QUINCY, Ill., July 23 /PRNewswire/ -- Ross Centanni, President and CEO of
Gardner Denver Machinery Inc. (Nasdaq: GDMI) announced today that the Company
reported a $3.1 million (85%) increase in net income for the three months
ended June 30, 1997, compared to the same period of 1996.  Net income for the
six month period ended June 30, 1997, increased $4.6 million (61%), compared
to the same period of 1996.
    For the three months ended June 30, 1997, revenues increased $20.5 million
(42%) to $69.4 million, compared to $48.9 million in the same period of 1996.
Approximately $13.6 million of this increase is attributable to the
acquisitions of NORAMPTCO, Inc. and TCM Investments, Inc., which the Company
completed in August 1996.  Excluding acquisitions, revenues in the second
quarter of 1997 increased approximately $7.0 million (14%) over the same
period in 1996.
    Revenues for the Compressed Air Products segment increased 28% to
$54.2 million in the second quarter of 1997 from $42.3 million in the same
period of 1996.  The acquisition of NORAMPTCO contributed $8.7 million
of this increase.  Excluding the acquisition, compressor product revenues
increased $3.2 million (8%) due to increased shipments of specially-engineered
compressor packages.  Petroleum products segment revenues were $15.2 million
for the three months ended June 30, 1997, an increase of $8.6 million (130%)
over the same period of 1996.  The acquisition of TCM contributed $4.8 million
to petroleum products revenues in the second quarter of 1997.  Excluding the
acquisition, petroleum products revenues increased approximately 58% from
$6.6 million for the comparable period of 1996, as a result of the increase in
drilling activity.
    Compared to the first quarter of 1997, the Company's revenues increased
$3.3 million (5%) in the three month period ending June 30, 1997.  Petroleum
products segment revenues increased $1.5 million (11%) in the second quarter
of 1997, compared to the first quarter of 1997, due to continued growth in oil
and gas drilling activity.  Compressor products revenues increased
$1.8 million (3%) due to stronger shipments of specially-engineered compressor
packages.
    Revenues increased $38.0 million (39%) to $135.5 million for the six
months ended June 30, 1997, compared to the same period in 1996.  Revenues
from NORAMPTCO and TCM contributed $28.0 million of this increase.  Excluding
the acquisitions, revenues increased $10.0 million (10%) over the same period
in 1996.
    For the six months ended June 30, 1997, compressor products segment
revenues increased $21 million (25%) to $106.6 million, compared to the same
period in 1996.  Excluding the acquisition, which contributed $19.2 million,
revenues increased $1.8 million (2%).  Petroleum products segment revenues
increased $17.0 million (143%) in the six months ended June 30, 1997,
compared to the same period in 1996.  TCM contributed $8.8 million of this
increase.  Excluding the acquisition, revenues in the petroleum products
segment increased $8.2 million (69%) in the six months ended June 30, 1997,
compared to the same period in 1996, primarily as a result of increased
drilling activity.
    Income before income taxes improved $5.1 million (83%) for the three
months ended June 30, 1997, compared to the same period of 1996.
Approximately $1.8 million of this increase is attributable to the
acquisitions, net of interest expense on debt incurred to complete the
acquisitions.  The remaining $3.3 million (54%) increase is primarily a result
of incremental revenue volume, improved gross margin and lower interest
expense (excluding debt related to the acquisitions) in 1997 compared to the
previous year.
    For the six months ended June 30, 1997, income before income taxes
increased $7.7 million (61%), compared to the same period of 1996.
Approximately $3.5 million of this increase is attributable to NORAMPTCO and
TCM.  The remaining $4.2 million (33%)  increase is primarily a result of the
incremental revenue volume and improved gross margin.
    Net income was $6.8 million ($0.65 per share) for the three months ended
June 30, 1997, a $3.1 million increase compared to net income of $3.7 million
($0.36 per share) for the same period in 1996.  In the second quarter of 1997,
net income included approximately $1.1 million after tax ($0.11 per share)
from acquisitions.
    For the six months ended June 30, 1997, net income increased $4.6 million
(61%) to $12.1 million ($1.16 per share), compared to the same period in 1996.
Acquisitions provided $2.1 million ($0.20 per share) of the net income
increase in the six month period of 1997.
    On June 30, 1997, the Company announced its acquisition of Oy Tamrotor Ab,
a manufacturer of lubricated screw compressors, located in Tampere, Finland.
Revenues for Tamrotor for the first six months of 1997 were approximately
$16 million.  Mr. Centanni stated that this most recent acquisition will
provide the Company with a state-of-the-art manufacturing facility in Europe
and market penetration in several European compressor markets.  He indicated
that he does not anticipate the acquisition to be dilutive to the Company's
earnings in 1997.
    Gardner Denver, with 1996 revenues of $218 million, is a leading
manufacturer of air compressor and blower products for various industrial
applications and pumps used in oil and gas production and well servicing,
drilling and stimulation.
    Comparisons of the financial results for the three and six month periods
ended June 30, 1997 and June 30, 1996 appear on the following pages.  Gardner
Denver's news releases are available by fax, at no charge, by calling
800-758-5804, extension 303875

                                               (Unaudited)
                                          Three Months Ended
    Gardner Denver Machinery Inc.               June 30,
                                                                 %
                                          1997      1996      Change
                                    (in thousands, except per share data)
    Revenues                             $69,447    $48,914    42%

    Costs and Expenses:
        Cost of sales                     45,743     33,976    35
        Depreciation and amortization      2,190      1,911    15

        Selling and administration         9,292      6,376    46

        Interest expense                     936        500    87

    Income before income taxes            11,286      6,151    83
    Provision for income taxes             4,473      2,460    82

    Net income                            $6,813     $3,691    85

    Earnings per share                     $0.65      $0.36    81


                                                   (Unaudited)
                                                  Six Months Ended
    Gardner Denver Machinery Inc.                    June 30,
                                                                %
                                             1997     1996    Change
                                    (in thousands, except per share data)
    Revenues                               $135,522  $97,483    39%
    Costs and Expenses:
    Cost of sales                            90,196   67,532    34
    Depreciation and amortization             4,450    3,798    17

    Selling and administration               18,653   12,473    50

    Interest expense                          1,913    1,094    75

    Income before income taxes               20,310   12,586    61
    Provision for income taxes                8,173    5,034    62

    Net income                              $12,137   $7,552     61

    Earnings per share                        $1.16    $0.75     55

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