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THIRD QUARTER 2007 EARNINGS RELEASE
                     OCTOBER 18, 2007
FORWARD LOOKING
                                                                  STATEMENTS

Statements in this presentation that are not strictly historical, including statements regarding
expectations for the balance of 2007 and any other statements regarding events or
developments that we believe or anticipate will or may occur in the future, may be quot;forward-
lookingquot; statements. There are a number of important factors that could cause actual events
to differ materially from those suggested or indicated by such forward-looking statements.
These factors include, among other things, competition, our ability to develop and
successfully market new products and technologies, our ability to expand our business in
new geographic markets, our ability to identify, consummate and integrate appropriate
acquisitions, litigation and other contingent liabilities including intellectual property matters,
our compliance with applicable laws and regulations, the performance of our distribution and
other channel partners, our ability to achieve projected efficiencies, cost reductions, sales
growth and earnings, economic conditions and regulations in the end-markets we sell into,
commodity costs and surcharges, currency exchange rates, tax audits, and general
domestic and international economic conditions. Additional information regarding the factors
that may cause actual results to differ materially from these forward-looking statements is
available in our SEC filings, including our 2006 Annual Report on Form 10-K and Third
Quarter 2007 Quarterly Report on Form 10-Q. These forward-looking statements speak only
as of the date of this presentation and the Company does not intend to update any forward-
looking statement.

                                                                                                     2
THIRD QUARTER 2007
                                                                   PERFORMANCE SUMMARY

                                     EARNINGS PER SHARE *
                                         +25%                     +12%
                                                                      $2.75
                                              $1.03          $2.45

                                     $0.82




                                    Q3 06 Q3 07
                                                            YTD    YTD
                                                             06     07
                               Q3 07:
                               - Gain from net reduction in income tax reserves     $0.02
                               YTD 07:
                               - Gain from indemnity proceeds                       $0.02
                               - Gain from net reduction in income tax reserves     $0.02
                               YTD 06:
                                - Gain on First Technology shares                   $0.03
                                - Gain from net reductions in income tax reserves   $0.16
* From continuing operations                                                                3
THIRD QUARTER 2007
                                                                 PERFORMANCE SUMMARY

                                                REVENUES ($M)

                                           +13.5%                 +15.5%
                                                                         $7,885
                                                $2,731         $6,841

                                       $2,408




                                       Q3 06 Q3 07
                                                              YTD     YTD
                                                               06      07
                             Core           5.0%           Core           4.0%
                             Acquisition    5.5%           Acquisition    8.5%
                             FX             3.0%           FX             3.0%


“Core” includes acquired businesses from and after the first anniversary of the acquisition, but excludes currency effect
                                                                                                                            4
THIRD QUARTER 2007
                                PERFORMANCE SUMMARY

      GROSS MARGINS                           SG & A
                                 -30 BPS               +60 BPS
+50 BPS          +140 BPS

  45.2% 45.7%           45.5%                             24.7%
                                 24.3%            24.1%
                                         24.0%
                44.1%




                                Q3 06 Q3 07
                                                 YTD   YTD
                                                  06
 Q3 06 Q3 07                                            07
                YTD   YTD
                 06    07


                                                                  5
THIRD QUARTER 2007
                                PERFORMANCE SUMMARY

  OPERATING PROFIT ($M)                OPERATING MARGINS
   +20%             +21%                                  +70 BPS
                                      +90 BPS
                       $1,276               17.0%
                                   16.1%
              $1,058                                            16.2%
       $463
                                                        15.5%

$387




                                    Q3 06 Q3 07
                                                        YTD   YTD
Q3 06 Q3 07                                              06    07
              YTD   YTD
               06    07          Q3 07:
                                 - Acquisition impact           -30 BPS


                                                                          6
THIRD QUARTER 2007
                            PERFORMANCE SUMMARY

NET INTEREST EXPENSE ($M)           TAX RATE
          -2%

       $25.5 $24.9

                                   26.9%
                                           23.6%




                                  Q3 06 Q3 07
     Q3 06 Q3 07

                                                     7
THIRD QUARTER 2007
                                                 PERFORMANCE SUMMARY

                                     NET INCOME ($M) *

                                   +26%              +13%

                                                       $894

                                                $789
                                        $335
                                $264




                               Q3 06 Q3 07
                                               YTD    YTD
                                                06     07

* From continuing operations
                                                                          8
THIRD QUARTER 2007
                                             PERFORMANCE SUMMARY


   OPERATING CASH FLOW ($M)* CAP EX ($M)            FREE CASH FLOW ($M)*
                                      +2%                       +6%
                +5%

                                                                   $1,028
                      $1,128                 $100           $973
             $1,072                  $99




          YTD     YTD          YTD                        YTD
                                       YTD                       YTD
           06                   06
                   07                                      06
                                        07                        07




* From continuing operations
                                                                            9
THIRD QUARTER 2007
                                      PROFESSIONAL INSTRUMENTATION

          REVENUES ($M)                          OPERATING MARGINS
      +21%                                        +210 BPS             +70 BPS
                            +16%

                               $2,440
                                                          22.7%
                      $2,107
              $880
                                                                      21.2% 21.9%
                                                20.6%
     $727




   Q3 06 Q3 07                                  Q3 06 Q3 07
                      YTD                                             YTD
                            YTD                                             YTD
                       06                                              06
                             07                                              07

Core           6.5%     Core            7.0%   Q3 07:
Acquisition   11.5%     Acquisition     6.0%   - Acquisition impact               -80 BPS
FX             3.0%     FX              3.0%
                                                                                            10
THIRD QUARTER 2007
          ENVIRONMENTAL


Q3 07 vs. Q3 06
Revenue Growth      21.5%

Breakdown:
Core                 5.5%
Acquisition         12.5%
FX                   3.5%

YTD 07 vs. YTD 06
Revenue Growth      14.0%

Breakdown:
Core                 6.0%
Acquisition          4.5%
FX                   3.5%


                            11
THIRD QUARTER 2007
         ELECTRONIC TEST


Q3 07 vs. Q3 06
Revenue Growth      21.0%

Breakdown:
Core                 9.0%
Acquisition          9.5%
FX                   2.5%

YTD 07 vs. YTD 06
Revenue Growth      19.5%

Breakdown:
Core                 9.0%
Acquisition          8.0%
FX                   2.5%


                            12
THIRD QUARTER 2007
                                            MEDICAL TECHNOLOGIES

              REVENUES ($M)                   OPERATING MARGINS
         +19.5%             +40%              -50 BPS              +170 BPS

                               $2,132           13.5%
                                                         13.0%
                                                                           12.2%
                                                                   10.5%
                      $1,523
               $741
       $620




     Q3 06 Q3 07
                                              Q3 06 Q3 07
                      YTD   YTD                                    YTD   YTD
                       06    07                                     06    07
Core          7.5%    Core           7.5%   Q3 07:
Acquisition   8.0%    Acquisition   28.5%   - Acquisition impact               -90 BPS
FX            4.0%    FX             4.0%
                                                                                         13
THIRD QUARTER 2007
MEDICAL TECHNOLOGIES




                        14
THIRD QUARTER 2007
                                           INDUSTRIAL TECHNOLOGIES
                                                OPERATING MARGINS
              REVENUES ($M)
                             +5%
         +5.5%                                  +90 BPS         +170 BPS

                                                      17.0%           17.1%
                                $2,341
                                              16.1%
                       $2,232
               $773                                           15.4%
       $732




     Q3 06 Q3 07                              Q3 06 Q3 07
                       YTD                                    YTD
                              YTD                                   YTD
                        06                                     06
                               07                                    07

                      Core          1.0%
Core          2.0%
                      Acquisition   1.0%
Acquisition   0.5%
                      FX            3.0%
FX            3.0%
                                                                              15
THIRD QUARTER 2007
 PRODUCT IDENTIFICATION


Q3 07 vs. Q3 06
Revenue Growth      6.0%

Breakdown:
Core                1.5%
Acquisition         1.0%
FX                  3.5%

YTD 07 vs. YTD 06
Revenue Growth      2.0%

Breakdown:
Core                (2.5%)
Acquisition          1.5%
FX                   3.0%


                             16
THIRD QUARTER 2007
                MOTION


Q3 07 vs. Q3 06
Revenue Decline     (0.5%)

Breakdown:
Core                (4.0%)
FX                   3.5%

YTD 07 vs. YTD 06
Revenue Growth      1.5%

Breakdown:
Core                (2.0%)
FX                   3.5%




                             17
THIRD QUARTER 2007
                                                   TOOLS & COMPONENTS

              REVENUES ($M)                       OPERATING MARGINS
              +2%              -1%               +30 BPS                  -70 BPS

                        $979
                                     $972
                $337                             15.6% 15.9%
        $330
                                                                        14.3%
                                                                                  13.6%




     Q3 06 Q3 07
                                               Q3 06 Q3 07
                       YTD     YTD                                     YTD       YTD
                        06      07                                      06        07
                                               Q3 07:
Core           3.0%    Core            0.0%
                                               - JVS impact                            -25 BPS
Acquisition   (1.0%)   Acquisition    (1.0%)
                                               - Gains on sales of real estate         -25 BPS
FX             0.0%    FX              0.0%
                                               - Q2 06 divestiture impact               15 BPS   18
THIRD QUARTER 2007
MECHANICS HAND TOOLS


 Q3 07 vs. Q3 06
 Revenue Growth      3.0%

 Breakdown:
 Core                3.0%



 YTD 07 vs. YTD 06
 Revenue Growth      1.5%

 Breakdown:
 Core                1.5%




                            19
2007 OUTLOOK




Guidance



                          20
2007 OUTLOOK




Q&A



                     21
22

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danaher 07_3Q_Preso

  • 1. THIRD QUARTER 2007 EARNINGS RELEASE OCTOBER 18, 2007
  • 2. FORWARD LOOKING STATEMENTS Statements in this presentation that are not strictly historical, including statements regarding expectations for the balance of 2007 and any other statements regarding events or developments that we believe or anticipate will or may occur in the future, may be quot;forward- lookingquot; statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These factors include, among other things, competition, our ability to develop and successfully market new products and technologies, our ability to expand our business in new geographic markets, our ability to identify, consummate and integrate appropriate acquisitions, litigation and other contingent liabilities including intellectual property matters, our compliance with applicable laws and regulations, the performance of our distribution and other channel partners, our ability to achieve projected efficiencies, cost reductions, sales growth and earnings, economic conditions and regulations in the end-markets we sell into, commodity costs and surcharges, currency exchange rates, tax audits, and general domestic and international economic conditions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2006 Annual Report on Form 10-K and Third Quarter 2007 Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this presentation and the Company does not intend to update any forward- looking statement. 2
  • 3. THIRD QUARTER 2007 PERFORMANCE SUMMARY EARNINGS PER SHARE * +25% +12% $2.75 $1.03 $2.45 $0.82 Q3 06 Q3 07 YTD YTD 06 07 Q3 07: - Gain from net reduction in income tax reserves $0.02 YTD 07: - Gain from indemnity proceeds $0.02 - Gain from net reduction in income tax reserves $0.02 YTD 06: - Gain on First Technology shares $0.03 - Gain from net reductions in income tax reserves $0.16 * From continuing operations 3
  • 4. THIRD QUARTER 2007 PERFORMANCE SUMMARY REVENUES ($M) +13.5% +15.5% $7,885 $2,731 $6,841 $2,408 Q3 06 Q3 07 YTD YTD 06 07 Core 5.0% Core 4.0% Acquisition 5.5% Acquisition 8.5% FX 3.0% FX 3.0% “Core” includes acquired businesses from and after the first anniversary of the acquisition, but excludes currency effect 4
  • 5. THIRD QUARTER 2007 PERFORMANCE SUMMARY GROSS MARGINS SG & A -30 BPS +60 BPS +50 BPS +140 BPS 45.2% 45.7% 45.5% 24.7% 24.3% 24.1% 24.0% 44.1% Q3 06 Q3 07 YTD YTD 06 Q3 06 Q3 07 07 YTD YTD 06 07 5
  • 6. THIRD QUARTER 2007 PERFORMANCE SUMMARY OPERATING PROFIT ($M) OPERATING MARGINS +20% +21% +70 BPS +90 BPS $1,276 17.0% 16.1% $1,058 16.2% $463 15.5% $387 Q3 06 Q3 07 YTD YTD Q3 06 Q3 07 06 07 YTD YTD 06 07 Q3 07: - Acquisition impact -30 BPS 6
  • 7. THIRD QUARTER 2007 PERFORMANCE SUMMARY NET INTEREST EXPENSE ($M) TAX RATE -2% $25.5 $24.9 26.9% 23.6% Q3 06 Q3 07 Q3 06 Q3 07 7
  • 8. THIRD QUARTER 2007 PERFORMANCE SUMMARY NET INCOME ($M) * +26% +13% $894 $789 $335 $264 Q3 06 Q3 07 YTD YTD 06 07 * From continuing operations 8
  • 9. THIRD QUARTER 2007 PERFORMANCE SUMMARY OPERATING CASH FLOW ($M)* CAP EX ($M) FREE CASH FLOW ($M)* +2% +6% +5% $1,028 $1,128 $100 $973 $1,072 $99 YTD YTD YTD YTD YTD YTD 06 06 07 06 07 07 * From continuing operations 9
  • 10. THIRD QUARTER 2007 PROFESSIONAL INSTRUMENTATION REVENUES ($M) OPERATING MARGINS +21% +210 BPS +70 BPS +16% $2,440 22.7% $2,107 $880 21.2% 21.9% 20.6% $727 Q3 06 Q3 07 Q3 06 Q3 07 YTD YTD YTD YTD 06 06 07 07 Core 6.5% Core 7.0% Q3 07: Acquisition 11.5% Acquisition 6.0% - Acquisition impact -80 BPS FX 3.0% FX 3.0% 10
  • 11. THIRD QUARTER 2007 ENVIRONMENTAL Q3 07 vs. Q3 06 Revenue Growth 21.5% Breakdown: Core 5.5% Acquisition 12.5% FX 3.5% YTD 07 vs. YTD 06 Revenue Growth 14.0% Breakdown: Core 6.0% Acquisition 4.5% FX 3.5% 11
  • 12. THIRD QUARTER 2007 ELECTRONIC TEST Q3 07 vs. Q3 06 Revenue Growth 21.0% Breakdown: Core 9.0% Acquisition 9.5% FX 2.5% YTD 07 vs. YTD 06 Revenue Growth 19.5% Breakdown: Core 9.0% Acquisition 8.0% FX 2.5% 12
  • 13. THIRD QUARTER 2007 MEDICAL TECHNOLOGIES REVENUES ($M) OPERATING MARGINS +19.5% +40% -50 BPS +170 BPS $2,132 13.5% 13.0% 12.2% 10.5% $1,523 $741 $620 Q3 06 Q3 07 Q3 06 Q3 07 YTD YTD YTD YTD 06 07 06 07 Core 7.5% Core 7.5% Q3 07: Acquisition 8.0% Acquisition 28.5% - Acquisition impact -90 BPS FX 4.0% FX 4.0% 13
  • 14. THIRD QUARTER 2007 MEDICAL TECHNOLOGIES 14
  • 15. THIRD QUARTER 2007 INDUSTRIAL TECHNOLOGIES OPERATING MARGINS REVENUES ($M) +5% +5.5% +90 BPS +170 BPS 17.0% 17.1% $2,341 16.1% $2,232 $773 15.4% $732 Q3 06 Q3 07 Q3 06 Q3 07 YTD YTD YTD YTD 06 06 07 07 Core 1.0% Core 2.0% Acquisition 1.0% Acquisition 0.5% FX 3.0% FX 3.0% 15
  • 16. THIRD QUARTER 2007 PRODUCT IDENTIFICATION Q3 07 vs. Q3 06 Revenue Growth 6.0% Breakdown: Core 1.5% Acquisition 1.0% FX 3.5% YTD 07 vs. YTD 06 Revenue Growth 2.0% Breakdown: Core (2.5%) Acquisition 1.5% FX 3.0% 16
  • 17. THIRD QUARTER 2007 MOTION Q3 07 vs. Q3 06 Revenue Decline (0.5%) Breakdown: Core (4.0%) FX 3.5% YTD 07 vs. YTD 06 Revenue Growth 1.5% Breakdown: Core (2.0%) FX 3.5% 17
  • 18. THIRD QUARTER 2007 TOOLS & COMPONENTS REVENUES ($M) OPERATING MARGINS +2% -1% +30 BPS -70 BPS $979 $972 $337 15.6% 15.9% $330 14.3% 13.6% Q3 06 Q3 07 Q3 06 Q3 07 YTD YTD YTD YTD 06 07 06 07 Q3 07: Core 3.0% Core 0.0% - JVS impact -25 BPS Acquisition (1.0%) Acquisition (1.0%) - Gains on sales of real estate -25 BPS FX 0.0% FX 0.0% - Q2 06 divestiture impact 15 BPS 18
  • 19. THIRD QUARTER 2007 MECHANICS HAND TOOLS Q3 07 vs. Q3 06 Revenue Growth 3.0% Breakdown: Core 3.0% YTD 07 vs. YTD 06 Revenue Growth 1.5% Breakdown: Core 1.5% 19
  • 22. 22