,740 30,155 29,700
Dilutive effect of stock options and
unvested restricted shares................ 894 1,159 871 918
------ ------ ------ ------
Weighted average common shares outstanding
assuming full dilution.................... 31,225 30,899 31,026 30,618
====== ====== ====== ======
</Table>

7. INVENTORIES

The components of inventories as of September 30, 2001 and December 31,
2000 were:

<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2001 2000
------------- ------------

Raw materials.................................. $ 40,385 $ 33,844
Work in process................................ 13,799 13,852
Finished goods................................. 58,682 65,356
-------- --------
Total.......................................... $112,866 $113,052
======== ========
</Table>

Those inventories which were carried on a LIFO basis amounted to $95,016 at
September 30, 2001, and $91,532 December 31, 2000, respectively. The excess of
current cost over LIFO inventory value and the impact of using the LIFO method
on earnings are not material. Certain amounts at December 31, 2000 have been
reclassified between raw materials and finished goods to conform to current year
presentation. Such reclassifications did not affect previously reported total
inventory, other components of financial position, liquidity or results of
operations.

8. COMMON AND PREFERRED STOCK

The Company had five million shares of preferred stock authorized but
unissued at September 30, 2001, and December 31, 2000.

9. NEW ACCOUNTING PRONOUNCEMENTS

In July 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations" and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS No. 141 requires that the purchase method be used for all business
combinations initiated after June 30, 2001, and does not permit the pooling-of-
interests method for business combinations initiated after June 30, 2001. IDEX
has historically accounted for all business combinations using the purchase
method and will continue to use the purchase method for prospective business
combinations consistent with SFAS No. 141. SFAS No. 142 establishes the
accounting and reporting standards for intangible assets and goodwill. SFAS No.
142 requires that goodwill and certain intangible assets no longer be amortized
to earnings, but instead be reviewed for impairment. The amortization of
goodwill and certain intangible assets will cease upon the required adoption of
SFAS No. 142 on January 1, 2002. Management is assessing the effects that
Adoption of SFAS No. 142 will have on its financial position, liquidity, and
results of operations.
8

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

HISTORICAL OVERVIEW AND OUTLOOK

IDEX sells a broad range of proprietary pump products, dispensing equipment
and other engineered products to a diverse customer base in the U.S. and
internationally. Accordingly, IDEX's businesses are affected by levels of
industrial activity and economic conditions in the U.S. and in other countries
where its products are sold and by the relationship of the U.S. dollar to other
currencies. Among the factors that influence the demand for IDEX's products are
interest rates, levels of capacity utilization and capital spending in certain
industries, and overall industrial activity.

IDEX has a history of above-average operating margins. The Company's
operating margins are impacted by, among other things, utilization of facilities
as sales volumes change and inclusion of newly acquired businesses, which may
have lower margins and whose margins are normally further reduced by purchase
accounting adjustments.

For the three months ended September 30, 2001 compared with the
corresponding period of the prior year, IDEX reported record orders and sales;
however, recorded lower net income and earnings per share. New orders for the
third quarter totaled $171 million, 4% above the comparable 2000 period but 10%
below the average for the first two quarters of this year. Excluding the impact
of foreign currency and the five acquisitions made since the beginning of 2000
(Ismatec -- April 2000, Trebor -- May 2000, Class 1 -- January 2001, Liquid
Controls -- January 2001 and Versa-Matic -- June 2001), orders were 7% lower
than the third quarter of 2000. The Company's order declines were associated
with the continuing weaknesses in the North America and European manufacturing
sectors and the aftermath of the September 11 terrorists attacks. At September
30, IDEX had an unfilled order backlog of slightly over one month's sales,
consistent with recent periods.

IDEX saw significant weakness in the July business conditions and then a
slight improvement in August. This prompted the Company to issue a revised
earnings outlook for the third and fourth quarters on September 10. Following
the tragic events of September 11, IDEX experienced a further deterioration in
business conditions. The Company's September incoming orders totaled $52
million, 12% below the July/ August average, and 18% below the monthly average
for the first half of the year. While IDEX has seen lower business levels in
virtually all end-markets, the most significant impact has been felt at the
Company's dispensing equipment operations that serve the paints and coatings,
automotive and general industrial markets. Here, sales were down 22% from both
the second quarter of this year and the third quarter of last year. All three
businesses in this group were affected. IDEX operates with a very small backlog
of unfilled order, so reductions in order activity very quickly affect sales
levels and profitability.

The following forward-looking statements are qualified by the cautionary
statement under the Private Securities Litigation Reform Act set forth below. As
a direct result of the current depressed business environment, the Company's
management has decided to take aggressive action to further downsize operations
in the fourth quarter to be consistent with reduced business activity levels.
This will result in a restructuring charge of approximately $5 million before
income taxes, or 10 cents per diluted share, to be recorded in the fourth
quarter. The restructuring, which will affect all three business groups, will
result in a workforce reduction of approximately 250 employees, or 6%, of the
total workforce. Management believes the restructuring is necessary to
appropriately size the Company's business, lower costs and improve efficiencies.
The annualized savings from these actions will exceed the charge recorded in the
fourth quarter. Looking ahead to the fourth quarter, the Company's performance
will depend on the pace of incoming business. It is exceedingly difficult for
management to project what those orders will be given the current economic and
political environment. IDEX operates with a very small backlog of unfilled
orders, and it is not able to assess how long the softness in several of its
end-markets is likely to last. The Company's performance will depend upon the
strength of the U.S. and key international economies. The Company's management
continues to believe IDEX is well positioned for a strong recovery once economic
conditions improve. This is based on its reduced cost structures; the margin
improvement initiatives of Six Sigma, global sourcing and eBusiness; and use of
strong cash flow to cut debt and interest expense. In addition, IDEX continues
to pursue acquisitions to drive the Company's longer-term profitable growth.
9

CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT

The preceding paragraph and the "Liquidity and Capital Resources" sections
of this management's discussion and analysis of IDEX operations contain
forward-looking statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act. Such statements relate to, among other
things, capital expenditures, cost reduction, cash flow and operating
improvements, and are indicated by words such as "anticipate," "estimate,"
"expects," "plans," "projects," "should," "will," "management believes," "the
Company intends" and similar words or phrases. Such statements are subject to
inherent uncertainties and risks which could cause actual results to vary
materially from suggested results, including but not limited to the following:
economic and political consequences resulting from the September 11, 2001
terrorist actions; levels of industrial activity and economic conditions in the
U.S. and other countries around the world, pricing pressures and other
competitive factors, and levels of capital spending in certain industries, all
of which could have a material impact on order rates and the Company's results,
particularly in light of the low levels of order backlogs typically maintained
by the Company; IDEX's ability to integrate and operate acquired businesses on a
profitable basis; the relationship of the U.S. dollar to other currencies and
its impact on pricing and cost competitiveness; interest rates; utilization of
IDEX's capacity and the affect of capacity utilization on costs; labor market
conditions and raw material costs; developments with respect to contingencies,
such as environmental matters and litigation; and other risks detailed from time
to time in the Company's filings with the Securities and Exchange Commission.

RESULTS OF OPERATIONS

For purposes of this discussion and analysis section, reference is made to
the table on page 11 and the Company's Statements of Consolidated Operations
included in the Financial Statements section. IDEX consists of three reporting
groups: Pump Products, Dispensing Equipment and Other Engineered Products.

PERFORMANCE IN THE THIRD QUARTER ENDED SEPTEMBER 30, 2001 COMPARED TO THE SAME
PERIOD OF 2000

IDEX achieved record orders and sales; however, reported lower net income
and earnings per share for the third quarter of 2001 compared with last year.
Incoming orders, $171.0 million, were 4% higher than 2000 as a result of recent
acquisitions (Ismatec -- April 2000, Trebor -- May 2000, Class 1 -- January
2001, Liquid Controls -- January 2001 and Versa-Matic -- June 2001) contributing
growth of 12%, partially offset by a 7% decrease in the base businesses and a 1%
negative effect from foreign currency translation. Net sales in the third
quarter increased 1% to $178.1 million from $176.2 million for the comparable
2000 period. Acquisitions accounted for a 13% improvement, but an 11% decline in
base business activity and a negative 1% currency translation reduced the total
increase. Net income was $8.2 million, 51% lower than the record $16.6 million
earned in last year's third quarter. Diluted earnings per share, at 26 cents,
also were down 52% from last year's record 54 cents.

In the third quarter of 2001, the Pump Products Group contributed 59% of
sales and 60% of operating income, the Dispensing Equipment Group accounted for
18% of sales and 15% of operating income, and the Engineered Products Group
represented 23% of sales and 25% of operating income. International sales were
41% of total sales, down from 42% in the same quarter of 2000. In the third
quarter of 2001, international sales were unchanged while domestic sales grew
2%.

Pump Products Group sales of $105.8 million for the three months ended
September 30, 2001 increased by $5.8 million, or 6%, from 2000 principally
reflecting the Ismatec, Trebor, Liquid Controls and Versa-Matic acquisitions
which added 16% to the third quarter sales. Base business sales volume was down
9% from last year and foreign currency had a 1% negative effect on the Group's
sales compared to 2000. In the third quarter of 2001, international sales grew
by 17% and domestic sales were essentially unchanged principally reflecting the
recent acquisitions. As a result, sales to customers outside the U.S. increased
to 37% of total group sales in 2001 from 33% in 2000. Excluding acquisitions and
foreign currency, base international sales decreased 11%, and base U.S. sales
volume decreased 8% with the lower sales principally caused by weak conditions
in the European and North American manufacturing sectors.

COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION
(IN THOUSANDS)
(UNAUDITED)

<Table>
<Caption>
THIRD QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- --------------------
2001 2000 2001(1) 2000(2)
---- ---- ------- -------

Pump Products Group
Net sales(3)................................ $105,803 $100,022 $325,978 $300,915
Operating income before restructuring(4).... 13,500 18,783 46,446 57,048
Operating margin............................ 12.8% 18.8% 14.2% 19.0%
Depreciation and amortization............... $ 6,455 $ 4,959 $ 18,774 $ 14,981
Capital expenditures........................ 2,347 2,732 7,630 6,565
Dispensing Equipment Group
Net sales(3)................................ $ 32,441 $ 41,713 $109,852 $128,805
Operating income before restructuring(4).... 3,380 8,538 14,654 26,470
Operating margin............................ 10.4% 20.5% 13.3% 20.6%
Depreciation and amortization............... $ 2,563 $ 2,347 $ 7,220 $ 6,729
Capital expenditures........................ 1,230 1,413 3,933 3,896
Other Engineered Products Group
Net sales(3)................................ $ 40,604 $ 35,202 $124,216 $110,583
Operating income before restructuring(4).... 5,720 7,042 18,394 21,030
Operating margin............................ 14.1% 20.0% 14.8% 19.0%
Depreciation and amortization............... $ 2,006 $ 1,615 $ 5,993 $ 5,120
Capital expenditures........................ 1,559 1,181 4,478 3,337
Company
Net sales................................... $178,137 $176,218 $558,154 $538,138
Before restructuring: operating income...... 18,784 30,578 67,522 92,297
operating margin...... 10.5% 17.4% 12.1% 17.2%
After restructuring: operating income....... $ 18,784 $ 30,578 $ 61,861 $ 92,297
operating margin....... 10.5% 17.4% 11.1% 17.2%
Depreciation and amortization(5)............ $ 11,587 $ 9,416 $ 33,677 $ 27,810
Capital expenditures........................ 5,181 5,258 16,291 13,825
</Table>

- ---------------

(1) Includes acquisition of Versa-Matic Tool, Inc. (June 2001) and Liquid
Controls L.L.C. (January 2001) in the Pump Products Group and Class 1
(January 2001) in the Other Engineered Products Group from the dates of
acquisition.

(2) Includes the acquisition of Ismatec SA (April 2000) and Trebor
International, Inc. (May 2000) in the Pump Products Group from the dates of
acquisition.

(3) Group net sales include intersegment sales.

(4) Group operating income excludes net unallocated corporate operating expenses
and the restructuring charge in the nine months ended September 30, 2001.
The restructuring charge of $5,661 was included with corporate and other and
was not assigned to the individual group segments. Had the Company allocated
the restructuring charge, the charge would have been assigned to the groups
as follows: Pump Products ($4,623), Dispensing Equipment ($592), and Other
Engineered Products ($446). Excluding the restructuring charge, IDEX's fully
diluted earnings per share would have been $1.03 a share for the nine months
ended September 30, 2001.

(5) Excludes amortization of debt issuance expenses.

Dispensing Equipment Group sales of $32.4 million decreased $9.3 million,
or 22%, in the third quarter of 2001 compared with last year's third quarter.
Business volume was down 21% from 2000 and foreign currency translation had a 1%
negative effect. In the third quarter of 2001, international sales decreased 23%
from last year and domestic sales decreased by 21% due to lower business levels
in virtually all end-markets. Sales to customers outside the U.S. were 56% of
total group sales in 2001, unchanged from 2000.

Other Engineered Products Group sales of $40.6 million increased by $5.4
million, or 15%, in the third quarter of 2001 compared with 2000 principally
reflecting the Class 1 acquisition, which added 18% to the third quarter sales.
Overall base business decreased by 1% and foreign currency translation had a 2%
negative effect on this Group's sales volume. In the third quarter of 2001,
domestic sales increased by 30%, while international sales decreased by 2%.
Sales to customers outside the U.S. were 39% of total group sales in 2001, down
from 46% in 2000, principally reflecting the change in sales mix due to the
Class 1 acquisition. Excluding foreign currency and acquisitions, international
base sales increased by 2% in 2001, while the base U.S. sales volume decreased
4% compared to last year with the decline in U.S. sales due to the weak
conditions in most U.S. end-markets.

Gross profit of $64.7 million in the third quarter of 2001 decreased by
$5.5 million, or 8%, from 2000. Gross profit as a percent of sales was 36.3% in
2001 and decreased from 39.8% in 2000. The lower gross profit and gross margins
reflected significantly reduced volumes at base businesses, production
inefficiencies and under-absorption of manufacturing expenses related to lower
volumes and planned inventory reductions, and the addition of recent
acquisitions (whose margins are lower than those of base businesses). Selling,
general and administrative expenses increased to $42.3 million in 2001 from
$36.6 million in 2000, and as a percent of net sales, was 23.7%, up from 20.8%
in 2000. These increases principally reflected significantly lower base sales
volumes, acquisitions and incremental costs associated with implementing the
Company's Six Sigma and eBusiness initiatives. Goodwill amortization increased
by $0.6 million to $3.6 million in 2001 from $3.0 million in 2000 reflecting the
recent acquisitions. As a percent of sales, goodwill amortization remained at
about 2% for both years.

Operating income decreased 39% to $18.8 million in 2001 from $30.6 million
in 2000. Operating income as a percent of sales decreased to 10.5% in 2001 from
17.4% in 2000. The decrease in operating income and operating margins resulted
from lower operating income and lower margins in all three business groups. The
lower operating income and margins were attributable to significantly reduced
volumes at base businesses, production inefficiencies and under-absorption of
manufacturing expenses related to lower volumes and planned inventory
reductions, the addition of recent acquisitions (whose margins are lower than
those of base businesses), and the incremental costs of implementing the
Company's Six Sigma and eBusiness initiatives. In the Pump Products Group,
operating income of $13.5 million and operating margin of 12.8% in 2001 compared
to the $18.8 million and 18.8% recorded in 2000. Operating income of $3.4
million and operating margin of 10.4% in the Dispensing Equipment Group
decreased from the $8.5 million and 20.5% recorded in 2000. Operating income in
the Other Engineered Products Group of $5.7 million and operating margin of
14.1% in 2001 compared to the operating income of $7.0 million and margins of
20.0% achieved in 2000.

Other income of less than $0.1 million in the third quarter of 2001 was
essentially unchanged from expense of $0.2 million recorded last year.

Interest expense increased to $5.2 million in the third quarter of 2001
from $4.3 million in 2000. The increase in interest was principally due to the
additional debt required for the acquisition of the Liquid Controls, Class 1 and
Versa-Matic businesses, partially offset by lower interest rates.

The provision for income taxes decreased to $5.4 million in 2001 from $9.6
million in 2000 reflecting lower income. The effective tax rate increased to
39.8% in 2001 from 36.6% in 2000 principally reflecting lower income and the
increased relative impact of nondeductible goodwill expense.

Net income of $8.2 million in 2001 was 51% lower than the record income of
$16.6 million earned in last year's third quarter. Diluted earnings per share
amounted to 26 cents in 2001, a decrease of 28 cents per share, or 52%, from
last year's record 54 cents.

PERFORMANCE IN THE NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THE SAME
PERIOD OF 2000

IDEX achieved record orders and sales; however reported lower net income
and earnings per share for the first nine months of 2001 compared with last
year. New orders in the first three quarters of 2001 totaled $552.1 million and
were 3% above the prior year. Excluding the impact of foreign currency and the
five acquisitions made since the beginning of last year, orders were 9% lower
than in the first nine months of 2000. Sales in the first nine months increased
4% to $558.2 million from $538.1 million. Acquisitions accounted for a 13%
improvement, which was partially offset by a 7% decline in base business sales
and a 2% unfavorable currency translation. Net income was $28.4 million, 43%
lower than the $49.9 million earned in the first nine months of 2000. Diluted
earnings per share decreased 71 cents to 92 cents, down 44% compared with the
same period a year ago. Excluding the one-time restructuring charge, net income
was $31.9 million, 36% lower than the $49.9 million earned in last year's first
nine months, and diluted earnings per share were $1.03, down 37% from $1.63 last
year.

For the first three quarters of 2001, the Pump Products Group contributed
58% of sales and operating income, the Dispensing Equipment Group accounted for
20% of sales and 19% of operating income, and the Other Engineered Products
Group represented 22% of sales and 23% of operating income. In the first nine
months of 2001, international sales were up 6% and domestic sales increased 2%
compared with last year. As a result, international sales were 42% of total
sales, up from 41% in the same period of 2000.

Pump Products Group sales of $326.0 million increased by $25.1 million, or
8%, for the nine months ended September 30, 2001, compared with 2000,
principally reflecting the Ismatec, Trebor, Liquid Controls and Versa-Matic
acquisitions which added 16% to the first three quarters sales. Base business
sales volume was down 7% from last year and foreign currency had a 1% negative
effect on the Group's sales compared to 2000. In the first nine months of 2001,
international sales grew by 21% and domestic sales increased by 2%, principally
reflecting the recent acquisitions. As a result, sales to customers outside the
U.S. increased to 36% of total group sales in 2001 from 33% in 2000, principally
due to recent acquisitions. Excluding acquisitions and foreign currency, base
international sales were down 6% from last year and base U.S. sales volume
decreased 8% with the lower sales principally caused by continuing weaknesses in
the European and North American manufacturing sectors.

Dispensing Equipment Group sales of $109.9 million decreased $19.0 million,
or 15%, in the first three quarters of 2001, compared with the same period of
last year. Business volume was down 12% from 2000 and foreign currency
translation had a 3% negative effect. Excluding foreign currency, international
sales were down 3% in 2001 from last year and domestic sales decreased by 23%
due to continuing weak conditions in the European and North American
manufacturing sectors, which caused significant year-over-year volume declines
at all three businesses in this group. Sales to customers outside the U.S. were
58% of total group sales in 2001, up from 54% in 2000, primarily reflecting a
change in sales mix due to the sharper decline in U.S. sales in 2001.

Other Engineered Products Group sales of $124.2 million increased by $13.6
million, or 12%, in the first nine months of 2001, compared with 2000
principally reflecting the Class 1 acquisition which added 18% to sales in 2001.
Overall base business decreased by 4% and foreign currency translation had a 2%
negative effect on this Group's sales volume. In the first nine months of 2001,
domestic sales increased by 27% while international sales decreased by 4%. Sales
to customers outside the U.S. were 40% of total group sales in 2001, down from
47% in 2000 principally reflecting the change in sales mix due to the Class 1
acquisition. Excluding foreign currency and acquisitions, base international
sales in 2001 were essentially equal to last year, while the base U.S. sales
volume decreased 7% compared to last year with the decline in U.S. sales due to
the weak conditions in most U.S. end-markets.

Gross profit of $204.1 million in the first nine months of 2001 decreased
by $9.5 million, or 4%, from 2000. Gross profit as a percent of sales was 36.6%
in 2001 and decreased from 39.7% in 2000. The lower gross profit and gross
margins was attributable to significantly lower base business sales volumes,
production inefficiencies and under absorption of manufacturing expenses related
to lower volumes and planned inventory reductions and addition of lower-margin
acquisitions. Selling, general and administrative expenses increased to $126.1
million in 2001 from $112.5 million in 2000, and as a percent of net sales, was
22.6%, up from 20.9% in
13

2000. These increases principally reflected significantly lower base business
sales volumes, acquisitions and incremental up-front costs associated with
implementing the Company's Six Sigma and eBusiness initiatives. Goodwill
amortization increased by $1.7 million to $10.5 million in 2001 from $8.8
million in 2000 reflecting the recent acquisitions. As a percent of sales,
goodwill amortization remained flat at about 2% for both years.

Operating income decreased by $30.4 million, or 33%, to $61.9 million in
2001 from $92.3 million in 2000. Excluding the restructuring charge, operating
income as a percent of sales decreased to 12.1% in 2001 from 17.2% in 2000. The
decreases in operating income and operating margin reflected decreases at all
three business groups and were attributable to significantly lower base business
sales volumes, production inefficiencies and under absorption of manufacturing
expenses related to lower volumes and planned inventory reductions, addition of
lower-margin acquisitions and incremental costs associated with implementing the
company's Six Sigma and eBusiness initiatives. In the Pump Products Group,
operating income of $46.4 million and operating margin of 14.2% in 2001 compared
to the $57.0 million and 19.0% recorded in 2000. Operating income of $14.7
million and operating margin of 13.3% in the Dispensing Equipment Group
decreased from the $26.5 million and 20.6% recorded in 2000. Operating income in
the Other Engineered Products Group of $18.4 million and operating margin of
14.8% in 2001 decreased from $21.0 million and 19.0% achieved in 2000. During
the first quarter of 2001, IDEX recorded a one-time restructuring charge
amounting to $5.7 million, or 11 cents per share, to properly size the
Company's' operations to then current business conditions. The restructuring,
affected all three business groups and reduced the workforce and lowered costs,
improved efficiencies and addressed excess capacity that resulted from lower
demand and more efficient processes at the Gast business unit.

Other income increased $0.7 million to income of $0.4 million in the first
nine months of 2001 from expense of $0.3 million last year reflecting higher
income from fixed asset dispositions.

Interest expense increased to $15.8 million in the first three quarters of
2001 from $12.5 million in 2000. The increase in interest was principally due to
the additional debt required for the acquisition of the Ismatec, Trebor, Liquid
Controls, Class 1 and Versa-Matic businesses.

The provision for income taxes decreased to $18.1 million in 2001 from
$29.6 million in 2000 reflecting lower income. The effective tax rate increased
to 38.9% in 2001 from 37.2% in 2000 principally reflecting lower income and the
increased relative impact of nondeductible goodwill expense.

Net income of $28.4 million in 2001 was 43% lower than income of $49.9
million in 2000. Diluted earnings per share amounted to 92 cents in 2001, a
decrease of 71 cents per share, or 44%, from the $1.63 achieved in 2000. Net
income before the restructuring charge was $31.9 million, 36% lower than the
$49.9 million earned in last year's first nine months, and diluted earnings per
share were $1.03, down 37% from $1.63 last year.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2001, IDEX's working capital was $137.6 million and its
current ratio was 2.4 to 1. The Company's cash flow from operations increased by
$19.9 million to $83.0 million in 2001 principally reflected receivable and
inventory reductions which were partially offset by lower income.

Cash flow provided from operations was more than adequate to fund capital
expenditures of $16.3 million and $13.8 million in 2001 and 2000, respectively.
Capital expenditures were generally for machinery and equipment which improved
productivity, although a portion was for business system technology and for
repair and replacement of equipment and facilities. Management believes that
IDEX has ample capacity in its plant and equipment to meet expected needs for
future growth in the intermediate term.

The Company completed the acquisitions of Liquid Controls, Class 1 and
Versa-Matic during 2001 for a cash purchase price of $132.7 million. The
acquisitions were accounted for using the purchase method and were financed
under the Company's U.S. bank credit facilities. Interest is payable at rates
averaging 5.1%.

During June 2001, IDEX signed a new five-year Credit Agreement replacing
the former Credit Facility which was to expire on July 1, 2001. At September 30,
2001, the maximum amount available under the Credit Agreement was $300 million,
of which $152.2 million was borrowed including $78.0 million in western european
currencies. The western european currency borrowings provide an economic hedge
against the net investment in Fluid Management's Netherlands operation, FAST's
Italian operation, Micropump's Switzerland operation, and Hale's Germany
operation. Interest is payable quarterly on the outstanding balance at the agent
bank's reference rate or at LIBOR plus an applicable margin and a utilization
fee if the total borrowings exceed certain levels. At September 30, 2001, the
applicable margin was 80 basis points plus a utilization fee of 12.5 basis
points since the borrowings exceeded 33% of the total available. The Company
pays an annual facility fee of 20 basis points on the total facility.

IDEX believes it will generate sufficient cash flow from operations in 2001
to meet its operating requirements, interest and scheduled amortization payments
under the U.S. Credit Agreement, interest and principal payments on the Senior
Notes, any share repurchases, approximately $23 million of planned capital
expenditures, and approximately $17 million of annual dividend payments to
holders of common stock. From commencement of operations in January 1988 until
September 30, 2001, IDEX has borrowed $806 million under its various credit
agreements to complete 19 acquisitions. During this same period IDEX generated,
principally from operations, cash flow of $667 million to reduce its
indebtedness. In the event that suitable businesses are available for
acquisition by IDEX upon terms acceptable to the Board of Directors, IDEX may
obtain all or a portion of the financing for the acquisitions through the
incurrence of additional long-term indebtedness.

EURO PREPARATIONS

Beginning in 1998, the Company upgraded its business systems to accommodate
the euro currency. The cost of this upgrade was immaterial to the Company's
financial results. Although difficult to predict, any competitive implications
and any impact on existing financial instruments resulting from the euro
implementation are also expected to be immaterial to the Company's results of
operations, financial position or liquidity.

NEW ACCOUNTING PRONOUNCEMENTS

In July 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations" and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS No. 141 requires that the purchase method be used for all business
combinations initiated after June 30, 2001 and does not permit the pooling-of
interests method for business combinations initiated after June 30, 2001. IDEX
has historically accounted for all business combinations using the purchase
method and will continue to use the purchase method for prospective business
combinations consistent with SFAS No. 141. SFAS No. 142 establishes the
accounting and reporting standards for intangible assets and goodwill. SFAS No.
142 requires that goodwill and certain intangible assets no longer be amortized
to earnings, but instead be reviewed for impairment. The amortization of
goodwill and certain intangible assets will cease upon the required adoption of
SFAS No. 142 on January 1, 2002. Management is assessing the effects that
Adoption of SFAS No. 142 will have on its financial position, liquidity, or
results of operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The Company is subject to market risk associated with changes in interest
rates and foreign currency exchange rates. Interest rate exposure is limited to
the $308.2 million of total debt of the Company outstanding at September 30,
2001. Approximately 51% of the debt is priced at interest rates that float with
the market. A 50 basis point movement in the interest rate on the floating rate
debt would result in an approximate $780,000 annualized increase or decrease in
interest expense and cash flows. The remaining debt is either fixed rate debt or
debt that has been essentially fixed through the use of interest rate swaps. The
Company will from time to time enter into interest rate swaps on its debt when
it believes there is a clear financial advantage for doing so. A formalized
treasury risk management policy adopted by the Board of Directors exists that
describes the procedures and controls over derivative financial and commodity
instruments, including interest rate swaps. Under the policy, the Company does
not use derivative financial or commodity instruments for trading purposes, and
the use of such instruments is subject to strict approval levels by senior
officers. Typically, the use of such derivative instruments is limited to
interest rate swaps on the Company's outstanding long-term debt. The Company's
exposure related to such derivative instruments is, in the aggregate, not
material to the Company's financial position, results of operations and cash
flows.

The Company's foreign currency exchange rate risk is limited principally to
the euro and British pound. The Company manages its foreign exchange risk
principally through the invoicing of its customers in the same currency as the
source of the products.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS. None.

ITEM 2. CHANGES IN SECURITIES. Not Applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None.

ITEM 5. OTHER INFORMATION. None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a) Exhibits:

The exhibits listed in the accompanying "Exhibit Index" are filed as
part of this report.

(b) Reports on Form 8-K:

In a report dated September 10, 2001, IDEX Corporation announced that
it expects earnings per diluted share for the third quarter of 2001
to be in the range of 25 to 30 cents. In the same period last year,
IDEX earned 54 cents; in the second quarter of this year, the company
earned 42 cents; and in the first quarter, earnings were 35 cents
before restructuring charges. The decline in profits is primarily
attributable to weaker-than-expected business conditions in the U.S.
and some international markets.

The Company's July 17, 2001 earnings guidance for the third quarter
was based on the expectation that orders and sales levels would
remain at the rate achieved in the first half of the year.
Unfortunately, this has not occurred. Orders received in July were
the lowest this year. While August orders increased somewhat, they
still were below the first-half average. As a result, it is highly
unlikely that the full third quarter will match the first or second
quarter's orders and sales, let alone the performance seen at this
time last year. These expected declines are primarily associated with
the continuing weakness in North America and declines in European
business activity. While IDEX has seen softness in virtually all
end-markets, the most significant impact has been felt at the
Company's pump and dispensing equipment business units that serve the
paints and coatings, general industrial, automotive and chemical
processing markets. These are the same problems that many of IDEX's
peers and customers are facing. However, two positive points are
worth noting. First, the Asian market remains strong and is growing,
and second, the Company's management believes IDEX is maintaining its
market shares.

The Company's fourth quarter performance will depend on the pace of
incoming business over the next few months. IDEX operates with a very
small backlog of unfilled orders, and it is not able to assess how
long the current softness in our markets will last.

The Company's management believes IDEX is well positioned for a
strong recovery once economic conditions improve. This is based on
the Company's reduced cost structure; margin improvement initiatives
of Six Sigma, global sourcing and eBusiness; and also the use of
strong cash flow to cut debt and interest expense. In addition, IDEX
continues to pursue acquisitions to drive the Company's longer-term
profitable growth.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized in the capacity and on the date
indicated.

IDEX CORPORATION

/s/ WAYNE P. SAYATOVIC
--------------------------------------
WAYNE P. SAYATOVIC
Senior Vice President -- Finance and
Chief Financial Officer
(Duly Authorized and Principal
Financial Officer)
November 9, 2001

EXHIBIT INDEX

<Table>
<Caption>
EXHIBIT
NUMBER DESCRIPTION
------- -----------

3.1 Restated Certificate of Incorporation of IDEX Corporation
(formerly HI, Inc.) (incorporated by reference to Exhibit
No. 3.1 to the Registration Statement on Form S-1 of IDEX,
et al., Registration No. 33-21205, as filed on April 21,
1988)
3.1(a) Amendment to Restated Certificate of Incorporation of IDEX
Corporation (formerly HI, Inc.), (incorporated by reference
to Exhibit No. 3.1(a) to the Quarterly Report of IDEX on
Form 10-Q for the quarter ended March 31, 1996, Commission
File No. 1-10235)
3.2 Amended and Restated By-Laws of IDEX Corporation
(incorporated by reference to Exhibit No. 3.2 to
Post-Effective Amendment No. 2 to the Registration Statement
on Form S-1 of IDEX, et al., Registration No. 33-21205, as
filed on July 17, 1989)
3.2(a) Amended and Restated Article III, Section 13 of the Amended
and Restated By-Laws of IDEX Corporation (incorporated by
reference to Exhibit No. 3.2(a) to Post-Effective Amendment
No. 3 to the Registration Statement on Form S-1 of IDEX, et
al., Registration No. 33-21205, as filed on February 12,
1990)
4.1 Restated Certificate of Incorporation and By-Laws of IDEX
Corporation (filed as Exhibits No. 3.1 through 3.2 (a))
4.2 Indenture, dated as of February 23, 1998, between IDEX
Corporation, and Norwest Bank Minnesota, National
Association, as Trustee, relating to the 6 7/8% Senior Notes
of IDEX Corporation due February 15, 2008 (incorporated by
reference to Exhibit No. 4.1 to the Current Report of IDEX
on Form 8-K dated February 23, 1998, Commission File No.
1-10235)
4.3 Specimen Senior Note of IDEX Corporation (incorporated by
reference to Exhibit No. 4.1 to the Current Report of IDEX
on Form 8-K dated February 23, 1998, Commission File No.
1-10235)
4.4 Specimen Certificate of Common Stock of IDEX Corporation
(incorporated by reference to Exhibit No. 4.3 to the
Registration Statement on Form S-2 of IDEX, et al.,
Registration No. 33-42208, as filed on September 16, 1991)
4.5 Credit Agreement, dated as of June 8, 2001, among IDEX
Corporation, Bank of America, N.A. as Agent and Issuing
Bank, and the Other Financial Institutions Party Hereto:
Bank of America Securities LLC. (incorporated by reference
to Exhibit 4.5 to the Quarterly Report of IDEX on Form 10-Q
for the quarter ended June 30, 2001, Commission File No.
1-10235)
**10.1 Executive Incentive Bonus Plan dated March 27, 2001
(incorporated by reference to Exhibit 10.1 to the Quarterly
Report of IDEX on Form 10-Q for the quarter ended March 31,
2001, Commission File No. 1-10235)
**10.2 2001 Stock Plan for Officers dated March 27, 2001
(incorporated by reference to Exhibit 10.2 to the Quarterly
Report of IDEX on Form 10-Q for the quarter ended March 31,
2001, Commission File No. 1-10235)
</Table>

- ---------------
** Management contract or compensatory plan or agreement.