Relief Pitcher

Fitch Ratings Affirms IDEX at ‘BBB+’; Outlook Stable

Business Wire, July 22, 2010

CHICAGO — Fitch Ratings has affirmed the following ratings for IDEX Corporation
(NYSE: IEX):

–Issuer Default Rating (IDR) at ‘BBB ‘;

–Senior unsecured bank facilities at ‘BBB ‘.

The Rating Outlook is Stable. There was approximately $470 million of
debt as of June 30, 2010.

The ratings reflect IDEX’s steady free cash flows, stable credit metrics
and leading positions in diversified niche markets. IDEX continued to
focus on conservative financial measures and was able to maintain solid
operating results during the recent economic downturn. IDEX’s leverage
was estimated at approximately 1.6 times (x) for the latest 12 months
(LTM) ended June 30, 2010. Fitch expects IDEX will temporarily increase
leverage to over 2x at the end of 2010, but metrics should return to the
1.5x-1.8x levels by the end of 2011. IDEX plans to issue term debt at
the end of 2010. Fitch anticipates that IDEX will use the proceeds to
refinance short-term debt maturing in early 2011. Leverage expectations
in 2010 and 2011 also include the possibility of increased acquisition
activity to similar spending levels in 2006 and 2008 of over $300
million. In 2009, IDEX halted discretionary spending as it reduced debt,
but has completed an acquisition for $54 million in the first half of
2010.

The concerns regarding IDEX’s leverage and integration risks are offset
by the company’s ability to generate on average over $100 million of
free cash flow each year and its disciplined approach to acquisitions.
Free cash flows in 2009 were nearly $150 million and should be over $100
million in 2010 as well. Fitch anticipates that if leverage were to
increase due to acquisition spending that IDEX would be able to quickly
delever as the company has done in the past. IDEX views acquisitions a
key strategy for growth over the next few years. Fundamental to IDEX’s
growth is the company’s focus on businesses that offer profitable niche
products that can be accretive quickly, particularly in its Fluid &
Metering Technologies (FMT) and Health & Sciences Technologies (HST)
segments.

An anticipated recovery in organic sales in the 10% – 15% within IDEX’s
FMT and HST segments partially supports expected high-single digit
increases in revenues in 2010