Baldor Electric Company Reports Management Announcements and 4th Quarter 2004 Dividend Increase

FORT SMITH, Ark., Nov. 8, 2004 -- Baldor Electric Company markets, designs, and manufactures electric motors, drives, and generators and is based in Fort Smith, Arkansas. Today Baldor made the following announcements after the Company's Board of Directors' meeting on November 8, 2004.

Management Announcements ... In accordance with their on-going succession plan, the Board of Directors approved three important promotions to be effective January 2, 2005.

John A. McFarland ... Chairman and CEO

John has been named Chairman of the Board. He will succeed current Chairman, R. S. Boreham, Jr., who earlier this year announced his plans to retire as Chairman at the end of 2004. John has been Baldor's CEO since 2000 and will be Baldor's 4th Chairman since the Company's founding in 1920. John has been a Director of the Company since 1996. He has been with Baldor for more than 30 years and his experience at Baldor includes various executive positions including Executive Vice President of Sales and Marketing, Vice President of Sales, and Vice President of International Sales.

Ronald E. Tucker ... President, CFO and Secretary

Ron has been named President of the Company in addition to his current responsibilities as CFO and Secretary. In addition to his responsibilities as CFO, Ron has assumed additional operational responsibilities including Baldor's international business and its generator business. Ron has been CFO since 2000 and Secretary of the Company since 2002. He has been with Baldor for nearly 20 years and has held several management positions including Treasurer, Controller, and Director of Audit Services.

R. Wayne Thurman ... Vice President - Engineering

As Vice President - Engineering, Wayne will be responsible for all aspects of Baldor's motor and generator engineering. Since joining Baldor in 1988, Wayne has held management positions in engineering and manufacturing.

Cash Dividend ... The Board of Directors declared a 7% increase in the regular quarterly cash dividend. This makes the 10th increase in the last 10 years. The cash dividend of $0.15 per share on the Company's common stock is payable on January 4, 2005, to shareholders of record on December 14, 2004.

R. S. Boreham, Jr., Chairman, stated, "I am pleased to announce these promotions. It has been and continues to be an extremely important responsibility for the Board to place the future of Baldor in the hands of capable and highly qualified individuals." Mr. Boreham will continue to serve as a director and member of the Executive Committee.

Next update ... We will make a presentation at the Baird 2004 Industrial Conference in Chicago on Wednesday, November 10, 2004, at 9:35 am (central time). The presentation will be webcast live and accessible through Baldor's website at www.baldor.com .