Flowserve Completes Sale of General Services Group

"An analysis of our business portfolio indicated that GSG's focuson non-Flowserve products did not align with Flowserve's long-termstrategy," said Lewis M. Kling, Flowserve president and chiefexecutive officer. "Our strategic priorities are focused on end-userstrategies that allow the company to capture the full life cycle ofFlowserve products and enhance our support for them. I believe thatGSG can now better realize its potential through its sale toFurmanite, while permitting Flowserve to increase its focus on itsgrowing core businesses."

Chief Financial Officer Mark A. Blinn added, "This divestiturecomprises 36 sites and approximately eight ERP systems worldwide andis a step toward simplifying our systems infrastructure."

The GSG businesses that were sold include pressurized on-linerepair services at customer sites and general valve repair services atlocal service centers. The company retained its valve service centersthat focus on servicing and repairing Flowserve-manufactured valves,plus its global valve manufacturing operations.

Flowserve announced earlier in 2005 that it was seeking a buyerfor GSG, which was part of Flowserve's Flow Control Division. The GSGbusiness was subsequently reclassified as a discontinued operation inthe first quarter of 2005. The company expects GSG to have 2004revenues greater than $100 million and to incur an operating loss.

Flowserve estimates it will recognize in its 2005 financialresults a loss related to impairment charges and the ultimate saletotaling approximately $34 million, subject to any post-closingadjustments, plus transaction expenses and related employee retentioncosts.

The transaction closed on Dec. 31, 2005.

About Flowserve

Flowserve Corp. is one of the world's leading providers of fluidmotion and control products and services. Operating in 56 countries,the company produces engineered and industrial pumps, seals and valvesas well as a range of related flow management services.

SAFE HARBOR STATEMENT: This news release includes forward-lookingstatements. Forward looking statements are all statements that are notstatements of historical facts and include, without limitation,statements relating to our business strategy and statements ofexpectations, beliefs, future plans and strategies and anticipateddevelopments concerning our industry, business, operations andfinancial 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 toidentify forward-looking statements. The forward-looking statementsmade in this news release are made pursuant to safe harbor provisionsof the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements involve known and unknown risks,uncertainties and other factors that, in some cases, are beyond ourcontrol. These risks, uncertainties and factors may cause our actualresults, performance and achievements, or industry results and markettrends, to be materially different from any future results,performance, achievements or trends expressed or implied by suchforward-looking statements. Important risks, uncertainties and otherfactors that could cause actual results to differ from theseforward-looking statements include, but are not limited to, thefollowing: further delays in the report of the Company's managementand outside auditors on the Company's internal control over financialreporting and related certification; further delays in the Company'sfiling of its periodic public reports and any SEC, NYSE or debt ratingagencies' actions resulting therefrom; the possibility of adverseconsequences of the pending securities litigation and SECinvestigation; the possibility of adverse consequences of governmentaltax audits of the Company's tax returns, including the upcoming IRSaudit of the company's U.S. tax returns for the years 2002 through2004; the Company's ability to convert bookings, which are not subjectto nor computed in accordance with generally accepted accountingprinciples, into revenues at acceptable, if any, profit margins, sincesuch profit margins cannot be assured nor be necessarily assumed tofollow historical trends; changes in the financial markets and theavailability of capital; changes in the already competitiveenvironment for the Company's products or competitors' responses tothe Company's strategies; the Company's ability to integrateacquisitions into its management and operations; political risks,military actions or trade embargoes affecting customer markets,including the continuing conflict in Iraq and its potential impact onMiddle Eastern markets and global petroleum producers; the Company'sability to comply with the laws and regulations affecting itsinternational operations, including the U.S. export laws, and theeffect of any noncompliance; the health of the petroleum, chemical,power and water industries; economic conditions and the extent ofeconomic growth in the U.S. and other countries and regions;unanticipated difficulties or costs associated with the implementationof systems, including software; the Company's relative geographicalprofitability and its impact on the Company's utilization of foreigntax credits; the recognition of significant expenses associated withrealigning operations of acquired companies with those of Flowserve;the Company's ability to meet the financial covenants and otherrequirements in its debt agreements; any terrorist attacks and theresponse of the U.S. to such attacks or to the threat of such attacks;technological developments in the Company's products as compared withthose of its competitors; changes in prevailing interest rates and theCompany's effective interest costs; and adverse changes in theregulatory climate and other legal obligations imposed on the Company.It is not possible to foresee or identify all the factors that mayaffect our future performance or any forward-looking information, andnew risk factors can emerge from time to time. Given these risks anduncertainties, you should not place undue reliance on forward-lookingstatements as a prediction of actual results. All forward-lookingstatements included in this news release are based on informationavailable to us on the date of this news release. We undertake noobligation to revise or update any forward-looking statement ordisclose any facts, events or circumstances that occur after the datehereof that may affect the accuracy of any forward-looking statement.