The reported net earnings per diluted share for the nine months ended December 31, 2002 were $0.69 versus a net loss of $0.28 for the prior year period, which included the cumulative effect of a change in accounting principle related to the accounting for goodwill.

Excluding the change in accounting and certain restructuring and divestiture charges, net earnings per diluted share for the nine months ended December 31, 2002, were $0.72 compared to the prior year's results of $0.57, on a pro forma basis. Free cash flow per diluted share for the nine-month period was $0.99 versus $0.82 in the prior year, driving debt reduction of $69 million. Year-to-date capital spending was $52 million versus $41 million last year. Fiscal 2003 capital spending includes $8 million for the construction of the liquid carbon dioxide and dry ice manufacturing plant in Hopewell, VA.

"Airgas delivered solid third quarter results reflecting outstanding execution in a weak economic environment," said Airgas Chairman and Chief Executive Officer Peter McCausland. "Our strategic initiatives focused on market share growth and operating cost management contributed to the performance. We also paid down $30 million of debt in the quarter, which reflects the company's tremendous free cash flow."

McCausland continued, "We expect our operating momentum to continue through our fourth quarter, bolstering performance in soft market conditions. Therefore, we estimate our fourth quarter earnings per diluted share to be in the range of $0.24 to $0.26. The outlook for fiscal 2004 remains cloudy, as some positive economic indicators are still shadowed by a very weak industrial economy. However, we believe that, barring further deterioration of the U.S. economy, our acquisition synergies and strategic initiatives will enable earnings per share growth of at least 10%."

While third quarter sales increased 11% to $435 million, total same-store sales declined 1% compared to the same quarter a year ago, reflecting continued weakness in manufacturing and other industrial customer segments. Same-store sales in the Distribution segment were down 1%, reflecting growth of 2% for gases and rent and a 5% decline in hardgoods. Same-store sales for the Gas Operations segment increased by 1%.

Free cash flow is defined as after-tax cash flow (net earnings, excluding certain gains and charges, plus depreciation, amortization and deferred income taxes), minus capital spending, plus/minus the change in working capital (adjusted for the impact of certain gains and charges), excluding the impact of the trade receivables securitization.

Airgas Inc. is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network of nearly 800 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.