Sanford Bernstein

1. Sanford Bernstein Strategic Decisions Conference

3. Strong Foundation for the Future Diversified business portfolio Industry Geography Recurring revenue Dramatic growth Operational excellence Enterprise leverage Strong balance sheet

4. Portfolio Transformation 2000 through 2005 Strategic review of prospects for all businesses Strengthened core businesses Improved marginal performers Divested non-core operations ($3.3 Billion revenues) Pumps Bearings Drills Dresser-Rand Made 60 bolt-on acquisitions since 2000 ($3 Billion revenues)

5. Ingersoll Rand Revenue by Business % of Total Revenue

6. 2005 Revenue $10.5 Billion

7. Ingersoll Rand Earnings Per Share

8. Available Cash Flow

10. Dramatic Growth Innovation ? • $335 Mil. revenues in 2005 Services and solutions ? • $2.2 Bil. in 2005 • 21% Total revenues • 83% Increase since 2000 • 15% Growth in 1Q 2006 Bolt-on acquisitions ? • 60 Acquisitions since 2000, $3.0 Bil. of revenues • 15 Acquisitions in 2005, $300 Mil. of revenues Globalization ? • China, India, Czech, Russia

11. Operational Excellence Continuous productivity gains ? Material costs, lean processes Low-cost manufacturing ? China, India, Turkey, Czech Tax planning ? 16.5% tax rate in 2006 Managing investment Working capital ? < 10% of revenue Capital expenditures ? ~ 1.7% of revenues in 2006 Strong Balance sheet ? Debt/cap 26.1% Target 30% to 35% Cash $825 Million

12. Cash Deployment Growth through bolt-on acquisitions ? $400 Million in 2006 New products and technologies, filling strategic voids Expand geographic coverage Accelerate growth of recurring revenue Dividends - target 20% - 30% of 3 year average available cash flow 68% Increase over the past 2 years Share buyback – $2 Billion authorized Excellent value at current prices $930 Million available for repurchase (March 31, 2006) Target to purchase $800 Million in 2006

13. Financial Targets/Scorecard Financial Targets 2001 2002 2003 2004 2005 Consistent revenue growth 4-6% Organic (Neg.) 3% 5% 11% 9% 15% operating margin 5.1% 7.6% 9.5% 11.9% 12.9% 12% -15% EPS growth* (Neg.) 130% 68% 54% 31% 15% ROIC 8.6% 8.3% 9.8% 13.0% 14.0% Annual available cash flow of $800 Million+ $619M $687M $630M $804M $784M

14. Financial Comparisons

15. Price Earnings Ratio Based on 2006 EPS Estimates

16. Increase Investments for Growth by $80 Million in 2006 New product/new customer development Expand geographic reach Channel expansion Recurring revenue growth

17. Expansion of auxiliary power unit (APU) for trucks Engineering Center in Czech Republic Cold chain expansion India China Bus air conditioning for China Growth Investments - Climate Control Technologies

18. Growth Investments – Compact Vehicle Technologies Continued expansion of Bobcat line Europe: New $23 Million expansion in the Czech Republic China Expansion of manufacturing capability Branch expansion

19. Growth Investments – Construction Technologies New product development ? Milling machines, small pavers and attachments Expansion of distribution in China

20. Growth Investments – Industrial Technologies New product development ? Expand Unigy and Nirvana concept, new portable impact tools Expansion of air centers in Asia, Europe and Latin America Grow channel worldwide for tool distribution, especially in developing markets

21. Growth Investments – Security Technologies New products focused on adding electronic capabilities to Schlage commercial and residential lock products Expand product coverage and distribution channels in China, India, Korea and Australia Expand residential lock business in Big Box customers and National Builders

22. Opportunity Completed record year 2005, expecting record 2006 earnings Successfully executing sound long-term growth strategy Well positioned to deliver Consistent profitable growth Strong cash flow Deploying cash to generate value for shareholders Diversified business portfolio and lean business model will dampen impact of future market cycles

23. 100th Anniversary of Stock Exchange Listing