1 Crane Co. Citi 21 st Annual Global Industrial Manufacturing Conference March 4, 2008 Eric C. Fast President & CEO Crane Co.

1

Crane Co.Crane Co.

Citi 21Citi 21stst Annual Global Industrial Annual Global IndustrialManufacturing ConferenceManufacturing Conference

March 4, 2008

Eric C. Fast

President & CEO

Crane Co.

2

I. Strategy and Overview

II. ’08 Guidance

III. Segment Comments

3

Crane Co.Crane Co.

Strategy for Profitable GrowthStrategy for Profitable Growth

■ Diversified manufacturer of engineered industrial products.- Substantial presence in focused niche markets

- Businesses with high returns and excess cash flow

■ Above all conduct business with integrity and honest dealings.

■ Transitioning to a more integrated Operating Co.

to

Grow EVA.

■ Acquisitions to strengthen existing businesses.

4

Crane Co. Crane Co.

Strategy for Profitable GrowthStrategy for Profitable Growth

Materially Improving Operations• Leveraging Intellectual Capital• Improving Customer Focus• Executing Operational Excellence

Strategic Linkages• Portfolio Trimming• Internal Mergers

Synergistic Acquisitions

Grow Profits from Existing Operations

Redeploy Free Cash Flow for Acquisitions

Integrated Operating Company

Strengthen Existing Business Units

5

Crane Co. GrowthCrane Co. Growth

Operating Profit

163 169186

214

243

290

$0

$100

$200

$300

$400

2002* 2003 2004* 2005 2006* 2007*

Sales

1,5161,635

1,890

2,061

2,257

2,619

$1,000

$1,500

$2,000

$2,500

$3,000

2002 2003 2004 2005 2006 2007

* Operating profit before charges for asbestos, environmental, gain on restructuring foundry operations and other special items in 2002, 2004, 2006 and 2007. For further details see non-GAAP reconciliation on Crane website at www.craneco.com.

’07 vs. ’06 OP +19%

Growth 12% / yr

Growth 12% / yr

’07 vs. ’06 Sales +16%

($ millions)

6

Strategy for Profitable GrowthStrategy for Profitable Growth

1. Acquisitions completed in ’02-’07

Solid internal & acquisition growth

Core growth 6% / yr

Net Sales

-

500

1,000

1,500

2,000

2,500

3,000

2002 2003 2004 2005 2006 2007

($ M

illi

on

s)

Core Business Acquisitions

7

Grow Existing BusinessesGrow Existing BusinessesCrane Business SystemCrane Business System

Integrated Operating Companywith a common

Culture

Intellectual Capital Process

Prescriptive Operational Excellence

Reporting Cycle & Review Process

8

0

2

4

6

8

10

12

14

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07*

Fluid Handling OP Margins

Operational ExcellenceOperational Excellence

Broad-based improvement across units Significant opportunity remains

Op

erat

ing

Mar

gin

%

6%

12%

* Operating profit excludes the gain on the Foundry Restructuring in 4Q’07.

9

More Integrated Operating Co.More Integrated Operating Co.

Operational ExcellenceOperational Excellence

10

12

14

16

18

20

22

24

26

2002 2003 2004 2005 2006 2007

Working Capital % of Sales*

* Inventory, receivables, payables

Cash from working capital ’02-’07= $130M

24%

23%22%

21%20%

19%

10

More Integrated Operating CompanyMore Integrated Operating Company

Strategic LinkagesStrategic Linkages

Portfolio Trimming• 2006

• Westad Valves – Norway / 50 people / Marine Market• Resistoflex Aerospace –flexible fittings / 100 people• $26M cash proceeds / net gain

• 2007• Ipswich, England – Land and Building sale, foundry restructuring• Industrial Motion Control, JV with Emerson Electric• $70 million cash proceeds / net gain

Internal Mergers % Complete• Aerospace Group 100%• Engineered Materials 75%• Merchandising Systems / Electronics 50% • Fluid Handling 25%

Benefits• Smaller number of larger units• Stronger / deeper management teams• Prioritize growth opportunities• Reduce costs

11

XomoxXomox CPFTCPFTResistoflexResistoflex CVNACVNAPacificPacificValvesValves

Crane Valve GroupCrane Valve GroupIntegrated Operating CompanyIntegrated Operating Company

AustraliaAustralia

Distributor of industrial

brands and products

Chemical / Pharmaceutical Oil, Gas & Power

Crane Valve Crane Valve ServicesServices

(Industrial)

Crane Fluid Crane Fluid SystemsSystems

(Commercial)

Center Line RS

8 businesses to 4

Organized by Chemical/Pharmaceutical and Oil, Gas & Power focuses

UK Services

12

Strategic AcquisitionsStrategic Acquisitions

0

50

100

150

200

250

300

'01 '02 '03 '04 '05 '06 '07

($ millions) Annual Acquisition Spending

Xomox Saunders

F.H.

Significant Acquisitions

Segment

Lasco

Eng. Mat.

Signal Tech.Etex

Elect. F.H.

P.L. PorterHattersley

Aero.

Edlon

F.H.

Cash CodeAPTelequipNobleDixie

M.S.Eng. Mat

DolchFabwel

.ControlsEng. Mat.

13

2006 Acquisitions Summary2006 Acquisitions Summary

Invested $283 million for five strategic acquisitions

• Merchandising Systems - $209 Million

• Engineered Materials - $74 Million

Strong 2007 financial performance from 2006 acquisitions

• Sales $264 Million

• Operating Profit $ 39 Million

• Operating Margin 14.8%

• EBITDA $ 55 Million

Achieved significant consolidation within merchandising industry

Expanding Noble Composites facility to accommodate strong product demand

Price =

5.1 x EBITDA

14

Crane Vending Solutions positioned Crane Vending Solutions positioned for long-term growth and profitabilityfor long-term growth and profitability

Vending Machines #1• Bottle / Can #1• Snack #1• Food #1• Coffee #1• Frozen #2• Combo #3

Payment Systems #4

Vending Management Software #1

Crane’s market position

15

2006 – 2007 Financials2006 – 2007 FinancialsBefore Special ItemsBefore Special Items

Change '06-'07($ millions) 2006 2007 $ %

Sales 2,257$ 2,619$ 362$ 16%

Operating Profit * 243 290 47$ 19% % to Sales 10.8% 11.1%

Net Income * 161$ 195$ 34$ 21%

EPS * 2.59$ 3.19$ 0.60$ 23%

Sales effectively leveraged to operating profit

Operating profit driven by Fluid Handling, Merchandising Systems and Engineered Materials

Record EPS in 2007 before special items.

* Before special items. See Non-GAAP table for details

16

2007 Special Items2007 Special Items

After-Tax EPSProvisions & Charges $M $ / sh

Asbestos Provisions Extended ($254) ($4.22)

Environmental Provision for Super Fund Site to 2014 (12) (0.20)

Tax Provision on Undistributed Foreign Earnings (10) (0.17)

Government Settlement (5) (0.09)

Gains

Foundry Restructuring 18 0.31

Sale of Partnership Interest 6 0.10

17

Crane Co.Crane Co.

Late Cycle PortfolioLate Cycle Portfolio

2007 Segment Sales

67% of Portfolio Late Cycle

• Aerospace & Electronics

• Commercial OEM

• Defense Electronics

• Fluid Handling

–Chemical Process Industry

–Oil & Gas Industry

–Non Residential ConstructionFluid Handling

43%

Aerospace & Electronics 24%

Controls

5%

Merch. Sys.

15%Engr. Mat.

13%

Late Cycle

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2008 Guidance (Non-GAAP)2008 Guidance (Non-GAAP)

Change '07-'08($ thousands) 2007 2008 $ %

Sales $2,619 $2,830 $211 8%

Operating Profit 290 * 332 $42 14% % to Sales 11.10% 11.70%

Interest Inc./(Exp) (21) (15) $6 29%Misc'l / net 6 (1) ($7) na

Income Before tax 275 * 316 $41 15% Tax Rate 29% 31%

Net Income $195 * $218 $23 12%

Diluted Shares 61 62

EPS $3.19 * $3.52 $0.33 10%

EBITDA $372 * $418

• Table is based on the midpoint of the guidance of 2008 EPS of $3.45-$3.60 and EBITDA of $411-$425 million

* Non-GAAP

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Crane Co. Crane Co.

2008 Sales Guidance vs. ‘072008 Sales Guidance vs. ‘07

FXAcq. / Disp.

2007 2008ECore

+$131 M

$2619 M

$2830 M

+10+$40M

Sales Bridge

+$40M5%

1.5%

1.5%

8% Growth

20

Crane Co. Crane Co.

2008 Guidance vs. ‘072008 Guidance vs. ‘07

(1) 2007 included a number of special items. See Non-GAAP table for details.

Fluid Handling

Merchandising Systems

Engineered Materials

Controls2007 2008EAerospace &

Electronics

Corporate

+10M

+5M

-$4M

2006E

$290M

$332M+5

+10

+4M

+5M

+22M

Operating Profit Bridge (Non-GAAP)

21

Aerospace and ElectronicsAerospace and Electronics

Aerospace Group

Strong Niche Market Shares

Heavy Investment in New Programs

Long Term Margin goal: 20%

($ in Millions)

2004 2005 2006 2007 2008E

Aerospace Sales 308$ 339$ 368$ 421$ 450$ Electronics Sales 189 198 198 208$ 215$ Total Sales 497$ 537$ 566$ 629$ 665$ Operating Profit 91$ 85$ 99$ 86$ 96$ Operating Margin 18.3% 15.8% 17.5% 13.7% 14.4%

Electronics Group

Strong Custom Power Position

Strengthened Management Team

AEP Transfer to Electronics in ‘08

• ’08: Engr. Spending Starts to Decline in 2H’08 as 787 and A400M Completed

22

Engineered MaterialsEngineered Materials

($ in Millions)

2004 2005 2006 2007 2008E

Sales 276$ 305$ 309$ 331$ 360$ Operating Profit 54$ 63$ 50$ 58$ 63$ Operating Margin 19.6% 20.7% 16.2% 17.6% 17.5%

Mid Cycle Business with Soft End Markets

Strong Market Shares & Metrics• Acquired Noble Composites ($72 million) Sep.’06• Acquired Owens Corning Composites ($38 million) Sep.’07

Improved Margins in ’07:• Reduced Customer Support Costs• Higher Productivity and Yields • Noble Performance

• ’08: OP increases from RV share gains, productivity initiatives and price increases

23

Merchandising SystemsMerchandising Systems

($ in Millions)

2004 2005 2006 2007 2008E

Sales 169$ 166$ 258$ 388$ 420$ Operating Profit 10$ 13$ 18$ 40$ 45$ Operating Margin 5.7% 7.7% 6.8% 10.2% 10.7%

4 Acquisitions in ’06 Totaling $209 million• Two Vending - $76 million

• Two Payment Systems - $131 million

The Industry Leader in Vending• AP Consolidation & Dixie Narco Integration• Quality & New Product Development Focus• Solutions to Revitalize $24B Distribution Channel

Solid Payment Systems Results• Vending Channel Payment System

• ’08: Execution of growth initiatives & market share gains drive OP increase

24

Fluid HandlingFluid Handling

($ in Millions)

2004 2005 2006 2007 2008E

Sales 846$ 937$ 1,000$ 1,136$ 1,225$ Operating Profit 53$ 76$ 107$ 140$ 162$ Operating Margin 6.3% 8.1% 10.7% 12.3% 13.2%

Robust Global Demand – Chem Pharma / Energy / Commercial Construction

Improved Performance & Margins Across Units

• New Goal: 15% Operating Margin

• Foundry restructuring started in ‘07

More Integrated Operating Co. / Align to End- Market Focus

• People / New Products / ERP investments

* Excludes $19M gain on Foundry Restructuring

• ’08: Global demand continues from infrastructure build, targeted end-market focus, new products and continued productivity improvement

*

25

ControlsControls

($ in Millions)

2004 2005 2006 2007 2008E

Sales 103$ 117$ 124$ 135$ 160$ Operating Profit 6$ 8$ 10$ 10$ 14$ Operating Margin 5.8% 7.1% 8.1% 7.3% 8.8%

Management Teams & Customer Metrics in Place Growth Focus

Mobile Rugged Business (computers) Acquired Aug.’07

• $27 M – ’07 integration costs $1.2 M

Investment in New Product & New Geography

•’08: Full year of MRB and broad based growth initiative drive OP increase

26

2008 Cash Flow Guidance 2008 Cash Flow Guidance

($ millions) 2007 2008 Change

Cash Flow provided $243 $275 $32 by operating activities

Asbestos-related payments net of insurance (42) (55)

Equitas Receipts 32 - ($32)

Cash provided from operating activites 233 220 ($13)

Capital Expenditures (47) (50)

Free Cash Flow $186 $170 ($16)

See Non-GAAP table for impact of special items

27

Crane Co.Crane Co.

Investing for Future GrowthInvesting for Future Growth

Capital Expenditures

0

10

20

30

40

50

60

2006 2007 2008E

Safety & Env. Productivity Growth

($ millions)

’08 vs. ’07

• New products

• Machine center

• ERP

• Noble expansion

• Ipswich integration to WOFE

28

Capital StructureCapital Structure

($ millions) 2006 2007 2008

Cash $139 $283 $400

Debt 408 399 400Shareholders' Equity 919 885 1115 Total Capitalization $1,327 $1,284 $1,515

Debt/Capitalization 30.7% 31.1% 26.4%Net Debt/Net Capitalization 22.6% 11.6% -

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DividendsDividends Crane Co. has increased its quarterly dividend for the past 3 years:

2007 Dividend payout ratio of 21% (before special items) is in line with peer group

Dividend yield of 1.7% is competitive with peers

Quarterly Dividend Rate

18¢

15¢

12.5¢

10¢

Q3 04 Q3 05 Q3 06 Q3 07

30

Share RepurchaseShare Repurchase Share repurchases have roughly offset the impact of incentive stock

plan related activity

Open Market Share Repurchases

$43

$0

$60$50

$0

$50

$100

2004 2005 2006 2007

(MM)

Shares Outstanding

59.759.2

60.4 60.5 60.2

55

60

65

2003 2004 2005 2006 2007

(MM)

31

Asbestos BackgroundAsbestos Background

Crane never manufactured asbestos• Certain valves, pumps and boilers contained gaskets, packing

and seals manufactured by others with asbestos

In 2004, liability estimated through 2011 • After-tax liability of $204 million remaining• Insurance estimated to cover 40% of liability

In 2007, reserve extended to 2017• Additional after tax provision of $250 million• Includes insurance recoveries of 33%

Net asbestos payments after insurance are tax-deductible at 35% rate

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Impact of Asbestos ProvisionImpact of Asbestos Provision

Liability Thru 2011 @ 9/30/07

3Q 2007 Provision

Balance @ 9/30/07

Asbestos Liability 469$ 586$ 1,055$

Insurance Receivable (155) (196) (351)

Net Asbestos Liability 314 390 704

Tax Benefit (110) (140) (250)

After-Tax Asbestos Liability 204$ 250$ 454$

Impact to Extend Liability to 2017

($ Millions)

More Stable Outlook

• Substantial Decline In Claims Filed / Judge Jack Decision

• State Tort Reform

• Reflects National Trends

33

$36

$7$26$23$25$1 $5

$206 $192

$181 $178

$114

$173

$140

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2002

2003

2004

2005

2006

2007

2008

E

Ample Cash Flow To Fund GrowthAmple Cash Flow To Fund Growth

Cash Flow from Operations, after capital expenditures, before asbestos (net of taxes and insurance)

Asbestos Payments after insurance and taxes

Free Cash Flow after Asbestos

(a) – Includes insurance settlements of $42 million, pre-tax

• Guidance: Asbestos after insurance and taxes $30-$40 million per year ‘08-’17

FCF =

$170M

(a)

34

Crane Co. SummaryCrane Co. Summary

2007

Positive Momentum• ’06 EPS - $2.59 *

• ’07 EPS - $3.19 *

• Free Cash Flow $186 M

Capital Deployed• Dividend increased 20%• Stock repurchases $50M• Acquisitions - $65M

Investing for Growth• Capital expenditures

• Aerospace engineering

2008

Significant Room For Future Growth

* excl. special items

EPS Growth Continues• ’08 EPS - $3.45-$3.60• Increase of 8 – 13%

• Free Cash Flow $170 M

OP Increases in all segments

Continuing Growth Investments• Capital expenditures

• Aerospace engineering

35

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2003 2004 2005 2006 2007 2008E

Earnings Per ShareEarnings Per Share

$1.75 $1.98

$2.25$2.59

$3.19

Note: 2002, 2004, 2006 and 2007 before special items. For further details see non-GAAP reconciliation on Crane website at

www.craneco.com.

$3.45 - $3.60

Year to Year

% Improvement13% 14% 15% 23% 8-13%

36

37

Non-GAAP Reconciliation Non-GAAP Reconciliation for Net Incomefor Net Income

$ 000's $ / share $ 000's $ / shareNet Income (Loss) - GAAP 165,887 2.67$ (62,342) (1.04)$

Special Items impacting Net Income:

Asbestos Provision - Net of Tax - 253,597 4.22

Environmental Provision - Net of Tax - 12,293 0.20

Environmental Reimbursement - Net of Tax (3,185) (0.05) -

Foundry Restructuring Gain - Net of Tax - (18,402) (0.31)

Government Settlement - Net of Tax - 5,396 0.09

Gain on Sale of Partnership Interest - Net of Tax - (5,846) (0.10)

Tax Provision on Undistributed Foreign Earnings - 10,400 0.17

Net Gain on Divestitures - Net of Tax (1,779) (0.03) -

Net Income before Special Items - Non-GAAP 160,923 195,096

Per Basic Share 2.64$ 3.25$

Per Diluted Share 2.59$ 3.19$

2006 2007Twelve Months Ended December 31,

38

Non-GAAP Reconciliation forNon-GAAP Reconciliation for Crane Co. Operating Profit Crane Co. Operating Profit

Twelve Months

2002 2004 2006 2007

Net Sales 1,516,347$ 1,890,335$ $2,256,889 $2,619,171

Operating Profit (Loss) - GAAP 39,671.0 (161,490)$ $247,936 ($107,656)Special Items impacting Operating Profit:Asbestos Provision - Pre-Tax 115,285 307,794 - 390,150 Environmental Provision 7,673 40,000 - 18,912 Environmental Reimbursement (4,900) - Foundry Restructuring Gain - Pre-Tax - (19,083) Government Settlement - Pre-Tax - 7,600

162,629$ 186,304$ $243,036 $289,923

Percentage of Sales 10.7% 9.9% 10.8% 11.1%

Note: There were no special items in 2005 and there was a $600,000 environmental charge in 2003

INCOME ITEMS Ended December 31

Operating Profit before Special Items

39

Free Cash Flow ChartFree Cash Flow ChartNon-GAAP ReconciliationNon-GAAP Reconciliation

2002 2003 2004 2005 2006 2007 2008 E

Cash provided from Operations 197,441 162,728 110,964 181,545 181,695 232,833 220,000

Capital expenditures (25,496) (28,128) (22,507) (27,164) (27,171) (47,169) (50,000)

Free Cash Flow 171,945 134,600 88,457 154,381 154,524 185,664 170,000

Payments for asbestos-related fees and costs, net of insurance recoveries 1,885 7,938 28,056 45,338 40,563 10,198 55,000

Payment/(refund) associated with terminated Master Settlement Agreement - - 10,000 (9,925) - - -

Net payments for asbestos-related fees and costs 1,885 7,938 38,056 35,413 40,563 10,198 55,000

Tax rate 35% 35% 35% 35% 35% 35% 35%

Payments for asbestos-related fees and costs, net of insurance recoveries and tax 1,225 5,160 24,736 23,018 26,366 6,629 35,750

Free Cash Flow before payments for asbestos-related fees and costs, net of insurance recoveries and tax 173,170 139,760 113,193 177,399 180,890 192,293 205,750

• In 2007 The Company received an asbestos-related insurance from Equitas for $31.5 M, which lowered the payments in that year to $10.2M.

40

Non-GAAP Reconciliation Non-GAAP Reconciliation for Free Cash Flowfor Free Cash Flow

Twelve Months Ended Full YearDecember 31 Guidance

2007 2006 2008

CASH FLOW ITEMSCash Provided from Operating Activities before Asbestos - Related Payments, Net of Insurance 243,031$ 222,258$ 275,000$ Asbestos Related Payments, Net of Insurance Recoveries (41,698) (40,563) (55,000) Equitas Receipts 31,500 - - Cash Provided from Operating Activities 232,833 181,695 220,000Less: Capital Expenditures (47,169) (27,171) (50,000) Free Cash Flow 185,664$ 154,524$ 170,000$

41

Non-GAAP Reconciliation for Non-GAAP Reconciliation for Segment Operating ProfitSegment Operating Profit

Operating Profit (Loss): 2007Aerospace & Electronics 86,176$ Engineered Materials 58,339Merchandising Systems 39,684

Fluid Handling Excl. Foundry Restructuring 140,168 Foundry Restructuring 19,083Total Fluid Handling 159,251Controls 9,901Corporate (51,945)Environmental Provision (18,912)Asbestos Provision (390,150) Total Operating Profit (Loss), as reported (107,656) Add back:Corporate 51,945Environmental Provision 18,912Asbestos Provision 390,150SubtractGain on Foundry Restructuring (19,083) Adjusted Segment Operating Profit 334,268$

Operating Profit % Adj. Seg. OP

Aerospace & Electronics 86,176$ 26%Engineered Materials 58,339$ 17%Merchandising Systems 39,684$ 12%Fluid Handling Excl. Foundry Restructuring 140,168$ 42%Controls 9,901$ 3%

334,268$ 100%

42

2008 EBITDA Guidance2008 EBITDA Guidance

Twelve Months EndedDecember 31,

EBITDA (Non-GAAP) 2006 2007 Low High

Net Income (Loss) $165,887 ($62,342) $214,500 $224,000

Non-GAAP Adjustments:Depreciation and amortization 54,285 61,310 69,000 69,000 Amortization of stock based compensation 14,883 15,247 15,700 15,700 Asbestos provision - pre-tax - 390,150 - - Environmental provision - 18,912 - - Environmental reimbrusement (4,900) - - - Foundry restructuring gain - pre-tax - (19,083) - - Government settlement - pre-tax - 7,600 - - Gain on sale of partnership interest - pre-tax - (4,144) - - Interest expense, net 18,076 21,145 15,300 15,300 Provision for income taxes 73,447 (56,553) 96,400 100,600

EBITDA $321,678 $372,242 $410,900 $424,600

Full Year2008 Guidance Range