Statement from George B. Lemmon, Jr., President & CEO of Owosso Corporation

    KING OF PRUSSIA, Pa., Feb. 20 The following is a statement
from George B. Lemmon, Jr., President & CEO of Owosso Corporation:

    Dear Owosso Corporation Stakeholder:

    As you may know, fiscal year 2000 was not a good year for Owosso
Corporation.  Operationally we had several surprises, as well as some dramatic
softness in a few key markets because of higher fuel prices and higher
interest rates.  Since Owosso's fiscal year-end, October 29, 2000, we have
divested three businesses and have used the proceeds to reduce our outstanding
debt (approximately $23 million).  We anticipate additional proceeds from
these transactions, as well as from a few other small transactions, which will
allow us to reduce our debt further.
    Owosso reported a net loss available to common shareholders of
$14.8 million for the fiscal year ended October 29, 2000; however, there were
$17.6 million in non-cash charges included in that loss.  $11.4 million of
those non-cash charges were associated with the three divestitures, which
occurred after the fiscal year-end.  We generated net cash from operating
activities of $3.6 million.  During FY 2000, Owosso purchased $2.3 million in
new capital equipment and returned $2.2 million in dividends to our
shareholders.  Despite the loss, the investment in new capital and the
dividends, our debt level increased by only $714,000 during the FY 2000.
    Clearly, losses of this magnitude are unsettling, but are required to
allow Owosso to focus its portfolio on businesses where it has valuable core
competencies, specifically Electric Motors and Heat Exchange Coils.  This
creates a business which is easier to understand as an investor and easier to
manage as an executive -- value-added, engineered components for industry.  We
believe that these two remaining businesses have the potential to generate
improved value for our shareholders.  Our debt position has improved since
fiscal year-end and our goal is to continue to reduce our leverage as well as
our expenses.  At the end of the day, Owosso is a smaller, more focused
business with an improved capital structure.  This positions us to better
maximize the true underlying value of Owosso.
    We are grateful to our customers, suppliers, employees, shareholders and
Board members that have helped us through this difficult time of transition.
Owosso is well positioned to take advantage of opportunities that arise as the
economy strengthens.
    To receive additional information on Owosso Corporation, via fax at no
charge, dial 1-888-OWOS-010, or visit Owosso's website, http://www.owosso.com.