Exhibit 99.1

Stock Symbol: PH – NYSE

Parker Reports Another Record Year of Sales, Earnings and Cash Flow from Operations; Double Digit Growth in Revenue and EPS

CLEVELAND, August 1, 2006 — Parker Hannifin Corporation (NYSE: PH) today reported record year end results in sales, earnings and cash flow from operations. The company delivered strong growth in revenues for the year and the quarter as annual sales topped $9 billion for the first time in Parker’s 88-year history. Earnings per diluted share for the year and the quarter also reached all time highs, while cash flow from operations reached a record $954.6 million, or 10.2 percent of sales, surpassing last year’s record of $853.5 million.

For the full year, revenue reached a record $9.4 billion, an increase of 16.3 percent over the previous year, with organic growth driving nearly half of the increase. Income from continuing operations increased 19.7 percent to $638.3 million, and earnings per diluted share from continuing operations increased to $5.28. Earnings per diluted share from continuing operations were $5.36 for the year before the impact of an 8 cents loss on the divestiture of the company’s Thermosplastics division in December 2005. In fiscal year 2005, the company had income from continuing operations of $533.2 million, or $4.43 per diluted share, on sales of $8.1 billion.

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The following table is a summary of earnings per diluted share for the fourth quarter and full year fiscal 2006. Within the table, fourth quarter fiscal 2006 includes an expense of 3 cents per diluted share, and total fiscal year 2006 includes an expense of 18 cents per diluted share, both associated with FAS 123R.

Fourth quarter sales increased 20.4 percent from the prior year, with almost half of the increase coming through organic growth. Sales in the fourth quarter reached $2.6 billion, compared to $2.2 billion in the same period last year. Fourth-quarter income from continuing operations increased 20.4 percent to $187.9 million and fourth quarter earnings per diluted share from continuing operations increased to $1.55. This compares to income from continuing operations of $156.1 million and earnings per diluted share from continuing operations of $1.30 in the same period last year.

“By continuing to execute Parker’s Win Strategy, our employees delivered another outstanding year of record results for our shareholders,” said Chairman and CEO Don Washkewicz. “We have demonstrated our ability to grow our business year after year after year. In 2006, the company grew by more than 16 percent, nearly half of which was organic. This is the 2nd year in a row in which we’ve achieved organic growth of more than 8 percent. All segments contributed strongly to this growth, reflecting continued demand around the world for our motion and control technologies. We continue to rank our return on invested capital (ROIC) near the top quartile among our peers. In addition, our ability to generate record levels of cash flow enabled us to continue investing in strategic acquisitions during the year. Our focused and disciplined use of our cash flow allowed us to add nearly $1.0 billion in annualized revenues through 13 acquisitions this year, furthering our reputation as the motion and control industry consolidator of choice.”

Segment Results

In the North American Industrial segment, fourth-quarter operating income improved 28.6 percent to $165.2 million on sales of $1.1 billion. For the full year, North American Industrial operating income was up 27.5 percent to $597.2 million on sales of $4.0 billion.

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In the International Industrial segment fourth-quarter operating income increased 39.8 percent to $106.3 million on sales of $831.2 million. For the full year, International Industrial operating income was up 32.4 percent to $353.8 million on sales of $2.9 billion.

In the Climate & Industrial Controls segment, fourth-quarter operating income increased 31.2 percent to $31.0 million on sales of $293.9 million. For the full year, Climate & Industrial Controls operating income was up 11.2 percent to $83.3 million on sales of $985.1 million.

In the Aerospace segment, fourth-quarter operating income increased 18.4 percent to $64.4 million on sales of $419.9 million. For the full year, Aerospace reported operating income up 11 percent to $221.0 million on sales of $1.5 billion.

Outlook

The company projects earnings from continuing operations for fiscal year 2007 to range from $5.80 to $6.30 per diluted share.

“Our proven mix of organic and acquisitive growth, our balance of OEM and MRO sales, and our past, present and future execution of the Parker Win Strategy lead us to project another year of strong sales and earnings in fiscal 2007,” added Washkewicz. “We will continue to use our strong cash flow to grow our business through both internal initiatives and strategic acquisitions. In addition, the diversity of the many markets we serve in the motion and control industry helps

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mitigate market risk, counter business cyclicality and create ever widening opportunities for profitable growth.”

“Going forward, we will continue to rely on the dedication of our talented employees, the expertise of our global distribution network, and the opportunities provided by our customers to deliver value to shareholders.”

In addition to the information provided herein, Parker advises shareholders to note order trends, for which the company makes a disclosure several business days after the conclusion of each month. This information is available on the company’s investor information web site, at http://www.phstock.com.

NOTICE OF CONFERENCE CALL: Parker Hannifin’s conference call and slide presentation to discuss its fiscal fourth-quarter results is available to all interested parties via live webcast today at 10:00 a.m. ET, on the company’s investor information web site, http://www.phstock.com. To access the call, click on the “Live Webcast” link. From this link, users also may complete a pre-call system test and register for e-mail notification of future events and information available from Parker.

With annual sales exceeding $9 billion, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets. The company employs more than 57,000 people in 46 countries around the world. Parker has increased its annual dividends paid to shareholders for 50 consecutive years, among the top five longest-running

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dividend-increase records in the S&P 500 index. For more information, visit the company’s web site at http://www.parker.com, or its investor information site at http://www.phstock.com.

Forward-Looking Statements:

Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. All statements regarding future performance, earnings projections, events or developments are forward-looking statements. It is possible that the future performance and earnings projections of the company and individual segments may differ materially from current expectations, depending on economic conditions within both its industrial and aerospace markets, and the company’s ability to achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, and growth and innovation initiatives. A change in economic conditions in individual markets may have a particularly volatile effect on segment results. Among the other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers or suppliers, including delays or cancellations in shipments; uncertainties surrounding timing, successful completion or integration of acquisitions; threats associated with and efforts to combat terrorism; competitive market conditions and resulting effects on sales and pricing; increases in raw-material costs that cannot be recovered in product pricing; the company’s ability to manage costs related to employee retirement and health care benefits and insurance; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation and interest rates. The company makes these statements as of the date of this disclosure, and undertakes no obligation to update them.

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PARKER HANNIFIN CORPORATION - JUNE 30, 2006

CONSOLIDATED STATEMENT OF INCOME

PARKER HANNIFIN CORPORATION - JUNE 30, 2006

CONSOLIDATED BALANCE SHEET