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CINCINNATI, OHIO, April 26, 2004 -- Milacron Inc. (NYSE: MZ) today reported a net loss of $16.6 million, or $.49 per share, in the first quarter of 2004 on sales of $189 million.  The loss included $6.4 million in refinancing costs, with no tax benefit, incurred in pursuing various alternatives to the company's March 12 refinancing of $200 million in debt and other obligations, as well as $1.1 million in restructuring costs.  This compared to sales of $190 million and a net loss of $8.3 million, or $.25 per share, in the first quarter a year ago, which included $4.8 million in after-tax restructuring costs. 

First quarter 2004 sales were within the range of the guidance issued by Milacron in February, as were segment earnings.  The company also reaffirmed its guidance and positive outlook for the rest of the year. 

"Milacron made significant progress in many areas during the first quarter," said Ronald D. Brown, chairman, president and chief executive officer.  "The most important for us was the infusion of $100 million of new capital, a major step toward achieving the financial flexibility we need to fully participate in the recovery in our markets and build on our platform for growth.  We are in the process of  transforming our capital structure with more equity and less debt.  The most recent developments, which we announced in separate releases this morning, are intended to address our ?115 million of bonds maturing in April 2005.

"During the first quarter we also made good progress with our restructuring initiatives in Europe and saw continued acceleration of the industrial recovery in North America and Asia.  As a result, we remain positive in our outlook for 2004 and are projecting a revenue increase for the year and a return to profitability in the second half ," Brown said.

First quarter 2004 new orders of $187 million were even with the year-ago quarter.  Without favorable currency translation effects - primarily the result of a stronger euro and a weaker dollar - new orders in the first quarter of 2004 would have declined 5%, and sales 6%, from year-ago levels.  These declines came primarily in the company's North American machinery businesses, which were negatively affected through most of the quarter by uncertainties concerning Milacron's refinancing of pending maturities.

Profitability in the quarter was held back by higher interest expense and fees associated with the company's refinancing activities as well as by increases in pension and insurance costs.  Despite these negatives, manufacturing margins rose to 17.4% up from 16.7% in the first quarter a year ago, reflecting the benefits of restructuring measures taken in 2003.

Cash used by operating activities in the quarter was $42 million, of which $33 million went to pay down and terminate the company's sale-of-receivables program and about $3 million were costs incurred in pursuing alternative refinancing options.  Primary working capital changes were within the February guidance, and inventory turns improved year over year throughout the company's operations, as a result of ongoing implementation of Lean manufacturing techniques.

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