Baldor Electric Company Announces Completion of Acquisition

FORT SMITH, Ark., Jan. 31, 2007 -- Baldor Electric Company markets, designs, and manufactures industrial electric motors, drives, and generators and is based in Fort Smith, Arkansas. Baldor announced today that it has completed the acquisition of Reliance Electric Company, including Dodge(R) mechanical and Reliance Electric(TM) motors, from Rockwell Automation.

Details of the acquisition will be discussed when the Company releases its fourth quarter and fiscal year 2006 financial results at 3:00 p.m. CT on Thursday, February 1, 2007.

A conference call will be held on Friday, February 2, at 10:00 a.m. CT. You may listen to the discussion through the Company's website at http://www.baldor.com/ , or call 1-800-819-9193. A replay will be available from 1:00 p.m. CT through midnight, Friday, February 9th. To access the replay, please call 1-888-203-1112, and use pass code 9439542.