IDEX Corporation to Take Restructuring Charge in First Quarter; Earnings Before Charge Remain on Track

06.04.2001

NORTHBROOK, Ill., April 5 -- IDEX Corporation (NYSE: IEX) today announced that diluted earnings per share before restructuring charges for the first quarter are on track with earlier estimates of 32 to 37 cents.

In addition, the company has decided to take aggressive actions to properly

size its operations with current business conditions. As a result, it will

record a $5.5 million restructuring charge, or 11 cents per share, in the

first quarter. This restructuring -- which affects all three business

groups -- will result in a workforce reduction of approximately 250 employees

(or 6 percent of the total workforce) and the consolidation of two Pump

Products Group manufacturing plants into a single more efficient operation.

Chairman, President and Chief Executive Officer Dennis K. Williams said,

"The reduced demand in the U.S. manufacturing sector continues to affect sales

volumes and profitability in our base businesses. Last year, we introduced

three key initiatives -- global sourcing, E-Business and Six Sigma -- that we

believe will help us improve margins starting in the third quarter of 2001,

continuing into 2002 and beyond. In addition, we continue to drive top-line

growth in new market niches and to make acquisitions that meet our strict

criteria. While all of these efforts will improve our longer term

performance, we believe the current actions are necessary to appropriately

size our businesses, lower costs and improve efficiencies. For example, the

decision to consolidate two of Gast Manufacturing's southwest Michigan

production facilities addresses excess capacity issues that have resulted from

the combination of lower current demand and improving process efficiencies

that have been realized at this business. We expect the annualized savings

from these actions will exceed the charge taken in this quarter."

About IDEX

IDEX Corporation is a manufacturer of proprietary pump products,

dispensing equipment, and other engineered products with leading positions in

niche markets. Its products are sold to a wide range of industries throughout

the world. IDEX shares are traded on the New York Stock Exchange and Chicago

Stock Exchange under the symbol IEX.

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