Flowserve Signs Valve Manufacturing Joint Venture with S&A Abahsain Co. Ltd.

Building on existing joint ventures with the Flowserve Pump and Seal divisions, Abahsain and Flowserve have expanded their relationship to include the manufacturing of control valves, ball valves, plug valves, butterfly valves, and electric and pneumatic actuators for the oil and gas, petrochemical, power and water industries.

“We are pleased with this new joint venture with Abahsain Group,” said Lewis Kling, Flowserve President and Chief Executive Officer. “This new agreement and partnership positions us well to continue to serve our valuable customers in the Saudi Arabian market.”

The joint venture, called Flowserve/Abahsain Flow Control Company Ltd., will begin initial manufacturing from a temporary facility in Al Khobar, Saudi Arabia. A new facility capable of manufacturing the full line of valve products is planned to be constructed in Dammam in 2009, and is expected to be operational by January 2010.

“Flowserve has existing Pump and Seal operations in Saudi Arabia,” said Tom Pajonas, president of the Flowserve Flow Control Division. “By signing this agreement with Abahsain, we are increasing Flowserve’s presence in the Kingdom by adding local valve and actuator manufacturing capabilities. This underscores our commitment to Saudization and to the needs of our customers in the Saudi Arabian market.”

“This agreement substantially expands our existing relationship with Flowserve,” said Shaukat Sheikh, director of Abahsain Group. “We are especially pleased to be associated with the prestigious Flowserve line of flow control products. Abahsain is already a local manufacturer of commodity valves and with this new joint venture agreement, we expect to become a major player in the critical engineered valve segment.”

About Flowserve Corp.

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.

About S&A Abahsain Co. Ltd.

S&A Abahsain Co. Ltd. was founded in 1947 by brothers Saleh and Abdulaziz Abahsain as an electrical contracting company and has since grown into a diverse business entity spanning industry, trading, construction, real estate and services markets. The company was recently named one of the top 50 companies in Saudi Arabia in recognition of its contributions to the development of the Saudi economy.