Since the fourth quarter of 2008, the company has spent approximately $82million, reduced headcount by 2,700 and closed 34 facilities, including 12factories and 14 warehouses. The restructuring programs are expected to generate$160 million of annual gross pre-tax savings in 2009 and approximately $200million in 2010.” The company continued to make progress with the integration of Trane. Over 300projects have been identified and approved and the company expects to generate$175 to $185 million of incremental savings and $300 million of cumulativesavings in 2009. 2009 OutlookAll of Ingersoll Rand`s major end markets continued to experience depressedlevels of overall demand in the first quarter with weaker activity for bothcomplete products and aftermarket parts and service.

First-quarter orders,excluding currency, declined by approximately 23% compared with last year.”Based on our recent order pattern and a review of customer and channelactivity, we expect reduced activity levels for most of our major end marketsfor 2009. We expect the most pronounced reductions to be in North America andWestern Europe, especially in the first half of the year. “Given our current macro economic view, we expect pro forma revenues forfull-year 2009 to decline by 14% to 19% including 3 to 4 points of negativecurrency impact. “For 2009, we expect to capture significant benefits from lower commodity costs,additional Trane synergies, restructuring cost savings and productivityprograms. “Full-year 2009 EPS from continuing operations is expected to be in the range of$1.40 to $1.90 and we expect to have discontinued costs equal to $0.10 pershare.

This full-year forecast excludes $0.11 of restructuring expenses andreflects a tax rate of 20% for continuing operations and an average dilutedshare count of 323 million shares. This compares with the original guidancerange given by the company of $1.85 to $2.25 EPS in February 2009. On March 30,the company indicated that full year EPS could be as low as $0.45 per sharebelow the bottom of the February guidance range. Available cash flow for 2009will be adequate to reduce financing by $675 million, based on projectedearnings and a reduction in working capital. “Second-quarter results will continue to be negatively influenced by the currentturbulent economic conditions,” said Mr Henkel. “Second-quarter revenues areforecast to be in the range of $3.5 to $3.7 billion, which is down byapproximately 18% to 23% on a pro forma basis compared with the second quarterof 2008. Reported EPS from continuing operations for the second quarter isexpected to be in the range of $0.30 to $0.50, excluding $0.07 of restructuringexpenses.

“Despite slower economic conditions, our business fundamentals remain strong. Wehave leading global brands and leading market shares in all of our major productlines. We have growing geographic diversity and our large installed product baseprovides significant opportunities to expand our parts, services and controlsbusinesses. Our balance sheet is solid, we have ongoing access to the commercialpaper markets, and we have significant available liquidity.

Our number onepriority is managing through the current economic slowdown so that we mitigateits impact and emerge as a stronger, more efficient company.” As a result of the recently issued SFAS No. 160 Noncontrolling Interests inConsolidated Financial Statements, all amounts reported within the earningsrelease above related to net earnings (loss), earnings (loss) from continuingoperations, earnings (loss) from discontinued operations, and per share amountsare attributed to Ingersoll Rand`s common shareholders.Note:2009 reduced financing of $675 million consists of forecasted debtrepayments of $807 million less forecasted additional proceeds under the tradereceivable financing facility of $132 million.This news release includes “forward-looking statements,” which are anystatements that are not historical facts. These forward-looking statements arebased on our current expectations and there can be no assurance that suchexpectations will prove to be correct. Forward-looking statements are subject tochanges in circumstances, risks and uncertainties, which may cause actualresults, performance or achievements to differ materially from anticipatedresults, performance or achievements. Information about factors that could causesuch differences can be found in Item 1A of our Form 10-K for the year endedDecember 31, 2008 and in our other SEC filings General U.S.