Baldor Announces Annual Shareholders' Meeting Highlights, 2nd Quarter 2001 Dividend, and Dividend Reinvestment and Direct Stock Purchase Plan

    FORT SMITH, Ark., May 2 Baldor Electric Company
markets, designs, and manufactures electric motors and drives and
is based in Fort Smith, Arkansas.  R. S. Boreham, Jr., Baldor's Chairman,
today made the following announcements.

    Annual Shareholders' Meeting Highlights ... The Company's Annual
Shareholders' Meeting was held on April 28, 2001, in Fort Smith, and was
attended by many shareholders and guests.  The presentation made at the
meeting can be viewed on the Company's website (http://www.baldor.com) and a reprint
of the presentation will be available soon.  Following are the highlights of
the meeting:

    -- Company directors R. S. Boreham, Jr. and R. L. Qualls were re-elected
       to serve a three-year term to expire in 2004.

    -- Barry K. Rogstad was elected to serve as a director on the Board for a
       three-year term to expire in 2004.  Barry is President of the American
       Business Conference whose mission is the promotion of public policies
       to encourage growth, job creation, and a higher standard of living for
       all Americans.  Barry and ABC are well respected among the policy
       makers in Washington, D.C.  Prior to joining ABC, Barry was with
       Coopers & Lybrand serving as their Chief Economist, Managing Partner -
       International Management Consulting, and Partner - Strategic Management
       Services.

    -- The Baldor Electric Company Stock Option Plan for Non-Employee
       Directors was approved by the Company's shareholders.

    -- Company director Fred C. Ballman retired after many years of service
       with the Company.  In recognition of his long-term history with Baldor,
       Mr. Ballman was elected to the Company's new honorary position of
       "Director Emeritus".

    2nd Quarter 2001 Dividend ... The Board of Directors declared a regular
quarterly dividend of $0.13 per share on the Company's common stock.  The cash
dividend is payable on June 29, 2001, to shareholders of record on
June 8, 2001.

    Dividend Reinvestment and Direct Stock Purchase Plan ... Investors may now
make their initial investment in Baldor stock through this Plan.  The Plan is
administered and offered by Continental Stock Transfer Trust Company.  To
request additional information regarding this Plan, call Continental at
800-509-5586.

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