Pentair Reports Second Quarter Net Income Per Share From Continuing Operations of $1.39; Adjusted EPS of $0.68, Up 11%

-- Reports second quarter sales of $910 million, up 1 percent versus the second quarter 2007

-- Delivers earnings per share from continuing operations (EPS) of $1.39 on a reported basis and adjusted(a) EPS of $0.68 up 11 percent

-- Delivers adjusted income from continuing operations of $68 million, up 12 percent

-- Announces transaction with GE to create residential water filtration business, settles Horizon legal case, and announces significant restructuring and other actions

-- Introduces third quarter guidance and updates full year guidance

(a) Adjusted 2008 and 2007 EPS exclude the impact of gains/losses from acquisitions and divestitures, the settlement of the Horizon litigation and the negative impact associated with restructuring costs and other market related actions. Adjusted 2008 and 2007 Operating Income and Margins exclude the settlement of the Horizon litigation, the negative impact associated with restructuring costs and other market related actions in the respective period. All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations to discontinued operations as well as GAAP and non-GAAP reconciliations are in the attached financial tables.

Pentair, Inc. (NYSE:PNR) today announced second quarter 2008 net earnings per diluted share from continuing operations (EPS) of $1.39. This represents an increase of 228 percent as compared to the $0.61 of reported EPS from continuing operations in the second quarter last year. Current period results include a 86 cents per share gain from the transaction with GE Water & Process Technologies, a unit of General Electric Company (NYSE:GE), to combine residential water filtration businesses as well as a negative $0.14 per share impact from the Horizon settlement, and a $0.01 per share negative impact from restructuring charges. Adjusting for these items, second quarter 2008 EPS was $0.68, up 11 percent year over year.

Total company sales increased 1 percent to $910 million as compared with $899 million in the second quarter of 2007. The company delivered second quarter operating income of $95 million. On an adjusted basis, the company delivered operating income of $118 million versus $113 million in the year-ago quarter. Overall, adjusted operating margins for the second quarter expanded 50 basis points to 13.0 percent driven by a positive 360 basis point improvement from productivity, price, and product mix. The positive impact from these items more than offset a negative 310 basis point impact related to total inflation and foreign exchange.

Pentair generated free cash flow of $135 million for the quarter. Year-to-date, the company has generated $57 million of free cash flow. The company said it remains on track to achieve free cash flow greater than $235 million.

"Overall, our businesses performed very well in the second quarter as we navigated through persistently soft residential markets and a weaker-than-expected residential pool market. Our business diversity, growing international market penetration, and aggressive cost-takeout measures continue to enable us to meet the commitments we laid out earlier in the year," said Randall J. Hogan, chairman and chief executive officer.

SECOND QUARTER BUSINESS HIGHLIGHTS

The Water Group delivered $605 million in sales, down 6 percent year over year. Organic sales were down 9 percent excluding foreign exchange, driven by continuing softness in the North American residential markets and aggressive inventory reductions in pool equipment distribution. Internationally, Water sales increased at a double-digit rate.

-- Global Flow Technologies sales were down 3 percent versus the year-ago quarter, as unfavorable comparisons associated with the $21 million municipal pump project for New Orleans in the second quarter 2007 were not overcome. Sales of pump equipment for global commercial, municipal and agricultural markets continue to outpace declines in North American residential markets.

-- Global Filtration sales grew 8 percent or 5 percent excluding the 2007 acquisition of Porous Media. Steady gains in industrial filtration, food service and desalination markets offset declines in the North American residential market.

-- Global Pool and Spa sales were down 22 percent. The prolonged decline in North American residential pool and spa markets, coupled with distributor inventory reductions, impacted sales.

-- International Water sales grew 15 percent in Europe, Middle East and Africa led by growth in the Middle East and Eastern Europe. Asia-Pacific sales grew 20 percent driven by strong double-digit growth in China and India.

The Water Group's second quarter reported operating income totaled $58 million, down 65 percent as compared to $89 million in the same period last year. In the quarter, the company settled the Horizon litigation lawsuit, which resulted in a $20 million charge to operating income. The company also had $2 million in pre-tax restructuring charges associated with severance from headcount reductions and costs related to facility rationalizations. Adjusting for these items, adjusted operating income was $81 million, down 10 percent versus the $89 million a year-ago. Adjusted operating margins of 13.3 percent were down 60 basis points as benefits from productivity, price and product mix could not offset the negative impact from inflation and decreased volumes.

Technical Products delivered second quarter 2008 sales of $304 million, an increase of 18 percent versus the year-earlier period. Sales were up 14 percent excluding foreign exchange.

-- Global Electrical sales were up 14 percent, led by strong double-digit increases in its Thermal applications product line and continued strength in energy and natural resource related markets (e.g., Oil, Gas and Mining).

-- Global Electronic sales were up 24 percent. In Asia, electronic sales were up over 44 percent while sales in Europe were up 12 percent in local currencies. North American sales were up 12 percent.

Technical Products' second quarter operating income totaled $50 million, up 38 percent compared to $36 million in the same quarter last year. Reported operating margins were 16.3 percent. Adjusting for a modest restructuring charge, operating margins were 16.4 percent, up 230 basis points versus the second quarter 2007. In the quarter, the benefits from volume, productivity and price more than offset the negative impact from total inflation.

"We continue to perform well in our respective markets. In the second quarter, our Technical Products business maintained outstanding market and financial momentum. In our Water businesses, we continue to drive solid growth in our industrial, commercial and municipal Water markets globally to help compensate for severe declines in the North American residential market," Hogan said.

"We believe our restructuring and other market-related actions better position the company for sustainable, positive performance as demonstrated by what we accomplished in the quarter and have announced this week. For example, the formation of the residential water filtration business with GE combines our leading technologies and distribution channels. We expect this combination will create a stronger business, enabling us to more effectively serve our customers. Additionally, the settlement of the Horizon legal case removes a long-standing uncertainty," Hogan added.

MAJOR ACTIONS UNDERWAY

In July 2008, the company announced several significant actions that will affect reported and adjusted earnings guidance for the second half of 2008.

First, the company recently announced actions to rationalize three international and three United States Water segment factories. The production at these sites will shift to Mexico, China, and other United States facilities. Additionally, the company plans to embark on an operational restructuring plan associated with its Spa/Bath business. The company continues to evaluate other restructuring actions to improve overall cost structure. In aggregate, these major restructuring actions are expected to result in a charge of over 50 cents per share in the second half of 2008. The annualized savings associated with these actions is expected to be approximately 40 cents per share when fully realized.

Next, the company recently issued a tender offer to bondholders of the company's 7.85 percent bonds due in October 2009. The company expects the outcome of the tender will result in a pre-tax charge of $3 to $5 million assuming a participation of 50 percent of the bondholders. The resulting quarterly benefit is expected to be a penny per share of reduced interest expense.

OUTLOOK

The company introduced its third quarter reported 2008 EPS guidance range of $0.31 to $0.33. Adjusting for charges associated with restructuring and the bond tender offer, third quarter EPS is expected to be $0.51 to $0.53, a decrease of 2 to 6 percent versus the third quarter 2007. This third quarter range includes $0.06 of expenses associated mainly with integration, inventory step-up and intangibles amortization charges related to the GE transaction.

The company updates its full year 2008 reported EPS guidance range to $2.44 to $2.49, up 15 to 17 percent versus reported full year 2007 EPS. Adjusting for non-recurring items associated with the GE transaction gain, Horizon settlement, restructuring actions and the bond tender, full year EPS is expected to be $2.28 to $2.33, up 9 to 11 percent versus adjusted full year 2007 EPS. The full year adjusted EPS guidance includes approximately $0.07 per share of expenses mainly associated with integration and step-up charges related to the residential filtration transaction.

"We expect our positive performance to continue in our non-residential and international Water and global Technical Products' businesses. We are launching a number of actions to improve our cost structure and better position the company to control our own destiny. These actions introduce a new full year EPS guidance range of $2.28 to $2.33, which includes 7 cents of incremental expenses to restructure our Water businesses. Absent these incremental expenses, our business outlook would be higher than previous guidance," Hogan said.

EARNINGS CONFERENCE CALL

Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the Company's performance and third quarter and full year 2008 guidance on a two-way conference call with investors at 12:00 p.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this second quarter 2008 earnings release and in the second quarter 2008 earning release conference call presentation, both of which can be found at Pentair's web site (www.pentair.com). Related financial charts and certain other information to be discussed on the conference call will be available on the company's website shortly before the conference call. The web cast and presentation will be archived at the same site following the conclusion of the conference call.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Any statements made about the company's anticipated financial results are forward-looking statements subject to risks and uncertainties such as continued economic growth, including: the strength of housing and related markets; the ability to integrate acquisitions successfully and the risk that expected synergies may not be fully realized or may take longer to realize than expected; foreign currency effects; retail and industrial demand; product introductions; and pricing and other competitive pressures, as well as other risk factors set forth in our SEC filings. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.

ABOUT PENTAIR, INC.

Pentair (www.pentair.com) is a diversified operating company headquartered in Minnesota. Its Water Group is a global leader in providing innovative products and systems used worldwide in the movement, treatment, storage and enjoyment of water. Pentair's Technical Products Group is a leader in the global enclosures and thermal management markets, designing and manufacturing thermal management products and standard, modified, and custom enclosures that house and protect sensitive electronics and electrical components. With 2007 revenues of $3.30 billion, Pentair employs approximately 16,000 people worldwide.

Pentair, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) Three months ended Six months ended -------------------- ----------------------- In thousands, except per- June 28 June 30 June 28 June 30 share data 2008 2007 2008 2007 ---------------------------------------------------------------------- Net sales $ 909,757 $899,299 $1,750,161 $1,692,144 Cost of goods sold 631,695 619,750 1,220,768 1,176,664 ---------------------------------------------------------------------- Gross profit 278,062 279,549 529,393 515,480 % of net sales 30.6% 31.1% 30.3% 30.5% Selling, general and administrative 146,311 151,881 284,957 291,363 % of net sales 16.1% 16.9% 16.3% 17.2% Research and development 16,314 14,808 32,180 29,758 % of net sales 1.8% 1.6% 1.8% 1.8% Legal settlement 20,435 -- 20,435 -- % of net sales 2.3% -- 1.2% -- ---------------------------------------------------------------------- Operating income 95,002 112,860 191,821 194,359 % of net sales 10.4% 12.5% 11.0% 11.5% Other (income) expense: Gain on sale of interest in subsidiaries (109,648) -- (109,648) -- Equity losses of unconsolidated subsidiary 847 36 1,764 993 Net interest expense 15,862 18,483 31,950 33,194 % of net sales 1.7% 2.1% 1.8% 2.0% ---------------------------------------------------------------------- Income from continuing operations before income taxes 187,941 94,341 267,755 160,172 % of net sales 20.7% 10.5% 15.3% 9.5% Provision for income taxes 49,206 33,348 76,376 56,550 Effective tax rate 26.2% 35.4% 28.5% 35.3% ---------------------------------------------------------------------- Income from continuing operations 138,735 60,993 191,379 103,622 Income (loss) from discontinued operations, net of tax -- 1,008 (1,217) 509 Gain (loss) on disposal of discontinued operations, net of tax -- 64 (7,137) 207 ---------------------------------------------------------------------- Net income $ 138,735 $ 62,065 $ 183,025 $ 104,338 ====================================================================== Earnings (loss) per common share Basic Continuing operations $ 1.41 $ 0.62 $ 1.95 $ 1.04 Discontinued operations -- 0.01 (0.09) 0.01 ---------------------------------------------------------------------- Basic earnings per common share $ 1.41 $ 0.63 $ 1.86 $ 1.05 ====================================================================== Diluted Continuing operations $ 1.39 $ 0.61 $ 1.92 $ 1.03 Discontinued operations -- 0.01 (0.08) 0.01 ---------------------------------------------------------------------- Diluted earnings per common share $ 1.39 $ 0.62 $ 1.84 $ 1.04 ====================================================================== Weighted average common shares outstanding Basic 98,062 98,874 98,172 98,915 Diluted 99,509 100,371 99,462 100,294 Cash dividends declared per common share $ 0.17 $ 0.15 $ 0.34 $ 0.30

Pentair, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 28 December 31 June 30 In thousands 2008 2007 2007 ---------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 74,616 $ 70,795 $ 52,016 Accounts and notes receivable, net 558,928 466,675 523,941 Inventories 437,421 392,416 395,330 Deferred tax assets 51,961 50,511 51,621 Prepaid expenses and other current assets 46,213 35,908 41,605 Current assets of discontinued operations -- 21,716 31,750 ---------------------------------------------------------------------- Total current assets 1,169,139 1,038,021 1,096,263 Property, plant and equipment, net 379,471 365,990 352,853 Other assets Goodwill 2,158,229 2,004,720 1,924,208 Intangibles, net 558,451 491,263 503,663 Other 78,732 82,237 77,821 Non-current assets of discontinued operations -- 18,383 18,436 ---------------------------------------------------------------------- Total other assets 2,795,412 2,596,603 2,524,128 ---------------------------------------------------------------------- Total assets $4,344,022 $4,000,614 $3,973,244 ====================================================================== Liabilities and Shareholders' Equity Current liabilities Short-term borrowings $ 217 $ 13,586 $ 10,202 Current maturities of long-term debt 4,442 5,075 4,516 Accounts payable 238,656 229,937 211,504 Employee compensation and benefits 98,816 111,475 95,960 Current pension and post- retirement benefits 8,557 8,557 7,918 Accrued product claims and warranties 47,528 49,382 48,867 Income taxes 18,115 12,919 20,322 Accrued rebates and sales incentives 36,687 36,663 42,075 Other current liabilities 130,431 90,377 93,948 Current liabilities of discontinued operations -- 2,935 9,616 ---------------------------------------------------------------------- Total current liabilities 583,449 560,906 544,928 Other liabilities Long-term debt 1,024,160 1,041,925 1,173,184 Pension and other retirement compensation 171,923 161,042 218,420 Post-retirement medical and other benefits 35,095 37,147 46,806 Long-term income taxes payable 24,442 21,306 14,705 Deferred tax liabilities 189,214 167,633 110,412 Other non-current liabilities 95,544 97,086 87,949 Non-current liabilities of discontinued operations -- 2,698 2,546 ---------------------------------------------------------------------- Total liabilities 2,123,827 2,089,743 2,198,950 Minority interest 122,960 -- -- -- Shareholders' equity 2,097,235 1,910,871 1,774,294 ---------------------------------------------------------------------- Total liabilities and shareholders' equity $4,344,022 $4,000,614 $3,973,244 ====================================================================== Days sales in accounts receivable (13 month moving average) 56 53 55 Days inventory on hand (13 month moving average) 77 75 76 Days in accounts payable (13 month moving average) 57 54 55 Debt/total capital 32.9% 35.7% 40.1%

Pentair, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Six months ended ---------------------- June 28 June 30 In thousands 2008 2007 ---------------------------------------------------------------------- Operating activities Net income $ 183,025 $ 104,338 Adjustments to reconcile net income to net cash provided by (used for) operating activities (Income) loss from discontinued operations 1,217 (509) (Gain) loss on disposal of discontinued operations 7,137 (207) Equity losses of unconsolidated subsidiary 1,764 993 Depreciation 30,795 30,043 Amortization 13,101 12,952 Deferred income taxes 21,037 (6,476) Stock compensation 11,932 12,626 Excess tax benefits from stock-based compensation (776) (2,213) Gain on sale of assets (443) -- Gain on sale of interest in subsidiaries (109,648) -- Changes in assets and liabilities, net of effects of business acquisitions and dispositions Accounts and notes receivable (85,203) (84,466) Inventories (20,300) 8,040 Prepaid expenses and other current assets (7,852) (3,465) Accounts payable 11,044 10,308 Employee compensation and benefits (18,482) (4,915) Accrued product claims and warranties (2,298) 4,561 Income taxes 4,131 5,157 Other current liabilities 31,261 2,525 Pension and post-retirement benefits 3,320 7,730 Other assets and liabilities 4,986 2,554 ---------------------------------------------------------------------- Net cash provided by (used for) continuing operations 79,748 99,576 Net cash provided by (used for) operating activities of discontinued operations (4,137) (1,660) ---------------------------------------------------------------------- Net cash provided by (used for) operating activities 75,611 97,916 Investing activities Capital expenditures (26,328) (30,058) Proceeds from sale of property and equipment 3,802 1,526 Acquisitions, net of cash acquired or received 6,237 (482,885) Divestitures 29,959 -- Other -- (779) ---------------------------------------------------------------------- Net cash provided by (used for) investing activities 13,670 (512,196) Financing activities Net short-term borrowings (repayments) (13,965) (4,708) Proceeds from long-term debt 279,405 1,121,402 Repayment of long-term debt (297,740) (673,341) Debt issuance costs (50) (1,782) Excess tax benefits from stock-based compensation 776 2,213 Proceeds from exercise of stock options 2,175 4,922 Repurchases of common stock (21,721) (9,280) Dividends paid (33,747) (29,991) ---------------------------------------------------------------------- Net cash provided by (used for) financing activities (84,867) 409,435 Effect of exchange rate changes on cash and cash equivalents (593) 2,041 ---------------------------------------------------------------------- Change in cash and cash equivalents 3,821 (2,804) Cash and cash equivalents, beginning of period 70,795 54,820 ---------------------------------------------------------------------- Cash and cash equivalents, end of period $ 74,616 $ 52,016 ====================================================================== Free cash flow ---------------------------------------------------------------------- Net cash provided by (used for) continuing operations $ 79,748 $ 99,576 Capital expenditures (26,328) (30,058) Proceeds from sale of property and equipment 3,802 1,526 ---------------------------------------------------------------------- Free cash flow $ 57,222 $ 71,044 ======================================================================

Pentair, Inc. and Subsidiaries Supplemental Financial Information by Reportable Business Segment (Unaudited) First Qtr Second Qtr Six Months In thousands 2008 2008 2008 ---------------------------------------------------------------------- Net sales to external customers Water Group $554,944 $ 605,497 $1,160,441 Technical Products Group 285,460 304,260 589,720 ---------------------------------------------------------------------- Consolidated $840,404 $ 909,757 $1,750,161 ====================================================================== Intersegment sales Water Group $ 372 $ 139 $ 511 Technical Products Group 1,138 1,034 2,172 Other (1,510) (1,173) (2,683) ---------------------------------------------------------------------- Consolidated $ -- $ -- $ -- ====================================================================== Operating income (loss) Water Group $ 64,419 $ 57,822 $ 122,241 Technical Products Group 45,337 49,732 95,069 Other (12,937) (12,552) (25,489) ---------------------------------------------------------------------- Consolidated $ 96,819 $ 95,002 $ 191,821 ====================================================================== Operating income as a percent of net sales Water Group 11.6% 9.5% 10.5% Technical Products Group 15.9% 16.3% 16.1% Consolidated 11.5% 10.4% 11.0% First Qtr Second Qtr Six Months In thousands 2007 2007 2007 ---------------------------------------------------------------------- Net sales to external customers Water Group $540,262 $ 642,149 $1,182,411 Technical Products Group 252,583 257,150 509,733 ---------------------------------------------------------------------- Consolidated $792,845 $ 899,299 $1,692,144 ====================================================================== Intersegment sales Water Group $ 214 $ 46 $ 260 Technical Products Group 896 1,689 2,585 Other (1,110) (1,735) (2,845) ---------------------------------------------------------------------- Consolidated $ -- $ -- $ -- ====================================================================== Operating income (loss) Water Group $ 62,426 $ 89,195 $ 151,621 Technical Products Group 31,631 36,140 67,771 Other (12,558) (12,475) (25,033) ---------------------------------------------------------------------- Consolidated $ 81,499 $ 112,860 $ 194,359 ====================================================================== Operating income as a percent of net sales Water Group 11.6% 13.9% 12.8% Technical Products Group 12.5% 14.1% 13.3% Consolidated 10.3% 12.5% 11.5%

Pentair, Inc. and Subsidiaries Reconciliation of the GAAP "As Reported" year ending December 31, 2008 to the "Adjusted" non-GAAP excluding the effect of 2008 adjustments (Unaudited) In thousands, except First Quarter Second Quarter Third Quarter per-share data 2008 2008 2008 ---------------------------------------------------------------------- Net sales $840,404 $909,757 $845,000 - $855,000 ---------------------------------------------------------------------- Operating income - as reported 96,819 95,002 67,000 - 71, 000 % of net sales 11.5% 10.4% 7.8% - 8.4% Adjustments -- 23,140 approx. 25,000 ---------------------------------------------------------------------- Operating income - as adjusted 96,819 118,142 92,000 - 96,000 % of net sales 11.5% 13.0% 10.8% - 11.4% Income from continuing operations - as reported 52,644 138,735 31,000 - 33,000 Adjustments - tax affected -- (70,560) approx. 20,000 ---------------------------------------------------------------------- Income from continuing operations - as adjusted 52,644 68,175 51,000 - 53,000 ====================================================================== Continuing earnings per common share - diluted Diluted earnings per common share - as reported $0.53 $1.39 $0.31 - $0.33 Adjustments -- (0.71) approx. 0.20 ---------------------------------------------------------------------- Diluted earnings per common share - as adjusted $0.53 $0.68 $0.51 - $0.53 ====================================================================== Weighted average common shares outstanding - Diluted 99,558 99,509 approx. 99,400 In thousands, except per-share Fourth Quarter Year data 2008 2008 ---------------------------------------------------------------------- Net sales $880,000 - $895,000 approx. $3,500M ---------------------------------------------------------------------- Operating income - as reported 56,000 - 62,000 315M - 325M % of net sales 6.3% -7.0% 9.0% - 9.3% Adjustments approx. 52,000 approx. 100M ---------------------------------------------------------------------- Operating income - as adjusted 108,000 - 114,000 415M - 425M % of net sales 12.1% - 13.0% 11.9% - 12.2% Income from continuing operations - as reported 20,000 - 23,000 243M - 248M Adjustments - tax affected approx. 35,000 approx. (16M) ---------------------------------------------------------------------- Income from continuing operations - as adjusted 55,000 - 58,000 227M - 232M ====================================================================== Continuing earnings per common share - diluted Diluted earnings per common share - as reported $0.20 - $0.23 $2.44 - $2.49 Adjustments approx. 0.35 approx. (0.16) ---------------------------------------------------------------------- Diluted earnings per common share - as adjusted $0.55 - $0.58 $2.28 - $2.33 ====================================================================== Weighted average common shares outstanding - Diluted approx. 99,200 approx. 99,300 Pentair, Inc. and Subsidiaries Reconciliation of the GAAP "As Reported" year ending December 31, 2007 to the "Adjusted" non-GAAP excluding the effect of 2007 adjustments (Unaudited) In thousands, except per- First Quarter Second Quarter Third Quarter share data 2007 2007 2007 ---------------------------------------------------------------------- Net sales $792,845 $899,299 $821,214 ---------------------------------------------------------------------- Operating income - as reported 81,499 112,860 93,149 % of net sales 10.3% 12.5% 11.3% Adjustments -- -- 9,192 ---------------------------------------------------------------------- Operating income - as adjusted 81,499 112,860 102,341 % of net sales 10.3% 12.5% 12.5% Income from continuing operations - as reported 42,629 60,994 59,277 Adjustments - tax affected -- -- 6,246 Non-recurring tax items (145) (83) (11,517) ---------------------------------------------------------------------- Income from continuing operations - as adjusted 42,484 60,911 54,006 ====================================================================== Continuing earnings per common share - diluted Diluted earnings per common share - as reported $0.42 $0.61 $0.59 Adjustments -- -- (0.05) ---------------------------------------------------------------------- Diluted earnings per common share - as adjusted $0.42 $0.61 $0.54 ---------------------------------------------------------------------- Weighted average common shares outstanding - Diluted 100,271 100,371 100,365 Fourth Quarter Year In thousands, except per-share data 2007 2007 ---------------------------------------------------------------------- Net sales $817,519 $3,330,877 ---------------------------------------------------------------------- Operating income - as reported 91,519 379,027 % of net sales 11.2% 11.4% Adjustments 5,970 15,162 ---------------------------------------------------------------------- Operating income - as adjusted 97,489 394,189 % of net sales 11.9% 11.8% Income from continuing operations - as reported 49,470 212,370 Adjustments - tax affected 3,881 10,127 Non-recurring tax items (1,073) (12,818) ---------------------------------------------------------------------- Income from continuing operations - as adjusted 52,278 209,679 ====================================================================== Continuing earnings per common share - diluted Diluted earnings per common share - as reported $0.50 $2.12 Adjustments 0.03 (0.02) ---------------------------------------------------------------------- Diluted earnings per common share - as adjusted $0.53 $2.10 ---------------------------------------------------------------------- Weighted average common shares outstanding - Diluted 99,859 100,205

Pentair, Inc. and Subsidiaries Reconciliation of the GAAP "As Reported" year ending December 31, 2008 to the "Adjusted" non-GAAP excluding the effect of 2008 adjustments (Unaudited) First Quarter Second Quarter Third Quarter In thousands 2008 2008 2008 ---------------------------------------------------------------------- Water Net sales $554,944 $605,497 $555,000 - $560,000 ---------------------------------------------------------------------- Operating income - as reported 64,419 57,822 36,000 - 38,000 % of net sales 11.6% 9.5% 6.4% - 6.8% Adjustments -- 22,711 approx. 23,000 ---------------------------------------------------------------------- Operating income - as adjusted 64,419 80,533 59,000 - 61,000 % of net sales 11.6% 13.3% 10.5% - 11.0% Technical Products Net sales $285,460 $304,260 $290,000 - $295,000 ---------------------------------------------------------------------- Operating income - as reported 45,337 49,732 45,000 - 47,000 % of net sales 15.9% 16.3% 15.3% - 16.2% Adjustments -- 429 approx. 2,000 ---------------------------------------------------------------------- Operating income - as adjusted 45,337 50,161 47,000 - 49,000 % of net sales 15.9% 16.4% 15.9% - 16.9% Fourth Quarter Year In thousands 2008 2008 ---------------------------------------------------------------------- Water Net sales $585,000 - $595,000 approx. $2,300M+ ---------------------------------------------------------------------- Operating income - as reported 26,000 - 30,000 184M - 190M % of net sales 4.4% - 5.1% 8.0% - 8.3% Adjustments approx. 50,000 approx. 96M ---------------------------------------------------------------------- Operating income - as adjusted 76,500 - 80,500 280M - 286M % of net sales 12.8% - 13.7% 12.1% - 12.4% Technical Products Net sales $295,000 - $300,000 $1,175M - $1,185M ---------------------------------------------------------------------- Operating income - as reported 45,000 - 47,000 185M - 189M % of net sales 15.0% - 15.9% 15.6% - 16.1% Adjustments approx. 2,000 approx. 4M ---------------------------------------------------------------------- Operating income - as adjusted 47,000 - 49,000 189M - 193M % of net sales 15.7% - 16.6% 16.0% - 16.5% Pentair, Inc. and Subsidiaries Reconciliation of the GAAP "As Reported" year ending December 31, 2007 to the "Adjusted" non-GAAP excluding the effect of 2007 adjustments (Unaudited) First Quarter Second Quarter Third Quarter In thousands 2007 2007 2007 ---------------------------------------------------------------------- Water Net sales $540,262 $642,149 $545,513 ---------------------------------------------------------------------- Operating income - as reported 62,426 89,195 56,061 % of net sales 11.6% 13.9% 10.3% Adjustments -- -- 9,843 ---------------------------------------------------------------------- Operating income - as adjusted 62,426 89,195 65,904 % of net sales 11.6% 13.9% 12.1% Technical Products Net sales $252,583 $257,150 $275,701 ---------------------------------------------------------------------- Operating income - as reported 31,631 36,140 46,237 % of net sales 12.5% 14.1% 16.8% Adjustments -- -- (652) ---------------------------------------------------------------------- Operating income - as adjusted 31,631 36,140 45,585 % of net sales 12.5% 14.1% 16.5% Fourth Quarter Year In thousands 2007 2007 ---------------------------------------------------------------------- Water Net sales $552,820 $2,280,744 ---------------------------------------------------------------------- Operating income - as reported 65,541 273,223 % of net sales 11.9% 12.0% Adjustments 3,897 13,740 ---------------------------------------------------------------------- Operating income - as adjusted 69,438 286,963 % of net sales 12.6% 12.6% Technical Products Net sales $264,699 $1,050,133 ---------------------------------------------------------------------- Operating income - as reported 39,578 153,586 % of net sales 15.0% 14.6% Adjustments 2,073 1,421 ---------------------------------------------------------------------- Operating income - as adjusted 41,651 155,007 % of net sales 15.7% 14.8%

SOURCE: Pentair, Inc.

Pentair, Inc. Todd Gleason, 763-656-5570 Vice President, Investor Relations todd.gleason@pentair.com Rachael Jarosh, 763-656-5280 Vice President, Communications rachael.jarosh@pentair.com