Al Rushaid/Flowserve Joint Venture to Build Middle East's Largest Pump Repair-Manufacture-Test-Training Facility in Saudi Arabia.

DALLAS -- Al Rushaid Group (Dhahran, Kingdom of Saudi Arabia) and Flowserve Corp. (NYSE:FLS) ratified an agreement today to build the largest original equipment manufacture (OEM) pump repair, manufacturing and training facility in the Middle East. Construction of the 20,500 square meters (220,660 square feet) complex to be located at the Al Rushaid Oil Field Center in Dhahran, Saudi Arabia, will commence in July 2006. It is expected to be fully operational in October 2007.

The Al Rushaid/Flowserve pump facility will be comprised of two units: a 17,500 square meters (188,370 square feet) pump repair, manufacturing and test facility (Quick Response Center) and a 3,000 square meters (32,290 square feet) hydraulics training center. Total cost of this joint project will be approximately U.S. $14 million. It will employ more than 100 people and be fully compliant with Saudisation requirements promulgated by the Kingdom of Saudi Arabia.

Designed specifically to support Aramco, Sabic, SEC, SWCC and other major industries within Saudi Arabia and the surrounding Arabian Gulf Countries, the Al Rushaid/Flowserve complex will have the capability to address the service and repair needs of all pump products regardless of original manufacture. Among its capabilities will be pump manufacturing, pump set packaging, parts manufacturing, a full range of pump improvement engineering and engineered services. Field service along with installation and commissioning will also be provided.

A key component of the facility will be the region's largest, most capable hydraulics test bed. Certified testing to API and international standards will be available for both horizontal and vertical pumps (including high pressure applications) to more than 5,965 kW (8,000 hp). This will cover approximately 90 percent of the region's installed base. The test bed will allow end users to verify equipment performance or diagnose and correct problems. Upgrades to existing pumps can also be recommended to improve efficiency and reliability.

Another unique feature of the Al Rushaid/Flowserve development will be the Middle East's first hydraulics training center. This 3,000 square meters (32,290 square feet) unit will have state-of-the-art classrooms along with static and dynamic laboratories. Courses of study will be comprehensive, covering basic hydraulics theory through advanced maintenance and repair and technical services. The training center is being fully funded by the Al Rushaid Group and will be a duplicate of the Flowserve Learning Center located in Dallas, Texas, USA.

Sheikh Abdullah Al Rushaid, Chairman, Al Rushaid Group, stated, "This joint venture will bring both extraordinary capabilities and benefits to our customers in the petroleum-related industries, the chemical processing and power generation sectors. To have this extent of pump service/repair, testing and training is truly an essential component in the growth of our most important industries." Sheikh Al Rushaid added that technical training for the Saudi youth is a social and national obligation to which Al Rushaid Group is committed.

Lewis Kling, President and Chief Executive Officer, Flowserve Corporation, explained that, "This new complex provides us with a solid foundation to serve and support our customers in the Middle East. We strongly feel this facility will enable customers to more sharply focus on their core production activities while outsourcing pump maintenance. The Arabian Gulf Region is a critically important geographical market for Flowserve as evidenced by this commitment and we are most pleased to partner with Al Rushaid Group to make this a reality."

The Al Rushaid Group of Companies is an international organization which offers and provides a diverse range of engineering and contracting services, facilities, and products, including but not limited to oil and gas, petrochemical, chemical processing and power generation industries. These services include design, engineering, construction and procurement as well as project management and maintenance for entire plant operations, storage tanks, and high quality prestigious buildings and environment services, development of ports and terminals. It is ranked ninth among the top 100 Saudi companies. More information about the Al Rushaid Group of Companies can be obtained by visiting the company's website at www.al-rushaid.com.

Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves, as well as a range of related flow management services. More information about Flowserve Corp. can be obtained by visiting the company's website at www.flowserve.com.

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