Irving, TX, U.S.A., Oct 03, 2011 (Thomson Reuters ONE via COMTEX) --

DALLAS, October 3, 2011 - Flowserve Corp. (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced that it has entered into settlement agreements with both the Commerce Department's Bureau of Industry and Security (BIS) and the Treasury Department's Office of Foreign Assets Control (OFAC) regarding the company's previously reported voluntary disclosures under U.S. export control and economic sanctions laws and regulations. Under the settlement, the company has agreed to pay a combined civil penalty of approximately $3.0 million to these federal agencies and has also agreed to conduct a one-time, post-settlement compliance audit of certain company sites. The full amount of the civil penalty and the cost of the audit have previously been accrued in the company's financial statements.

The settlements come as a result of a voluntary systematic process performed by the company to determine its compliance with respect to U.S. export control and economic sanctions laws and regulations, which has been discussed in the company's prior public filings. The process, which was initiated in March 2006, included the onsite review of approximately 40 sites globally and addressed the period of October 1, 2002, through October 1, 2007. The company completed its comprehensive disclosures to BIS and OFAC at the end of 2008. Since that time, the company has worked closely with the authorities to supplement and clarify specific aspects of the disclosures and has taken a number of actions designed to ensure the effectiveness of its global export compliance program.

"Flowserve is committed to the highest standards of conduct in all business that we do around the world," said Mark Blinn, Flowserve president and chief executive officer. "I am proud of the continuing efforts of our outstanding global trade compliance organization in proactively bringing these issues to the forefront and working cooperatively with regulators to bring this matter to a close."

Further background information about this matter is available in the company's previously filed Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which can be obtained through the "Investor Relations" section of the company's website at www.flowserve.com.

Investor Contact: Mike Mullin, director, investor relations, (972) 443-6636

About Flowserve: Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company's website at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in the global financial markets and the availability of capital and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers' ability to make required capital investment and maintenance expenditures; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; our ability to execute and realize the expected financial benefits from our strategic realignment initiatives; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, particularly Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela; our furnishing of products and services to nuclear power plant facilities; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; a foreign government investigation regarding our participation in the United Nations Oil-for-Food Program; expectations regarding acquisitions and the integration of acquired businesses; our foreign subsidiaries autonomously conducting limited business operations and sales in certain countries identified by the U.S. State Department as state sponsors of terrorism; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

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Source: Flowserve Corporation via Thomson Reuters ONE

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