Second Quarter

LEHIGH VALLEY, Pa. (April 27, 2005) — Air Products (NYSE:APD) today reported net income of $175 million or diluted earnings per share (EPS) of $.75 for its second fiscal quarter ended March 31, 2005. Net income increased 24 percent and diluted EPS was up 21 percent compared with the prior year.

Record quarter revenues of $2,003 million were up eight percent over the prior year, driven mainly by higher volumes across the Gases segment and higher pricing in Chemicals. Operating income of $252 million was up 20 percent from the prior year, principally driven by volume gains and lower costs from ongoing productivity projects.

John P. Jones, Air Products' chairman and chief executive officer, said, "This is the fifth consecutive quarter we improved our return on capital and posted a greater than 20 percent earnings per share increase. Strong volume gains in Gases and Equipment coupled with significant improvement in our Chemicals business produced those results. By loading our assets and delivering on productivity commitments, we increased our operating margin to 12.6 percent. We also generated strong cash flows, announced a $500 million share repurchase program and increased our dividend for the 23rd consecutive year."

Gases segment sales of $1,412 million increased 10 percent over the prior year. Increased volumes in North America and Asia base gases, refinery hydrogen, electronics and homecare contributed six percent of the growth, while favorable currency and homecare acquisitions contributed the remainder. Operating income of $207 million increased nine percent over the prior year, driven by higher volumes.

Chemicals segment sales of $499 million were up three percent versus the prior year on improved pricing to recover higher raw material and energy costs, offset by the impact of divestitures within the past year. Operating income of $45 million increased 30 percent over the prior year on lower costs and improved pricing.

Equipment segment revenues of $93 million rose four percent over the prior year, mainly on higher LNG sales. Operating income of $8 million was significantly higher. In addition, the company recently announced two new orders for its proprietary AP-X™ LNG heat exchangers, bringing the year-to-date total to four.

Looking forward, Mr. Jones said, "We still expect continued volume gains during our second half, particularly in our refinery hydrogen, equipment and homecare businesses, despite general concerns about slowing growth in manufacturing. We will continue to focus on productivity as well as pricing improvements to address increases in raw material and energy costs."

The company projects a full-year EPS range of $3.00 to $3.15 and a third fiscal quarter EPS range of $.77 to $.82.

Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $7.4 billion, operations in over 30 countries, and nearly 20,000 employees around the globe. For more information, visit www.airproducts.com.

NOTE: The forward-looking statements contained in this release are based on current expectations regarding important risk factors. Actual results may differ materially from those expressed. Factors that might cause forward-looking statements to differ materially from actual results include those specifically referenced as future events or outcomes that the company anticipates, as well as, among other things, overall economic and business conditions different than those currently anticipated and demand for Air Products' goods and services during that time; competitive factors in the industries in which it competes; interruption in ordinary sources of supply; the ability to recover unanticipated increased energy and raw material costs from customers; uninsured litigation judgments or settlements; spikes in the pricing of natural gas; changes in government regulations; consequences of acts of war or terrorism impacting the United States' and other markets; charges related to currently unplanned portfolio management and cost reduction actions; the success of implementing cost reduction programs; the timing, impact and other uncertainties of future acquisitions or divestitures; significant fluctuations in interest rates and foreign currencies from that currently anticipated; the impact of tax and other legislation and regulations in jurisdictions in which Air Products and its affiliates operate; the impact of new financial accounting standards, including the expensing of employee stock options; and the timing and rate at which tax credits can be utilized.

Please review the attached financial tables, including the Summary of Consolidated Financial Information:

AIR PRODUCTS AND CHEMICALS, INC.
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
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(Millions of dollars, except for share data)

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONSOLIDATED INCOME STATEMENTS
(Unaudited)

(Millions of dollars, except for share data)

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(Millions of dollars)

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

(Millions of dollars)

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Share-Based Payments
In the financial statements for the first six months of 2005, the company has applied Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," in accounting for its stock option plans. Accordingly, no compensation expense has been recognized for employee stock options. In December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 123 (revised 2004), "Share-Based Payment," which requires companies to expense the grant-date fair value of stock options for interim periods beginning after 15 June 2005. In April 2005, the Securities and Exchange Commission amended the compliance date to fiscal years beginning after 15 June 2005. The company is planning to adopt SFAS No. 123R on 1 October 2005 and restate prior periods.

Litigation
In July 2003, Honeywell International, Inc. and GEM Microelectronics Materials, LLC ("Honeywell") filed suit against the company alleging breach of contract resulting from the termination of a strategic alliance agreement dated 1 October 1998. On 6 August 2004, the Delaware Chancery Court decided that the company must pay damages in the amount of $8.1. The amount was recorded against previously established accruals. Honeywell filed an appeal of the court's decision and the company filed a cross appeal. On 29 March 2005, the Delaware Supreme Court affirmed the Delaware Chancery Court opinion in part and reversed in part, ruling that Honeywell was entitled to a recalculation of the award based upon five years of damages versus two years used for the 6 August 2004 judgment. On 13 April 2005, the company filed a motion with the Delaware Supreme Court to reconsider the ruling. The company does not expect that any sum it may have to pay in connection with this matter will have a material adverse effect on the consolidated financial condition, liquidity, or results of operations.