Airgas to Acquire Gas Distribution Business From Mallinckrodt.

Business Editors

RADNOR, Pa.--(BUSINESS WIRE)--Jan. 10, 2000

Airgas, Inc. (NYSE - ARG) announced that it has agreed to acquire Mallinckrodt Inc.'s (NYSE - MKG) Puritan-Bennett gas products division.

The Puritan-Bennett gas products division is a leading distributor of medical gases in North America with annual sales of approximately $70 million. Gas and cylinder rent represent approximately 90% of sales. Puritan-Bennett has positioned itself as a niche player in the gas industry by specializing in the growing healthcare segment. Its network of 36 locations and approximately 390 employees in the United States and Canada provides gas service primarily to hospitals, home healthcare service companies, elderly care facilities and other suppliers to the healthcare industry. The acquired business will more than double Airgas' existing medical gas business, which currently generates annual sales of approximately $50 million.

"This acquisition represents a tremendous strategic opportunity to strengthen this growing segment of our core business, positioning Airgas as the leader in medical gas distribution in North America," commented Peter McCausland, Airgas' chairman and chief executive officer. "The management team and associates at Puritan-Bennett are a talented and focused group. We are excited to have them join the Airgas team and we look forward to their significant contributions as we continue to grow our medical gas business."

The parties expect to close the transaction by the end of January 2000. Airgas expects the transaction to be accretive to earnings per share for its fiscal year beginning April 1, 2000.

Based in St. Louis, Missouri, Mallinckrodt Inc. is a global manufacturer and marketer of specialty medical products designed to sustain breathing, diagnose disease and relieve pain. The company does business in more than 100 countries; operates Respiratory, Imaging and Pharmaceuticals product groups, and had fiscal 1999 net sales of $2.6 billion. The Mallinckrodt website address is www.mallinckrodt.com.

Airgas is the largest distributor of industrial, medical and specialty gases and related equipment and the third largest distributor of safety supplies in the United States. Airgas' integrated distributor network consists of approximately 700 locations including branches, packaged gas fill plants, distribution centers and inbound and outbound telemarketing operations. Airgas can be visited on the Internet at 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. 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 include the Company's ability to complete the acquisition and to assimilate the operations of the acquired business without unexpected operational disruptions or expenses, the actual impact of the acquisition on future earnings per share and other factors described in the Company's reports, including Form 10-Q dated September 30, 1999, filed by the Company with the Securities and Exchange Commission.