Exhibit 99.1

Stock Symbol: PH – NYSE

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

CLEVELAND, January 17, 2008 — Parker Hannifin (NYSE: PH), the world leader in motion and control technologies, today reported record second quarter sales, net income, earnings per diluted share and cash flow from operations.

For the second quarter of fiscal year 2008, which ended on December 31, 2007, sales were $2.8 billion, an increase of 12.7 percent from $2.5 billion in the same quarter a year ago. Net income increased 9.8 percent to $211.9 million from $193.0 million in the same quarter a year ago. Earnings per diluted share increased 12.8 percent to $1.23 as compared to $1.09 in the same quarter a year ago. Cash flow from operations was $473.6 million, or 8.4 percent of sales.

“Our company continues to perform very well within a challenging economic environment in North America. We attribute this to a number of factors, and chief among them is that we are consistently executing on the goals established within our Win Strategy,” said Chairman, CEO and President Don Washkewicz. “Specifically, providing premier customer service is our primary goal, and our measures of customer service continue to demonstrate that we have the capability to ship quality products on time to customers all over the world. In addition, helping us to temper the softness in some industrial OEM markets is our global distribution network, with thousands of locations built over decades, which continues to

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be strong. The distribution channel, which accounts for nearly one-half of our industrial sales, provides Parker access to higher margin and less cyclical aftermarket sales.”

“It is also clear that our effort to globalize our company is paying dividends,” Washkewicz continued. “We are in a better position to maintain consistent profitable growth despite the strengths and weaknesses of key regions. Of our 12.7 percent sales growth this quarter, 4.9 percent was organic, 2.9 percent was the result of strategic acquisitions, and the remainder was from the effects of foreign currency exchange rates. We are especially pleased with our level of organic growth. Our focus on customer service, along with our capabilities to help customers improve the profitability of their business through the use of our technologies and systems, are leading to new and growing opportunities for Parker.”

“Acquisitions remain an important part of our Win Strategy,” continued Washkewicz. “Our strong cash flow allows us the opportunity to selectively add to our portfolio those technologies that have high growth profiles. We made four strategic acquisitions this quarter, adding approximately $223 million in sales. These acquisitions included electrical and production umbilical cables for subsea oil and gas installations; further expansion of our aerospace components and equipment capabilities; precision electro-pneumatic control systems; and temperature sensing protection equipment.”

“Also notable is that our Industrial International segment again delivered particularly strong results in the quarter, as revenues and operating income in that segment grew by approximately 27.7 percent and 43.9 percent, respectively,” added Washkewicz.

Segment Results

In spite of a soft overall economy in the Industrial North America segment, second-quarter sales increased 3.3 percent to $991.4 million, and operating income increased 5.8 percent to $141.7 million, as compared to the same period a year ago.

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In the Industrial International segment, second-quarter sales increased 27.7 percent to $1.2 billion, and operating income increased 43.9 percent to $175.2 million, as compared to the same period a year ago.

In the Aerospace segment, second-quarter sales increased 7.1 percent to $430.7 million, and operating income decreased 23.4 percent to $51.9 million, as compared to the same period a year ago. Near-term research and development expenses continue to impact this segment.

In the Climate & Industrial Controls segment, second-quarter sales increased 0.8 percent to $229.2 million, and operating income decreased 22.1 percent to $5.4 million, as compared to the same period a year ago. This segment continues to be impacted by the ongoing weakness in the automotive, residential construction, and heavy duty truck markets.

Orders

In addition to financial results, Parker also reported an increase of 10 percent in total orders, before the effect of foreign currency and acquisitions, for the quarter ending December 31 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 to the range of $5.15 to $5.40 per diluted share. Previous guidance for earnings was $5.05 to $5.35 per diluted share.

“Fiscal 2008 continues to be strong overall,” added Washkewicz. “Based on what we can see in our markets

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going forward, we have raised our earnings guidance. Total order growth rate this quarter reached double digits. Our orders remain strong across most segments, and are growing in Europe, Asia, Latin America and North America. In general, many of our key markets continue to grow, including aerospace. For those markets that are flat, they have been performing at this level for some time, which also positions us to benefit when they return to more normal growth levels.”

“This quarter, we hosted our shareholders and analysts for a full day of reviewing the future opportunities Parker has from the development of new, innovative products that fulfill the unmet needs of our customers,” continued Washkewicz. “We have a host of dynamic new products and systems platforms that we have recently taken to market, and many others that are near commercial launch. This will help drive the growth of our company for years to come, and we are increasingly excited by the growth potential we see for Parker’s future.”

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

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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 - DECEMBER 31, 2007

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

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PARKER HANNIFIN CORPORATION - DECEMBER 31, 2007

CONSOLIDATED BALANCE SHEET

(Unaudited)

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