Flowserve Announces 2008 Target EPS Range of $5.10 to $5.40

Flowserve Corp. (NYSE: FLS), a leading global provider of fluid motion and control products and services, announced today a 2008 full year EPS target range of between $5.10 and $5.40. In addition, the company also provided additional details about its pending 2007 results, including backlog, revenue and operating margin improvement, as well as its market outlook. As previously announced, bookings for the fourth quarter 2007 were $1.1 billion and for full year 2007 were $4.3 billion, both up 19 percent. The company’s backlog on December 31, 2007 was approximately $2.3 billion, which is the highest year end level in the company’s history. The company expects full year 2007 revenue to be approximately $3.75 billion, exceeding the previously announced target range of $3.6 to $3.7 billion. Flowserve also expects 2007 full year operating margin to be at or near an annual improvement of 300 basis points, the high end of its previously announced range. From a market outlook perspective, the company continues to see a strong level of investment from its customers in the global oil and gas market, which continues to feed its large project business. Based on project activity levels in power, chemical, water and other general industries, the company’s outlook for increased investment by its customers in these segments also remains positive. In all its served industries, the company continues to invest in market share growth and believes that its annual record bookings in 2007 reflect success in this effort. From a geographical perspective, the company continues to see solid investment by its customers in the United States across its core markets. Internationally, where Flowserve receives approximately two-thirds of its business, the company also sees strength in its markets, including strong returns from its investments in China, India, Middle East and Latin America. Based on this strength in the company’s end markets, Flowserve plans to increase its capital spending in 2008 over 2007 amounts in order to capitalize on projected future growth through more aggressive market penetration strategies and expansion of its global footprint in both low cost manufacturing capacity and Quick Response Centers (QRC). "We continue to see strong prospects for growth in our key end markets, and are excited about our outlook for 2008,” said Lewis Kling, Flowserve President and Chief Executive Officer. "The expected EPS in 2008 is a result of our planned continued operational improvement driving both top and bottom line growth, as well as the anticipated tax planning strategies that are targeted to attain the lower end of an effective tax rate range of between 30 to 35 percent.” About Flowserve Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at www.flowserve.com. SAFE HARBOR STATEMENT: This news release includes forward-looking statements. Forward-looking statements are all statements that are not statements of historical facts and include, without limitation, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies, and anticipated developments concerning our industry, business, operations, and financial performance and condition. The words "believe,” "seek,” "anticipate,” "plan,” "estimate,” "expect,” "intend,” "project,” "forecast,” "predict,” "potential,” "continue,” "will,” "may,” "could,” "should,” and other words of similar meaning are intended to identify forward-looking statements. The forward-looking statements made in this news release are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that, in some cases, are beyond our control. These risks, uncertainties and factors may cause our actual results, performance and achievements, or industry results and market trends, to be materially different from any future results, performance, achievements or trends expressed or implied by such forward-looking statements. Important risks, uncertainties and other factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, the following: inherent limitations of the effectiveness of our internal control over financial; potential adverse consequences resulting from securities class action litigation and other litigation, including asbestos-containing product claims; the possibility of adverse consequences related to the domestic and foreign government investigations regarding our participation in the United Nations Oil-for-Food Program; the possibility of adverse consequences of governmental tax audits of our tax returns, including the ongoing IRS audit of our U.S. tax returns for the years 2002 through 2004; our ability to convert bookings, which are not subject to nor computed in accordance with generally accepted accounting principles, into revenues at acceptable, if any, profit margins, since such profit margins cannot be assured or assumed to follow historical trends; changes in the financial markets and the availability of capital; changes in the already competitive environment for our products or competitors’ responses to our strategies; our inability to continue to expand our market presence through acquisitions, and unforeseen integration difficulties or costs resulting from acquisitions; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, including the continuing conflict in Iraq, uncertainties in certain Middle Eastern countries such as Iran, and their potential impact on Middle Eastern markets and global petroleum producers; our ability to comply with the laws and regulations affecting our international operations, including the U.S. export laws, and the effect of any noncompliance; the potential adverse impact of a significant downturn in petroleum, chemical, power and water industries; changes in economic conditions and the extent of economic growth in the U.S. and other countries and regions; unanticipated difficulties or costs associated with the implementation of systems, including software; unanticipated higher costs associated with environmental compliance and liabilities; our relative geographical profitability and its impact on our utilization of foreign tax credits; the potential impact of our indebtedness on cash flows and our ability to meet the financial covenants and other requirements in our debt agreements; any terrorist attacks; adverse changes in the regulatory climate and other legal obligations imposed on us; and other factors described from time to time in our filings with the SEC. It is not possible to foresee or identify all the factors that may affect our future performance or any forward-looking information, and new risk factors can emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements included in this news release are based on information available to us on the date of this news release. We undertake no obligation to revise or update any forward-looking statement or disclose any facts, events or circumstances that occur after the date hereof that may affect the accuracy of any forward-looking statement.