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Flowserve Corporation Announces Tentative Agreement

29 May 1998

Flowserve Corporation Announces Tentative Agreement to Acquire Its European Licensee of Control Valve Products from Rolls-Royce

    DALLAS, May 28 -- Flowserve Corporation today
announced an agreement in principle to acquire the assets and certain
liabilities of the Valtek Engineering Division of Allen Power Engineering,
Limited, from Rolls-Royce plc.  The Valtek Engineering Division has been the
British licensee for many of Flowserve's Valtek control valve products, with
exclusive territorial rights for portions of Europe, the Middle East and
Africa.
    The business produced sales of approximately $20 million in 1997 at
current exchange rates.  Terms of the pending transaction were not disclosed.
Closing is expected by June 30, 1998, and is subject to the completion of due
diligence and the negotiation of definitive contracts.
    "This acquisition will be an important step in our effort to expand
Flowserve's global market share in control valves and intelligent flow control
solutions," said Bernard G. Rethore, Flowserve chairman and chief executive
officer.  "Flowserve already has a number of manufacturing and service
facilities in Europe supporting our valve product lines.  Acquiring our Valtek
product licensee from Rolls-Royce will allow us to work directly with their
current customers and build closer relationships.  It also will enable us to
provide them with high, uniform valve product quality, service and support on
a worldwide basis under the Flowserve brand."
    Flowserve produces and services a broad line of valve products, from
manual and automated quarter-turn valves to automatic control valves, nuclear
valves and valve actuators.  In addition to its Valtek control valves and
intelligent systems, Flowserve's valve products are sold under the Accord,
Anchor-Darling, Atomac, Automax, Durco, Kammer and Sereg trade names.  The
company currently operates valve manufacturing plants in France, Germany,
Italy, Switzerland and the United States.
    Flowserve Corporation is one of the world's leading providers of
industrial flow management services.  Operating in 28 countries, with 1997
sales of $1.2 billion and 7,200 employees, the company produces highly
engineered pumps for the process industries, precision mechanical seals,
smart, automated and manual quarter-turn valves, control valves and valve
actuators, and a range of related flow management services.

    A copy of this news release, and information about Flowserve Corporation,
can be obtained by visiting the company's Web site at http://www.flowserve.com.

    SAFE HARBOR STATEMENT: This news release contains various forward-looking
statements and includes assumptions about Flowserve's future market
conditions, operations and results.  These statements are based on current
expectations and are subject to significant risks and uncertainties.  They are
made pursuant to safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Among the many factors that could cause actual results to
differ materially from the forward-looking statements are: further changes in
the already competitive environment for the company's products or competitors'
responses to Flowserve's strategies; political risks or trade embargoes
affecting important country markets; economic turmoil in the Asia/Pacific
region; unanticipated difficulties or costs associated with integrating the
management and operations of BW/IP, Inc. and Durco International; and the
recognition of significant expenses associated with adjustments to realign the
combined company's facilities and other capabilities with its strategies.