Exhibit 99.1

Stock Symbol: PH – NYSE

Parker Surpasses $10 Billion in Revenue in Another Record Year of Sales, Earnings and Cash Flow From Operating Activities

CLEVELAND, August 1, 2007 — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported record results for the year and the fourth quarter. These results mark the fourth year in a row Parker has reported records in sales, earnings and cash flow from operating activities.

For the 2007 fiscal year, the company surpassed $10 billion in sales for the first time in its 89 year history. Sales reached a record $10.7 billion, an increase of 14.2 percent from $9.4 billion in the previous year. Income from continuing operations increased 30 percent to $830.0 million compared to $638.3 million a year ago, and earnings per diluted share from continuing operations increased 32.8 percent to $7.01 compared to $5.28 a year ago. Cash flow from operating activities reached a record $955.0 million, or 8.9 percent of sales.

For the fourth quarter of fiscal 2007, sales increased 9.8 percent to $2.9 billion, compared to $2.6 billion in the same period last year. Fourth quarter income from continuing operations increased 15.6 percent to $217.2 million compared to $187.9 million a year ago, and fourth quarter earnings per diluted share from continuing operations increased 18.7 percent to $1.84 from $1.55 a year ago.

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“I want to thank our employees for their continued commitment to premier customer service, profitable growth and financial performance,” said Chairman, CEO and President Don Washkewicz. “These three pillars of Parker’s Win Strategy enabled us to deliver record quarterly and annual results for our shareholders.”

“In surpassing the $10 billion sales milestone, we continue to demonstrate our propensity to grow. Our compound annual growth rate over the last 35 years is in excess of 11 percent. This year, we grew by more than 14 percent, or more than three times GDP. This exceeded our Win Strategy goal to grow both organically and through disciplined acquisitions at a 10 percent compound annual rate. Of the 14 percent growth, 5 percent was organic, 6 percent was from strategic acquisitions, and the remainder was from the effects of foreign currency exchange rates. We’re especially pleased with gains we’ve made in our Industrial International segment, where revenues grew by 34 percent and operating income grew by 51 percent. Margins in this segment also reached an all time high and continue to approach those in our North American segment. Overall, our revenues and profits are more balanced regionally than ever before, which speaks to the growing demand around the world for our motion and control technologies. By executing our Win Strategy, we delivered record earnings per share in the quarter and for the year. Total shareholder return for the year was 28 percent, or 35 percent higher than the S&P 500, and our return on invested capital remains at the top quartile among our peers.”

“We also generated close to $1 billion in annual cash flow from operating activities, which allowed us to both maintain our strong balance sheet and use cash wisely to invest in our company. We continued to invest in strategic acquisitions this year, purchasing eleven companies that added nearly $260 million in annualized revenues. We spent $433 million to repurchase 5.4 million shares, and we made discretionary contributions of $161 million to our pension funds. In fiscal 2007, we increased dividends 13 percent, paying out approximately $121 million to shareholders, maintaining our dividend increase record that spans 51 years.”

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Segment Results

In the Industrial North America segment, fourth-quarter sales decreased 1.6 percent to $1.1 billion, and operating income decreased 0.4 percent from the prior year to $164.6 million. For the full year, Industrial North America sales increased 1.8 percent to $4.1 billion, and operating income increased 0.2 percent from the prior year to $598.4 million.

In the Industrial International segment, fourth-quarter sales increased 30.3 percent to $1.1 billion, and operating income increased 34.9 percent from the prior year to $143.4 million. For the full year, Industrial International sales increased 34.4 percent to $3.9 billion, and operating income increased 50.7 percent from the prior year to $533.1 million.

In the Aerospace segment, fourth-quarter sales increased 5.9 percent to $444.6 million, and operating income increased 4.5 percent from the prior year to $67.3 million. For the full year, Aerospace sales increased 12.0 percent to $1.7 billion, and operating income increased 22.1 percent from the prior year to $269.9 million.

In the Climate & Industrial Controls segment, fourth-quarter sales decreased 0.7 percent to $291.9 million, and operating income decreased 18.3 percent from the prior year to $25.3 million. For the full year, Climate & Industrial Controls sales increased 8.4 percent to $1.1 billion, and operating income decreased 1.1 percent from the prior year to $82.3 million.

Orders

In addition to financial results, Parker also reported an increase of 3 percent in total orders for the quarter ending June 30 compared to the same quarter a year ago. Parker reported the following orders by operating segment:

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Outlook

For fiscal year 2008, the company issued guidance for earnings from continuing operations in the range of $7.20 to $7.60 per diluted share.

“Our employees have embraced The Parker Win Strategy as a proven roadmap to operational success and profitable growth,” added Washkewicz. “We remain uniquely positioned to meet the needs of both the OEM and MRO segments of the many diversified global motion and control markets we serve. Going forward, we expect to continue providing solid, dependable performance.”

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 $10 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 43 countries around the world. Parker has increased its annual dividends paid to shareholders for 51 consecutive years, among the top five longest-running 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.

Notes on Orders

Orders provide near-term perspective on the company’s outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average

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computations. The Total Parker orders number is derived from a weighted average of the year-over-year quarterly percent change in orders for the Industrial North America, Industrial International, and Climate and Industrial Controls segments, and the year-over-year 12-month rolling average of orders in the Aerospace segment.

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, 2007

CONSOLIDATED STATEMENT OF INCOME

PARKER HANNIFIN CORPORATION - JUNE 30, 2007

CONSOLIDATED BALANCE SHEET