Applied Industrial Technologies to Acquire Distribution Businesses of Fluid Power Resource

           - Provides greater coverage to North American industry

- Extends dedicated fluid power business to 67 sales and service facilities



    CLEVELAND, July 14 /EMWNews-FirstCall/ -- Applied Industrial

Technologies (NYSE: AIT) today announced it has agreed to acquire the

assets of Fluid Power Resource, LLC (FPR) and the following seven fluid

power distribution businesses: Bay Advanced Technologies, Carolina Fluid

Components, DTS Fluid Power, FluidTech, Hughes HiTech, Hydro Air, and Power

Systems. These businesses employ 455 people and generated 2007 annual sales

of $244 million.



    The $169 million all-cash purchase of FPR will be funded with a

combination of existing cash and financing through established credit

facilities. The transaction is expected to close upon the approval of the

parties' Hart-Scott-Rodino filings and certain other conditions. Each of

the businesses will operate as a subsidiary of Applied and will maintain

their current local identities. The companies will be led by Warren E.

(Bud) Hoffner, Vice President, General Manager-Fluid Power, who oversees

Applied's fluid power business unit.



    "The addition of these 19 FPR locations, together with their corporate

resources, extends our fluid power footprint within North America and

increases Applied's capabilities in the areas of fluid power system

integration; manifold design, machining, and assembly; and the integration

of hydraulics with electronics for complete machine design," said Bud

Hoffner. "I am looking forward to working with this high caliber team under

the Applied umbrella."



    "Applied has a strong track record in developing their fluid power

capabilities, and their philosophy of semi-autonomous leadership for their

subsidiaries is a great match for our Fluid Power Resource businesses,"

stated Denis P. McCarthy, President of FPR. "With strong local leadership

and local talent, our customers will continue to receive outstanding

service backed by a strong, stable financial presence, making the

transaction a win-win situation."



    According to spokesman Todd A. Barlett, Applied has grown substantially

since 1997 nearly doubling its sales through a combination of organic

growth and a total of 23 acquisitions. "The FPR businesses are strong,

well- performing companies, and we expect the acquisition will be accretive

for our shareholders immediately. We are in a good position to pursue

additional acquisitions that are aligned with our geographic and product

needs and offer a good return to our shareholders," said Barlett, Vice

President - Acquisitions and Global Business Development for Applied. With

this acquisition, Applied's fluid power business group will serve customers

through 67 sales and service facilities in the U.S., Canada and Mexico.

    About The Acquired Distribution Businesses



    Bay Advanced Technologies employs 156 people who provide solutions to

automation and control applications. It operates three locations in Austin,

TX; Newark, CA; and Mission Viejo, CA.



    Carolina Fluid Components distributes hydraulic and pneumatic

components, electronic controls required to operate fluid and air-powered

systems, and after-market parts for maintenance and repair. The company

employs 60 people at operations in Charlotte, NC and Norcross, GA.



    DTS Fluid Power is a mobile hydraulics distributor. The company employs

38 people at locations in Grandville, MI; Elk Grove, IL; and Madison

Heights, MI.



    FluidTech is a distributor and manufacturer representative of precision

mobile hydraulic components with two operations in Lenexa, KS. The company

employs 49 people.



    Hughes HiTech is an industrial automation supplier located in Clarence,

NY. The company employs 22 people.



    Hydro Air is a distributor of hydraulic and pneumatic components and

systems. The company employs 60 people throughout its four locations in

North Haven, CT; Raymond, ME; Horsham, PA; and Cranston, RI.



    Power Systems is a distributor of hydraulic fluid power equipment, such

as pumps, valves, gearboxes, differentials, hydrostatic transmissions and

motors. The company employs 62 people at its facilities in Ankeny, IA;

Chanhassen, MN; Tea, SD; and Richfield, WI.



    About Applied Industrial Technologies



    With more than 445 facilities and 4,600 employee-associates across

North America, Applied Industrial Technologies is an industrial distributor

that offers more than 3 million parts critical to the operations of MRO and

OEM customers in virtually every industry. In addition, Applied provides

engineering, design and systems integration for industrial and fluid power

applications, as well as customized mechanical, fabricated rubber and fluid

power shop services. For its fiscal year ended June 30, 2007, Applied

posted sales of $2.0 billion. Applied can be visited on the Internet at

http://www.Applied.com



    This press release contains statements that are forward-looking, as

that term is defined by the Securities and Exchange Commission in its

rules, regulations and releases. Forward-looking statements are often

identified by qualifiers such as "expect," "will" and similar expressions.

Applied intends that such forward-looking statements be subject to the safe

harbors created thereby. Although Applied believes its expectations are

based on reasonable assumptions by management, Applied cannot assure that

the expectations reflected in this document will be achieved because they

are subject to risks and uncertainties that are difficult to predict and

may be outside of Applied's control. These risks and uncertainties include

the possibility that the benefits anticipated from the transaction will not

be fully realized, as well as the possibility the transaction may not

close. All forward-looking statements are also based on current

expectations regarding important risk factors including trends in the

industrial sector of the economy, and other risk factors identified in

Applied's most recent periodic report and other filings made with the

Securities and Exchange Commission. Accordingly, actual results may differ

materially from those expressed, projected or implied in the

forward-looking statements, and the making of such statements should not be

regarded as a representation by Applied or any other person that the

results expressed therein will be achieved. Applied assumes no obligation

to update publicly or revise any forward-looking statements, whether due to

new information, or events, or otherwise, except as required by law.