GOLDEN VALLEY, Minn.--(BUSINESS WIRE)--June 29, 2006--Pentair,
Inc. (NYSE:PNR) today announced that the jury in the commercial
damages portion of the Horizon litigation awarded a verdict last night
against its subsidiary, Essef Corporation (Essef). The jury awarded
the plaintiff in the case, Celebrity Cruise Lines, Inc. (Celebrity),
approximately $193 million exclusive of pre-judgment interest and
attorneys fees, the amount of which is subject to further decision and
final calculation by the court.
The Company stated that it believes the jury verdict in this case,
which began prior to Pentair's acquisition of Essef, is not consistent
with the law nor the evidence offered at trial. The Company also
stated it intends to make all appropriate post-trial motions,
especially those relating to damage causation and the claim for lost
enterprise value.
Pentair Chairman and Chief Executive Officer, Randall J. Hogan,
said: "We will pursue all available means to achieve reversal of this
jury verdict. Although very disappointing, we will not allow this
verdict to distract us from our current focus."
As previously disclosed, the case arises out of an outbreak of
Legionnaire's Disease on the Horizon cruise ship in 1994. Celebrity
sued Essef and certain of its subsidiaries prior to Pentair's
acquisition of Essef in August 1999. Celebrity alleged that it
sustained damages resulting from the outbreak, seeking attorney fees
and costs for prior litigation as well as out-of-pocket losses, lost
profits and loss of business enterprise value.
Pentair is currently assessing the impact of this matter to
determine what adjustments to previously established reserves may be
necessary. Accordingly, Pentair will update its guidance for 2006 in
its earnings release scheduled for July 25, 2006.
About Pentair, Inc.
Pentair (www.pentair.com) is a diversified operating company
headquartered in Minnesota. Its Water Group is a global leader in
providing innovative products and systems used worldwide in the
movement, treatment, storage and enjoyment of water. Pentair's
Enclosures Group is a leader in the global enclosures market,
designing and manufacturing standard, modified, and custom enclosures
that house and protect sensitive electronics and electrical
components. With 2005 revenues of $2.95 billion, Pentair employs
approximately 15,000 people worldwide.
Caution concerning forward-looking statements
Any statements made about the company's anticipated financial
results are forward-looking statements subject to risks and
uncertainties such as whether the Company's post-trial motions and
appeals will be successful, and the amount of any pre-judgment
interest and attorneys which may be awarded. Forward-looking
statements included herein are made as of the date hereof, and the
company undertakes no obligation to update publicly such statements to
reflect subsequent events or circumstances. Actual results could
differ materially from anticipated results.
CONTACT: Pentair, Inc., Golden Valley
Communications:
Rachael Jarosh, 763-656-5280
E-mail: rachael.jarosh@pentair.com
or
Investor Relations:
Mark Cain, 763-656-5278
E-mail: mark.cain@pentair.com
SOURCE: Pentair, Inc.