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|                                                        |        |                                                        |
|--------------------------------------------------------|--------|--------------------------------------------------------|
| RBS GLOBAL, INC.                                       |   | REXNORD LLC                                            |
| (Exact Name of Registrant as Specified in Its Charter) |   | (Exact Name of Registrant as Specified in Its Charter) |

|                                                               |        |                                                               |
|---------------------------------------------------------------|--------|---------------------------------------------------------------|
| Delaware                                                      |   | Delaware                                                      |
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (State or Other Jurisdiction ofIncorporation or Organization) |
| (Commission File Numbers)                                     |   | (Commission File Numbers)                                     |
| 333-102428-08                                                 |   | 033-25967-01                                                  |
| 01-0752045                                                    |   | 04-3722228                                                    |
| (I.R.S. EmployerIdentification No.)                           |   | (I.R.S. EmployerIdentification No.)                           |
|                                                          |   |                                                          |
| 4701 Greenfield Avenue, Milwaukee, Wisconsin                  |   | 53214                                                         |
| (Address of Principal Executive Offices)                      |   | (Zip Code)                                                    |

|                                   |        |                                     |        |
|-----------------------------------|--------|-------------------------------------|--------|
| Large accelerated filer | o      | Accelerated filer              | o      |
|                              |   |                                |   |
| Non-accelerated filer             | x      | Smaller reporting company | o      |

|                                                          |        |                                |
|----------------------------------------------------------|--------|--------------------------------|
| Class                                                    |   | Outstanding at January 1, 2011 |
| RBS Global, Inc. Common Stock, $0.01 par value per share |   | 1,000 shares                   |

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|                                   |                                                                                       |        |
|-----------------------------------|---------------------------------------------------------------------------------------|--------|
|                              |                                                                                  |   |
|                              |                                                                                  |
| Part I FINANCIAL INFORMATION |                                                                                  |
|                              |                                                                                  |   |
| Item 1.                      | Financial Statements                                                                  | 4      |
|                              |                                                                                  |   |
| Item 2.                      | Management's Discussion and Analysis of Financial Condition and Results of Operations | 35     |
|                              |                                                                                  |   |
| Item 3.                      | Quantitative and Qualitative Disclosures About Market Risk                            | 50     |
|                              |                                                                                  |   |
| Item 4T.                     | Controls and Procedures                                                               | 51     |
|                              |                                                                                  |
| Part II OTHER INFORMATION         |                                                                                  |
|                              |                                                                                  |   |
| Item 1.                      | Legal Proceedings                                                                     | 52     |
|                              |                                                                                  |   |
| Item 1A.                     | Risk Factors                                                                          | 52     |
|                              |                                                                                  |   |
| Item 6.                      | Exhibits                                                                              | 52     |
|                              |                                                                                  |
| Signatures                        | 53                                                                                    |
|                              |                                                                                  |
| Exhibit Index                     | 54                                                                                    |

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|                                                                                                |        |                      |         |                     |         |        |         |        |
|------------------------------------------------------------------------------------------------|--------|----------------------|---------|---------------------|---------|--------|---------|--------|
|                                                                                           |   | January 1, 2011 |    | March 31, 2010 |
| Assets                                                                                         |   |                 |    |                |
| Current assets:                                                                                |   |                 |    |                |
| Cash and cash equivalents                                                                      |   | $                    | 317.9   |                |    | $      | 263.2   |   |
| Receivables, net                                                                               |   | 240.2                |    |                | 234.1   |   |
| Inventories, net                                                                               |   | 294.9                |    |                | 273.8   |   |
| Other current assets                                                                           |   | 36.0                 |    |                | 29.4    |   |
| Total current assets                                                                           |   | 889.0                |    |                | 800.5   |   |
| Property, plant and equipment, net                                                             |   | 352.4                |    |                | 376.2   |   |
| Intangible assets, net                                                                         |   | 656.7                |    |                | 688.5   |   |
| Goodwill                                                                                       |   | 1,015.9              |    |                | 1,012.2 |   |
| Insurance for asbestos claims                                                                  |   | 86.0                 |    |                | 86.0    |   |
| Other assets                                                                                   |   | 31.0                 |    |                | 51.8    |   |
| Total assets                                                                                   |   | $                    | 3,031.0 |                |    | $      | 3,015.2 |   |
| Liabilities and stockholders' (deficit) equity                                                 |   |                 |    |                |
| Current liabilities:                                                                           |   |                 |    |                |
| Current portion of long-term debt                                                              |   | $                    | 11.6    |                |    | $      | 5.3     |   |
| Trade payables                                                                                 |   | 139.4                |    |                | 135.3   |   |
| Compensation and benefits                                                                      |   | 56.1                 |    |                | 58.7    |   |
| Current portion of pension and postretirement benefit obligations                              |   | 6.1                  |    |                | 6.1     |   |
| Interest payable                                                                               |   | 37.0                 |    |                | 30.2    |   |
| Other current liabilities                                                                      |   | 86.5                 |    |                | 80.3    |   |
| Total current liabilities                                                                      |   | 336.7                |    |                | 315.9   |   |
|                                                                                           |   |                 |    |                |
| Long-term debt                                                                                 |   | 2,210.5              |    |                | 2,123.9 |   |
| Pension and postretirement benefit obligations                                                 |   | 125.5                |    |                | 137.5   |   |
| Deferred income taxes                                                                          |   | 247.7                |    |                | 249.9   |   |
| Reserve for asbestos claims                                                                    |   | 86.0                 |    |                | 86.0    |   |
| Other liabilities                                                                              |   | 48.3                 |    |                | 47.8    |   |
| Total liabilities                                                                              |   | 3,054.7              |    |                | 2,961.0 |   |
|                                                                                           |   |                 |    |                |
| Stockholders' (deficit) equity:                                                                |   |                 |    |                |
| Common stock, $0.01 par value; 3,000 shares authorized and 1,000 shares issued and outstanding |   | 0.1                  |    |                | 0.1     |   |
| Additional paid-in capital                                                                     |   | 535.6                |    |                | 533.6   |   |
| Retained deficit                                                                               |   | (467.9               | )       |                | (379.8  | )      |
| Accumulated other comprehensive loss                                                           |   | (91.5                | )       |                | (99.7   | )      |
| Total stockholders' (deficit) equity                                                           |   | (23.7                | )       |                | 54.2    |   |
| Total liabilities and stockholders' (deficit) equity                                           |   | $                    | 3,031.0 |                |    | $      | 3,015.2 |   |

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|                                              |        |                      |        |                        |         |                      |        |                        |        |        |         |        |        |   |         |        |
|----------------------------------------------|--------|----------------------|--------|------------------------|---------|----------------------|--------|------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                         |   | Third Quarter Ended  |   | Nine Months Ended      |
|                                         |   | January 1, 2011 |   | December 26, 2009 |    | January 1, 2011 |   | December 26, 2009 |
| Net sales                                    |   | $                    | 419.8  |                   |    | $                    | 365.7  |                   |   | $      | 1,239.4 |   |   | $ | 1,103.3 |   |
| Cost of sales                                |   | 275.8                |   |                   | 241.6   |                 |   | 809.2                  |   |   | 739.9   |   |
| Gross profit                                 |   | 144.0                |   |                   | 124.1   |                 |   | 430.2                  |   |   | 363.4   |   |
| Selling, general and administrative expenses |   | 81.2                 |   |                   | 72.6    |                 |   | 241.0                  |   |   | 222.4   |   |
| Restructuring and other similar charges      |   | —              |   |                   | 1.1     |                 |   | —                |   |   | 4.3     |   |
| Amortization of intangible assets            |   | 12.4                 |   |                   | 13.3    |                 |   | 36.4                   |   |   | 37.4    |   |
| Income from operations                       |   | 50.4                 |   |                   | 37.1    |                 |   | 152.8                  |   |   | 99.3    |   |
| Non-operating expense:                       |   |                 |   |                   |    |                 |   |                   |
| Interest expense, net                        |   | (42.7                | )      |                   | (45.3   | )                    |   | (131.3                 | )      |   | (136.4  | )      |
| Loss on the extinguishment of debt           |   | —              |   |                   | — |                 |   | (100.8                 | )      |   | — |   |
| Other expense, net                           |   | (4.7                 | )      |                   | (8.4    | )                    |   | (2.8                   | )      |   | (1.3    | )      |
| Income (loss) before income taxes            |   | 3.0                  |   |                   | (16.6   | )                    |   | (82.1                  | )      |   | (38.4   | )      |
| (Benefit) provision for income taxes         |   | (1.4                 | )      |                   | (19.4   | )                    |   | 6.0                    |   |   | (21.7   | )      |
| Net income (loss)                            |   | $                    | 4.4    |                   |    | $                    | 2.8    |                   |   | $      | (88.1   | )      |   | $ | (16.7   | )      |

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|                                                                             |        |                      |        |                        |         |        |       |        |
|-----------------------------------------------------------------------------|--------|----------------------|--------|------------------------|---------|--------|-------|--------|
|                                                                        |   | Nine Months Ended    |
|                                                                        |   | January 1, 2011 |   | December 26, 2009 |
| Operating activities                                                        |   |                 |   |                   |
| Net loss                                                                    |   | $                    | (88.1  | )                      |    | $      | (16.7 | )      |
| Adjustments to reconcile net loss to cash provided by operating activities: |   |                 |   |                   |
| Depreciation                                                                |   | 43.2                 |   |                   | 44.2    |   |
| Amortization of intangible assets                                           |   | 36.4                 |   |                   | 37.4    |   |
| Amortization of deferred financing costs                                    |   | 5.8                  |   |                   | 8.3     |   |
| Loss on dispositions of property, plant and equipment                       |   | 1.4                  |   |                   | 0.6     |   |
| Equity in earnings of unconsolidated affiliates                             |   | (4.1                 | )      |                   | (0.3    | )      |
| Other non-cash charges (credits)                                            |   | 1.1                  |   |                   | (10.9   | )      |
| Loss on debt extinguishment                                                 |   | 100.8                |   |                   | — |   |
| Stock-based compensation expense                                            |   | 4.1                  |   |                   | 4.1     |   |
| Changes in operating assets and liabilities:                                |   |                 |   |                   |
| Receivables                                                                 |   | (3.9                 | )      |                   | 41.8    |   |
| Inventories                                                                 |   | (16.4                | )      |                   | 57.6    |   |
| Other assets                                                                |   | (2.8                 | )      |                   | 7.0     |   |
| Accounts payable                                                            |   | 3.3                  |   |                   | (24.6   | )      |
| Accruals and other                                                          |   | (4.3                 | )      |                   | (7.9    | )      |
| Cash provided by operating activities                                       |   | 76.5                 |   |                   | 140.6   |   |
|                                                                        |   |                 |   |                   |
| Investing activities                                                        |   |                 |   |                   |
| Expenditures for property, plant and equipment                              |   | (19.7                | )      |                   | (13.6   | )      |
| Proceeds from sale of unconsolidated affiliate                              |   | 0.9                  |   |                   | — |   |
| Acquisitions, net of cash                                                   |   | 1.2                  |   |                   | — |   |
| Cash used for investing activities                                          |   | (17.6                | )      |                   | (13.6   | )      |
|                                                                        |   |                 |   |                   |
| Financing activities                                                        |   |                 |   |                   |
| Proceeds from borrowings of long-term debt                                  |   | 1,145.0              |   |                   | — |   |
| Repayments of long-term debt                                                |   | (1,070.4             | )      |                   | (115.1  | )      |
| Proceeds from borrowings of short-term debt                                 |   | 1.6                  |   |                   | — |   |
| Repayments of short-term debt                                               |   | (1.8                 | )      |                   | (1.1    | )      |
| Payment of deferred financing fees                                          |   | (14.6                | )      |                   | (4.9    | )      |
| Payment of tender premium                                                   |   | (63.5                | )      |                   | — |   |
| Dividend payment to parent company                                          |   | (2.4                 | )      |                   | (30.0   | )      |
| Excess tax benefit on exercise of stock options                             |   | 0.5                  |   |                   | — |   |
| Cash used for financing activities                                          |   | (5.6                 | )      |                   | (151.1  | )      |
| Effect of exchange rate changes on cash and cash equivalents                |   | 1.4                  |   |                   | 4.8     |   |
| Increase (decrease) in cash and cash equivalents                            |   | 54.7                 |   |                   | (19.3   | )      |
| Cash and cash equivalents at beginning of period                            |   | 263.2                |   |                   | 277.5   |   |
| Cash and cash equivalents at end of period                                  |   | $                    | 317.9  |                   |    | $      | 258.2 |   |

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|                                             |        |                                                                               |        |                  |        |           |        |              |        |        |     |        |        |   |      |        |
|---------------------------------------------|--------|-------------------------------------------------------------------------------|--------|------------------|--------|-----------|--------|--------------|--------|--------|-----|--------|--------|---|------|--------|
|                                        |   | Restructuring Costs To-date(Period from September 28, 2008 to March 31, 2010) |
|                                        |   | Process & Motion Control                                                  |   | Water Management |   | Corporate |   | Consolidated |
| Severance costs                             |   | $                                                                             | 19.7   |             |   | $         | 2.5    |         |   | $      | 0.2 |   |   | $ | 22.4 |   |
| Fixed asset impairments                     |   | —                                                                       |   |             | 3.2    |      |   | —      |   |   | 3.2 |   |
| Inventory impairments                       |   | 0.4                                                                           |   |             | 2.5    |      |   | —      |   |   | 2.9 |   |
| Lease termination and other costs           |   | 2.7                                                                           |   |             | 0.1    |      |   | —      |   |   | 2.8 |   |
| Total restructuring and other similar costs |   | $                                                                             | 22.8   |             |   | $         | 8.3    |         |   | $      | 0.2 |   |   | $ | 31.3 |   |

|                                                         |        |                       |         |                                   |         |        |        |        |        |   |     |        |
|---------------------------------------------------------|--------|-----------------------|---------|-----------------------------------|---------|--------|--------|--------|--------|---|-----|--------|
|                                                    |   |  Severance Costs |    | Lease Termination and Other Costs |    | Total  |
| Restructuring reserve, March 31, 2010                   |   | $                     | 1.3     |                              |    | $      | 2.0    |   |   | $ | 3.3 |   |
|     Cash payments                   |   | (1.2                  | )       |                              | (0.8    | )      |   | (2.0   | )      |
|     Currency translation adjustment |   | (0.1                  | )       |                              | — |   |   | (0.1   | )      |
| Restructuring reserve, January 1, 2011 (1)              |   | $                     | — |                              |    | $      | 1.2    |   |   | $ | 1.2 |   |

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|                                                                                                             |                      |        |                        |        |                      |        |                        |        |        |         |        |        |   |       |   |
|-------------------------------------------------------------------------------------------------------------|----------------------|--------|------------------------|--------|----------------------|--------|------------------------|--------|--------|---------|--------|--------|---|-------|---|
|                                                                                                        | Third Quarter Ended  |   | Nine Months Ended      |
|                                                                                                        | January 1, 2011 |   | December 26, 2009 |   | January 1, 2011 |   | December 26, 2009 |
| Net income (loss)                                                                                           | $                    | 4.4    |                   |   | $                    | 2.8    |                   |   | $      | (88.1   | )      |   | $ | (16.7 | ) |
| Other comprehensive (loss) income:                                                                          |                 |   |                   |   |                 |   |                   |
| Unrealized gain (loss) on interest rate derivatives, net of tax                                             | 0.8                  |   |                   | (0.5   | )                    |   | (1.7                   | )      |   | — |   |
| Amortization of pension and postretirement unrecognized prior service costs and actuarial gains, net of tax | 1.3                  |   |                   | 1.7    |                 |   | 2.9                    |   |   | 5.7     |   |
| Foreign currency translation adjustments                                                                    | 4.4                  |   |                   | 6.4    |                 |   | 7.0                    |   |   | 3.8     |   |
|                                                                                                        |                 |   |                   |   |                 |   |                   |
| Comprehensive income (loss)                                                                                 | $                    | 10.9   |                   |   | $                    | 10.4   |                   |   | $      | (79.9   | )      |   | $ | (7.2  | ) |

|                                                                     |                      |        |                     |        |        |       |        |
|---------------------------------------------------------------------|----------------------|--------|---------------------|--------|--------|-------|--------|
|                                                                | January 1, 2011 |   | March 31, 2010 |
| Finished goods                                                      | $                    | 187.0  |                |   | $      | 171.7 |   |
| Work in progress                                                    | 57.2                 |   |                | 51.1   |   |
| Raw materials                                                       | 33.6                 |   |                | 30.9   |   |
| Inventories at First-in, First-Out ("FIFO") cost                    | 277.8                |   |                | 253.7  |   |
| Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | 17.1                 |   |                | 20.1   |   |
|                                                                | $                    | 294.9  |                |   | $      | 273.8 |   |

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|                                                       |        |          |         |                                                  |         |                               |        |         |        |             |         |                                                         |        |         |        |        |        |        |         |        |        |   |       |        |
|-------------------------------------------------------|--------|----------|---------|--------------------------------------------------|---------|-------------------------------|--------|---------|--------|-------------|---------|---------------------------------------------------------|--------|---------|--------|--------|--------|--------|---------|--------|--------|---|-------|--------|
|                                                  |   |     |    |                                             |    | Amortizable Intangible Assets |   |    |
|                                                  |   | Goodwill |    | Indefinite Lived Intangible Assets (Trade Names) |    | Customer Relationships        |   | Patents |   | Non-Compete |    | Total Identifiable Intangible Assets Excluding Goodwill |
| Process & Motion Control                          |   |     |    |                                             |    |                          |   |    |   |        |    |                                                    |
|   Net carrying amount as of March 31, 2010  |   | $        | 852.3   |                                             |    | $                             | 190.7  |    |   | $           | 170.0   |                                                    |   | $       | 8.6    |   |   | $      | — |   |   | $ | 369.3 |   |
|   Amortization                              |   | —  |    |                                             | — |                          |   | (20.4   | )      |        | (1.1    | )                                                       |   | — |   |   | (21.5  | )      |
|   Acquisitions                              |   | 3.6      |    |                                             | — |                          |   | 4.4     |   |        | — |                                                    |   | — |   |   | 4.4    |   |
|   Net carrying amount as of January 1, 2011 |   | $        | 855.9   |                                             |    | $                             | 190.7  |    |   | $           | 154.0   |                                                    |   | $       | 7.5    |   |   | $      | — |   |   | $ | 352.2 |   |
| Water Management                                      |   |     |    |                                             |    |                          |   |    |   |        |    |                                                    |
|   Net carrying amount as of March 31, 2010  |   | $        | 159.9   |                                             |    | $                             | 101.5  |    |   | $           | 205.2   |                                                    |   | $       | 12.4   |   |   | $      | 0.1     |   |   | $ | 319.2 |   |
|   Amortization                              |   | —  |    |                                             | — |                          |   | (13.4   | )      |        | (1.5    | )                                                       |   | — |   |   | (14.9  | )      |
|   Currency translation adjustment           |   | 0.1      |    |                                             | — |                          |   | 0.2     |   |        | — |                                                    |   | — |   |   | 0.2    |   |
|   Net carrying amount as of January 1, 2011 |   | $        | 160.0   |                                             |    | $                             | 101.5  |    |   | $           | 192.0   |                                                    |   | $       | 10.9   |   |   | $      | 0.1     |   |   | $ | 304.5 |   |
| Consolidated                                          |   |     |    |                                             |    |                          |   |    |   |        |    |                                                    |
|   Net carrying amount as of March 31, 2010  |   | $        | 1,012.2 |                                             |    | $                             | 292.2  |    |   | $           | 375.2   |                                                    |   | $       | 21.0   |   |   | $      | 0.1     |   |   | $ | 688.5 |   |
|   Amortization                              |   | —  |    |                                             | — |                          |   | (33.8   | )      |        | (2.6    | )                                                       |   | — |   |   | (36.4  | )      |
|   Acquisitions                              |   | 3.6      |    |                                             | — |                          |   | 4.4     |   |        | — |                                                    |   | — |   |   | 4.4    |   |
|   Currency translation adjustment           |   | 0.1      |    |                                             | — |                          |   | 0.2     |   |        | — |                                                    |   | — |   |   | 0.2    |   |
|   Net carrying amount as of January 1, 2011 |   | $        | 1,015.9 |                                             |    | $                             | 292.2  |    |   | $           | 346.0   |                                                    |   | $       | 18.4   |   |   | $      | 0.1     |   |   | $ | 656.7 |   |

|                                                                           |                              |        |                       |        |                          |         |                     |        |       |        |   |       |        |
|---------------------------------------------------------------------------|------------------------------|--------|-----------------------|--------|--------------------------|---------|---------------------|--------|-------|--------|---|-------|--------|
|                                                                      |                         |   | January 1, 2011  |
|                                                                      | Weighted Average Useful Life |   | Gross Carrying Amount |   | Accumulated Amortization |    | Net Carrying Amount |
| Intangible assets subject to amortization:                                |                         |   |                  |   |                     |    |                |
| Patents                                                                   | 10 Years                     |   | $                     | 36.3   |                     |    | $                   | (17.9  | )     |   | $ | 18.4  |   |
| Customer relationships (including distribution network)                   | 12 Years                     |   | 534.1                 |   |                     | (188.1  | )                   |   | 346.0 |   |
| Non-compete                                                               | 2 Years                      |   | 0.1                   |   |                     | — |                |   | 0.1   |   |
| Intangible assets not subject to amortization - trademarks and tradenames |                         |   | 292.2                 |   |                     | — |                |   | 292.2 |   |
|                                                                      |                         |   | $                     | 862.7  |                     |    | $                   | (206.0 | )     |   | $ | 656.7 |   |
|                                                                      |                         |   |                  |   |                     |    |                |
|                                                                      |                         |   | March 31, 2010   |
|                                                                      | Weighted Average Useful Life |   | Gross Carrying Amount |   | Accumulated Amortization |    | Net Carrying Amount |
| Intangible assets subject to amortization:                                |                         |   |                  |   |                     |    |                |
| Patents                                                                   | 10 Years                     |   | $                     | 36.3   |                     |    | $                   | (15.3  | )     |   | $ | 21.0  |   |
| Customer relationships (including distribution network)                   | 12 Years                     |   | 529.5                 |   |                     | (154.3  | )                   |   | 375.2 |   |
| Non-compete                                                               | 2 Years                      |   | 0.1                   |   |                     | — |                |   | 0.1   |   |
| Intangible assets not subject to amortization - trademarks and tradenames |                         |   | 292.2                 |   |                     | — |                |   | 292.2 |   |
|                                                                      |                         |   | $                     | 858.1  |                     |    | $                   | (169.6 | )     |   | $ | 688.5 |   |

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|                                |                      |        |                     |        |        |      |        |
|--------------------------------|----------------------|--------|---------------------|--------|--------|------|--------|
|                           | January 1, 2011 |   | March 31, 2010 |
| Taxes, other than income taxes | $                    | 5.9    |                |   | $      | 4.6  |   |
| Sales rebates                  | 17.5                 |   |                | 12.0   |   |
| Restructuring obligations (1)  | 1.2                  |   |                | 3.3    |   |
| Customer advances              | 14.7                 |   |                | 12.4   |   |
| Product warranty (2)           | 8.4                  |   |                | 10.7   |   |
| Commissions                    | 5.7                  |   |                | 6.6    |   |
| Risk management reserves (3)   | 9.0                  |   |                | 8.6    |   |
| Deferred income taxes          | 3.9                  |   |                | 2.1    |   |
| Other                          | 20.2                 |   |                | 20.0   |   |
|                           | $                    | 86.5   |                |   | $      | 80.3 |   |

|                             |                                                                                      |
|-----------------------------|--------------------------------------------------------------------------------------|
| (1)     | See more information related to the restructuring obligations balance within Note 3. |

|                             |                                                                                          |
|-----------------------------|------------------------------------------------------------------------------------------|
| (2)     | See more information related to the product warranty obligations balance within Note 13. |

|                             |                                                                                                                                                             |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)     | Includes projected liabilities related to the Company's deductible portion of insured losses arising from automobile, general and product liability claims. |

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|                                            |        |                      |         |                     |         |        |         |        |
|--------------------------------------------|--------|----------------------|---------|---------------------|---------|--------|---------|--------|
|                                       |   | January 1, 2011 |    | March 31, 2010 |
| Term loans                                 |   | $                    | 762.0   |                |    | $      | 763.5   |   |
| 8.50% Senior notes due 2018                |   | 1,145.0              |    |                | — |   |
| 9.50% Senior notes due 2014 (1)            |   | —              |    |                | 979.2   |   |
| 8.875% Senior notes due 2016               |   | 2.0                  |    |                | 79.0    |   |
| 11.75% Senior subordinated notes due 2016  |   | 300.0                |    |                | 300.0   |   |
| 10.125% Senior subordinated notes due 2012 |   | 0.3                  |    |                | 0.3     |   |
| Other (2)                                  |   | 12.8                 |    |                | 7.2     |   |
| Total                                      |   | 2,222.1              |    |                | 2,129.2 |   |
| Less current portion                       |   | 11.6                 |    |                | 5.3     |   |
| Long-term debt                             |   | $                    | 2,210.5 |                |    | $      | 2,123.9 |   |

|                             |                                                                                         |
|-----------------------------|-----------------------------------------------------------------------------------------|
| (1)     | Includes a net unamortized bond issue discount of $12.1 million at March 31, 2010. |

|                             |                                                                                                                                                                                                                      |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Includes, at January 1, 2011, $4.7 million outstanding principal related to a seller-financed note payable incurred in connection with the acquisition of Mecánica Falk on August 31, 2010 (see Note 2). |

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|                                            |                                              |        |                                  |         |                   |         |        |        |        |         |        |        |        |      |        |
|--------------------------------------------|----------------------------------------------|--------|----------------------------------|---------|-------------------|---------|--------|--------|--------|---------|--------|--------|--------|------|--------|
|                                       | Financial Statement Impact    |
|                                       | Balance Sheet -Debit (Credit) |   | Statement of Operations          |    |              |
|                                       | Deferred Financing Costs (1)                 |   | Original Issue Discount (2) |    |  Expense (3) |    | Total  |
| Cash transaction costs:                    |                                         |   |                             |    |              |    |   |
| Third party transaction costs              | $                                            | 14.6   |                             |    | $                 | — |   |   | $      | — |   |   | $      | 14.6 |   |
| Bond tender premiums (paid to lenders)     | —                                      |   |                             | — |              |    | 63.5   |   |   | 63.5    |   |
| Total expected cash transaction costs      | 14.6                                         |   |                             | — |              |    | 63.5   |   |   | $       | 78.1   |   |
| Non-cash write-off of unamortized amounts: |                                         |   |                             |    |              |    |   |
| Deferred financing costs                   | (25.4                                        | )      |                             | — |              |    | 25.4   |   |   |    |
| Net original issue discount                | —                                      |   |                             | (11.9   | )                 |    | 11.9   |   |   |    |
| Net financial statement impact             | $                                            | (10.8  | )                                |    | $                 | (11.9   | )      |   | $      | 100.8   |   |   |   |

|                             |                                                                                          |
|-----------------------------|------------------------------------------------------------------------------------------|
| (1)     | Recorded as a component of other assets within the condensed consolidated balance sheet. |

|                             |                                                                                                              |
|-----------------------------|--------------------------------------------------------------------------------------------------------------|
| (2)     | Recorded as a reduction in the face value of long-term debt within the condensed consolidated balance sheet. |

|                             |                                                                                                                   |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------|
| (3)     | Recorded as a component of other non-operating expense within the condensed consolidated statement of operations. |

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|                     |        |                       |        |                     |        |                              |     |        |        |                             |
|---------------------|--------|-----------------------|--------|---------------------|--------|------------------------------|-----|--------|--------|-----------------------------|
|                |   | Liability Derivatives |
|                |   | January 1, 2011  |   | March 31, 2010 |   | Balance Sheet Classification |
| Interest rate swaps |   | $                     | 9.3    |                |   | $                            | 6.6 |   |   | Other long-term liabilities |

|                                    |        |                      |        |                     |        |                              |     |        |        |                            |
|------------------------------------|--------|----------------------|--------|---------------------|--------|------------------------------|-----|--------|--------|----------------------------|
|                               |   | Asset Derivatives    |
|                               |   | January 1, 2011 |   | March 31, 2010 |   | Balance Sheet Classification |
| Foreign currency forward contracts |   | $                    | 0.2    |                |   | $                            | 0.1 |   |   |  Other current assets |

|                                                                                       |                      |                                                           |                     |                                                                          |        |                                                                        |        |                                                                        |        |                       |        |                        |      |   |        |   |      |   |        |   |      |   |        |   |      |   |
|---------------------------------------------------------------------------------------|----------------------|-----------------------------------------------------------|---------------------|--------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|-----------------------|--------|------------------------|------|---|--------|---|------|---|--------|---|------|---|--------|---|------|---|
|                                                                                  |                 | Amount of gain or (loss) recognized in OCI on derivatives |                | Location of gain or (loss) reclassified from accumulated OCI into income |   | Amount of gain or (loss) reclassified from accumulated OCI into income |   | Amount of gain or (loss) reclassified from accumulated OCI into income |
| Derivative instruments designated as cash flow hedging relationships under ASC 815-20 |                 |                                                      |                | Third Quarter Ended                                                      |   | Nine Months Ended                                                      |
|                                                                                  | January 1, 2011 |                                                      | March 31, 2010 |                                                                     |   | January 1, 2011                                                   |   | December 26, 2009                                                 |   | January 1, 2011  |   | December 26, 2009 |
| Interest rate swaps                                                                   |                 | $                                                         | (5.7                | )                                                                        |   | $                                                                      | (4.0   | )                                                                      |   | Interest expense, net |   | $                      | (1.8 | ) |   | $ | (2.1 | ) |   | $ | (5.7 | ) |   | $ | (7.7 | ) |

|                                                                               |        |                                                                |        |                                                  |        |                                                  |        |                        |     |        |        |   |     |        |        |   |     |        |
|-------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------------------|--------|------------------------|-----|--------|--------|---|-----|--------|--------|---|-----|--------|
|                                                                          |   |                                                           |   | Amount recognized in other income (expense), net |   | Amount recognized in other income (expense), net |
| Derivative instruments not designated as hedging instruments under ASC 815-20 |   | Location of gain or (loss) recognized in income on derivatives |   | Third Quarter Ended                              |   | Nine Months Ended                                |
|                                                                          |   | January 1, 2011                                           |   | December 26, 2009                           |   | January 1, 2011                             |   | December 26, 2009 |
| Foreign currency forward contracts                                            |   | Other expense, net                                             |   | $                                                | 0.2    |                                             |   | $                      | 0.2 |   |   | $ | 0.3 |   |   | $ | 0.5 |   |

|                                |                                                                     |
|--------------------------------|---------------------------------------------------------------------|
| •     | Level 1- Quoted prices for identical instruments in active markets. |

|                                |                                                                                                                                                                                                                                              |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable. |

|                                |                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value     |

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|                                                |        |                                  |         |         |        |         |        |        |        |   |         |        |        |   |     |        |
|------------------------------------------------|--------|----------------------------------|---------|---------|--------|---------|--------|--------|--------|---|---------|--------|--------|---|-----|--------|
|                                           |   | Fair Value as of January 1, 2011 |
|                                           |   | Level 1                          |    | Level 2 |   | Level 3 |   | Total  |
| Assets:                                        |   |                             |    |    |   |    |   |   |
|   Foreign currency forward contracts |   | $                                | — |    |   | $       | 0.2    |   |   | $ | — |   |   | $ | 0.2 |   |
| Total assets at fair value                     |   | $                                | — |    |   | $       | 0.2    |   |   | $ | — |   |   | $ | 0.2 |   |
| Liabilities:                                   |   |                             |    |    |   |    |   |   |
|   Interest rate swaps                |   | $                                | — |    |   | $       | 9.3    |   |   | $ | — |   |   | $ | 9.3 |   |
| Total liabilities at fair value                |   | $                                | — |    |   | $       | 9.3    |   |   | $ | — |   |   | $ | 9.3 |   |

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|                                |                      |        |                        |        |                      |        |                        |        |        |      |        |        |   |     |        |
|--------------------------------|----------------------|--------|------------------------|--------|----------------------|--------|------------------------|--------|--------|------|--------|--------|---|-----|--------|
|                           | Third Quarter Ended  |   | Nine Months Ended      |
|                           | January 1, 2011 |   | December 26, 2009 |   | January 1, 2011 |   | December 26, 2009 |
| Balance at beginning of period | $                    | 9.8    |                   |   | $                    | 8.3    |                   |   | $      | 10.7 |   |   | $ | 7.2 |   |
| Charged to operations          | —              |   |                   | 1.2    |                 |   | 1.3                    |   |   | 4.8  |   |
| Claims settled                 | (1.4                 | )      |                   | (0.8   | )                    |   | (3.6                   | )      |   | (3.3 | )      |
| Balance at end of period       | $                    | 8.4    |                   |   | $                    | 8.7    |                   |   | $      | 8.4  |   |   | $ | 8.7 |   |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | In 2002, Rexnord Industries, LLC (formerly known as Rexnord Corporation) (“Rexnord Industries”) was named as a potentially responsible party (“PRP”), together with at least ten other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”), by the United States Environmental Protection Agency (“USEPA”), and the Illinois Environmental Protection Agency (“IEPA”). Rexnord Industries' Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and IEPA allege there have been one or more releases or threatened releases of chlorinated solvents and other hazardous substances, pollutants or contaminants, allegedly including but not limited to a release or threatened release on or from the Company's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of USEPA's past costs. Rexnord Industries' allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. |

|                                |                                                                                                                                                                                                                                            |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | All previously pending lawsuits related to the Site have been settled and dismissed. Pursuant to its indemnity obligation, Invensys continues to defend the Company in matters related to the Site and has paid 100% of the costs to date. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Multiple lawsuits (with approximately 1,435 claimants) are pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain brakes and clutches previously manufactured by the Company's Stearns division and/or its predecessor owners. Invensys and FMC, prior owners of the Stearns business, have paid 100% of the costs to date related to the Stearns lawsuits. Similarly, the Company's Prager subsidiary is a defendant in two pending multi-defendant lawsuits relating to alleged personal injuries due to the alleged presence of asbestos in a product allegedly manufactured by Prager. Additionally, there are approximately 3,700 individuals who have filed asbestos related claims against Prager; however, these claims are currently on the Texas Multi-district Litigation inactive docket. The ultimate outcome of these asbestos matters cannot presently be determined. To date, the Company's insurance providers have paid 100% of the costs related to the Prager asbestos matters. The Company believes that the combination of its insurance coverage and the Invensys indemnity obligations will cover any future costs of these matters. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Falk, through its successor entity, is a defendant in approximately 200 lawsuits pending in state or federal court in numerous jurisdictions relating to alleged personal injuries due to the alleged presence of asbestos in certain clutches and drives previously manufactured by Falk. There are approximately 570 claimants in these suits. The ultimate outcome of these lawsuits cannot presently be determined. Hamilton Sundstrand is defending the Company in these lawsuits pursuant to its indemnity obligations and has paid 100% of the costs to date. |

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|                                |                      |         |                        |         |                      |         |                        |        |        |         |        |        |   |      |        |
|--------------------------------|----------------------|---------|------------------------|---------|----------------------|---------|------------------------|--------|--------|---------|--------|--------|---|------|--------|
|                           | Third Quarter Ended  |    | Nine Months Ended      |
|                           | January 1, 2011 |    | December 26, 2009 |    | January 1, 2011 |    | December 26, 2009 |
| Pension Benefits:              |                 |    |                   |    |                 |    |                   |
| Service cost                   | $                    | 0.5     |                   |    | $                    | 0.8     |                   |   | $      | 1.5     |   |   | $ | 2.4  |   |
| Interest cost                  | 8.3                  |    |                   | 8.6     |                 |    | 25.1                   |   |   | 26.3    |   |
| Expected return on plan assets | (9.0                 | )       |                   | (8.0    | )                    |    | (27.4                  | )      |   | (22.9   | )      |
| Amortization of:               |                 |    |                   |    |                 |    |                   |
| Prior service cost             | —              |    |                   | — |                 |    | 0.2                    |   |   | 0.2     |   |
| Actuarial losses               | 1.9                  |    |                   | 2.6     |                 |    | 5.1                    |   |   | 9.9     |   |
| Net periodic benefit cost      | $                    | 1.7     |                   |    | $                    | 4.0     |                   |   | $      | 4.5     |   |   | $ | 15.9 |   |
| Other Postretirement Benefits: |                 |    |                   |    |                 |    |                   |
| Service cost                   | $                    | — |                   |    | $                    | — |                   |   | $      | — |   |   | $ | 0.1  |   |
| Interest cost                  | 0.5                  |    |                   | 0.7     |                 |    | 1.5                    |   |   | 1.6     |   |
| Amortization:                  |                 |    |                   |    |                 |    |                   |
| Prior service cost             | (0.5                 | )       |                   | (0.5    | )                    |    | (1.5                   | )      |   | (1.5    | )      |
| Actuarial losses               | 0.3                  |    |                   | 0.5     |                 |    | 0.9                    |   |   | 0.5     |   |
| Net periodic benefit cost      | $                    | 0.3     |                   |    | $                    | 0.7     |                   |   | $      | 0.9     |   |   | $ | 0.7  |   |

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|                                        |                                                   |        |                                                     |        |        |        |                              |           |        |        |        |       |        |
|----------------------------------------|---------------------------------------------------|--------|-----------------------------------------------------|--------|--------|--------|------------------------------|-----------|--------|--------|--------|-------|--------|
|                                   | Period from April 1, 2010 through January 1, 2011 |   | Period from April 1, 2009 through December 26, 2009 |
|                                   | Shares                                            |   | Weighted Avg. Exercise Price                        |   | Shares |   | Weighted Avg. Exercise Price |
| Number of shares under option:         |                                              |   |                                                |   |   |   |                         |
| Outstanding at beginning of period (1) | 2,498,666                                         |   |                                                | $      | 18.25  |   |                         | 2,721,505 |   |   | $      | 17.69 |   |
| Granted                                | 215,000                                           |   |                                                | 37.00  |   |   | 535,093                      |      |   | 20.00  |   |
| Exercised                              | (97,887                                           | )      |                                                | 17.87  |   |   | (191,114                     | )         |   | 10.17  |   |
| Canceled/Forfeited                     | (28,318                                           | )      |                                                | 24.17  |   |   | (602,169                     | )         |   | 19.94  |   |
| Outstanding at end of period (1) (2)   | 2,587,461                                         |   |                                                | $      | 19.76  |   |                         | 2,463,315 |   |   | $      | 18.23 |   |
| Exercisable at end of period (3)       | 1,436,425                                         |   |                                                | $      | 16.79  |   |                         | 1,143,544 |   |   | $      | 15.67 |   |

|                             |                                                                |
|-----------------------------|----------------------------------------------------------------|
| (1)     | Includes 377,623 roll-over options as of January 1, 2011. |

|                             |                                                                                                              |
|-----------------------------|--------------------------------------------------------------------------------------------------------------|
| (2)     | The weighted average remaining contractual life of options outstanding at January 1, 2011 is 6.8 years. |

|                             |                                                                                                              |
|-----------------------------|--------------------------------------------------------------------------------------------------------------|
| (3)     | The weighted average remaining contractual life of options exercisable at January 1, 2011 is 6.0 years. |

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|                                                                            |        |                      |         |                        |         |                      |         |                        |        |        |         |        |        |   |         |        |
|----------------------------------------------------------------------------|--------|----------------------|---------|------------------------|---------|----------------------|---------|------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                                       |   | Quarter Ended        |    | Nine Months Ended      |
|                                                                       |   | January 1, 2011 |    | December 26, 2009 |    | January 1, 2011 |    | December 26, 2009 |
| Net sales                                                                  |   |                 |    |                   |    |                 |    |                   |
| Process & Motion Control                                               |   | $                    | 299.6   |                   |    | $                    | 246.4   |                   |   | $      | 847.2   |   |   | $ | 719.2   |   |
| Water Management                                                           |   | 120.2                |    |                   | 119.3   |                 |    | 392.2                  |   |   | 384.1   |   |
|   Consolidated                                                   |   | $                    | 419.8   |                   |    | $                    | 365.7   |                   |   | $      | 1,239.4 |   |   | $ | 1,103.3 |   |
| Income (loss) from operations                                              |   |                 |    |                   |    |                 |    |                   |
| Process & Motion Control                                               |   | $                    | 45.1    |                   |    | $                    | 27.7    |                   |   | $      | 121.9   |   |   | $ | 66.3    |   |
| Water Management                                                           |   | 13.3                 |    |                   | 16.6    |                 |    | 54.9                   |   |   | 58.2    |   |
| Corporate                                                                  |   | (8.0                 | )       |                   | (7.2    | )                    |    | (24.0                  | )      |   | (25.2   | )      |
|   Consolidated                                                   |   | $                    | 50.4    |                   |    | $                    | 37.1    |                   |   | $      | 152.8   |   |   | $ | 99.3    |   |
| Non-operating expense:                                                     |   |                 |    |                   |    |                 |    |                   |
| Interest expense, net                                                      |   | $                    | (42.7   | )                      |    | $                    | (45.3   | )                      |   | $      | (131.3  | )      |   | $ | (136.4  | )      |
| Loss on the extinguishment of debt                                         |   | —              |    |                   | — |                 |    | (100.8                 | )      |   | — |   |
| Other expense, net                                                         |   | (4.7                 | )       |                   | (8.4    | )                    |    | (2.8                   | )      |   | (1.3    | )      |
| Income (loss) before income taxes                                          |   | 3.0                  |    |                   | (16.6   | )                    |    | (82.1                  | )      |   | (38.4   | )      |
| Provision (benefit) for income taxes                                       |   | (1.4                 | )       |                   | (19.4   | )                    |    | 6.0                    |   |   | (21.7   | )      |
| Net income (loss)                                                          |   | $                    | 4.4     |                   |    | $                    | 2.8     |                   |   | $      | (88.1   | )      |   | $ | (16.7   | )      |
| Restructuring and other similar costs (included in income from operations) |   |                 |    |                   |
| Process & Motion Control                                               |   | $                    | — |                   |    | $                    | 1.1     |                   |   | $      | — |   |   | $ | 3.8     |   |
| Water Management                                                           |   | —              |    |                   | — |                 |    | —                |   |   | 0.5     |   |
|   Consolidated                                                   |   | $                    | — |                   |    | $                    | 1.1     |                   |   | $      | — |   |   | $ | 4.3     |   |
| Depreciation and Amortization                                              |   |                 |    |                   |    |                 |    |                   |
| Process & Motion Control                                               |   | $                    | 20.4    |                   |    | $                    | 21.7    |                   |   | $      | 59.7    |   |   | $ | 62.1    |   |
| Water Management                                                           |   | 6.9                  |    |                   | 6.6     |                 |    | 19.9                   |   |   | 19.5    |   |
|   Consolidated                                                   |   | $                    | 27.3    |                   |    | $                    | 28.3    |                   |   | $      | 79.6    |   |   | $ | 81.6    |   |
| Capital Expenditures                                                       |   |                 |    |                   |    |                 |    |                   |
| Process & Motion Control                                               |   | $                    | 7.3     |                   |    | $                    | 3.3     |                   |   | $      | 16.1    |   |   | $ | 10.7    |   |
| Water Management                                                           |   | 1.0                  |    |                   | 1.0     |                 |    | 3.6                    |   |   | 2.9     |   |
|   Consolidated                                                   |   | $                    | 8.3     |                   |    | $                    | 4.3     |                   |   | $      | 19.7    |   |   | $ | 13.6    |   |
|                                                                       |   |                 |    |                   |    |                 |    |                   |
|                                                                       |   |                 |    |                   |    | January 1, 2011 |    | March 31, 2010         |
| Total Assets                                                               |   |                 |    |                   |    |                 |    |                   |
| Process & Motion Control                                               |   |                 |    |                   |    | $                    | 2,210.4 |                   |   | $      | 2,170.0 |   |
| Water Management                                                           |   |                 |    |                   |    | 789.2                |    |                   | 799.1  |   |
| Corporate                                                                  |   |                 |    |                   |    | 31.4                 |    |                   | 46.1   |   |
|   Consolidated                                                   |   |                 |    |                   |    | $                    | 3,031.0 |                   |   | $      | 3,015.2 |   |

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|                                                                   |        |         |         |                        |         |                            |         |              |        |              |          |        |        |         |          |        |        |   |         |        |
|-------------------------------------------------------------------|--------|---------|---------|------------------------|---------|----------------------------|---------|--------------|--------|--------------|----------|--------|--------|---------|----------|--------|--------|---|---------|--------|
|                                                              |   | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Consolidated |
| Assets                                                            |   |    |    |                   |    |                       |    |         |   |         |
| Current assets:                                                   |   |    |    |                   |    |                       |    |         |   |         |
| Cash and cash equivalents                                         |   | $       | — |                   |    | $                          | 248.4   |         |   | $            | 69.5     |   |   | $       | —  |   |   | $ | 317.9   |   |
| Receivables, net                                                  |   | — |    |                   | 157.2   |                       |    | 83.0         |   |         | —  |   |   | 240.2   |     |
| Inventories, net                                                  |   | — |    |                   | 233.0   |                       |    | 61.9         |   |         | —  |   |   | 294.9   |     |
| Other current assets                                              |   | 4.6     |    |                   | 11.5    |                       |    | 19.9         |   |         | —  |   |   | 36.0    |     |
| Total current assets                                              |   | 4.6     |    |                   | 650.1   |                       |    | 234.3        |   |         | —  |   |   | 889.0   |     |
| Receivable from (payable to) affiliates, net                      |   | 24.7    |    |                   | 18.6    |                       |    | (43.3        | )      |         | —  |   |   | — |     |
| Property, plant and equipment, net                                |   | — |    |                   | 271.1   |                       |    | 81.3         |   |         | —  |   |   | 352.4   |     |
| Intangible assets, net                                            |   | — |    |                   | 627.6   |                       |    | 29.1         |   |         | —  |   |   | 656.7   |     |
| Goodwill                                                          |   | — |    |                   | 826.6   |                       |    | 189.3        |   |         | —  |   |   | 1,015.9 |     |
| Investment in:                                                    |   |    |    |                   |    |                       |    |         |   |         |
| Guarantor subsidiaries                                            |   | 1,541.4 |    |                   | — |                       |    | —      |   |         | (1,541.4 | )      |   | — |     |
| Non-guarantor subsidiaries                                        |   | — |    |                   | 628.9   |                       |    | —      |   |         | (628.9   | )      |   | — |     |
| Insurance for asbestos claims                                     |   | — |    |                   | 86.0    |                       |    | —      |   |         | —  |   |   | 86.0    |     |
| Other assets                                                      |   | 29.3    |    |                   | 1.5     |                       |    | 0.2          |   |         | —  |   |   | 31.0    |     |
| Total assets                                                      |   | $       | 1,600.0 |                   |    | $                          | 3,110.4 |         |   | $            | 490.9    |   |   | $       | (2,170.3 | )      |   | $ | 3,031.0 |   |
| Liabilities and stockholders' equity (deficit)                    |   |    |    |                   |    |                       |    |         |   |         |
| Current liabilities:                                              |   |    |    |                   |    |                       |    |         |   |         |
| Current portion of long-term debt                                 |   | $       | 2.0     |                   |    | $                          | — |         |   | $            | 9.6      |   |   | $       | —  |   |   | $ | 11.6    |   |
| Trade payables                                                    |   | — |    |                   | 98.5    |                       |    | 40.9         |   |         | —  |   |   | 139.4   |     |
| Compensation and benefits                                         |   | — |    |                   | 43.3    |                       |    | 12.8         |   |         | —  |   |   | 56.1    |     |
| Current portion of pension and postretirement benefit obligations |   | — |    |                   | 3.7     |                       |    | 2.4          |   |         | —  |   |   | 6.1     |     |
| Interest payable                                                  |   | 35.1    |    |                   | 1.4     |                       |    | 0.5          |   |         | —  |   |   | 37.0    |     |
| Other current liabilities                                         |   | 8.2     |    |                   | 64.8    |                       |    | 13.5         |   |         | —  |   |   | 86.5    |     |
| Total current liabilities                                         |   | 45.3    |    |                   | 211.7   |                       |    | 79.7         |   |         | —  |   |   | 336.7   |     |
| Long-term debt                                                    |   | 2,207.4 |    |                   | 0.5     |                       |    | 2.6          |   |         | —  |   |   | 2,210.5 |     |
| Note (receivable from) payable to affiliates, net                 |   | (774.9  | )       |                   | 1,070.5 |                       |    | (295.6       | )      |         | —  |   |   | — |     |
| Pension and postretirement benefit obligations                    |   | — |    |                   | 84.8    |                       |    | 40.7         |   |         | —  |   |   | 125.5   |     |
| Deferred income taxes                                             |   | 122.4   |    |                   | 101.3   |                       |    | 24.0         |   |         | —  |   |   | 247.7   |     |
| Reserve for asbestos claims                                       |   | — |    |                   | 86.0    |                       |    | —      |   |         | —  |   |   | 86.0    |     |
| Other liabilities                                                 |   | 23.5    |    |                   | 14.2    |                       |    | 10.6         |   |         | —  |   |   | 48.3    |     |
| Total liabilities                                                 |   | 1,623.7 |    |                   | 1,569.0 |                       |    | (138.0       | )      |         | —  |   |   | 3,054.7 |     |
| Total stockholders' equity (deficit)                              |   | (23.7   | )       |                   | 1,541.4 |                       |    | 628.9        |   |         | (2,170.3 | )      |   | (23.7   | )        |
| Total liabilities and stockholders' equity (deficit)              |   | $       | 1,600.0 |                   |    | $                          | 3,110.4 |         |   | $            | 490.9    |   |   | $       | (2,170.3 | )      |   | $ | 3,031.0 |   |

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Table of Contents

|                                                                   |         |         |                        |         |                            |         |              |        |              |          |        |        |         |          |        |        |   |         |        |
|-------------------------------------------------------------------|---------|---------|------------------------|---------|----------------------------|---------|--------------|--------|--------------|----------|--------|--------|---------|----------|--------|--------|---|---------|--------|
|                                                              | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Consolidated |
| Assets                                                            |    |    |                   |    |                       |    |         |   |         |
| Current assets:                                                   |    |    |                   |    |                       |    |         |   |         |
| Cash and cash equivalents                                         | $       | — |                   |    | $                          | 203.3   |         |   | $            | 59.9     |   |   | $       | —  |   |   | $ | 263.2   |   |
| Receivables, net                                                  | — |    |                   | 165.6   |                       |    | 68.5         |   |         | —  |   |   | 234.1   |     |
| Inventories, net                                                  | — |    |                   | 215.5   |                       |    | 58.3         |   |         | —  |   |   | 273.8   |     |
| Other current assets                                              | — |    |                   | 14.9    |                       |    | 14.5         |   |         | —  |   |   | 29.4    |     |
| Total current assets                                              | — |    |                   | 599.3   |                       |    | 201.2        |   |         | —  |   |   | 800.5   |     |
| Receivable from (payable to) affiliates, net                      | 24.7    |    |                   | 18.6    |                       |    | (43.3        | )      |         | —  |   |   | — |     |
| Property, plant and equipment, net                                | — |    |                   | 292.4   |                       |    | 83.8         |   |         | —  |   |   | 376.2   |     |
| Intangible assets, net                                            | — |    |                   | 663.4   |                       |    | 25.1         |   |         | —  |   |   | 688.5   |     |
| Goodwill                                                          | — |    |                   | 826.4   |                       |    | 185.8        |   |         | —  |   |   | 1,012.2 |     |
| Investment in:                                                    |    |    |                   |    |                       |    |         |   |         |
| Guarantor subsidiaries                                            | 1,473.6 |    |                   | — |                       |    | —      |   |         | (1,473.6 | )      |   | — |     |
| Non-guarantor subsidiaries                                        | — |    |                   | 603.0   |                       |    | —      |   |         | (603.0   | )      |   | — |     |
| Insurance for asbestos claims                                     | — |    |                   | 86.0    |                       |    | —      |   |         | —  |   |   | 86.0    |     |
| Other assets                                                      | 45.9    |    |                   | 5.7     |                       |    | 0.2          |   |         | —  |   |   | 51.8    |     |
| Total assets                                                      | $       | 1,544.2 |                   |    | $                          | 3,094.8 |         |   | $            | 452.8    |   |   | $       | (2,076.6 | )      |   | $ | 3,015.2 |   |
| Liabilities and stockholders' equity                              |    |    |                   |    |                       |    |         |   |         |
| Current liabilities:                                              |    |    |                   |    |                       |    |         |   |         |
| Current portion of long-term debt                                 | $       | 2.0     |                   |    | $                          | 0.1     |         |   | $            | 3.2      |   |   | $       | —  |   |   | $ | 5.3     |   |
| Trade payables                                                    | — |    |                   | 93.2    |                       |    | 42.1         |   |         | —  |   |   | 135.3   |     |
| Compensation and benefits                                         | — |    |                   | 46.7    |                       |    | 12.0         |   |         | —  |   |   | 58.7    |     |
| Current portion of pension and postretirement benefit obligations | — |    |                   | 3.7     |                       |    | 2.4          |   |         | —  |   |   | 6.1     |     |
| Interest payable                                                  | 28.8    |    |                   | 1.4     |                       |    | —      |   |         | —  |   |   | 30.2    |     |
| Other current liabilities                                         | 4.6     |    |                   | 54.6    |                       |    | 21.1         |   |         | —  |   |   | 80.3    |     |
| Total current liabilities                                         | 35.4    |    |                   | 199.7   |                       |    | 80.8         |   |         | —  |   |   | 315.9   |     |
| Long-term debt                                                    | 2,120.0 |    |                   | 0.5     |                       |    | 3.4          |   |         | —  |   |   | 2,123.9 |     |
| Note (receivable from) payable to affiliates, net                 | (809.4  | )       |                   | 1,119.6 |                       |    | (310.2       | )      |         | —  |   |   | — |     |
| Pension and postretirement benefit obligations                    | — |    |                   | 96.6    |                       |    | 40.9         |   |         | —  |   |   | 137.5   |     |
| Deferred income taxes                                             | 123.0   |    |                   | 103.6   |                       |    | 23.3         |   |         | —  |   |   | 249.9   |     |
| Reserve for asbestos claims                                       | — |    |                   | 86.0    |                       |    | —      |   |         | —  |   |   | 86.0    |     |
| Other liabilities                                                 | 21.0    |    |                   | 15.2    |                       |    | 11.6         |   |         | —  |   |   | 47.8    |     |
| Total liabilities                                                 | 1,490.0 |    |                   | 1,621.2 |                       |    | (150.2       | )      |         | —  |   |   | 2,961.0 |     |
| Total stockholders' equity                                        | 54.2    |    |                   | 1,473.6 |                       |    | 603.0        |   |         | (2,076.6 | )      |   | 54.2    |     |
| Total liabilities and stockholders' equity                        | $       | 1,544.2 |                   |    | $                          | 3,094.8 |         |   | $            | 452.8    |   |   | $       | (2,076.6 | )      |   | $ | 3,015.2 |   |

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Table of Contents

|                                                                              |        |         |         |                        |         |                            |        |              |        |              |         |        |        |         |        |   |        |   |       |        |
|------------------------------------------------------------------------------|--------|---------|---------|------------------------|---------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|---------|--------|---|--------|---|-------|--------|
|                                                                         |   | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Net sales                                                                    |   | $       | — |                   |    | $                          | 312.8  |         |   | $            | 129.9   |   |   | $       | (22.9  | ) |   | $ | 419.8 |   |
| Cost of sales                                                                |   | — |    |                   | 205.5   |                       |   | 93.2         |   |         | (22.9   | )      |   | 275.8   |   |
| Gross profit                                                                 |   | — |    |                   | 107.3   |                       |   | 36.7         |   |         | — |   |   | 144.0   |   |
| Selling, general and administrative expenses                                 |   | — |    |                   | 60.2    |                       |   | 21.0         |   |         | — |   |   | 81.2    |   |
| Amortization of intangible assets                                            |   | — |    |                   | 12.0    |                       |   | 0.4          |   |         | — |   |   | 12.4    |   |
| Income from operations                                                       |   | — |    |                   | 35.1    |                       |   | 15.3         |   |         | — |   |   | 50.4    |   |
| Non-operating (expense) income:                                              |   |    |    |                   |    |                       |   |         |   |         |
|      Interest expense, net:                         |   |    |    |                   |    |                       |   |         |   |         |
|           To third parties |   | (42.6   | )       |                   | — |                       |   | (0.1         | )      |         | — |   |   | (42.7   | )      |
|           To affiliates    |   | 29.1    |    |                   | (25.6   | )                          |   | (3.5         | )      |         | — |   |   | — |   |
| Other (expense) income, net                                                  |   | (0.8    | )       |                   | 4.4     |                       |   | (8.3         | )      |         | — |   |   | (4.7    | )      |
| (Loss) income before income taxes                                            |   | (14.3   | )       |                   | 13.9    |                       |   | 3.4          |   |         | — |   |   | 3.0     |   |
| (Benefit) provision for income taxes                                         |   | (8.6    | )       |                   | 6.5     |                       |   | 0.7          |   |         | — |   |   | (1.4    | )      |
| (Loss) income before equity in earnings of subsidiaries                      |   | (5.7    | )       |                   | 7.4     |                       |   | 2.7          |   |         | — |   |   | 4.4     |   |
| Equity in earnings of subsidiaries                                           |   | 10.1    |    |                   | 2.7     |                       |   | —      |   |         | (12.8   | )      |   | — |   |
| Net income                                                                   |   | $       | 4.4     |                   |    | $                          | 10.1   |         |   | $            | 2.7     |   |   | $       | (12.8  | ) |   | $ | 4.4   |   |

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Table of Contents

|                                                                              |        |         |         |                        |         |                            |        |              |        |              |         |        |        |         |        |   |        |   |       |        |
|------------------------------------------------------------------------------|--------|---------|---------|------------------------|---------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|---------|--------|---|--------|---|-------|--------|
|                                                                         |   | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Net sales                                                                    |   | $       | — |                   |    | $                          | 276.9  |         |   | $            | 104.3   |   |   | $       | (15.5  | ) |   | $ | 365.7 |   |
| Cost of sales                                                                |   | — |    |                   | 183.2   |                       |   | 73.9         |   |         | (15.5   | )      |   | 241.6   |   |
| Gross profit                                                                 |   | — |    |                   | 93.7    |                       |   | 30.4         |   |         | — |   |   | 124.1   |   |
| Selling, general and administrative expenses                                 |   | — |    |                   | 54.8    |                       |   | 17.8         |   |         | — |   |   | 72.6    |   |
| Restructuring and other similar charges                                      |   | — |    |                   | 0.3     |                       |   | 0.8          |   |         | — |   |   | 1.1     |   |
| Amortization of intangible assets                                            |   | — |    |                   | 13.2    |                       |   | 0.1          |   |         | — |   |   | 13.3    |   |
| Income from operations                                                       |   | — |    |                   | 25.4    |                       |   | 11.7         |   |         | — |   |   | 37.1    |   |
| Non-operating income (expense):                                              |   |    |    |                   |    |                       |   |         |   |         |
|      Interest expense, net:                         |   |    |    |                   |    |                       |   |         |   |         |
|           To third parties |   | (45.1   | )       |                   | — |                       |   | (0.2         | )      |         | — |   |   | (45.3   | )      |
|           To affiliates    |   | 29.0    |    |                   | (25.7   | )                          |   | (3.3         | )      |         | — |   |   | — |   |
|      Other(expense) income, net                     |   | (2.0    | )       |                   | 11.0    |                       |   | (17.4        | )      |         | — |   |   | (8.4    | )      |
| Loss (income) before income taxes                                            |   | (18.1   | )       |                   | 10.7    |                       |   | (9.2         | )      |         | — |   |   | (16.6   | )      |
| Benefit for income taxes                                                     |   | (6.5    | )       |                   | (8.8    | )                          |   | (4.1         | )      |         | — |   |   | (19.4   | )      |
| Income (loss) before equity in earnings (loss) of subsidiaries               |   | (11.6   | )       |                   | 19.5    |                       |   | (5.1         | )      |         | — |   |   | 2.8     |   |
| Equity in earnings (loss) of subsidiaries                                    |   | 14.4    |    |                   | (5.1    | )                          |   | —      |   |         | (9.3    | )      |   | — |   |
| Net income (loss)                                                            |   | $       | 2.8     |                   |    | $                          | 14.4   |         |   | $            | (5.1    | )      |   | $       | (9.3   | ) |   | $ | 2.8   |   |

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Table of Contents

|                                                                              |        |         |         |                        |         |                            |        |              |        |              |         |        |        |         |        |   |        |   |         |        |
|------------------------------------------------------------------------------|--------|---------|---------|------------------------|---------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|---------|--------|---|--------|---|---------|--------|
|                                                                         |   | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Net sales                                                                    |   | $       | — |                   |    | $                          | 942.6  |         |   | $            | 361.1   |   |   | $       | (64.3  | ) |   | $ | 1,239.4 |   |
| Cost of sales                                                                |   | — |    |                   | 616.4   |                       |   | 257.1        |   |         | (64.3   | )      |   | 809.2   |   |
| Gross profit                                                                 |   | — |    |                   | 326.2   |                       |   | 104.0        |   |         | — |   |   | 430.2   |   |
| Selling, general and administrative expenses                                 |   | — |    |                   | 184.1   |                       |   | 56.9         |   |         | — |   |   | 241.0   |   |
| Amortization of intangible assets                                            |   | — |    |                   | 35.8    |                       |   | 0.6          |   |         | — |   |   | 36.4    |   |
| Income from operations                                                       |   | — |    |                   | 106.3   |                       |   | 46.5         |   |         | — |   |   | 152.8   |   |
| Non-operating (expense) income:                                              |   |    |    |                   |    |                       |   |         |   |         |
|      Interest expense, net:                         |   |    |    |                   |    |                       |   |         |   |         |
|           To third parties |   | (131.0  | )       |                   | 0.1     |                       |   | (0.4         | )      |         | — |   |   | (131.3  | )      |
|           To affiliates    |   | 88.2    |    |                   | (77.6   | )                          |   | (10.6        | )      |         | — |   |   | — |   |
| Loss on debt extinguishment                                                  |   | (100.8  | )       |                   | — |                       |   | —      |   |         | — |   |   | (100.8  | )      |
| Other (expense) income, net                                                  |   | (2.4    | )       |                   | 12.3    |                       |   | (12.7        | )      |         | — |   |   | (2.8    | )      |
| (Loss) income before income taxes                                            |   | (146.0  | )       |                   | 41.1    |                       |   | 22.8         |   |         | — |   |   | (82.1   | )      |
| (Benefit) provision for income taxes                                         |   | (15.7   | )       |                   | 15.7    |                       |   | 6.0          |   |         | — |   |   | 6.0     |   |
| (Loss) income before equity in earnings of subsidiaries                      |   | (130.3  | )       |                   | 25.4    |                       |   | 16.8         |   |         | — |   |   | (88.1   | )      |
| Equity in earnings of subsidiaries                                           |   | 42.2    |    |                   | 16.8    |                       |   | —      |   |         | (59.0   | )      |   | — |   |
| Net (loss) income                                                            |   | $       | (88.1   | )                      |    | $                          | 42.2   |         |   | $            | 16.8    |   |   | $       | (59.0  | ) |   | $ | (88.1   | )      |

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Table of Contents

|                                                                              |        |         |         |                        |        |                            |        |              |        |              |         |        |        |         |        |   |        |   |         |        |
|------------------------------------------------------------------------------|--------|---------|---------|------------------------|--------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|---------|--------|---|--------|---|---------|--------|
|                                                                         |   | Issuers |    | Guarantor Subsidiaries |   | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Net sales                                                                    |   | $       | — |                   |   | $                          | 858.9  |         |   | $            | 287     |   |   | $       | (42.6  | ) |   | $ | 1,103.3 |   |
| Cost of sales                                                                |   | — |    |                   | 574.9  |                       |   | 207.6        |   |         | (42.6   | )      |   | 739.9   |   |
| Gross profit                                                                 |   | — |    |                   | 284    |                       |   | 79.4         |   |         | — |   |   | 363.4   |   |
| Selling, general and administrative expenses                                 |   | — |    |                   | 170.7  |                       |   | 51.7         |   |         | — |   |   | 222.4   |   |
| Restructuring and other similar charges                                      |   | — |    |                   | 2.4    |                       |   | 1.9          |   |         | — |   |   | 4.3     |   |
| Amortization of intangible assets                                            |   | — |    |                   | 37.2   |                       |   | 0.2          |   |         | — |   |   | 37.4    |   |
| Income from operations                                                       |   | — |    |                   | 73.7   |                       |   | 25.6         |   |         | — |   |   | 99.3    |   |
| Non-operating income (expense):                                              |   |    |    |                   |   |                       |   |         |   |         |
|      Interest expense, net:                         |   |    |    |                   |   |                       |   |         |   |         |
|           To third parties |   | (135.2  | )       |                   | (0.4   | )                          |   | (0.8         | )      |         | — |   |   | (136.4  | )      |
|           To affiliates    |   | 85.7    |    |                   | (76.3  | )                          |   | (9.4         | )      |         | — |   |   | — |   |
|      Other (expense) income, net                    |   | 4.5     |    |                   | 13.2   |                       |   | (19          | )      |         | — |   |   | (1.3    | )      |
| (Loss) income before income taxes                                            |   | (45     | )       |                   | 10.2   |                       |   | (3.6         | )      |         | — |   |   | (38.4   | )      |
| (Benefit) provision for income taxes                                         |   | (20.7   | )       |                   | (4.4   | )                          |   | 3.4          |   |         | — |   |   | (21.7   | )      |
| Income (loss) before equity in loss of subsidiaries                          |   | (24.3   | )       |                   | 14.6   |                       |   | (7.0         | )      |         | — |   |   | (16.7   | )      |
| Equity in loss of subsidiaries                                               |   | 7.6     |    |                   | (7.0   | )                          |   | —      |   |         | (0.6    | )      |   | — |   |
| Net loss                                                                     |   | $       | (16.7   | )                      |   | $                          | 7.6    |         |   | $            | (7.0    | )      |   | $       | (0.6   | ) |   | $ | (16.7   | )      |

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Table of Contents

|                                                                              |        |          |         |                        |         |                            |        |              |        |              |         |        |        |          |         |        |        |   |       |        |
|------------------------------------------------------------------------------|--------|----------|---------|------------------------|---------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|----------|---------|--------|--------|---|-------|--------|
|                                                                         |   | Issuers  |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Operating activities                                                         |   |     |    |                   |    |                       |   |         |   |         |
| Net income (loss)                                                            |   | $        | (88.1   | )                      |    | $                          | 42.2   |         |   | $            | 16.8    |   |   | $        | (59.0   | )      |   | $ | (88.1 | )      |
| Non-cash adjustments                                                         |   | 64.5     |    |                   | 56.2    |                       |   | 9.0          |   |         | 59.0    |   |   | 188.7    |    |
| Changes in operating assets and liabilities, including intercompany activity |   | 28.2     |    |                   | (39.1   | )                          |   | (13.2        | )      |         | — |   |   | (24.1    | )       |
| Cash provided by operating activities                                        |   | 4.6      |    |                   | 59.3    |                       |   | 12.6         |   |         | — |   |   | 76.5     |    |
| Investing activities                                                         |   |     |    |                   |    |                       |   |         |   |         |
| Expenditures for property, plant and equipment                               |   | —  |    |                   | (15.1   | )                          |   | (4.6         | )      |         | — |   |   | (19.7    | )       |
| Proceeds from sale of unconsolidated affiliates                              |   | —  |    |                   | 0.9     |                       |   | —      |   |         | — |   |   | 0.9      |    |
| Acquisition, net of cash                                                     |   | —  |    |                   | — |                       |   | 1.2          |   |         | — |   |   | 1.2      |    |
| Cash used for investing activities                                           |   | —  |    |                   | (14.2   | )                          |   | (3.4         | )      |         | — |   |   | (17.6    | )       |
| Financing activities                                                         |   |     |    |                   |    |                       |   |         |   |         |
| Proceeds from borrowings of long-term debt                                   |   | 1,145.0  |    |                   | — |                       |   | —      |   |         | — |   |   | 1,145.0  |    |
| Repayments of long-term debt                                                 |   | (1,069.6 | )       |                   | — |                       |   | (0.8         | )      |         | — |   |   | (1,070.4 | )       |
| Proceeds from borrowings of short-term debt                                  |   | —  |    |                   | — |                       |   | 1.6          |   |         | — |   |   | 1.6      |    |
| Repayments of short-term debt                                                |   | —  |    |                   | — |                       |   | (1.8         | )      |         | — |   |   | (1.8     | )       |
| Payment of deferred financing fees                                           |   | (14.6    | )       |                   | — |                       |   | —      |   |         | — |   |   | (14.6    | )       |
| Payment of tender premium                                                    |   | (63.5    | )       |                   | — |                       |   | —      |   |         | — |   |   | (63.5    | )       |
| Dividend payment to parent company                                           |   | (2.4     | )       |                   | — |                       |   | —      |   |         | — |   |   | (2.4     | )       |
| Excess tax benefit on exercise of stock options                              |   | 0.5      |    |                   | — |                       |   | —      |   |         | — |   |   | 0.5      |    |
| Cash used for financing activities                                           |   | (4.6     | )       |                   | — |                       |   | (1.0         | )      |         | — |   |   | (5.6     | )       |
| Effect of exchange rate changes on cash and cash equivalents                 |   | —  |    |                   | — |                       |   | 1.4          |   |         | — |   |   | 1.4      |    |
| Increase in cash and cash equivalents                                        |   | —  |    |                   | 45.1    |                       |   | 9.6          |   |         | — |   |   | 54.7     |    |
| Cash and cash equivalents at beginning of period                             |   | —  |    |                   | 203.3   |                       |   | 59.9         |   |         | — |   |   | 263.2    |    |
| Cash and cash equivalents at end of period                                   |   | $        | — |                   |    | $                          | 248.4  |         |   | $            | 69.5    |   |   | $        | — |   |   | $ | 317.9 |   |

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|                                                                              |        |         |         |                        |         |                            |        |              |        |              |         |        |        |        |         |        |        |   |       |        |
|------------------------------------------------------------------------------|--------|---------|---------|------------------------|---------|----------------------------|--------|--------------|--------|--------------|---------|--------|--------|--------|---------|--------|--------|---|-------|--------|
|                                                                         |   | Issuers |    | Guarantor Subsidiaries |    | Non-Guarantor Subsidiaries |   | Eliminations |   | Consolidated |
| Operating activities                                                         |   |    |    |                   |    |                       |   |         |   |         |
| Net (loss) income                                                            |   | $       | (16.7   | )                      |    | $                          | 7.6    |         |   | $            | (7.0    | )      |   | $      | (0.6    | )      |   | $ | (16.7 | )      |
| Non-cash adjustments                                                         |   | 1.6     |    |                   | 83.7    |                       |   | (2.5         | )      |         | 0.6     |   |   | 83.4   |    |
| Changes in operating assets and liabilities, including intercompany activity |   | 133.6   |    |                   | (81.4   | )                          |   | 21.7         |   |         | — |   |   | 73.9   |    |
| Cash provided by operating activities                                        |   | 118.5   |    |                   | 9.9     |                       |   | 12.2         |   |         | — |   |   | 140.6  |    |
| Investing activities                                                         |   |    |    |                   |    |                       |   |         |   |         |
| Expenditures for property, plant and equipment                               |   | — |    |                   | (10.8   | )                          |   | (2.8         | )      |         | — |   |   | (13.6  | )       |
| Cash used for investing activities                                           |   | — |    |                   | (10.8   | )                          |   | (2.8         | )      |         | — |   |   | (13.6  | )       |
| Financing activities                                                         |   |    |    |                   |    |                       |   |         |   |         |
| Repayments of short-term debt                                                |   | — |    |                   | — |                       |   | (1.1         | )      |         | — |   |   | (1.1   | )       |
| Repayments of long-term debt                                                 |   | (83.6   | )       |                   | (30.0   | )                          |   | (1.5         | )      |         | — |   |   | (115.1 | )       |
| Payment of financing fees                                                    |   | (4.9    | )       |                   | — |                       |   | —      |   |         | — |   |   | (4.9   | )       |
| Dividend payment to parent company                                           |   | (30.0   | )       |                   | — |                       |   | —      |   |         | — |   |   | (30.0  | )       |
| Cash used for financing activities                                           |   | (118.5  | )       |                   | (30.0   | )                          |   | (2.6         | )      |         | — |   |   | (151.1 | )       |
| Effect of exchange rate changes on cash and cash equivalents                 |   | — |    |                   | — |                       |   | 4.8          |   |         | — |   |   | 4.8    |    |
| (Decrease) increase in cash and cash equivalents                             |   | — |    |                   | (30.9   | )                          |   | 11.6         |   |         | — |   |   | (19.3  | )       |
| Cash and cash equivalents at beginning of period                             |   | — |    |                   | 232.5   |                       |   | 45.0         |   |         | — |   |   | 277.5  |    |
| Cash and cash equivalents at end of period                                   |   | $       | — |                   |    | $                          | 201.6  |         |   | $            | 56.6    |   |   | $      | — |   |   | $ | 258.2 |   |

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|                              |                      |        |                        |        |        |        |          |        |        |      |        |        |      |   |
|------------------------------|----------------------|--------|------------------------|--------|--------|--------|----------|--------|--------|------|--------|--------|------|---|
|                         | Quarter Ended        |   |                   |   |   |
|                         | January 1, 2011 |   | December 26, 2009 |   | Change |   | % Change |
| Process & Motion Control | $                    | 299.6  |                   |   | $      | 246.4  |     |   | $      | 53.2 |   |   | 21.6 | % |
| Water Management             | 120.2                |   |                   | 119.3  |   |   | 0.9      |   |   | 0.8  | %      |
|   Consolidated     | $                    | 419.8  |                   |   | $      | 365.7  |     |   | $      | 54.1 |   |   | 14.8 | % |

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|                                                                |                      |        |                        |        |        |        |          |         |        |        |        |        |      |         |
|----------------------------------------------------------------|----------------------|--------|------------------------|--------|--------|--------|----------|---------|--------|--------|--------|--------|------|---------|
|                                                           | Quarter Ended        |   |                   |   |   |
|                                                           | January 1, 2011 |   | December 26, 2009 |   | Change |   | % Change |
| Process & Motion Control                                   | $                    | 45.1   |                   |   | $      | 27.7   |     |    | $      | 17.4   |   |   | 62.8 |  % |
|     % of net sales                         | 15.1                 | %      |                   | 11.2   | %      |   | 3.9      |  % |   |   |
| Water Management                                               | 13.3                 |   |                   | 16.6   |   |   | (3.3     | )       |   | (19.9  | )%     |
|     % of net sales                         | 11.1                 | %      |                   | 13.9   | %      |   | (2.8     | )%      |   |   |
| Corporate                                                      | (8.0                 | )      |                   | (7.2   | )      |   | (0.8     | )       |   | (11.1  | )%     |
|     Consolidated                           | $                    | 50.4   |                   |   | $      | 37.1   |     |    | $      | 13.3   |   |   | 35.8 |  % |
|         % of net sales | 12.0                 | %      |                   | 10.1   | %      |   | 1.9      |  % |   |   |

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|                              |                      |         |                        |        |        |         |          |        |        |       |        |        |      |   |
|------------------------------|----------------------|---------|------------------------|--------|--------|---------|----------|--------|--------|-------|--------|--------|------|---|
|                         | Nine Months Ended    |    |                   |   |   |
|                         | January 1, 2011 |    | December 26, 2009 |   | Change |    | % Change |
| Process & Motion Control | $                    | 847.2   |                   |   | $      | 719.2   |     |   | $      | 128.0 |   |   | 17.8 | % |
| Water Management             | 392.2                |    |                   | 384.1  |   |    | 8.1      |   |   | 2.1   | %      |
|   Consolidated     | $                    | 1,239.4 |                   |   | $      | 1,103.3 |     |   | $      | 136.1 |   |   | 12.3 | % |

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|                                                                |                      |        |                        |        |        |        |          |         |        |        |         |        |      |         |
|----------------------------------------------------------------|----------------------|--------|------------------------|--------|--------|--------|----------|---------|--------|--------|---------|--------|------|---------|
|                                                           | Nine Months Ended    |   |                   |   |   |
|                                                           | January 1, 2011 |   | December 26, 2009 |   | Change |   | % Change |
| Process & Motion Control                                   | $                    | 121.9  |                   |   | $      | 66.3   |     |    | $      | 55.6   |    |   | 83.9 |  % |
|     % of net sales                         | 14.4                 | %      |                   | 9.2    | %      |   | 5.2      |  % |   |   |
| Water Management                                               | 54.9                 |   |                   | 58.2   |   |   | (3.3     | )       |   | (5.7   | )%      |
|     % of net sales                         | 14.0                 | %      |                   | 15.2   | %      |   | (1.2     | )%      |   |   |
| Corporate                                                      | (24.0                | )      |                   | (25.2  | )      |   | 1.2      |    |   | 4.8    |  % |
|     Consolidated                           | $                    | 152.8  |                   |   | $      | 99.3   |     |    | $      | 53.5   |    |   | 53.9 |  % |
|         % of net sales | 12.3                 | %      |                   | 9.0    | %      |   | 3.3      |  % |   |   |

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|                                               |                                          |        |                                         |         |                                        |        |                                         |        |        |         |        |        |   |       |        |
|-----------------------------------------------|------------------------------------------|--------|-----------------------------------------|---------|----------------------------------------|--------|-----------------------------------------|--------|--------|---------|--------|--------|---|-------|--------|
| (in millions)                                 | Nine months endedDecember 26, 2009  |   | Year endedMarch 31, 2010 |    | Nine months endedJanuary 1, 2011  |   | Twelve months endedJanuary 1, 2011 |
| Net loss                                      | $                                        | (16.7  | )                                       |    | $                                      | (5.6   | )                                       |   | $      | (88.1   | )      |   | $ | (77.0 | )      |
| Interest expense, net                         | 136.4                                    |   |                                    | 183.7   |                                   |   | 131.3                                   |   |   | 178.6   |   |
| Income tax (benefit) provision                | (21.7                                    | )      |                                    | (38.0   | )                                      |   | 6.0                                     |   |   | (10.3   | )      |
| Depreciation and amortization                 | 81.6                                     |   |                                    | 109.3   |                                   |   | 79.6                                    |   |   | 107.3   |   |
| EBITDA                                        | $                                        | 179.6  |                                    |    | $                                      | 249.4  |                                    |   | $      | 128.8   |   |   | $ | 198.6 |   |
| Adjustments to EBITDA:                        |                                     |   |                                    |    |                                   |   |                                    |
| Restructuring and other similar costs (1)     | 4.3                                      |   |                                    | 6.8     |                                   |   | —                                 |   |   | 2.5     |   |
| Loss on extinguishment of debt (2)            | —                                  |   |                                    | — |                                   |   | 100.8                                   |   |   | 100.8   |   |
| Stock option expense                          | 4.1                                      |   |                                    | 5.5     |                                   |   | 4.1                                     |   |   | 5.5     |   |
| Impact of inventory fair value adjustment (3) | 0.3                                      |   |                                    | 0.3     |                                   |   | —                                 |   |   | — |   |
| LIFO expense (4)                              | 3.4                                      |   |                                    | 1.7     |                                   |   | 3.0                                     |   |   | 1.3     |   |
| CDSOA Recovery (5)                            | (0.8                                     | )      |                                    | (0.8    | )                                      |   | (0.7                                    | )      |   | (0.7    | )      |
| Other expense, net (6)                        | 2.1                                      |   |                                    | 17.2    |                                   |   | 3.5                                     |   |   | 18.6    |   |
| Subtotal of adjustments to EBITDA             | $                                        | 13.4   |                                    |    | $                                      | 30.7   |                                    |   | $      | 110.7   |   |   | $ | 128.0 |   |
| Adjusted EBITDA                               | $                                        | 193.0  |                                    |    | $                                      | 280.1  |                                    |   | $      | 239.5   |   |   | $ | 326.6 |   |
| Fixed charges (7)                             |                                     |   |                                    |    |                                   |   | $                                       | 170.0  |   |
| Ratio of Adjusted EBITDA to Fixed Charges     |                                     |   |                                    |    |                                   |   | 1.92x                                   |   |
| Senior secured bank indebtedness (8)          |                                     |   |                                    |    |                                   |   | $                                       | 460.1  |   |
| Senior secured bank leverage ratio (9)        |                                     |   |                                    |    |                                   |   | 1.41x                                   |   |

|                             |                                                                                                                                                                                                                 |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Represents costs incurred by the Company to reduce operating costs and improve profitability. These charges are primarily comprised of work force reductions, asset impairments and contract termination costs. |

|                             |                                                                                                                                                                                                                                    |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | The loss on extinguishment of debt is the result of the cash tender offer that we completed during the first quarter of fiscal 2011 as detailed in the “Liquidity and Capital Resources - Indebtedness” section below. |

|                             |                                                                                                                                                                                                             |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)     | Represents the incremental unfavorable expenses of selling inventories that had been adjusted to fair value in purchase accounting as a result of the acquisition of Fontaine-Alliance Inc. and affiliates. |

|                             |                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)     | Last-in first-out (LIFO) inventory adjustments are excluded in calculating Adjusted EBITDA as defined in our senior secured credit facilities. |

|                             |                                                                                |
|-----------------------------|--------------------------------------------------------------------------------|
| (5)     | Recovery under Continued Dumping and Subsidy Offset Act (“CDSOA”). |

|                             |                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------|
| (6)     | Other expense, net for the twelve months ended January 1, 2011, consists of: |

|                                              |                                          |        |                                         |        |                                        |        |                                         |        |        |      |        |        |   |      |        |
|----------------------------------------------|------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------|--------|-----------------------------------------|--------|--------|------|--------|--------|---|------|--------|
| (in millions)                                | Nine months endedDecember 26, 2009  |   | Year EndedMarch 31, 2010 |   | Nine months endedJanuary 1, 2011  |   | Twelve months endedJanuary 1, 2011 |
| Management fee expense                       | $                                        | 2.3    |                                    |   | $                                      | 3.0    |                                    |   | $      | 2.3  |   |   | $ | 3.0  |   |
| (Gain) loss on foreign currency transactions | (7.9                                     | )      |                                    | 4.3    |                                   |   | 3.4                                     |   |   | 15.6 |   |
| Loss on the sale of fixed assets             | 0.6                                      |   |                                    | 2.5    |                                   |   | 1.4                                     |   |   | 3.3  |   |
| Income in unconsolidated affiliates          | (0.3                                     | )      |                                    | (0.5   | )                                      |   | (4.0                                    | )      |   | (4.2 | )      |
| Other expense                                | 7.4                                      |   |                                    | 7.9    |                                   |   | 0.4                                     |   |   | 0.9  |   |
| Total                                        | $                                        | 2.1    |                                    |   | $                                      | 17.2   |                                    |   | $      | 3.5  |   |   | $ | 18.6 |   |

|                             |                                                                                                                                                                                        |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7)     | The indentures governing our senior notes define fixed charges as interest expense excluding the amortization or write-off of deferred financing costs for the trailing four quarters. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8)     | The senior secured credit facilities define senior secured bank debt as consolidated secured indebtedness for borrowed money, less unrestricted cash, which was $301.9 million (as defined by the senior secured credit facilities) at January 1, 2011. Senior secured bank debt reflected in the table consists of borrowings under our senior secured credit facilities. |

|                             |                                                                                                                                                                                       |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9)     | The senior secured credit facilities define the senior secured bank leverage ratio as the ratio of senior secured bank debt to Adjusted EBITDA for the trailing four fiscal quarters. |

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|                                            |        |                               |         |                                                          |         |                   |        |         |        |   |         |        |
|--------------------------------------------|--------|-------------------------------|---------|----------------------------------------------------------|---------|-------------------|--------|---------|--------|---|---------|--------|
|                                       |   | Total Debt at January 1, 2011 |    | Short-term Debt and Current Maturities of Long-Term Debt |    | Long-term Portion |
| Term loans                                 |   | $                             | 762.0   |                                                     |    | $                 | 2.0    |    |   | $ | 760.0   |   |
| 8.50% Senior notes due 2018                |   | 1,145.0                       |    |                                                     | — |              |   | 1,145.0 |   |
| 8.875% Senior notes due 2016               |   | 2.0                           |    |                                                     | — |              |   | 2.0     |   |
| 11.75% Senior subordinated notes due 2016  |   | 300.0                         |    |                                                     | — |              |   | 300.0   |   |
| 10.125% Senior subordinated notes due 2012 |   | 0.3                           |    |                                                     | — |              |   | 0.3     |   |
| Other (1)                                  |   | 12.8                          |    |                                                     | 9.6     |              |   | 3.2     |   |
| Total Debt                                 |   | $                             | 2,222.1 |                                                     |    | $                 | 11.6   |    |   | $ | 2,210.5 |   |

|                             |                                                                                                                                                                                                                      |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Includes, at January 1, 2011, $4.7 million outstanding principal related to a seller-financed note payable incurred in connection with the acquisition of Mecánica Falk on August 31, 2010 (see Note 2). |

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|                                            |                                              |        |                                  |         |             |         |        |        |        |         |        |        |        |      |        |
|--------------------------------------------|----------------------------------------------|--------|----------------------------------|---------|-------------|---------|--------|--------|--------|---------|--------|--------|--------|------|--------|
|                                       | Financial Statement Impact         |
|                                       | Balance Sheet -Debit (Credit) |   | Statement ofOperations      |    |        |
|                                       | Deferred Financing Costs (1)            |   | Original Issue Discount (2) |    | Expense (3) |    | Total  |
| Cash transaction costs:                    |                                         |   |                             |    |        |    |   |
| Third party transaction costs              | $                                            | 14.6   |                             |    | $           | — |   |   | $      | — |   |   | $      | 14.6 |   |
| Bond tender premiums (paid to lenders)     | —                                      |   |                             | — |        |    | 63.5   |   |   | 63.5    |   |
| Total cash transaction costs               | 14.6                                         |   |                             | — |        |    | 63.5   |   |   | $       | 78.1   |   |
| Non-cash write-off of unamortized amounts: |                                         |   |                             |    |        |    |   |
| Deferred financing costs                   | (25.4                                        | )      |                             | — |        |    | 25.4   |   |   |    |
| Net original issue discount                | —                                      |   |                             | (11.9   | )           |    | 11.9   |   |   |    |
| Net financial statement impact             | $                                            | (10.8  | )                                |    | $           | (11.9   | )      |   | $      | 100.8   |   |   |   |

|                             |                                                                                |
|-----------------------------|--------------------------------------------------------------------------------|
| (1)     | Recorded as a component of other assets within the consolidated balance sheet. |

|                             |                                                                                                    |
|-----------------------------|----------------------------------------------------------------------------------------------------|
| (2)     | Recorded as a reduction in the face value of long-term debt within the consolidated balance sheet. |

|                             |                                                                                                         |
|-----------------------------|---------------------------------------------------------------------------------------------------------|
| (3)     | Recorded as a component of other non-operating expense within the consolidated statement of operations. |

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|        |                       |        |                                  |                                                     |
|--------|-----------------------|--------|----------------------------------|-----------------------------------------------------|
|   |                  |   |                             |                                                |
|   |                  |   | RBS GLOBAL, INC. and REXNORD LLC |
|   |                  |   |                             |                                                |
| Date:  | February 3, 2011 |   | By:                              | /S/     MICHAEL H. SHAPIRO |
|   |                  |   | Name:                            | Michael H. Shapiro                                  |
|   |                  |   | Title:                           | Vice President and Chief Financial Officer          |

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|                                    |                                                                                                                                                                                |        |               |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|
| ExhibitNo.                         | Description                                                                                                                                                                    |   | FiledHerewith |
|                               |                                                                                                                                                                           |   |          |
| 31.1      | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.   |   | X             |
|                               |                                                                                                                                                                           |   |          |
| 31.2      | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.   |   | X             |
|                               |                                                                                                                                                                           |   |          |
| 32.1      | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   | X             |