DANBURY, Conn., Jul 23, 2008 (BUSINESS WIRE) ----Praxair, Inc. (NYSE: PX) reported second-quarter net income of $349 million and diluted earnings per share of $1.08, compared to $291 million and 89 cents, respectively, in the prior-year quarter. This represents net income and earnings per share growth of 20% and 21%, respectively, versus the prior-year quarter.

Sales in the second quarter were $2,878 million, up 23% from $2,332 million in the second quarter of 2007. Praxair achieved strong sales growth in every geographic region, led by South America and Asia.

Operating profit was a record $543 million, 24% above $439 million in the prior-year quarter. Higher pricing and cost savings from productivity programs offset inflationary cost increases.

Cash flow from operations was $389 million. Capital expenditures of $380 million largely supported the construction of new on-site supply systems under contract for customers. The company invested $30 million in acquisitions, primarily industrial packaged gas businesses in North America. The debt-to-capital ratio was 43.4% at the end of the quarter. The after-tax return-on-capital ratio was 15.4%, and return on equity was 25.7%*.

Due to strong cash flow generation from operations, the company has completed to date $931 million of stock repurchases under the $1 billion repurchase program authorized in July 2007. The company announced this morning a new $1 billion stock repurchase program which has been authorized by Praxair's board of directors, based on a positive outlook for continued strong growth in earnings and cash flow generation.

In North America, second-quarter sales reached $1,573 million, 22% above the prior year. Excluding the effect of higher natural gas prices passed through to customers in hydrogen prices, sales growth was 18%, led by higher sales to energy and general manufacturing markets. Operating profit grew 19% to $275 million.

In Europe, sales in the second quarter of $406 million grew 21% from $336 million in the prior-year quarter. Currency effects contributed 16% to sales growth. Underlying sales growth came primarily from growth in merchant and packaged gases volumes in Germany and Italy. Second-quarter operating profit of $99 million rose 25% from the prior-year period.

In South America, second-quarter sales of $514 million grew 31% versus the prior-year quarter due to higher prices and volumes, and favorable currency effects of 16%. Sales growth came primarily from higher sales to metals and manufacturing markets. Operating profit rose 34% to $102 million in the quarter.

Sales in Asia grew 30% to $232 million in the quarter, attributable primarily to strong volume growth from new plant start-ups and higher sales to the electronics, manufacturing and metals markets. Operating profit in the quarter grew 33% to $40 million from the prior-year period.

Praxair Surface Technologies had second-quarter sales of $153 million, 17% above the prior-year quarter. Sales growth was driven by higher sales to aerospace and energy markets. Operating profit of $27 million was 17% above the 2007 quarter.

For the third quarter of 2008, Praxair expects diluted earnings per share in the range of $1.06 to $1.10. This represents earnings growth of 13% to 17% above the third quarter of 2007.

For the full year of 2008, Praxair expects year-over-year sales growth in the range of 16% to 20%. The company expects diluted earnings per share to be in the range of $4.20 to $4.30, excluding the impact of the 3-cent pension settlement charge which occurred in the first quarter of 2008. This represents 16% to 19% growth from 2007*. Full-year capital expenditures are expected to be about $1.5 billion, supporting an increasing number of contracts for on-site production plants globally which will come on-stream over the next several years, generating strong revenue and earnings growth.

Commenting on the results and business outlook, Chairman and Chief Executive Officer Steve Angel said, "We had another strong quarter. Our results reflect strong sales growth in Asia and South America due to the high level of investment by our customers in these developing economies. In North America, we are continuing to see strong demand from the energy sector and steady growth in our base business. We therefore expect that our results will continue to reflect strong year-over-year growth in sales and earnings.

"The new stock repurchase program which we announced today reflects our positive outlook. We expect to fund this repurchase program largely out of operating cash flow, while simultaneously investing in a record number of new on-site projects for our customers."

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2007 sales of $9.4 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.

*See the attachments for calculations of non-GAAP measures related to 2008 operating profit, net income, and diluted earnings per share adjusted to exclude a $17-million pension-settlement charge in the first quarter, $11 million after-tax, 3 cents EPS. All full year-over-year comparisons, including percentage changes, are based on adjusted amounts for 2008 which exclude the pension-settlement charge. The attachments also include calculations of non-GAAP measures related to after-tax return-on-capital; return on equity; and debt-to-capital ratios.

Attachments: Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information, Quarterly Financial Summary and Appendix: Non-GAAP Measures

A teleconference on Praxair's second-quarter results is being held this morning, July 23, at 11:00 a.m. Eastern Time. The number is (617) 597-5395 -- Passcode: 77241552. The call also is available as a web cast at www.praxair.com/investors. Materials to be used in the teleconference are available on www.praxair.com/investors.

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of tax, environmental, home healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause actual future results or circumstances to differ materially from the projections or estimates contained in the forward-looking statements. The company assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A (Risk Factors) in the company's latest Annual Report on Form 10-K filed with the SEC which should be reviewed carefully. Please consider the company's forward-looking statements in light of those risks.

 PRAXAIR, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
   (Millions of dollars, except per share data) (UNAUDITED) Quarter Ended Year to Date June 30, June 30, ---------------------------------------
   2008 2007 2008 2007 --------- --------- --------- --------- SALES (a) $ 2,878 $ 2,332 $ 5,541 $ 4,507 Cost of sales 1,748
   1,388 3,343 2,670 Selling, general and administrative 341 296 676 582 Depreciation and amortization 216 189 426 371 Research
   and development 24 24 48 48 Other income (expense) - net (b) (6) 4 (23) 6 --------- --------- --------- --------- OPERATING
   PROFIT 543 439 1,025 842 Interest expense - net 52 41 99 79 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES
   491 398 926 763 Income taxes 137 103 259 198 --------- --------- --------- --------- 354 295 667 565 Minority interests (13)
   (9) (28) (18) Income from equity investments 8 5 17 9 --------- --------- --------- --------- NET INCOME $ 349 $ 291 $ 656
   $ 556 ========= ========= ========= ========= PER SHARE DATA Basic earnings per share $ 1.11 $ 0.91 $ 2.09 $ 1.73 Diluted
   earnings per share $ 1.08 $ 0.89 $ 2.04 $ 1.70 Cash dividends $ 0.375 $ 0.30 $ 0.75 $ 0.60 WEIGHTED AVERAGE SHARES OUTSTANDING
   Basic shares outstanding (000's) 315,312 320,213 314,624 320,488 Diluted shares outstanding (000's) 322,088 326,301 321,245
   326,447 (a)Sales for the 2008 quarter and year-to-date periods increased $56 million and $76 million, respectively, from the
   contractual pass- through of hydrogen feedstock costs, with minimal impact on operating profit compared to 2007. Sales for
   the quarter and year- to-date periods increased $160 million and $322 million, respectively, due to currency effects versus
   2007. (b)Other income (expense) for the 2008 year-to-date period includes a pension settlement charge of $17 million ($11
   million after-tax or $0.03 per diluted share). 

 PRAXAIR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
   (Millions of dollars) (UNAUDITED) June December 30, 31, 2008 2007 ------- -------- ASSETS Cash and cash equivalents $ 27 $
   17 Accounts receivable - net 1,982 1,723 Inventories 507 474 Prepaid and other current assets 230 194 ------- -------- TOTAL
   CURRENT ASSETS 2,746 2,408 Property, plant and equipment - net 8,459 7,963 Goodwill 2,072 1,967 Other intangibles - net 144
   134 Other long-term assets 1,007 910 ------- -------- TOTAL ASSETS $14,428 $13,382 ======= ======== LIABILITIES AND EQUITY
   Accounts payable $ 911 $ 818 Short-term debt 882 788 Current portion of long-term debt 40 40 Other current liabilities 885
   1,004 ------- -------- TOTAL CURRENT LIABILITIES 2,718 2,650 Long-term debt 3,674 3,364 Other long-term liabilities 2,048
   1,905 ------- -------- TOTAL LIABILITIES 8,440 7,919 Minority interests 317 321 Shareholders' equity 5,671 5,142 ------- --------
   TOTAL LIABILITIES AND EQUITY $14,428 $13,382 ======= ======== 

 PRAXAIR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
   STATEMENTS OF CASH FLOWS (Millions of dollars) (UNAUDITED) Quarter Ended Year to Date June 30, June 30, ------------- -------------
   2008 2007 2008 2007 ------ ------ ------ ------ OPERATIONS Net income $ 349 $ 291 $ 656 $ 556 Depreciation and amortization
   216 189 426 371 Accounts receivable (85) (90) (269) (163) Inventory (24) (21) (33) (37) Payables and accruals 37 89 95 17
   Pension contributions (2) (3) (13) (14) Other (102) 26 (94) 49 ------ ------ ------ ------ Net cash provided by operating
   activities 389 481 768 779 ------ ------ ------ ------ INVESTING Capital expenditures (380) (329) (724) (614) Acquisitions
   (30) (31) (70) (327) Divestitures and asset sales 30 17 46 21 ------ ------ ------ ------ Net cash used for investing activities
   (380) (343) (748) (920) ------ ------ ------ ------ FINANCING Debt increase (decrease) - net 27 (67) 356 473 Purchases of
   common stock, net of issuances 49 - (178) (186) Cash dividends (119) (96) (236) (192) Excess tax benefit on stock option exercises
   39 20 44 34 Minority interest transactions and other (1) (1) - (4) ------ ------ ------ ------ Net cash (used for) provided
   by financing activities (5) (144) (14) 125 Effect of exchange rate changes on cash and cash equivalents 2 2 4 2 ------ ------
   ------ ------ Change in cash and cash equivalents 6 (4) 10 (14) Cash and cash equivalents, beginning-of- period 21 26 17 36
   ------ ------ ------ ------ Cash and cash equivalents, end-of-period $ 27 $ 22 $ 27 $ 22 ====== ====== ====== ====== 

   PRAXAIR, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Millions of dollars) (UNAUDITED) Quarter Ended Year to Date June 30, June
   30, ---------------------------- 2008 2007 2008 2007 ------ -------------- ------ SALES North America (a) $1,573 $1,293 $3,027
   $2,498 Europe (b) 406 336 796 666 South America (c) 514 393 980 741 Asia (d) 232 179 443 346 Surface Technologies (e) 153
   131 295 256 ------ ------ ------- ------ Total sales $2,878 $2,332 $5,541 $4,507 ====== ====== ======= ====== OPERATING PROFIT
   North America (a) $ 275 $ 231 $ 537 $ 448 Europe 99 79 186 151 South America 102 76 191 142 Asia 40 30 77 57 Surface Technologies
   27 23 51 44 ------ ------ ------- ------ Segment operating profit 543 439 1,042 842 Pension settlement charge - - (17) - ------
   ------ ------- ------ Total operating profit $ 543 $ 439 $1,025 $ 842 ====== ====== ======= ====== (a)North American 2008
   sales for the quarter and year-to-date periods increased $56 million and $76 million, respectively, from the contractual pass-through
   of hydrogen feedstock costs, with minimal impact on operating profit compared to 2007. Sales for the quarter and year-to-date
   periods increased $26 million and $62 million, respectively, due to currency effects versus 2007. (b)European 2008 sales for
   the quarter and year-to-date periods increased $54 million and $96 million, respectively, due to currency effects versus 2007.
   (c)South American 2008 sales for the quarter and year-to-date periods increased $64 million and $129 million, respectively,
   due to currency effects versus 2007. (d)Asian 2008 sales for the quarter and year-to-date periods increased $5 million and
   $15 million, respectively, due to currency effects versus 2007. (e)Surface Technologies 2008 sales for the quarter and year-to-date
   periods increased $11 million and $20 million, respectively, due to currency effects versus 2007. 

 PRAXAIR, INC.
   AND SUBSIDIARIES QUARTERLY FINANCIAL SUMMARY (Millions of dollars, except per share data) (UNAUDITED) 2008 -------------------
   Q2 Q1 FROM THE INCOME STATEMENT Sales $ 2,878 $ 2,663 Cost of sales 1,748 1,595 Selling, general and administrative 341 335
   Depreciation and amortization 216 210 Research and development 24 24 Other income (expenses) - net (6) (17) --------- ---------
   Operating profit 543 482 Interest expense - net 52 47 Income taxes 137 122 Minority interests (13) (15) Income from equity
   investments 8 9 --------- --------- Net income $ 349 $ 307 ========= ========= PER SHARE DATA Diluted earnings per share $
   1.08 $ 0.96 Cash dividends per share $ 0.375 $ 0.375 Diluted weighted average shares outstanding (000's) 322,088 320,409 FROM
   THE BALANCE SHEET Total debt $ 4,596 $ 4,574 Total capital (a) 10,584 10,127 Debt-to-capital ratio (a) 43.4% 45.2% FROM THE
   STATEMENT OF CASH FLOWS Cash flow from operations $ 389 $ 379 Capital expenditures 380 344 Acquisitions 30 40 Cash dividends
   119 117 OTHER INFORMATION Number of employees 27,999 27,948 After-tax return on capital (ROC) (a) 15.4% 14.8% Return on equity
   (ROE) (a) 25.7% 24.6% SEGMENT DATA SALES North America $ 1,573 $ 1,454 Europe 406 390 South America 514 466 Asia 232 211 Surface
   Technologies 153 142 --------- --------- Total sales $ 2,878 $ 2,663 ========= ========= OPERATING PROFIT North America $
   275 $ 262 Europe 99 87 South America 102 89 Asia 40 37 Surface Technologies 27 24 --------- --------- Segment operating profit
   543 499 Pension settlement charge - (17) --------- --------- Total operating profit $ 543 $ 482 ========= ========= 2007 ---------------------------------------
   Q4 Q3 Q2 Q1 FROM THE INCOME STATEMENT Sales $ 2,523 $ 2,372 $ 2,332 $ 2,175 Cost of sales 1,493 1,394 1,388 1,282 Selling,
   general and administrative 314 294 296 286 Depreciation and amortization 207 196 189 182 Research and development 26 24 24
   24 Other income (expenses) - net 1 (4) 4 2 --------------------------------------- Operating profit 484 460 439 403 Interest
   expense - net 50 44 41 38 Income taxes 115 106 103 95 Minority interests (16) (9) (9) (9) Income from equity investments 13
   4 5 4 --------------------------------------- Net income $ 316 $ 305 $ 291 $ 265 ======================================= PER
   SHARE DATA Diluted earnings per share $ 0.98 $ 0.94 $ 0.89 $ 0.81 Cash dividends per share $ 0.30 $ 0.30 $ 0.30 $ 0.30 Diluted
   weighted average shares outstanding (000's) 323,328 324,920 326,301 326,787 FROM THE BALANCE SHEET Total debt $ 4,192 $ 4,003
   $ 3,700 $ 3,736 Total capital (a) 9,655 9,120 8,784 8,433 Debt-to-capital ratio (a) 43.4% 43.9% 42.1% 44.3% FROM THE STATEMENT
   OF CASH FLOWS Cash flow from operations $ 587 $ 592 $ 481 $ 298 Capital expenditures 402 360 329 285 Acquisitions 127 22 31
   296 Cash dividends 94 95 96 96 OTHER INFORMATION Number of employees 27,992 27,479 28,035 27,681 After-tax return on capital
   (ROC) (a) 15.7% 15.5% 15.3% 14.8% Return on equity (ROE) (a) 25.3% 25.1% 25.0% 23.5% SEGMENT DATA SALES North America $ 1,381
   $ 1,306 $ 1,293 $ 1,205 Europe 354 325 336 330 South America 444 419 393 348 Asia 210 190 179 167 Surface Technologies 134
   132 131 125 --------------------------------------- Total sales $ 2,523 $ 2,372 $ 2,332 $ 2,175 =======================================
   OPERATING PROFIT North America $ 255 $ 244 $ 231 $ 217 Europe 86 78 79 72 South America 85 84 76 66 Asia 34 30 30 27 Surface
   Technologies 24 24 23 21 --------------------------------------- Segment operating profit 484 460 439 403 Pension settlement
   charge - - - - --------------------------------------- Total operating profit $ 484 $ 460 $ 439 $ 403 =======================================
   (a) Non-GAAP measure, see Appendix. 

 PRAXAIR, INC. AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES (Millions of dollars,
   except per share data) (UNAUDITED) Definitions of the following non-GAAP measures may not be comparable to similar definitions
   used by other companies. Praxair believes that its (i) debt-to-capital ratio is appropriate for measuring its financial leverage;
   (ii) after-tax return on invested capital ratio (ROC) is an appropriate measure for judging performance as it reflects the
   approximate after-tax profit earned as a percentage of investments by all parties in the business (debt, minority interests
   and shareholders' equity); (iii) return on equity ratio (ROE) is an appropriate measure for judging performance for shareholders;
   and (iv) 2008 adjusted operating profit, net income and diluted EPS which are adjusted for the impact of the 2008 Q1 pension
   settlement charge helps investors understand underlying performance on a comparable basis. 2008 2007 ----------------- -------------------------------
   Q2 Q1 Q4 Q3 Q2 Q1 Total Capital -------------------- Total debt $ 4,596 $ 4,574 $4,192 $4,003 $3,700 $3,736 Minority interests
   317 344 321 255 234 230 Shareholders' equity 5,671 5,209 5,142 4,862 4,850 4,467 -------- -------- -------------------------------
   Total Capital $10,584 $10,127 $9,655 $9,120 $8,784 $8,433 ======== ======== =============================== Debt-to-Capital
   Ratio 43.4% 45.2% 43.4% 43.9% 42.1% 44.3% -------------------- ================= =============================== After-Tax
   Return on Capital (ROC) -------------------- Adjusted operating profit (see below) $ 543 $ 499 $ 484 $ 460 $ 439 $ 403 Less:
   income taxes (137) (122) (115) (106) (103) (95) Less: tax benefit on pension settlement charge* - (6) - - - - Less: tax benefit
   on interest expense (15) (13) (13) (11) (11) (10) Add: income from equity investments 8 9 13 4 5 4 ----------------- -------------------------------
   Net operating profit after-tax (NOPAT) $ 399 $ 367 $ 369 $ 347 $ 330 $ 302 Beginning capital $10,127 $ 9,655 $9,120 $8,784
   $8,433 $7,943 Ending capital $10,584 $10,127 $9,655 $9,120 $8,784 $8,433 Average capital $10,356 $ 9,891 $9,388 $8,952 $8,609
   $8,188 ROC % 3.9% 3.7% 3.9% 3.9% 3.8% 3.7% ROC % (annualized) 15.4% 14.8% 15.7% 15.5% 15.3% 14.8% ======== ========================================
   Return on Equity (ROE) -------------------- Adjusted net income (see below) $ 349 $ 318 $ 316 $ 305 $ 291 $ 265 Beginning
   shareholders' equity $ 5,209 $ 5,142 $4,862 $4,850 $4,467 $4,554 Ending shareholders' equity $ 5,671 $ 5,209 $5,142 $4,862
   $4,850 $4,467 Average shareholders' equity $ 5,440 $ 5,176 $5,002 $4,856 $4,659 $4,511 ROE % 6.4% 6.1% 6.3% 6.3% 6.2% 5.9%
   ROE % (annualized) 25.7% 24.6% 25.3% 25.1% 25.0% 23.5% ================= ==============================- 

 2008
   Adjusted Operating profit, Net income and Diluted EPS ----------------------------------------------------------------------
   First Full Year 2008 Quarter Guidance -------- ---------------- High 2008 Low End End -------- --------- ------ Reported operating
   profit $ 482 Add: pension settlement charge* 17 -------- Adjusted operating profit $ 499 -------- Reported net income $ 307
   Add: pension settlement charge* 11 -------- Adjusted net income $ 318 -------- Diluted weighted average shares 320,409 Reported
   diluted EPS $ 0.96 $4.17 $4.27 Add: pension settlement charge* 0.03 0.03 0.03 -------- --------- ------ Adjusted Diluted EPS
   $ 0.99 $4.20 $4.30 ======== ========= ====== Reported 2007 Diluted EPS $3.62 $3.62 Percentage change from 2007 16% 19% *A
   pension settlement charge of $17 million ($11 million after-tax or $0.03 per diluted share) was recorded in the 2008 first
   quarter related to lump sum benefit payments made from the U.S. supplemental pension plan to a number of recently retired
   senior managers, including Praxair's former chairman and chief executive officer. 

SOURCE: Praxair, Inc.

Praxair,
   Inc. Media Susan Szita Gore, 203-837-2311 susan_szita-gore@praxair.com or Investors Elizabeth Hirsch, 203-837-2354 liz_hirsch@praxair.com
   

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