Danaher Corporation announced that it has settled litigation between its subsidiary, Accu-Sort, Inc. and Federal Express Corporation and that the litigation was dismissed today.

As previously disclosed in Danaher's periodic reports filed with the SEC, Accu-Sort was a defendant in a suit filed by Federal Express Corporation on May 16, 2001 and subsequently removed to the United States District Court for the Western District of Tennessee alleging misappropriation of trade secrets and other claims. On March 9, 2006 Accu-Sort settled the case with Federal Express for an amount which the Company believes is not material to its financial position, and on March 10, 2006 the parties jointly dismissed the litigation with prejudice. The purchase agreement pursuant to which the Company acquired Accu-Sort in 2003 provides certain indemnification for the Company with respect to this matter, and the Company will pursue recovery under the agreement.

In connection with this settlement, the Company has adjusted previously provided reserves by $15.5 million ($9.9 million after-tax, or $0.03 per share) through a charge to other expense (income). Pursuant to Statement of Financial Accounting Standard No. 5, because the settlement occurred after December 31, 2005 but prior to the filing of the Company's Annual Report on Form 10-K for the 2005 fiscal year (the "2005 Form 10-K"), the charge is required to be reflected in the Company's results of operations for the year ended December 31, 2005. As a result, in the 2005 Form 10-K the Company will report net earnings for the full year 2005 of $897.8 million, or $2.76 per diluted share, compared to the net earnings of $907.7 million, or $2.79 per diluted share that the Company reported in its earnings release issued on January 26, 2006. The following supplemental schedule reconciles the Statement of Net Earnings released on January 26, 2006 with the amounts to be reported in the Company's 2005 Form 10-K.

Statements in this release that are not strictly historical, including statements regarding events or developments that we believe or anticipate will or may occur in the future, may be "forward-looking" 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, the factors described in Danaher's Annual Report on Form 10-K for the year ended December 31, 2004 and most recent quarterly report filed with the SEC. These forward-looking statements speak only as of the date of this release and the Company disclaims any duty to update any forward-looking statement.

  Danaher Corporation
  Supplemental Reconciliation of Consolidated Statement of Earnings
  Year Ended December 31, 2005



                                        Jan. 26,
                                       2006 Press
                                        Release      Impact of   Final 2005
                                      Statement of  Litigation  Statement of
                                       Earnings      Settlement   Earnings
                                 ($ in thousands, except per share amounts)


  Sales                                 $7,984,704               $7,984,704

  Cost of sales                          4,539,689                4,539,689

  Selling, general and administrative
   expenses                              2,175,751                2,175,751

  Other expense (income), net              (10,904)     $15,500       4,596

  Total operating expenses               6,704,536       15,500   6,720,036

  Operating profit                       1,280,168      (15,500)  1,264,668

  Interest expense                         (44,933)                 (44,933)

  Interest income                           14,707                   14,707

  Earnings before income taxes           1,249,942      (15,500)  1,234,442

  Income taxes                             342,222       (5,580)    336,642

  Net earnings                            $907,720      $(9,920)   $897,800


  Earnings Per Share:

  Basic net earnings per share               $2.94       $(0.03)      $2.91

  Diluted net earnings per share             $2.79       $(0.03)      $2.76


  Average common stock and common
   equivalent shares outstanding:

  Basic                                    308,905                  308,905

  Diluted                                  327,983                  327,983

SOURCE: Danaher Corporation