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LATROBE, Pa.,--February 16, 2004-- Kennametal to Acquire Engineered Components Firm:

Kennametal Inc. announced a definitive agreement to purchase Conforma Clad Inc., a maker of engineered components that deliver wear solutions to industrial markets, for approximately $65 million.

The acquisition, which is expected to close by the end of March, remains subject to customary regulatory approval and negotiated conditions of closing.

"As a technology- and solutions-based business, Conforma Clad is very complementary to Kennametal's Advanced Materials Solutions Group's business model, markets and materials expertise," said Jim Breisinger, president of Kennametal's Advanced Materials Solutions Group.

Conforma Clad is a leading provider of engineered components that deliver premium wear solutions to industrial markets. Jim Breisinger, president of Kennametal's Advanced Materials Solutions Group, said, "The acquisition of Conforma Clad will expand Kennametal's capabilities to provide customers superior solutions for extreme wear environments involving corrosion, erosion and abrasion."

Conforma Clad manufactures engineered components with a proprietary metal cladding technology. Products include radial bearings used for directional drilling for oil and gas; extruder barrels used by plastics manufacturers and food processors; as well as numerous other engineered components.

The acquisition is expected to be breakeven to slightly accretive to earnings, margins and to return on capital during the June quarter. Kennametal plans to fund the acquisition through existing credit facilities.

Kennametal Inc. aspires to be the premier tooling solutions supplier in the world with operational excellence throughout the value chain and best-in-class manufacturing and technology. Kennametal strives to deliver superior shareowner value through top-tier financial performance. The company provides customers a broad range of technologically advanced tools, tooling systems and engineering services aimed at improving customers' manufacturing competitiveness.

With about 13,500 employees worldwide, the company's annual sales approximate $1.8 billion, with nearly half coming from sales outside the United States. Kennametal is a five-time winner of the GM "Supplier of the Year" award and is represented in more than 60 countries. Kennametal operations in Europe are headquartered in Furth, Germany. Kennametal Asia Pacific operations are headquartered in Singapore.

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