Airgas Reports First Quarter EPS of $0.66

? Sales down 12 percent, same-store sales down 17 percent

? Effective expense reductions mitigate impact of sales decline; operating margin of 11.0 percent

? Diluted EPS of $0.66, down 19 percent, consistent with Company guidance

? Adjusted cash from operations* of $183 million up 31 percent, free cash flow of $119 million up 106 percent

? Second quarter diluted EPS guidance of $0.64 to $0.69; full-year $2.65 to $2.85

Airgas, Inc. (Radnor, PA), the largest U.S. distributor of industrial, medical, and specialty gases, and welding, safety, and related products, today reported earnings of $0.66 per diluted share for its first quarter ended June 30, 2009, consistent with the Company?s guidance.

Quarterly EPS results represent a 19 percent decline from prior year earnings of $0.81 per diluted share. First quarter sales were $1.0 billion, a decline of 12 percent from the prior year. Total same-store sales declined 17 percent, with hardgoods down 27 percent and gas and rent down 10 percent. Acquisitions contributed 5 percent sales growth in the quarter.

?Sales were consistently at the low end of our expectations throughout the quarter, and demand continues to be weak across most customer segments,? said Airgas Chairman and Chief Executive Officer Peter McCausland. ?Manufacturing has shown the deepest declines, analytical and utilities have shown some resilience, and our medical sales posted positive growth.?

Between December and March, as previously announced, the Company fully implemented $45 million of annual expense reductions, which were in addition to $10 million of expected annual savings in fiscal 2010 from ongoing efficiency initiatives. ?We have reacted quickly and effectively,? McCausland continued, ?reducing expenses to mitigate the impact of declining sales. As a result, we have experienced only a modest decline in operating margin, to 11.0 percent from 11.5 percent last quarter and 12.1 percent in the first quarter last year.?

In light of the continued weak business climate and few signs of near-term recovery, the Company has identified an additional $12 million of annual expense reductions that will be fully implemented by the end of the second quarter.

?In addition to our focus on cost management, we continue to enhance and expand our offerings and capabilities to best serve our customers,? continued McCausland. ?I am pleased with our ability to win new business, such as the supply contract we recently announced with NIST, the National Institute of Standards and Technology, which is the standard-setting body for EPA protocol gases.?

Free cash flow in the first quarter was $119 million compared to $58 million last year, driven by adjusted cash from operations* of $183 million, up from $140 million last year, and by a 21 percent reduction in capital expenditures to $67 million this year. Return on capital* was 11.8 percent compared to 13.3 percent in the prior year.

?We continue to generate strong free cash flow, which we used to reduce debt and increase our dividend this quarter,? added McCausland. ?We remain cautious in our near-term outlook and focused on forward progress for the long run.?

The Company expects earnings per diluted share of $0.64 to $0.69 for the second quarter. For fiscal 2010, the Company is updating its expectations to $2.65 to $2.85 per diluted share. The previously announced range was $2.60 to $2.90.

Prevailing economic conditions offer limited visibility into future sales and earnings, which should be taken into consideration when evaluating the Company?s guidance.

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www.airgas.com

Forward-Looking Statements

This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to: expectations for second quarter diluted earnings per share to be in the range of $0.64 to $0.69 and full year diluted earnings per share for fiscal 2010 to be in the range of $2.65 to $2.85; the continued weak business climate and few signs of near-term recovery; our identification of an additional $12 million of annual expense reductions to be fully implemented by the end of the second quarter; our focus on cost management; enhancement and expansion of our offerings and capabilities; and our cautious outlook for the near-term. We intend that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by us or any other person that the results expressed therein will be achieved. We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include: adverse changes in customer buying patterns resulting from further deterioration in current economic conditions; weakening operating and financial performance of our customers, which can negatively impact our sales and our ability to collect our accounts receivables; postponement of projects due to the recession; customer acceptance of price increases; the success of implementing and continuing our cost reduction programs; our ability to achieve anticipated acquisition synergies; supply cost pressures; increased industry competition; our ability to successfully identify, consummate, and integrate acquisitions; our continued ability to access credit markets on satisfactory terms; significant fluctuations in interest rates; increases in energy costs and other operating expenses eroding the planned cost savings; higher than expected implementation costs of the SAP system; conversion problems related to the SAP system that disrupt the Company?s business and negatively impact customer relationships; the impact of tightened credit markets on our customers; the impact of changes in tax and fiscal policies and laws; the potential for increased expenditures relating to compliance with environmental regulatory initiatives; the impact of new environmental, healthcare, tax, accounting, and other regulation; potential liability under the Multiemployer Pension Plan Amendments Act of 1980 with respect to our participation in multiemployer pension plans for our union employees; the extent and duration of current recessionary trends in the U.S. economy; the effect of catastrophic events; political and economic uncertainties associated with current world events; and other factors described in the Company?s reports, including its March 31, 2009 Form 10-K and other forms filed by the Company with the Securities and Exchange Commission.