NYSE TRADE SYMBOL

XYL

GLOBAL HEADQUARTERS

1133 WESTCHESTER AVENUEWHITE PLAINS, NY 10604TEL +1 914-323-5700FAX +1 914-323-5800WWW.XYLEMINC.COM

XYLEM WATERMARK

2007

2010 SALES & REVENUE$3.2 BILLION

BY THE NUMBERS

XYLEM OPERATES IN MORE THAN40 COUNTRIES AND 320 LOCATIONS

XYLEM PRODUCTS ARE SOLD IN MORE THAN150 COUNTRIES

ENGINEERING & RESEARCH EMPLOYEES 600 IN 40 TECHNOLOGY CENTERS

EMPLOYEES 12,000

MARKETS SERVED

INDUSTRIAL

35%PUBLIC UTILITY

40%

AGRICULTURE

3%

COMMERCIAL

13%

39%EUROPE

35%UNITEDSTATES

11%ASIAPACIFIC

RESIDENTIAL

9%

15%OTHER

Watermark is Xylem’s global corporate citizenship and social investment program. Its mission is

to provide and protect safe water and sanitation resources in communities around the world.

Provided safe water and sanitation to more than 500,000 people

Will reach one million more people by 2013

Made more than 3,000 individual employee gifts to Mercy Corps between 2009 and May 2011

Raised more than $1.2M to support Watermark partners

Resulted in more than 20,000 employee volunteer hours

NORTH AMERICAIdaho Municipality Turns to Xylem for UV Wastewater Treatment

Xylem brought its Wedeco ultraviolet (UV) disinfection technology to American Falls, Idaho to purify municipal drinking water and wastewater. Compared to traditional disinfection with chlorine, UV disinfection is an environmentally friendly alternative that produces no by products.

LATIN AMERICAHonduras City No Longer High and Dry

Through a remarkable engineering feat powered by Goulds brand pumps, Xylem helped bring precious water resources to a drought-stricken city in Honduras six miles up a mountain.

EUROPEXylem Pumps Provide Complete Solution for Dutch Mussel Farm

Xylem developed a comprehensive system of approximately 35 pumps supplied by several of its brands including Lowara, Vogel, Flygt and Hydrovar, to enable a Dutch mussel supplier to use a combination of salt and fresh water to clean, cool and package a range of shellfish.

AFRICAXylem’s Presence in Africa Flows Strong

Xylem South Africa is responsible for Angola, Botswana, Burkina Faso, Kenya, Malawi, Mali, Mozambique, Namibia, Zambia, Zimbabwe, Nigeria and the DRC. It provides technical design, engineering and aftermarket support and boasts the largest submersible pump rental fleet on the continent with 600 units.

MIDDLE EASTXylem Participates in World's Largest Water Reuse Installation

Technology from Xylem's Flygt, Sanitaire and Lowara brands is powering the world's largest water reclamation and reuse center in Kuwait, a desert country where about 75 percent of potable water must be distilled or imported.

ASIAXylem’s Goulds Pumps Provide Water Service in Shanghai Skyscraper

The Shanghai World Financial Center —the world’s third tallest building— uses Xylem Goulds brand pumps and intelligent control systems to provide water service for HVAC, fire protection and sewage handling.

AUSTRALIAUsing Stormwater at Sydney Airport

Sydney Airport recently underwent a major infrastruc-ture development project focused on making it more efficient and environmentally friendly. The contractor turned to Xylem and its Flygt, Sanitaire, Wedeco and Lowara brands to provide a new stormwater recycling program intended to save approximately 350 million liters of fresh water per year.

XYLEM IS A PREMIUM APPLICATION SOLUTIONS COMPANY SOLVING OUR CUSTOMERS’ MOST CHALLENGING WATER PROBLEMS BY LEVERAGING UNIQUE GLOBAL ASSETS AND A HIGH PERFORMING CULTURE.

Oceans

Ground Water

Lakes

Rivers

WATER TRANSPORT

GLOBAL WATER USAGE

END-USE CONSUMERS

XYLEM SERVES

XYLEM REVENUE BY APPLICATION (2010)

WASTEWATER TRANSPORTWATER RETURN

GLO

BA

L INFLU

EN

CE

SD

RIV

ING

OU

R B

USIN

ESS

$30 BILLIONTransport

44%BuildingServices

22%

Treatment12%

IndustrialWater

15%

Test4%

Irrigation3%

Urbanization

Infrastructure inEmerging Markets

PopulationGrowth

AgingInfrastructure

EnvironmentalRegulations

Water Scarcity

Xylem pump systems draw water from sources and transport it to treatment plants.

Xylem filtration and disinfection technologies clean and purify water before it enters the system.

Xylem pumps move water from treatment plants to storage facilities, and on through the distribution system to consumers.

Xylem provides pumps, valves and intelligent control systems for:

Agriculture: Irrigation to farms, golf courses and turf applications

Industrial: Processing water for heating, cooling, cleaning, circulating and mixing to industrial facilities ranging from light applications (car washes, marine and food & beverage) to heavy applications (oil and gas refineries and power stations)

Residential: Water supply and HVAC heating and cooling systems to homes

Commercial: Water supply and HVAC heating and cooling systems to commercial properties including apartment buildings, retail stores, hospitals and hotels

Xylem biological disinfection and filtration treatment equipment removes contaminants from wastewater before it is returned to nature for reuse.

Once clean water has served human needs, Xylem pumps transport wastewater to treatment stations.

of the Global Water Equipment and Services Market.

Xylem analytical systems test and ensure water quality.

WATER INTAKE

DELIVERING INNOVATIVE TECHNOLOGIES THAT TOUCH EVERY PART OF THE WATER CYCLE WITH A SINGLE GOAL IN MIND: ENABLE SUSTAINABLE USE OF WATER EVERYWHERE.

Applications Expertise Across the Cycle of Water

32

Xylem designs technologies that use less energy, reduce life-cycle costs and provide envi-ronmental benefits to our customers and the communities in which they operate.

Our market-leading brands enable the smarter use of water everywhere.

Xylem operates in two market segments:

• AADI

• A-C Fire Pump

• Alcon

• Bell & Gossett

• Bellingham + Stanley

• Domestic Pump

• ebro

• Leopold

• Flojet

Xylem Brands:

• Flowtronex

• Flygt

• Global Water

• Godwin Pumps

• Goulds Water Technology

• Hoffman Specialty

• Jabsco

• Lowara

• Marlow Pumps

• McDonnell & Miller

• Midland-ACS

• OI Analytical

• PCI

• Red Jacket Water Products

• Royce Technologies

• Rule

• Sanitaire

• SI Analytics

• Standard

• Vogel

• Water Equipment Technologies

• WEDECO

• WTW

• YSI

Water Infrastructure – including the transportation, treatment and testing of water and wastewater.

Applied Water – encompassing water uses in residential and commercial building services, industrial and irrigation markets.

Xylem is focused on helping our customers solve their most challenging water issues… treating water to make it potable, transporting it to where it is needed, using it in the most efficient manner, testing and analyzing its qualities, and cleaning it after its many uses.

We all need clean water. That’s why Xylem products can be found in every corner of the globe, often running 24 hours a day to ensure we have access to clean fresh water, and that wastewater is carefully transported and treated.

Xylem is working to solve water in every market and application.

For over a century, Xylem’s well-known global brands have served the water market.

We offer deep applications expertise from decades of leading innovation with products, systems and services that address the full cycle of water.

Our products are sold into more than 150 countries.

Working in true partnership with our customers and end users, we listen, learn and adapt to local environments, delivering solutions with more impact than ever before.

Let’s Solve Water

54

Xylem products, systems and services are integral to numerous customers as they work with water.

Public Utility – Water Treatment and Supply• Powerful pumps draw raw water from

well and surface water sources.

• Membrane and gravity media filtration systems purify or desalinate water.

• Ultraviolet (UV) and ozone disinfection solutions render waterborne pathogens harmless.

• Analytical instruments measure and monitor water quality, level and flow, ensuring efficient plant operation.

Residential• Circulators and boiler controls provide

residential heating and cooling.

• Durable well, sewage and drainage pumps serve homes not connected to public water supply networks.

• Reliable pumps and accessories provide safety and comfort for activities including home and garden, leisure marine and recreational vehicles.

Industrial• Pumps,valves,heatexchangers,

manifoldsandcontrolsservespecializedindustrialapplicationsunderharshconditions.

• Scalableintegratedtreatmentsolutionsenablewaterreuse.

• Analyticalinstrumentsprovidedatatocontrolindustrialprocesses.

• Membranefiltrationtechnologiesproducehigh-purityprocesswater.

Agricultural• Pumpsystemssupplywaterforcrop

irrigationandlivestockoperations.

• Submersiblepumps,mixersandhydroejectorssupportaquaculture.

• Biologicaltreatmentsolutions,pumpsandaeratorstreatandtransportagriculturalwastewater.

• Analyticalinstrumentsmonitorgroundandirrigationwaterquality,levelandflow.

Commercial• Pumps equipped with intelligent

controls provide water for HVAC and utility service for commercial buildings of any size, and for other commercial applications including fountains and water parks.

• Fire pump packages provide water supply for emergency use, and sewage pumps transport wastewater from commercial buildings.

Construction• A wide range of durable pumps

provide dewatering service for the toughest construction sites.

Food & Beverage• Hygienic pumps provide safe handling

in dairy, winery and food operations.

• Membrane filtration systems treat water for food processing applications.

• Pumps and accessories serve beverage, syrup and juice dispensing applications.

Government• Sensors,measuringandmonitoring

instrumentsprovidecriticaldataforenvironmental,oceanographic,hydrographicandclimateresearch.

• Processinstrumentation,sensorsandmonitoringsystemsprovideserviceinwaterresourceandpollutionmonitoringapplications.

Public Utility – Wastewater• Submersiblepumpstransportwaste-

waterfromwateruserstoliftstationsandontotreatmentfacilities.

• Submersiblepumpsandmixers,clarifiers,mediafiltrationandmonitoringandcontrolequipmentenablewastewatertreatmentandsludgeprocessing.

• Advancedaeration,sequencebatchreactor,andmembranebioreactorsystemsareusedforbiologicalwastewatertreatmentsolutions.

• OzoneandUVdisinfectionandmem-branefiltrationsystemsre-purifywater.

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PRIMARY TREATMENT- Submersible pumps and mixers for applications including raw influent pumping, settling tanks, digestion tanks, aeration tanks, clarifiers and chemical polishing- Monitoring and control systems

SECONDARY TREATMENT- Ceramic and membrane aeration- Submersible pump and mixer systems- Sequencing Batch Reactor (SBR) systems- Dual-stage Membrane Bioreactor (MBR) system- Waste and return activated sludge pumps- Air/water ejectors- Dry-pit non-clog pumps for sludge transfer- Monitoring and control instrumentation

TERTIARY TREATMENT- Mixed liquid propeller pumps - Ozone and ultraviolet disinfection systems- Tertiary membrane and gravity filtration- Monitoring and control of suspended solids- Deep bed filtration for phosphorus removal and denitrification

SLUDGE- Submersible,dry-pit non-clog, and progressive cavity pumps, submersible mixers and macerators for complete sludge handling solutions

WATER RETURN / WATER REUSE- Skid-mounted, packaged water booster pumps and stations- Submersible and dry-mount pump systems

STORMWATER & WASTEWATER COLLECTION /LIFT STATIONS / EQUALIZATION TANKS- Submersible pump stations- Compact submersible mixers- Solids-handling, dry-pit non-clog pumps- Emergency, non-clog dewatering solutions

ANALYTICAL INSTRUMENTATIONA wide range of sensors, monitoring and analytical equipment throughout the wastewater treatment process

O3

UVFresh

Salt

RESIDENTIAL (off grid)More than half of all residential well water pumps globally are from our core Xylem brands.

SOURCE WATER- Surface- Well- Ocean

AGRICULTURE / IRRIGATIONPump and control systems for irrigation, stock water, cooling systems and food processing.

COMMERCIAL OPERATIONS- HVAC hydronic systems- Pressure boosting pump packages- Intelligent variable speed control systems- Fire pump packages- Flood control, sewage and dewatering pumps

INDUSTRIAL TREATMENTUltra-pure water is crucial to many industrial processes. Our reverse osmosis filtration systems are employed in industries ranging from food processing, to pharmaceuticals to nuclear power.

INDUSTRIALPumps, valves, manifolds, heat exchangers and accessories used in a range of specialized industrial applications including sanitary food and pharmaceutical processing, beverage dispensing, leisure marine, home and garden, oil and gas, mining and power generation.

POTABLE WATER DISTRIBUTION- Skid-mounted packaged water booster pump stations- Dry-mount pump systems- Submersible pump systems

RESIDENTIAL- Booster pumps- Hot water hydronic systems- Boiler steam controls- Irrigation pumps- Pumps and systems for home and garden

MEMBRANE FILTRATIONStandard and custom-engineered reverse osmosis, nanofiltration, ultrafiltration and microfiltration membrane systems

DESALINATIONCustom engineered reverse osmosis and nanofiltration membrane systems

RAW WATER INTAKE- Water booster pump stations and packages- Large submersible propeller, mixed-flow, line shaft and vertical turbine pumps- Dry-mount centrifugal pump systems- Analytical sensors and instruments for measuring water quality

CONVENTIONAL POTABLE WATER TREATMENTFor more than 80 years, Xylem has supplied quality clarification and filtration systems to the public utility drinking water market.- High-rate dissolved air flotation provides optimal water quality with a small footprint.- Filters provide years of reliable, trouble-free service, producing quality drinking water that meets or exceeds regulatory standards.

DESALINATION PRE-TREATMENTClarification and pre-filtration processes that reduce silt and remove potential membrane-fouling, oily organics, metals and algae, enabling optimum desalination filtration

DISINFECTION- Ozone and ultraviolet (UV) systems for non-chemical disinfection

With more than 250,000 installations worldwide, Xylem is the world's leading provider of non-chemical systems that disinfect water with UV light - neutralizing more than 99.99% of all waterborne pathogens in just seconds.

[ APPLIED WATER ]

RESIDENTIAL / COMMERCIAL- Sump, effluent, sewage removal and drainage pump systems- Packaged grinder systems

[ WATER INFRASTRUCTURE – CLEAN WATER ]

DISINFECTION - Ozone and ultraviolet systems for non-chemical disinfection

CONVENTIONAL WASTEWATER TREATMENT- Ceramic and membrane fine bubble aeration and stainless steel coarse bubble diffusers- Submersible and dry-pit, non-clog pumps and mixers- Sequencing Batch Reactor (SBR) systems

MEMBRANE BIOREACTOR (MBR) SYSTEMSOur MBR systems are used for advanced treatment of industrial wastewater to deliver a higher quality of effluent in a smaller footprint than conventional treatment systems.

MEMBRANE FILTRATIONStandard and custom-engineered reverse osmosis nanofiltration, ultrafiltration and microfiltration membrane systems.

[ WATER REUSE ]Xylem technologies help treat complex industrial / agricultural waste streams on-site, allowing water users to recover valuable materials and reduce costs associated with traditional disposal options.UV O3

[ WATER INFRASTRUCTURE – WASTEWATER ]

[ PUBLIC UTILITY WASTEWATER TREATMENT ]

Xylem in the Cycle of Water

Transporting, testing, analyzing and treating water. These are the essential building blocks of Xylem’s deep connection with water – pumping it from its source, making it fit for every human use, cleaning it so that it may be safely returned to the environment and reused.

© 2011 Xylem Inc.Xylem Inc1133 Westchester Avenue, White Plains, NY 10604, USATel +1 914 323 5700

www.xyleminc.com

Xylem |ˈzīləm|   1) The tissue in plants that brings water upward from the roots; 2) a leading global water technology company. We’re 12,000 people unified in a common purpose: creating innovative solutions to meet our world’s water needs. Developing new technologies that will improve the way water is used, conserved, and re-used in the future is central to our work.  We move, treat, analyze, and return water to the environment, and we help people use water efficiently, in their homes, buildings, factories and farms. In more than 150 countries, we have strong, long-standing relationships with customers who know us for our powerful combination of leading product brands and applications expertise, backed by a legacy of innovation.  For more information on how Xylem can help you, go to xyleminc.com.