Airgas to Acquire Interstate Welding, Strengthening Presence in Northeastern Wisconsin and Michigan's Upper Peninsula.

Business Editors

RADNOR, Pa.--(BUSINESS WIRE)--Feb. 26, 2004

Airgas, Inc. (NYSE:ARG) today announced that it has agreed to acquire the assets of Interstate Welding Sales Corporation, a leading Wisconsin-based distributor of welding equipment supplies; industrial, specialty and medical gases; and fire protection systems. The acquisition is expected to close on March 31, 2004.

The operations, which generated about $35 million in annual sales in 2003, would significantly enhance Airgas' presence in Northeastern Wisconsin and Michigan's Upper Peninsula. The acquisition would include a main office and cylinder fill plant in Marinette, WI and branches in Appleton, Fond du Lac, Green Bay, Manitowoc, Milwaukee, and Schofield, WI; and Escanaba, Iron Mountain, and Marquette, MI on the Upper Peninsula.

Airgas plans to run these locations as part of Airgas North Central, one of 12 regional companies within Airgas, the nation's largest distributor of gases, welding supplies and related products. It plans to offer employment to Interstate's 160 employees.

"We are very excited about welcoming the Interstate associates to our company," said Ron Stark, president of Airgas North Central. "Interstate will give us great presence in geographical markets and businesses where we have very little presence today. The combination of our services and locations will help us offer even better service to Interstate and Airgas customers."

Founded in 1946, Interstate has been owned by the Higley family since 1969. The company distributes welding equipment and supplies, bulk and cylinder gas, tools, abrasives and safety products. It also distributes fire protection systems and fire safety supplies. Both current President and CEO Bill Higley and his father, Hugh Higley Sr., are past presidents of the National Welding Supply Association, the leading trade association now known as Gases and Welding Distributors Association (GAWDA).

Airgas announced that Bill Higley has been named national manager - distributor channel, effective April 1, to support the Airgas regional companies in coordinating the services they provide to distributors and resellers. Higley will report to Airgas, Inc.'s Patrick M. Visintainer, senior vice president - sales, and will work closely with distributor managers in each region as they serve this important channel.

"All of us at Interstate are going to fit in well with the way Airgas runs its business locally and nationally," said Higley. "As we have grown, we have held fast to old-fashioned values, like integrity, mutual respect and teamwork - all values that Airgas shares. Joining Airgas will give us even more resources to meet the needs of our customers and our people."

Higley has served as president and CEO of Interstate since 2002 and has served in various management positions at Interstate since 1973. He earned a B.A. and M.A. in education from Western Michigan University and taught secondary school in Gladstone, MI for three years before joining Interstate.

"We believe we are entering a new period of industry consolidation, which will include more acquisition opportunities among solid regional independent distributors like Interstate," said Airgas Chairman and CEO Peter McCausland. "Airgas is well positioned financially and operationally to take advantage of these opportunities. We will continue to evaluate strategic acquisitions of all sizes where we can fill in gaps to give us a stronger platform to serve our customers." The acquisition is expected to be neutral to earnings in the first year.

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 nearly 800 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 telesales 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 Statement 

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: the Company's enhanced presence in Northern Wisconsin and Michigan's Upper Peninsula and its ability to better serve its customers; the Company's plans to operate the acquired locations within Airgas North Central and offer employment to most of the Interstate employees; the appointment of Bill Higley as national manager, distributor channel; the expectation that industry consolidation will provide additional acquisition candidates for the Company; and that the Company is well positioned to complete such acquisitions; the continued evaluation of acquisition opportunities; and the expectation that the Interstate acquisition will be neutral to earnings in the first year. 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 failure to consummate the acquisition of Interstate Welding; the success of the Company's integration of Interstate Welding; the Company's ability to attract and retain the former Interstate Welding employees; the Company's ability to identify, consummate and successfully integrate future acquisitions; an economic downturn; increased competition; customer acceptance of the Company's products; adverse changes in customer buying patterns; adverse changes in general economic conditions; and other factors described in the Company's reports, including Form 10-K dated March 31, 2003 and Forms 10-Q dated June 30, 2003,September 30, 2003 and December 31, 2003, filed by the Company with the Securities and Exchange Commission.