|        |
|--------|
|        |  |  |  |
|   | X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |

|        |
|--------|
|        |  |  |  |
|   |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |

|        |
|--------|
|        |  |  |
|   | CLARCOR Inc. |   |
|   | (Exact name of registrant as specified in its charter) |   |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |
| DELAWARE                                                        |   | 36-0922490 |
| (State or other jurisdiction ofincorporation or organization)   |   | (I.R.S. EmployerIdentification No.) |
|                                                            |   |   |
| 840 Crescent Centre Drive, Suite 600, Franklin, Tennessee 37067 |
| (Address of principal executive offices)                        |

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |
| Registrant’s telephone number, including area code: | 615-771-3100 |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |
| No Change                                                                           |
| (Former name, former address and former fiscal year, if changed since last report.) |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |
| Large accelerated filer | X | Accelerated filer |   | Non-accelerated filer |   | Smaller reporting company |   |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |
| TABLE OF CONTENTS                     |   | PAGE |
|                                  |   |   |
| Part I. FINANCIAL INFORMATION         |   |   |
| Item 1.                               | Financial Statements |   | 3 |
| Item 2.                               | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 22 |
| Item 3.                               | Quantitative and Qualitative Disclosures About Market Risk |   | 33 |
| Item 4.                               | Controls and Procedures |   | 33 |
|                                  |   |   |   |
| Part II.  OTHER INFORMATION |   |   |
| Item 1.                               | Legal Proceedings |   | 33 |
| Item 1A.                              | Risk Factors |   | 33 |
| Item 2.                               | Unregistered Sales of Equity Securities and Use of Proceeds |   | 34 |
| Item 3.                               | Defaults Upon Senior Securities |   | * |
| Item 4.                               | Mine Safety Disclosures |   | * |
| Item 5.                               | Other Information |   | * |
| Item 6.                               | Exhibits |   | 34 |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |
|                                                          |   | Three Months Ended |
|                                                          |   | March 3, 2012 |   | February 26, 2011 |
| Net sales                                                     |   | $ | 257,264 |  |   | $ | 245,720 |  |
| Cost of sales                                                 |   | 171,049 |  |   | 164,767 |  |
|                                                          |   |   |   |   |
| Gross profit                                                  |   | 86,215 |  |   | 80,953 |  |
|                                                          |   |   |   |   |
| Selling and administrative expenses                           |   | 51,903 |  |   | 49,662 |  |
|                                                          |   |   |   |   |
| Operating profit                                              |   | 34,312 |  |   | 31,291 |  |
|                                                          |   |   |   |   |
| Other income (expense):                                       |   |   |   |   |
| Interest expense                                              |   | (100 | ) |   | (44 | ) |
| Interest income                                               |   | 134 |  |   | 37 |  |
| Other, net                                                    |   | 612 |  |   | (200 | ) |
|                                                          |   | 646 |  |   | (207 | ) |
|                                                          |   |   |   |   |
| Earnings before income taxes                                  |   | 34,958 |  |   | 31,084 |  |
|                                                          |   |   |   |   |
| Provision for income taxes                                    |   | 11,466 |  |   | 9,163 |  |
|                                                          |   |   |   |   |
| Net earnings                                                  |   | 23,492 |  |   | 21,921 |  |
|                                                          |   |   |   |   |
| Net earnings attributable to noncontrolling interests         |   | (13 | ) |   | (40 | ) |
|                                                          |   |   |   |   |
| Net earnings attributable to CLARCOR Inc.                     |   | $ | 23,479 |  |   | $ | 21,881 |  |
|                                                          |   |   |   |   |
| Net earnings per share attributable to CLARCOR Inc. - Basic   |   | $ | 0.47 |  |   | $ | 0.43 |  |
| Net earnings per share attributable to CLARCOR Inc. - Diluted |   | $ | 0.46 |  |   | $ | 0.43 |  |
|                                                          |   |   |   |   |
| Weighted average number of shares outstanding - Basic         |   | 50,411,196 |  |   | 50,568,499 |  |
| Weighted average number of shares outstanding - Diluted       |   | 51,094,385 |  |   | 51,287,238 |  |
|                                                          |   |   |   |   |
| Dividends paid per share                                      |   | $ | 0.1200 |  |   | $ | 0.1050 |  |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |
|                                                                                        | March 3, 2012 |   | December 3, 2011 |
| ASSETS                                                                                      |   |   |   |
| Current assets:                                                                             |   |   |   |
| Cash and cash equivalents                                                                   | $ | 142,063 |  |   | $ | 155,999 |  |
| Restricted cash                                                                             | 1,007 |  |   | 1,105 |  |
| Accounts receivable, less allowance for losses of $10,489 and $9,795, respectively          | 201,758 |  |   | 206,664 |  |
| Inventories                                                                                 | 208,578 |  |   | 200,274 |  |
| Deferred income taxes                                                                       | 25,580 |  |   | 25,974 |  |
| Income taxes receivable                                                                     | 704 |  |   | 3,373 |  |
| Prepaid expenses and other current assets                                                   | 7,596 |  |   | 7,510 |  |
| Total current assets                                                                        | 587,286 |  |   | 600,899 |  |
|                                                                                        |   |   |   |
| Plant assets, at cost, less accumulated depreciation of $299,454 and $293,111, respectively | 188,134 |  |   | 184,992 |  |
| Assets held for sale                                                                        | 2,000 |  |   | 2,000 |  |
| Goodwill                                                                                    | 235,941 |  |   | 235,530 |  |
| Acquired intangible assets, less accumulated amortization                                   | 97,636 |  |   | 98,674 |  |
| Deferred income taxes                                                                       | 621 |  |   | 749 |  |
| Other noncurrent assets                                                                     | 14,120 |  |   | 12,089 |  |
| Total assets                                                                                | $ | 1,125,738 |  |   | $ | 1,134,933 |  |
|                                                                                        |   |   |   |
| LIABILITIES                                                                                 |   |  |   |   |  |
| Current liabilities:                                                                        |   |  |   |   |  |
| Current portion of long-term debt                                                           | $ | 1,176 |  |   | $ | 1,289 |  |
| Accounts payable and accrued liabilities                                                    | 133,342 |  |   | 155,585 |  |
| Income taxes payable                                                                        | 2,846 |  |   | 3,176 |  |
| Total current liabilities                                                                   | 137,364 |  |   | 160,050 |  |
|                                                                                        |   |   |   |
| Long-term debt, less current portion                                                        | 16,026 |  |   | 15,981 |  |
| Long-term pension and postretirement healthcare benefits liabilities                        | 61,317 |  |   | 74,524 |  |
| Deferred income taxes                                                                       | 40,264 |  |   | 36,194 |  |
| Other long-term liabilities                                                                 | 10,340 |  |   | 11,069 |  |
| Total liabilities                                                                           | 265,311 |  |   | 297,818 |  |
|                                                                                        |   |   |   |
| Contingencies (Note 11)                                                                     |  |  |   |  |  |
| Redeemable noncontrolling interests                                                         | 1,585 |  |   | 1,557 |  |
|                                                                                        |   |   |   |
| SHAREHOLDERS' EQUITY                                                                        |   |  |   |   |  |
| Capital stock                                                                               | 50,262 |  |   | 50,145 |  |
| Capital in excess of par value                                                              | 21,981 |  |   | 19,453 |  |
| Accumulated other comprehensive loss                                                        | (41,331 | ) |   | (44,391 | ) |
| Retained earnings                                                                           | 827,083 |  |   | 809,520 |  |
| Total CLARCOR Inc. equity                                                                   | 857,995 |  |   | 834,727 |  |
| Noncontrolling interests                                                                    | 847 |  |   | 831 |  |
| Total shareholders' equity                                                                  | 858,842 |  |   | 835,558 |  |
| Total liabilities and shareholders' equity                                                  | $ | 1,125,738 |  |   | $ | 1,134,933 |  |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |
|                                                                 | Three Months Ended |
|                                                                 | March 3, 2012 |   | February 26, 2011 |
| Cash flows from operating activities:                                |   |   |   |
| Net earnings                                                         | $ | 23,492 |  |   | $ | 21,921 |  |
| Depreciation                                                         | 6,568 |  |   | 6,998 |  |
| Amortization                                                         | 1,426 |  |   | 1,331 |  |
| Other noncash items                                                  | (102 | ) |   | (94 | ) |
| Net loss (gain) on disposition of plant assets                       | 16 |  |   | (3 | ) |
| Stock-based compensation expense                                     | 2,906 |  |   | 2,605 |  |
| Excess tax benefit from stock-based compensation                     | (2,302 | ) |   | (657 | ) |
| Deferred income taxes                                                | 9,522 |  |   | (367 | ) |
| Change in assets and liabilities, excluding short-term investments   | (40,301 | ) |   | (22,904 | ) |
| Net cash provided by operating activities                            | 1,225 |  |   | 8,830 |  |
|                                                                 |   |   |   |
| Cash flows from investing activities:                                |   |  |   |   |  |
| Restricted cash                                                      | 51 |  |   | 46 |  |
| Business acquisitions, net of cash acquired                          | (2,144 | ) |   | (10,455 | ) |
| Additions to plant assets                                            | (9,797 | ) |   | (3,492 | ) |
| Proceeds from disposition of plant assets                            | 59 |  |   | 34 |  |
| Investment in affiliates                                             | (132 | ) |   | — |  |
| Net cash used in investing activities                                | (11,963 | ) |   | (13,867 | ) |
|                                                                 |   |   |   |
| Cash flows from financing activities:                                |   |  |   |   |  |
| Payments on long-term debt                                           | (26 | ) |   | (1,574 | ) |
| Sale of capital stock under stock option and employee purchase plans | 2,958 |  |   | 2,508 |  |
| Purchase of treasury stock                                           | (3,635 | ) |   | (1,947 | ) |
| Excess tax benefit from stock-based compensation                     | 2,302 |  |   | 657 |  |
| Cash dividends paid                                                  | (6,046 | ) |   | (5,308 | ) |
| Net cash used in financing activities                                | (4,447 | ) |   | (5,664 | ) |
| Net effect of exchange rate changes on cash                          | 1,249 |  |   | 1,048 |  |
| Net change in cash and cash equivalents                              | (13,936 | ) |   | (9,653 | ) |
| Cash and cash equivalents, beginning of period                       | 155,999 |  |   | 117,022 |  |
| Cash and cash equivalents, end of period                             | $ | 142,063 |  |   | $ | 107,369 |  |
|                                                                 |   |   |   |
| Cash paid during the period for:                                     |   |  |   |   |  |
| Interest                                                             | $ | 68 |  |   | $ | 36 |  |
| Income taxes, net of refunds                                         | $ | 2,879 |  |   | $ | 1,740 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                                             |
|----|---------------------------------------------|
| 1. | CONSOLIDATED CONDENSED FINANCIAL STATEMENTS |

Note 13

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
|              | March 3, 2012 |   | December 3, 2011 |
| Raw materials     | $ | 73,404 |  |   | $ | 72,289 |  |
| Work in process   | 32,457 |  |   | 30,957 |  |
| Finished products | 102,717 |  |   | 97,028 |  |
|  Inventories | $ | 208,578 |  |   | $ | 200,274 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                                                                            |
|----|----------------------------------------------------------------------------|
| 2. | BUSINESS ACQUISITIONS, INVESTMENTS AND REDEEMABLE NONCONTROLLING INTERESTS |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

Note 11Note 6)Note 6)

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                                              |
|----|----------------------------------------------|
| 3. | INCENTIVE PLANS AND STOCK-BASED COMPENSATION |

|                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                          |  |  |  |  |  |  |  |  |
|                                                                                                                                                     |   | Three Months Ended |
|                                                                                                                                                     |   | March 3, 2012 |   | February 26, 2011 |
| Pre-tax compensation expense                                                                                                                             |   | $ | 2,127 |  |   | $ | 1,873 |  |
| Deferred tax benefits                                                                                                                                    |   | (782 | ) |   | (688 | ) |
| Excess tax benefits associated with tax deductions over the amount of compensation expense recognized in the consolidated condensed financial statements |   | 2,227 |  |   | 657 |  |
| Fair value of stock options on date of grant                                                                                                             |   | 5,546 |  |   | 4,921 |  |
| Total intrinsic value of stock options exercised                                                                                                         |   | 7,000 |  |   | 2,048 |  |
| Cash received upon exercise of stock options                                                                                                             |   | 2,675 |  |   | 2,191 |  |
| Tax benefit realized from exercise of stock options, net                                                                                                 |   | 2,222 |  |   | 655 |  |
| Addition to capital in excess of par value due to exercise of stock options                                                                              |   | 3,287 |  |   | 2,750 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |
|                             | Options GrantedUnder IncentivePlans |   | WeightedAverageExercise Price |
| Outstanding at beginning of year | 2,907,533 |   | $ | 32.39 |  |
| Granted                          | 453,350 |   | $ | 49.91 |  |
| Exercised                        | (263,344) |   | $ | 24.27 |  |
| Surrendered                      | (7,831) |   | $ | 36.48 |  |
| Outstanding at end of period     | 3,089,708 |   | $ | 35.64 |  |
|                             |   |   |   |
| Exercisable at end of period     | 2,058,631 |   | $ | 31.82 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   | Options Outstanding |   | Options Exercisable |
| Range of ExercisePrices |   | Number |   | WeightedAverageExercisePrice |   | Intrinsic Value |   | WeightedAverageRemaining Lifein Years |   | Number |   | WeightedAverageExercisePrice |   | Intrinsic Value |   | WeightedAverageRemaining Lifein Years |
| $16.15 - $22.80                   |   | 169,475 |   | $ | 21.03 |  |   | $ | 4,861 |  |   | 1.66 |   | 169,475 |   | $ | 21.03 |  |   | $ | 4,861 |  |   | 1.66 |
| $25.31 - $38.06                   |   | 1,993,546 |   | $ | 31.90 |  |   | 35,512 |  |   | 5.49 |   | 1,728,018 |   | $ | 31.81 |  |   | 30,934 |  |   | 5.18 |
| $40.73 - $44.07                   |   | 473,587 |   | $ | 43.00 |  |   | 3,176 |  |   | 8.83 |   | 161,138 |   | $ | 43.31 |  |   | 1,031 |  |   | 8.90 |
| $49.91                            |   | 453,100 |   | $ | 49.91 |  |   | — |  |   | 9.79 |   | 0 |   | $ | — |  |   | — |  |   | 0.00 |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | 3,089,708 |   | $ | 35.64 |  |   | $ | 43,549 |  |   | 6.42 |   | 2,058,631 |   | $ | 31.82 |  |   | $ | 36,826 |  |   | 5.18 |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended |
|                                                                            | March 3, 2012 |   | February 26, 2011 |
| Weighted average fair value per option at the date of grant for options granted | $ | 12.23 |  |   | $ | 11.39 |  |
| Risk-free interest rate                                                         | 1.28 | % |   | 2.42 | % |
| Expected dividend yield                                                         | 0.96 | % |   | 0.98 | % |
| Expected volatility factor                                                      | 26.79 | % |   | 25.84 | % |
| Expected option term in years                                                   | 5.8 |  |   | 6.1 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                          |  |  |  |  |  |  |  |  |
|                                                                                                                                                     |   | Three Months Ended |
|                                                                                                                                                     |   | March 3, 2012 |   | February 26, 2011 |
| Pre-tax compensation expense                                                                                                                             |   | $ | 779 |  |   | $ | 732 |  |
| Deferred tax benefits                                                                                                                                    |   | (286 | ) |   | (269 | ) |
| Excess tax benefits associated with tax deductions over the amount of compensation expense recognized in the consolidated condensed financial statements |   | 75 |  |   | 127 |  |
| Fair value of restricted stock unit awards on date of grant                                                                                              |   | 1,489 |  |   | 1,263 |  |
| Fair value of restricted stock unit awards vested                                                                                                        |   | 997 |  |   | 898 |  |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |
|                           | Units |   | WeightedAverageGrant DateFair Value |
| Nonvested at beginning of year | 71,545 |  |   | $ | 36.95 |  |
| Granted                        | 29,839 |  |   | $ | 49.91 |  |
| Vested                         | (27,710 | ) |   | $ | 35.99 |  |
| Nonvested at end of period     | 73,674 |  |   | $ | 42.56 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                        |
|----|------------------------|
| 4. | COMPREHENSIVE EARNINGS |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | Total Comprehensive Earnings (Loss), Net of Tax: |
|                                    | Net Earnings |   | Foreign Currency andOther Adjustments |   | Pension LiabilityAdjustments |   | TotalComprehensiveEarnings (Loss) |
| Three Months Ended                      |   |   |   |   |   |   |   |
| March 3, 2012                      |   |   |   |   |   |   |   |
| CLARCOR Inc.                            | $ | 23,479 |  |   | $ | 1,979 |  |   | $ | 1,081 |  |   | $ | 26,539 |  |
| Non-redeemable noncontrolling interests | (34 | ) |   | 50 |  |   | — |  |   | 16 |  |
| Redeemable noncontrolling interests     | 47 |  |   | (19 | ) |   | — |  |   | 28 |  |
|                                    | $ | 23,492 |  |   | $ | 2,010 |  |   | $ | 1,081 |  |   | $ | 26,583 |  |
|                                    |   |   |   |   |   |   |   |
| February 26, 2011                  |   |   |   |   |   |   |   |
| CLARCOR Inc.                            | $ | 21,881 |  |   | $ | 4,823 |  |   | $ | 1,528 |  |   | $ | 28,232 |  |
| Non-redeemable noncontrolling interests | 52 |  |   | — |  |   | — |  |   | 52 |  |
| Redeemable noncontrolling interests     | (12 | ) |   | — |  |   | — |  |   | (12 | ) |
|                                    | $ | 21,921 |  |   | $ | 4,823 |  |   | $ | 1,528 |  |   | $ | 28,272 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |
|                                 | March 3, 2012 |   | December 3, 2011 |
| Pension liability, net of tax        | $ | (43,575 | ) |   | $ | (44,656 | ) |
| Translation adjustments, net of tax  | 2,244 |  |   | 265 |  |
| Accumulated other comprehensive loss | $ | (41,331 | ) |   | $ | (44,391 | ) |

|    |                                         |
|----|-----------------------------------------|
| 5. | GOODWILL AND ACQUIRED INTANGIBLE ASSETS |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Engine/MobileFiltration |   | Industrial/EnvironmentalFiltration |   | Packaging |   | Total |
| Goodwill at beginning of year    | $ | 21,087 |  |   | $ | 214,443 |  |   | $ | — |  |   | $ | 235,530 |  |
| Acquisition                      | — |  |   | 257 |  |   | — |  |   | 257 |  |
| Currency translation adjustments | 51 |  |   | 103 |  |   | — |  |   | 154 |  |
| Goodwill at end of period        | $ | 21,138 |  |   | $ | 214,803 |  |   | $ | — |  |   | $ | 235,941 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      | Engine/MobileFiltration |   | Industrial/EnvironmentalFiltration |   | Packaging |   | Total |
| March 3, 2012                                        |   |   |   |   |   |   |   |
| Indefinite Lived Intangibles:                             |   |   |   |   |   |   |   |
| Trademarks - indefinite lived                             | $ | 603 |  |   | $ | 41,848 |  |   | $ | — |  |   | $ | 42,451 |  |
|                                                      |   |   |   |   |   |   |   |
| Finite Lived Intangibles:                                 |   |   |   |   |   |   |   |
| Trademarks, gross - finite lived                          | $ | 304 |  |   | $ | 488 |  |   | $ | — |  |   | $ | 792 |  |
| Accumulated amortization                                  | (78 | ) |   | (305 | ) |   | — |  |   | (383 | ) |
| Trademarks, net - finite lived                            | $ | 226 |  |   | $ | 183 |  |   | $ | — |  |   | $ | 409 |  |
|                                                      |   |   |   |   |   |   |   |
| Customer relationships, gross                             | $ | 4,260 |  |   | $ | 43,097 |  |   | $ | — |  |   | $ | 47,357 |  |
| Accumulated amortization                                  | (1,576 | ) |   | (14,333 | ) |   | — |  |   | (15,909 | ) |
| Customer relationships, net                               | $ | 2,684 |  |   | $ | 28,764 |  |   | $ | — |  |   | $ | 31,448 |  |
|                                                      |   |   |   |   |   |   |   |
| Other acquired intangibles, gross                         | $ | 243 |  |   | $ | 39,685 |  |   | $ | — |  |   | $ | 39,928 |  |
| Accumulated amortization                                  | (243 | ) |   | (16,357 | ) |   | — |  |   | (16,600 | ) |
| Other acquired intangibles, net                           | $ | — |  |   | $ | 23,328 |  |   | $ | — |  |   | $ | 23,328 |  |
|                                                      |   |   |   |   |   |   |   |
| Total finite lived intangible assets, net                 | $ | 2,910 |  |   | $ | 52,275 |  |   | $ | — |  |   | $ | 55,185 |  |
|                                                      |   |   |   |   |   |   |   |
| Acquired intangible assets, less accumulated amortization | $ | 3,513 |  |   | $ | 94,123 |  |   | $ | — |  |   | $ | 97,636 |  |

|                  |
|------------------|
|                  |  |  |  |
| Fiscal year 2012 | $ | 5,715 |  |
| Fiscal year 2013 | 5,609 |  |
| Fiscal year 2014 | 5,407 |  |
| Fiscal year 2015 | 5,378 |  |
| Fiscal year 2016 | 5,270 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                         |
|----|-------------------------|
| 6. | FAIR VALUE MEASUREMENTS |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | Level 1 – Quoted active market prices for identical assets |

|         |                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2 – Significant other observable inputs, such as quoted prices for similar (but not identical) instruments in active markets, quoted prices for identical or similar instruments in markets which are not active and model determined valuations in which all significant inputs or significant value-drivers are observable in active markets |

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 3 – Significant unobservable inputs, such as model determined valuations in which one or more significant inputs or significant value-drivers are unobservable |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Fair Value Measurements at Reporting Date |
|                                                                  | Total |   | Level 1 |   | Level 2 |   | Level 3 |
| March 3, 2012                                                    |   |   |   |   |   |   |   |
| Restricted trust, included in Other noncurrent assets                 |   |   |   |   |   |   |   |
| Mutual fund investments - equities                                    | $ | 644 |  |   | $ | 644 |  |   | $ | — |  |   | $ | — |  |
| Mutual fund investments - bonds                                       | 478 |  |   | 478 |  |   | — |  |   | — |  |
| Cash and equivalents                                                  | 27 |  |   | 27 |  |   | — |  |   | — |  |
| Total restricted trust                                                | $ | 1,149 |  |   | $ | 1,149 |  |   | $ | — |  |   | $ | — |  |
|                                                                  |   |   |   |   |   |   |   |
| TransWeb contingent earn-out, included in Other long-term liabilities | $ | 1,186 |  |   | $ | — |  |   | $ | — |  |   | $ | 1,186 |  |
|                                                                  |   |   |   |   |   |   |   |
| December 3, 2011                                                 |   |  |   |   |  |   |   |  |   |   |  |
| Restricted trust, included in Other noncurrent assets                 |   |  |   |   |  |   |   |  |   |   |  |
| Mutual fund investments - equities                                    | $ | 659 |  |   | $ | 659 |  |   | $ | — |  |   | $ | — |  |
| Mutual fund investments - bonds                                       | 472 |  |   | 472 |  |   | — |  |   | — |  |
| Cash and equivalents                                                  | — |  |   | — |  |   | — |  |   | — |  |
| Total restricted trust                                                | $ | 1,131 |  |   | $ | 1,131 |  |   | $ | — |  |   | $ | — |  |
|                                                                  |   |   |   |   |   |   |   |
| TransWeb contingent earn-out, included in Other long-term liabilities | $ | 1,123 |  |   | $ | — |  |   | $ | — |  |   | $ | 1,123 |  |

Note 2

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                                                      |
|----|------------------------------------------------------|
| 7. | ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND GUARANTEES |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |
|                                     | March 3, 2012 |   | December 3, 2011 |
| Accounts payable                         | $ | 62,503 |  |   | $ | 64,701 |  |
| Accrued salaries, wages and commissions  | 8,030 |  |   | 24,760 |  |
| Compensated absences                     | 8,024 |  |   | 8,530 |  |
| Accrued insurance liabilities            | 8,955 |  |   | 9,017 |  |
| Customer deposits                        | 11,071 |  |   | 8,727 |  |
| Other accrued liabilities                | 34,759 |  |   | 39,850 |  |
| Accounts payable and accrued liabilities | $ | 133,342 |  |   | $ | 155,585 |  |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |
|                                              | Three Months Ended |
|                                              | March 3, 2012 |   | February 26, 2011 |
| Warranty accrual at beginning of period           | $ | 2,580 |  |   | $ | 3,499 |  |
| Accruals for warranties issued during the period  | 109 |  |   | 264 |  |
| Adjustments related to pre-existing warranties    | (47 | ) |   | (553 | ) |
| Settlements made during the period                | (120 | ) |   | (170 | ) |
| Other adjustments, including currency translation | (6 | ) |   | 39 |  |
| Warranty accrual at end of period                 | $ | 2,516 |  |   | $ | 3,079 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|    |                |
|----|----------------|
| 8. | LONG-TERM DEBT |

|    |                                        |
|----|----------------------------------------|
| 9. | PENSION AND OTHER POSTRETIREMENT PLANS |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |
|                                              |   | Three Months Ended |
|                                              |   | March 3, 2012 |   | February 26, 2011 |
| Pension Benefits:                                 |   |   |   |   |
| Components of net periodic benefit cost (income): |   |   |   |   |
| Service cost                                      |   | $ | 530 |  |   | $ | 492 |  |
| Interest cost                                     |   | 1,979 |  |   | 2,010 |  |
| Expected return on plan assets                    |   | (2,103 | ) |   | (1,920 | ) |
| Settlement cost                                   |   | — |  |   | 1,368 |  |
| Amortization of unrecognized:                     |   |   |   |   |
| Prior service cost                                |   | (3 | ) |   | (99 | ) |
| Net actuarial loss (gain)                         |   | 1,909 |  |   | 1,157 |  |
| Net periodic benefit cost (income)                |   | $ | 2,312 |  |   | $ | 3,008 |  |
|                                              |   |   |   |   |
| Cash contributions                                |   | $ | 13,353 |  |   | $ | 2,038 |  |
|                                              |   |   |   |   |
| Postretirement Healthcare Benefits:               |   |   |   |   |
| Components of net periodic benefit cost (income): |   |   |   |   |
| Interest cost                                     |   | $ | 4 |  |   | $ | 6 |  |
| Amortization of unrecognized:                     |   |   |   |   |
| Prior service cost                                |   | (31 | ) |   | (31 | ) |
| Net actuarial loss (gain)                         |   | (30 | ) |   | (32 | ) |
| Net periodic benefit cost (income)                |   | $ | (57 | ) |   | $ | (57 | ) |
|                                              |   |   |   |   |
| Cash contributions                                |   | $ | 25 |  |   | $ | 30 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |
| U.S. Qualified Plans                   | $ | 18,968 |  |
| U.S. Combined Nonqualified Plans       | 219 |  |
| Non-U.S. Plan                          | 415 |  |
| Postretirement Healthcare Benefit Plan | 99 |  |
| Total expected contributions           | $ | 19,701 |  |

Note 6

|     |              |
|-----|--------------|
| 10. | INCOME TAXES |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |
|                                           | Three Months Ended |
|                                           | March 3, 2012 |   | February 26, 2011 |
| Unrecognized tax benefits at beginning of year | $ | 3,015 |  |   | $ | 2,783 |  |
| Additions for current period tax positions     | 88 |  |   | 133 |  |
| Changes in interest and penalties              | 72 |  |   | 31 |  |
| Unrecognized tax benefits at end of period     | $ | 3,175 |  |   | $ | 2,947 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|     |               |
|-----|---------------|
| 11. | CONTINGENCIES |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

Note 7

Note 2Note 7

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|     |                                                    |
|-----|----------------------------------------------------|
| 12. | EARNINGS PER SHARE AND TREASURY STOCK TRANSACTIONS |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |
|                                                          |   | Three Months Ended |
|                                                          |   | March 3, 2012 |   | February 26, 2011 |
| Weighted average number of shares outstanding - Basic         |   | 50,411,196 |  |   | 50,568,499 |  |
| Dilutive effect of stock-based arrangements                   |   | 683,189 |  |   | 718,739 |  |
| Weighted average number of shares outstanding - Diluted       |   | 51,094,385 |  |   | 51,287,238 |  |
|                                                          |   |   |   |   |
| Net earnings attributable to CLARCOR Inc.                     |   | $ | 23,479 |  |   | $ | 21,881 |  |
|                                                          |   |   |   |   |
| Net earnings per share attributable to CLARCOR Inc. - Basic   |   | $ | 0.47 |  |   | $ | 0.43 |  |
| Net earnings per share attributable to CLARCOR Inc. - Diluted |   | $ | 0.46 |  |   | $ | 0.43 |  |

|                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                        |  |  |  |  |  |  |  |  |
|                                                                                                                                                   |   | Three Months Ended |
|                                                                                                                                                   |   | March 3, 2012 |   | February 26, 2011 |
| Number of antidilutive options with exercise prices greater than the average market price excluded from the computation of dilutive earnings per share |   | 0 |  |   | 0 |  |
| Common stock repurchased and retired pursuant to the Company's stock repurchase program                                                                |   | $ | 3,635 |  |   | $ | 1,947 |  |
| Number of shares repurchased and retired pursuant to the Company's stock repurchase program                                                            |   | 70,000 |  |   | 45,000 |  |

|     |                     |
|-----|---------------------|
| 13. | SEGMENT INFORMATION |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
| CLARCOR Inc.NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS(Dollars in thousands except share data)(Unaudited) |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |
|                                |   | Three Months Ended |
|                                |   | March 3, 2012 |   | February 26, 2011 |
| Net sales:                          |   |   |   |   |
| Engine/Mobile Filtration            |   | $ | 120,283 |  |   | $ | 111,328 |  |
| Industrial/Environmental Filtration |   | 121,114 |  |   | 112,119 |  |
| Packaging                           |   | 15,867 |  |   | 22,273 |  |
|                                |   | $ | 257,264 |  |   | $ | 245,720 |  |
|                                |   |   |   |   |
| Operating profit:                   |   |   |  |   |   |  |
| Engine/Mobile Filtration            |   | $ | 23,297 |  |   | $ | 21,202 |  |
| Industrial/Environmental Filtration |   | 10,705 |  |   | 7,248 |  |
| Packaging                           |   | 310 |  |   | 2,841 |  |
|                                |   | 34,312 |  |   | 31,291 |  |
| Other income (expense), net         |   | 646 |  |   | (207 | ) |
|                                |   |   |   |   |
| Earnings before income taxes        |   | $ | 34,958 |  |   | $ | 31,084 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | March 3, 2012 |   | December 3, 2011 |
| Identifiable assets:                |   |   |   |
| Engine/Mobile Filtration            | $ | 351,850 |  |   | $ | 338,197 |  |
| Industrial/Environmental Filtration | 682,802 |  |   | 693,266 |  |
| Packaging                           | 38,194 |  |   | 39,571 |  |
| Corporate                           | 52,892 |  |   | 63,899 |  |
|                                | $ | 1,125,738 |  |   | $ | 1,134,933 |  |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               |   | First Quarter |
|                                               |   |   |   |   |   | Change |   |
|                                               |   | 2012 |   | 2011 |   | $ |   | % |   |
| Net sales                                          |   | $ | 257,264 |  |   | $ | 245,720 |  |   | $ | 11,544 |  |   | 5 |  % |  |
| Cost of sales                                      |   | 171,049 |  |   | 164,767 |  |   | 6,282 |  |   | 4 |  % |   |
| Gross profit                                       |   | 86,215 |  |   | 80,953 |  |   | 5,262 |  |   | 7 |  % |   |
| Selling and administrative expenses                |   | 51,903 |  |   | 49,662 |  |   | 2,241 |  |   | 5 |  % |   |
| Operating profit                                   |   | 34,312 |  |   | 31,291 |  |   | 3,021 |  |   | 10 |  % |   |
| Other income (expense)                             |   | 646 |  |   | (207 | ) |   | 853 |  |   |   |  |   |
| Provision for income taxes                         |   | 11,466 |  |   | 9,163 |  |   | 2,303 |  |   | 25 |  % |   |
| Net earnings attributable to CLARCOR               |   | 23,479 |  |   | 21,881 |  |   | 1,598 |  |   | 7 |  % |   |
| Weighted average diluted shares                    |   | 51,094 |  |   | 51,287 |  |   | (193 | ) |   | — |  % |   |
| Diluted earnings per share attributable to CLARCOR |   | $ | 0.46 |  |   | $ | 0.43 |  |   | $ | 0.03 |  |   | 7 |  % |   |
|                                               |   |   |   |   |   |   |   |   |   |
| Percentages:                                       |   |   |   |   |   |   |   |   |   |
| Gross margin                                       |   | 33.5 | % |   | 32.9 | % |   |   |   | 0.6 |  | pt |
| Selling and administrative percentage              |   | 20.2 | % |   | 20.2 | % |   |   |   | — |  | pt |
| Operating margin                                   |   | 13.3 | % |   | 12.7 | % |   |   |   | 0.6 |  | pt |
| Effective tax rate                                 |   | 32.8 | % |   | 29.5 | % |   |   |   | 3.3 |  | pt |
| Net earnings margin                                |   | 9.1 | % |   | 8.9 | % |   |   |   | 0.2 |  | pt |

|                  |
|------------------|
|                  |  |  |  |
| Volume           |   | 4 | % |
| Pricing          |   | 1 | % |
| Foreign exchange |   | — | % |
|             |   | 5 | % |

----

|         |              |
|---------|--------------|
| • | Acquisitions |

|         |                  |
|---------|------------------|
| • | Foreign Exchange |

|                        |
|------------------------|
|                        |  |  |  |  |
| (Dollars in thousands) |   | First Quarter |
| Net sales              |   | $ | (809 | ) |
| Operating profit       |   | (85 | ) |

|         |                        |
|---------|------------------------|
| • | Other income (expense) |

----

|         |                             |
|---------|-----------------------------|
| • | Provisions for income taxes |

|         |                    |
|---------|--------------------|
| • | Shares outstanding |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | First Quarter |
| (Dollars in thousands)    |   | 2012 |   | %Total |   | 2011 |   | %Total |
| Net sales:                          |   |   |   |   |  |   |   |   |   |
| Engine/Mobile Filtration            |   | $ | 120,283 |  |   | 47 | % |   | $ | 111,328 |  |   | 45 | % |
| Industrial/Environmental Filtration |   | 121,114 |  |   | 47 | % |   | 112,119 |  |   | 46 | % |
| Packaging                           |   | 15,867 |  |   | 6 | % |   | 22,273 |  |   | 9 | % |
|                                |   | $ | 257,264 |  |   | 100 | % |   | $ | 245,720 |  |   | 100 | % |
|                                |   |   |   |   |   |   |   |   |
| Gross profit:                       |   |   |  |   |   |  |   |   |  |   |   |  |
| Engine/Mobile Filtration            |   | $ | 43,980 |  |   | 51 | % |   | $ | 40,131 |  |   | 50 | % |
| Industrial/Environmental Filtration |   | 39,618 |  |   | 46 | % |   | 35,409 |  |   | 44 | % |
| Packaging                           |   | 2,617 |  |   | 3 | % |   | 5,413 |  |   | 6 | % |
|                                |   | $ | 86,215 |  |   | 100 | % |   | $ | 80,953 |  |   | 100 | % |
|                                |   |   |   |   |   |   |   |   |
| Operating profit:                   |   |   |  |   |   |  |   |   |  |   |   |  |
| Engine/Mobile Filtration            |   | $ | 23,297 |  |   | 68 | % |   | $ | 21,202 |  |   | 68 | % |
| Industrial/Environmental Filtration |   | 10,705 |  |   | 31 | % |   | 7,248 |  |   | 23 | % |
| Packaging                           |   | 310 |  |   | 1 | % |   | 2,841 |  |   | 9 | % |
|                                |   | $ | 34,312 |  |   | 100 | % |   | $ | 31,291 |  |   | 100 | % |
|                                |   |   |   |   |   |   |   |   |
| Gross margin:                       |   |   |  |   |   |  |   |   |  |   |   |  |
| Engine/Mobile Filtration            |   | 36.6 | % |   |   |  |   | 36.0 | % |   |   |
| Industrial/Environmental Filtration |   | 32.7 | % |   |   |  |   | 31.6 | % |   |   |
| Packaging                           |   | 16.5 | % |   |   |  |   | 24.3 | % |   |   |
|                                |   | 33.5 | % |   |   |  |   | 32.9 | % |   |   |
|                                |   |  |  |   |   |   |  |  |   |   |
| Operating margin:                   |   |   |  |   |   |  |   |   |  |   |   |  |
| Engine/Mobile Filtration            |   | 19.4 | % |   |   |  |   | 19.0 | % |   |   |  |
| Industrial/Environmental Filtration |   | 8.8 | % |   |   |  |   | 6.5 | % |   |   |  |
| Packaging                           |   | 2.0 | % |   |   |  |   | 12.8 | % |   |   |  |
|                                |   | 13.3 | % |   |   |  |   | 12.7 | % |   |   |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | First Quarter |
|                                  |   |   |   |   |   | Change |   |
| (Dollars in thousands)      |   | 2012 |   | 2011 |   | $ |   | % |   |
| Net sales                             |   | $ | 120,283 |  |   | $ | 111,328 |  |   | $ | 8,955 |  |   | 8 | % |   |
| Cost of sales                         |   | 76,303 |  |   | 71,197 |  |   | 5,106 |  |   | 7 | % |   |
| Gross profit                          |   | 43,980 |  |   | 40,131 |  |   | 3,849 |  |   | 10 | % |   |
| Selling and administrative expenses   |   | 20,683 |  |   | 18,929 |  |   | 1,754 |  |   | 9 | % |   |
| Operating profit                      |   | 23,297 |  |   | 21,202 |  |   | 2,095 |  |   | 10 | % |   |
|                                  |   |   |   |   |   |   |   |   |   |
| Gross margin                          |   | 36.6% |   | 36.0% |   |   |   | 0.6 |  | pt |
| Selling and administrative percentage |   | 17.2% |   | 17.0% |   |   |   | 0.2 |  | pt |
| Operating margin                      |   | 19.4% |   | 19.0% |   |   |  |   | 0.4 |  | pt |

|                  |
|------------------|
|                  |  |  |  |
| Volume           |   | 6 | % |
| Pricing          |   | 2 | % |
| Foreign exchange |   | — | % |
|             |   | 8 | % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |
| (Dollars in thousands)     |   | First Quarter |
| 2011                                 |   | $ | 111,328 |  |
|                                 |   |   |
| U.S. net sales                       |   | 7,837 |  |
| Foreign net sales (including export) |   | 1,328 |  |
| Foreign exchange                     |   | (210 | ) |
| Net increase                         |   | 8,955 |  |
|                                 |   |   |
| 2012                                 |   | $ | 120,283 |  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |
| (Dollars in thousands) |   | First Quarter |
| Heavy-duty engine filters        |   | $ | 7,649 |  |
| Locomotive filters               |   | 3 |  |
| Other                            |   | 185 |  |
| Increase in U.S. net sales       |   | $ | 7,837 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | First Quarter |
|                                  |   |   |   |   |   | Change |   |
| (Dollars in thousands)      |   | 2012 |   | 2011 |   | $ |   | % |   |
| Net sales                             |   | $ | 121,114 |  |   | $ | 112,119 |  |   | $ | 8,995 |  |   | 8 |  % |   |
| Cost of sales                         |   | 81,496 |  |   | 76,710 |  |   | 4,786 |  |   | 6 |  % |   |
| Gross profit                          |   | 39,618 |  |   | 35,409 |  |   | 4,209 |  |   | 12 |  % |   |
| Selling and administrative expenses   |   | 28,913 |  |   | 28,161 |  |   | 752 |  |   | 3 |  % |   |
| Operating profit                      |   | 10,705 |  |   | 7,248 |  |   | 3,457 |  |   | 48 |  % |   |
|                                  |   |   |   |   |   |   |   |   |   |
| Gross margin                          |   | 32.7% |   | 31.6% |   |   |   | 1.1 |  | pt |
| Selling and administrative percentage |   | 23.9% |   | 25.1% |   |   |   | -1.2 |  | pt |
| Operating margin                      |   | 8.8% |   | 6.5% |   |   |  |   | 2.3 |  | pt |

|                  |
|------------------|
|                  |  |  |  |
| Volume           |   | 8 |  % |
| Pricing          |   | 1 |  % |
| Foreign exchange |   | (1 | )% |
|             |   | 8 |  % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |
| (Dollars in thousands)     |   | First Quarter |
| 2011                                 |   | $ | 112,119 |  |
|                                 |   |   |
| U.S. net sales                       |   | 10,391 |  |
| Foreign net sales (including export) |   | (798 | ) |
| Foreign exchange                     |   | (598 | ) |
| Net increase                         |   | 8,995 |  |
|                                 |   |   |
| 2012                                 |   | $ | 121,114 |  |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |
| (Dollars in thousands)                       |   | First Quarter |
| Natural gas - vessels and aftermarket filters          |   | $ | 2,985 |  |
| Filter sales through Total Filtration Services ("TFS") |   | 2,419 |  |
| Aerospace, oil drilling and other industrial filters   |   | 1,499 |  |
| Air filtration                                         |   | 1,498 |  |
| Dust collector systems                                 |   | 1,174 |  |
| Aviation - vessels and aftermarket filters             |   | 700 |  |
| Other                                                  |   | 116 |  |
| Increase in U.S. net sales                             |   | $ | 10,391 |  |

|         |                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Higher sales to the natural gas market were primarily driven by increased vessel sales related to support of the extraction and transportation of natural gas from shale formations |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Higher sales at TFS were the result of higher filter sales to a variety of markets including food and beverage, chemical, metal and general industrial |

|         |                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Higher sales to the aerospace, oil drilling and other industrial markets was primarily due to higher filter sales to industrial markets including fluid processing, fluid power and OEM sales |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | Higher sales of air filtration products was driven by a new significant commercial customer in conjunction with customer price increases |

|         |                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Higher dust collector system sales were the result of higher OEM sales of Dust Hog® products including weld fume collection systems |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | First Quarter |
|                                  |   |   |   |   |   | Change |   |
| (Dollars in thousands)      |   | 2012 |   | 2011 |   | $ |   | % |   |
| Net sales                             |   | $ | 15,867 |  |   | $ | 22,273 |  |   | $ | (6,406 | ) |   | -29 |  % |   |
| Cost of sales                         |   | 13,250 |  |   | 16,860 |  |   | (3,610 | ) |   | -21 |  % |   |
| Gross profit                          |   | 2,617 |  |   | 5,413 |  |   | (2,796 | ) |   | -52 |  % |   |
| Selling and administrative expenses   |   | 2,307 |  |   | 2,572 |  |   | (265 | ) |   | -10 |  % |   |
| Operating profit                      |   | 310 |  |   | 2,841 |  |   | (2,531 | ) |   | -89 |  % |   |
|                                  |   |   |   |   |   |   |   |   |   |
| Gross margin                          |   | 16.5% |   | 24.3% |   |   |   | -7.8 |  | pt |
| Selling and administrative percentage |   | 14.5% |   | 11.5% |   |   |   | 3.0 |  | pt |
| Operating margin                      |   | 2.0% |   | 12.8% |   |   |   | -10.8 |  | pt |

|                                     |
|-------------------------------------|
|                                     |  |  |  |
| Lost business                       |   | (13 | )% |
| Volume                              |   | (10 | )% |
| Smokeless tobacco - second supplier |   | (6 | )% |
| Pricing                             |   | — |  % |
|                                |   | (29 | )% |

----

----

----

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | physical damage to and complete or partial closure of one or more of our manufacturing facilities |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | temporary or long-term disruption in the supply of raw materials from our suppliers |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | disruption in the transport of our products to customers and end users |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | delay in the delivery of our products to our customers |

Note 1

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | statements and assumptions relating to anticipated future growth, earnings, earnings per share and other financial performance measures; |

|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | statements regarding management's short-term and long-term performance goals; |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | statements regarding anticipated order patterns from our customers or the anticipated economic conditions of the industries and markets that we serve; |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | statements related to the performance of the U.S. and other economies generally; |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | statements relating to the anticipated effects on results of operations or financial condition from recent and expected developments or events, including acquisitions; |

|         |                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------|
| • | statements regarding our current cost structure positions and ability to capitalize on anticipated growth initiatives; |

|         |                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | statements related to whether the conditions to the Settlement Agreement will be satisfied or the timing of the satisfaction of such conditions, or related to whether final judicial approval of the Settlement Agreement will be obtained; |

|         |                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | statements related to our cash resources, borrowing capacity, compliance with financial covenants under the Credit Facility and our plans to enter into a new credit agreement; and |

|         |                                                                    |
|---------|--------------------------------------------------------------------|
| • | any other statements or assumptions that are not historical facts. |

----

Note 11

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |
| COMPANY PURCHASES OF EQUITY SECURITIES |
|                                                       |   | (a) |   | (b) |   | (c) |   | (d) |
| Period                                                     |   | Totalnumber ofsharespurchased |   | Averageprice paidper share |   | Total number ofshares purchasedas part of theCompany's publiclyannounced plan |   | Maximum approximatedollar value of shares thatmay yet be purchasedunder the Plan |
| December 4, 2011 through December 31, 2011                 |   | — |  |   | $ | 0.00 |  |   | — |  |   | $204,405,799 |
| January 1, 2012 through January 31, 2012                   |   | 15,000 |  |   | $ | 51.73 |  |   | 15,000 |  |   | $203,629,817 |
| February 1, 2012 through March 3, 2012                     |   | 55,000 |  |   | $ | 51.98 |  |   | 55,000 |  |   | $200,770,661 |
| Total                                                      |   | 70,000 |  |   |   |  |   | 70,000 |  |   |   |

|        |
|--------|
|        |  |  |
| a.     | Exhibits: |
|   | * 31.1 | Certification of Christopher L. Conway pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   | * 31.2 | Certification of David J. Fallon pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   | * 32 | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   | ** 101.INS | XBRL Instance Document ++ |
|   | ** 101.SCH | XBRL Taxonomy Extension Schema Document ++ |
|   | ** 101.CAL | XBRL Taxonomy Extension Calculation Linkbase ++ |
|   | ** 101.DEF | XBRL Taxonomy Extension Definition Linkbase ++ |
|   | ** 101.LAB | XBRL Taxonomy Extension Label Linkbase ++ |
|   | ** 101.PRE | XBRL Taxonomy Extension Presentation Linkbase ++ |

|        |
|--------|
|        |  |  |
|   |   |   |
|   | * | Filed herewith. |
|   | ** | Submitted electronically with this 2012 Quarterly Report on Form 10-Q. |
|   | ++ | XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document. |

----

|                     |
|---------------------|
|                     |  |  |  |
| March 23, 2012 |   | By | /s/ Christopher L. Conway |
| (Date)              |   |   | Christopher L. Conway |
|                |   |   | President and Chief Executive Officer |
|                |   |   |   |
| March 23, 2012 |   | By | /s/ David J. Fallon |
| (Date)              |   |   | David J. Fallon |
|                |   |   | Chief Financial Officer and Chief Accounting Officer |