As previously reported in its Form 10-Q filed on August 7, 2007, Crane Co. (NYSE: CR) confirmed in response to a release by the United States Department of Justice that it signed a settlement agreement with the Department of Justice regarding alleged civil violations of the False Claims Act relating to certain valves sold by the Company’s Crane Valves North America (CVNA) unit that ultimately were delivered to the U.S. Navy. The Company unintentionally failed to provide prior notice to the Navy and update the Navy’s Qualified Products Listing to reflect a 2003 change in manufacturing location from California to Texas. The Company acknowledged the failure to notify the Navy and update the QPL, but denies that this omission violated the False Claims Act. The terms of the settlement include a pretax payment of $7.6 million ($0.09 per share after tax), which was included in the Company’s second quarter 2007 earnings, and an administrative agreement with the Department of the Navy. This legal matter has been previously described by the Company in its SEC filings, most recently in the Company’s Form 10-Q filed August 7, 2007.
“Crane cooperated fully with this investigation, and with this settlement we resolved all the issues raised by the Department of Justice and the Navy. The failure to notify the Navy was unintentional and there was no misconduct by Crane Co. personnel. We felt it was best to put this matter behind us to avoid a costly legal proceeding,” said Crane Co. president and chief executive officer, Eric C. Fast.
Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. The Company has five business segments: Aerospace & Electronics, Fluid Handling, Engineered Materials, Merchandising Systems, and Controls. Crane has approximately 12,000 employees in North America, South America, Europe, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.
Contacts:
Richard E. Koch
Director Investor Relations
203-363-7352
www.craneco.com
