Airgas Elects Early Adoption of SFAS 142.

Business Editors

RADNOR, Pa.--(BUSINESS WIRE)--August 13, 2001

Airgas, Inc. (NYSE:ARG) announced that it has adopted Statement of Financial Accounting Standards ("SFAS") No. 142 retroactively to April 1, 2001, as allowed under the standard. SFAS 142 requires goodwill and intangible assets with indefinite useful lives to no longer be amortized, but instead be tested for impairment at least annually. Excluding goodwill amortization expense of $4 million, diluted earnings per share was $0.20 for the three months ended June 30, 2001. The Company previously reported diluted earnings per share of $0.15 for the same period.

"We decided to adopt early because we believe the new standard better reflects the dynamics of our business. Airgas has always generated strong cash flow, which was not fully reflected in our book earnings. For example, in fiscal year 2001, we generated $0.52 of net earnings per share and $0.94 of free cash flow per share." commented Roger Millay, senior vice president and chief financial officer. "The full year impact on earnings per share is expected to be $0.20. Therefore, our previously issued earnings guidance of $0.55 per share is raised to $0.75 per share including the $0.05 of Project One net costs."

SFAS 142 provides a six-month transitional period from the effective date of adoption for the Company to perform an assessment of whether there is an indication that goodwill is impaired. The Company anticipates completing its initial assessment of impairment by September 30, 2001. To the extent that an indication of impairment exists, the Company must perform a second test no later than the end of the fiscal year to measure the amount of the impairment. Any impairment measured as of the date of adoption will be recognized as the cumulative effect of a change in accounting principle.

About Airgas, Inc.

Airgas, Inc. (NYSE:ARG) is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network of 700 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telemarketing channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.

Forward-Looking Statements

This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, statements regarding expected earnings per share. Airgas intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement are described in the Company's reports, including Form 10-K dated March 31, 2001 filed by the Company with the Securities and Exchange Commission.

www.airgas.com