THE TIMKEN COMPANY LOGO The Timken Company, Worldwide Leader in Bearings and Steel. [KC] CANTON, OH USA 10/12/1999

    CANTON, Ohio, June 15 The Timken Company
announced today that the recession plaguing manufacturing is expected to
result in second quarter sales and earnings significantly below those of a
year ago and trailing 2001's first quarter.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19991012/TKRLOGO )
    At the same time, the company has accelerated implementation of its
manufacturing strategy that it announced in April and that will reduce the
company's asset base.  It also moved early in the quarter to lower its sales
and administrative expenses.
    "Manufacturing in the U.S. remains stuck in recession.  In fact, there has
been further erosion of business levels in the second quarter," said W.R.
Timken, Jr., chairman and chief executive officer.  "Both U.S. durable goods
orders and plant capacity utilization are at 10-year lows.  Projections show
light vehicle production in the second quarter to be 15 percent below a year
ago and rail freight car production to be off by 55 percent.  Those
difficulties notwithstanding, the aggressive actions we have been taking
prepare us to show improved earnings quickly when manufacturing begins to
recover."
    Currency exchange rates continue to be a negative factor as well.  "The
persistently strong dollar continues to make the products that we - and our
customers - produce in the U.S. considerably less competitive in world markets
and causes greater imports," said Mr. Timken.  "Looking farther ahead,
interest rate cuts by the Federal Reserve, along with President Bush's tax
reduction package, will lift the economy, including the manufacturing sector.
But they have yet to provide stimulus, and the strong dollar remains a threat
to renewed growth."
    Analysts have been estimating the company's 2001 earnings per share at
between $.25 and $.95 - excluding restructuring charges.  Assuming continuing
low demand in the manufacturing sector, the company expects full-year earnings
per share to be at the low end of that range as a result of lowered second
half sales expectations.  Second quarter sales are expected to be about
15 percent below 2000 and earnings per share less than $.05, excluding
charges.  The tax rate for the year is expected to be about 55 percent due
primarily to international losses that do not result in current tax benefits.
    In mid-April, anticipating continuing economic weakness, the company took
advantage of slowing orders and its resulting ability to make major changes
without disrupting customer service and announced a strategic refocusing of
its global manufacturing operations.  This phase of the company's
transformation plan has targeted annual pre-tax savings of $100 million, to be
reached by 2004.  As early as this year's fourth quarter, the company expects
the program to produce savings at an annual rate of $15 million.
    To implement those actions, the company announced that it plans to take
about $100-$110 million in charges against earnings over the next two years,
including $18 million in the current quarter.  The program will include the
closing of two plants and sale of a third and is expected to reduce employment
by 1,500 associates at those and other facilities during the next two years.
    "Since April, we have aggressively stepped up implementation of our
manufacturing strategy," said Mr. Timken.  "In addition, we have moved quickly
to immediately reduce sales and administrative spending by another $1.5 to
$2 million per month.  We also have launched a number of teams to redesign
administrative processes and procedures.  These actions are structurally
lowering costs, improving cash flow and maintaining our strong balance sheet.
We are confident our transformation plan positions us to improve profitability
quickly when demand picks up and strengthens our earnings power for the longer
term."
    The Timken Company ( http://www.timken.com ) is a leading
international manufacturer of highly engineered bearings, alloy and specialty
steels and components, as well as a provider of related products and services.
With operations in 24 countries, the company employs about 20,000 people
worldwide and recorded 2000 sales of U.S. $2.6 billion.
    Certain statements in this news release that are not historical in nature
are forward-looking.  In particular, statements regarding expected future
sales and earnings performance of the company, the amount and timing of
savings the company expects to realize as a result of the strategic refocusing
of its manufacturing operations and the amount and timing of the charges the
company expects to take in connection with those actions are forward-looking.
The company cautions that actual results may differ materially from those
projected or implied in forward-looking statements due to a variety of
important factors, including changes in business conditions, the company's
inability to achieve the expected benefits of its manufacturing strategy -and
unexpected costs related to the programs implementing the manufacturing
strategy.  These and additional important factors are described in greater
detail in the company's 2000 Annual Report, page 39, and in the company's
Annual Report on Form 10-K for the year ended December 31, 2000.  The company
undertakes no obligation to update any forward-looking statement.

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