Offering Total Rewards for Employees

Pentair has a Total Rewards program that is designed to attract, motivate, and retain our talented employees. We provide competitive pay-for-performance packages that include short- and long-term incentives, as well as a variety of attractive benefits, including medical insurance, 401(k) contributions, retirement plans, length of service awards and professional memberships. Pentair also encourages its employees to become long-term Pentair shareholders through our Employee Stock Purchase Plan.

In addition to these compensation and benefits programs, Pentair provides recognition, development, and career opportunities to create an energizing and rewarding work environment. Examples include:

• A global succession planning process that provides for regular reviews of our employees, taking into account their performance, potential, interests, and aspirations
• A robust performance management and development system which supports objective setting, performance evaluation, communication of open and candid feedback, and development action
• High-impact/high-visibility projects
• Professional and technical in-house training (e.g., Lean principles and tools)
• Executive and Management Development Programs
• Tuition reimbursement for external education

Pentair continues to improve its Total Rewards through progressive enhancements such as the HEALTH program initiated in October 2007.

Helping Employees Achieve Long-Term Health (HEALTH)

Pentair is committed to providing employees with the information and programs that will enable them to live healthier and more productive lives.

In October 2007, Pentair began implementing a new health and wellness program in the United States - Helping Employees Achieve Long-Term Health (HEALTH). This program provides tools and information to help employees better assess their individual health condition and risks, and take steps to improve them.

HEALTH is comprised of four elements: Condition Management, Health Risk Assessment, Biometric Screenings and Lifestyle Behavior Change. The various elements of HEALTH provide employees with incentivized access to personal health coaching services, ongoing health screenings, and lifestyle modification programs that help individuals address a wide range of health challenges from weight and stress management to smoking cessation. The confidential HEALTH program is available to all US employees who are eligible for benefits and their spouses.

We are carefully monitoring the impact of the HEALTH program, collecting employee feedback and evaluating the program's cost-effectiveness. We anticipate that this program will enrich employees' lives and allow Pentair to further invest in its future success.