Gardner Denver Faces Several Asbestos Related Lawsuits ------------------------------------------------------ Published November 22, 2002 Gardner Denver is a party to various legal proceedings, lawsuits and administrative actions, which are of an ordinary or routine nature. Due to the bankruptcies of several asbestos manufacturers and other primary defendants, the Company has begun to be named as a defendant in an increasing number of asbestos personal injury lawsuits. In addition, the Company has also been named as a defendant in a number of silicosis personal injury lawsuits. Predecessors to the Company manufactured and sold the products allegedly at issue in these asbestos and silicosis lawsuits, namely: (1) asbestos-containing components supplied by third parties; and (2) portable compressors that were used as components for sandblasting equipment manufactured and sold by other parties. Since its formation in 1993, the Company has not manufactured or sold asbestos containing products or portable compressors. Nonetheless, these lawsuits represent potential contingent liabilities to the Company as a result of its predecessors' historical sales of these products. The Company believes that these pending legal proceedings, lawsuits and administrative actions will not, in the aggregate, have a material adverse effect on its consolidated financial position, results of operations or liquidity, based on: (i) the Company's anticipated insurance and indemnification rights to address the risks of such matters; (ii) the limited risk of potential asbestos exposure from the components described above, due to the complete enclosure of the components within the subject products and the additional protective non-asbestos binder which encapsulated the components; (iii) the fact that neither the Company, nor its predecessors, ever manufactured, marketed or sold sandblasting equipment; (iv) various other potential defenses available to the Company with respect to such matters; and the Company's prior disposition of comparable matters. COMPANY PROFILE Gardner Denver, Inc. (NYSE: GDI) 1800 Gardner Expwy. Quincy, IL 62301 Phone: 217-222-5400 Fax: 217-228-8247 http://www.gardnerdenver.com Employees : 2,000 Revenue : $ 419,800,000 Net Income : $ 22,000,000 Assets : $ 488,700,000 Liabilities : $ 290,000,000 (AS of December 31, 2001) Description: Gardner Denver Inc sells Joy-brand compressors as well as reciprocating, rotary screw, and sliding vane compressors and positive displacement and centrifugal blowers. Manufacturing plants and industrial facilities use the compressors to produce durable goods, process petroleum and pharmaceuticals, and to treat wastewater. Compressed air products account for more than 70% of its sales. Gardner Denver also makes well- servicing pumps for oil and natural gas companies, and it is adding.