Exhibit 99.1

Stock Symbol: PH – NYSE

Parker Reports Record First Quarter Sales, Net Income, Earnings Per Diluted Share and Cash Flow from Operations

CLEVELAND, October 18, 2007 — Parker Hannifin (NYSE: PH), the world leader in motion and control technologies, today reported record first quarter sales, net income, earnings per diluted share and cash flow from operations.

For the first quarter of fiscal year 2008, sales were $2.8 billion, an increase of 9.2 percent from $2.6 billion in the same quarter a year ago. Net income increased 9.0 percent to $229.6 million from $210.6 million in the same quarter a year ago. Taking into account the effect of the 3-shares-for-2 stock split completed on October 1, 2007, earnings per diluted share increased 13.7 percent to $1.33 as compared to $1.17 in the same quarter a year ago. Cash flow from operations was $268.9 million, or 9.6 percent of sales.

“Having eclipsed the $10 billion mark in annual sales last year, our employees are continuing to drive Parker forward,” said Chairman, CEO and President Don Washkewicz. “Our record performance in the first quarter of fiscal year 2008 is the result of our entire team remaining focused on Parker’s Win Strategy.”

“Because of the growing global demand for Parker technologies, our business continues to expand at a healthy rate and in a balanced way,” Washkewicz continued. “Of our total 9.2 percent sales growth this quarter, 3.3 percent was organic, 2.4 percent was the result of strategic acquisitions, and the remainder was

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from the effects of foreign currency exchange rates. Once again, our Industrial International segment delivered particularly strong results as revenues and operating income grew by approximately 25 percent and 44 percent, respectively. The Industrial International segment’s operating margin reached an all-time high of 16.7 percent, which also pushed the combined margin of the Industrial North America and International segments to a record high of 16.1 percent. It is clear that the globalization of our business over the past decade is now helping to put us in a better position to maintain consistent performance through the ups and downs of regional business cycles.”

“Our shareholders received additional good news recently as our Board authorized a $500 million accelerated share repurchase plan which resulted in the repurchase of approximately 6.5 million shares in the quarter. The accelerated repurchase activity will be concluded in the second quarter this fiscal year. The Board also authorized a 21.2 percent increase in our quarterly cash dividend, and a 3-shares-for-2 stock split,” added Washkewicz. “In addition, we used our record cash flows to reinvest in the company, making two strategic acquisitions during the quarter in our sealing and fluid and gas handling businesses.”

Segment Results

In the Industrial North America segment, first-quarter sales increased 0.5 percent to $1.0 billion, and operating income increased 1.3 percent to $155.2 million, as compared to the same period a year ago.

In the Industrial International segment, first-quarter sales increased 25.4 percent to $1.1 billion, and operating income increased 43.8 percent to $183.4 million, as compared to the same period a year ago.

In the Aerospace segment, first-quarter sales increased 6.2 percent to $427.3 million, and operating income decreased 16.3 percent to $57.4 million, as compared to the same period a year ago.

In the Climate & Industrial Controls segment, first-quarter sales decreased 6.5 percent to $253.3 million, and operating income decreased 49.7 percent to $15.5 million, as compared to the same period a year ago.

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Orders

In addition to financial results, Parker also reported an increase of 7 percent in total orders for the quarter ending September 30 compared to the same quarter a year ago. Parker reported the following orders by operating segment:

Outlook

For fiscal year 2008, the company increased its guidance for earnings, on a post stock split basis, to the range of $5.05 to $5.35 per diluted share. Previous guidance for earnings was $4.80 to $5.07 per diluted share on a post stock split basis, or $7.20 to $7.60 per diluted share on a pre stock split basis.

“We have had a strong start to our 2008 fiscal year,” added Washkewicz. “Going forward, we will continue to remain focused on serving our customers, achieving our financial goals, and profitably growing our business.”

NOTICE OF CONFERENCE CALL: Parker Hannifin’s conference call and slide presentation to discuss its fiscal first-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

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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 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 maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, and growth, innovation and global diversification 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 or significant changes in financial condition; 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, interest rates and credit availability. 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 - SEPTEMBER 30, 2007

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

BUSINESS SEGMENT INFORMATION BY INDUSTRY

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CONSOLIDATED BALANCE SHEET

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CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)