Colfax Corporation Announces Completion of Sale of the Colfax Power Transmission Group to Genstar Capital, L.P.

RICHMOND, Va., Dec. 1, 2004 -- Colfax Corporation announced today that it has completed the sale of its Colfax Power Transmission Group division to Genstar Capital, L.P., a private investment firm. Terms of the transaction were not disclosed.

Headquartered in Quincy, Massachusetts, the Colfax Power Transmission Group will now operate under a new name, Altra Industrial Motion, Inc. The Company produces and distributes a wide range of mechanical power transmission products, including industrial clutches and brakes, enclosed gear drives, open gearing, and couplings. The business consists of many of the industry's leading power transmission and component manufacturers including Warner Electric, Boston Gear, Formsprag Clutch, Stieber Clutch, Ameridrives Couplings, Wichita Clutch, Nuttall Gear and Delroyd Worm Gear. Altra Industrial Motion, Inc. has estimated revenues of approximately $336 million in 2004, operating in 16 manufacturing facilities around the world.

Merrill Lynch & Co. acted as exclusive financial advisor to Colfax on the transaction.

Colfax Corporation is a privately held company based in Richmond, Virginia. It is a leading marketer and world-class manufacturer of fluid handling products through its Colfax Pump Group division.

Based in San Francisco, Genstar Capital is a private-equity investment firm that makes leveraged investments in quality middle-market companies. With more than $900 million of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of the life sciences, business services, and industrial technology sectors.