Simonds Industries Inc. Completes Merger with International Knife and Saw, Inc.

FITCHBURG, Mass.--Oct. 3, 20031, 2003--Simonds Industries Inc. today announced that it has completed its previously announced merger with International Knife and Saw, Inc. The newly formed operating company will become Simonds International Corporation, headquartered in Fitchburg, MA. Coincident with the merger, Simonds Industries Inc. has been recapitalized through an exchange of stock among Simonds Industries Inc. shareholders, International Knife and Saw, Inc. shareholders, and the holders of Simonds Industries Inc. 10.25% subordinated notes due in 2008. The recapitalization has eliminated $82,500,000 of debt from the company's balance sheet.

As a result of the merger, Simonds International Corporation expects to offer a significantly broader product line and technology base, as well as increased global distribution while retaining the sharp customer focus of each of its major categories of cutting tools and related products serving the wood, pulp, paper, metal, and other industrial markets.

"Today, Simonds Industries Inc. and International Knife and Saw will begin to combine operations as Simonds International Corporation," said Raymond J. Martino, President and Chief Executive Officer of the newly formed company. "We are excited about the opportunity to combine forces and strengthen our ability to serve the marketplace."

About Simonds Industries Inc,

Simonds Industries Inc., headquartered in Fitchburg, MA, is a leading provider of cutting tools and related products for the wood, pulp, paper, metal and other industrial markets. For more information about Simonds visit simondsinternational.com.

About International Knife and Saw

International Knife and Saw is a leading supplier of industrial knife products and a broad range of saw and knife products for the wood, paper, tissue, metal, and packaging markets.