FMC Technologies Signs Agreement With NATCO Group for Development of Next Generation Compact Separation System

HOUSTON, May 6 /PRNewswire-FirstCall/ -- FMC Technologies, Inc. announced today that it has signed a technology advancement agreement with NATCO Group Inc. for development of a next generation, compact liquid/liquid separation system. The agreement will combine FMC Technologies' efficient compact, cyclonic separation technology with NATCO's leading electrostatic coalescer technology to develop this new compact separation system for subsea and surface processing applications.

The initial application for the compact separation system will be in subsea separation and processing studies being conducted for Petrobras by FMC Technologies. The studies involve the exploration of different subsea separation concepts and construction of a prototype separator for Petrobras' requirements.

Future plans for the technology include both surface and subsea compact separation applications. FMC Technologies plans to market the new compact separation system for subsea and surface applications, and NATCO plans to market it for surface applications.

FMC Technologies has been conducting research and development activities in subsea processing technology for several years. In 2003, FMC Technologies advanced this effort with the acquisition of a controlling interest in CDS Engineering, a leading provider of gas and liquids separation technology and equipment for both onshore and offshore applications and floating production systems.

"This agreement with NATCO will help FMC Technologies further advance its subsea separation technology and take another important step forward in the development of compact subsea processing equipment," said Peter D. Kinnear, Executive Vice President -- FMC Technologies.

"We see this development as being a key strategic component for the future development of deepwater reserves, and we are delighted to be associated with an industry leader such as FMC Technologies," said John U. Clarke, Chairman and Chief Executive Officer of NATCO Group.

FMC Technologies, Inc. (http://www.fmctechnologies.com/ ) is a global leader providing mission-critical technology solutions for the energy, food processing and air transportation industries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products for its customers through its Energy Systems (comprising Energy Production Systems and Energy Processing Systems), FoodTech and Airport Systems businesses. FMC Technologies employs approximately 9,000 people and operates 31 manufacturing facilities in 16 countries.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. Forward-looking statements are qualified in their entirety by the cautionary language set forth in the Company's filings with the Securities and Exchange Commission, including the risks and uncertainties described in the Cautionary Note Regarding Forward-Looking Statements in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's 2004 Annual Report on Form 10-K. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.