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General Bearing and Ford Motor Company Reach Agreement

12 February 1998

General Bearing and Ford Motor Company Reach Agreement; Contract Expected to Yield $14 Million in Revenues to General Bearing

    WEST NYACK, N.Y., Feb. 12 -- General Bearing Corporation
announced today that it reached a two-year, $14 million
agreement to supply various ball bearings to Ford Motor Company .
The Company anticipates shipping approximately $4.5 million against the order
in 1998, as shipments are expected to begin May 1, 1998.
    General Bearing President David L. Gussack said, "The contract with Ford
Motor Company affirms our standing as a premier, low cost, high quality
bearing supplier to the U.S. Automotive Industry.  General Bearing has created
great opportunities for itself and we are continuing to reap the benefits."
    Gussack also noted that the Company's contract with General Motors
to supply wheel and axle bearings had been delayed several months.
He anticipates shipments to begin mid 1999.  However, he explained that  the
new Ford contract plus other new business "means we will continue to see
strong top and bottom line growth through 1998.  In 1999, that growth will be
even more accentuated with the combined new revenue streams from both Ford and
General Motors."
    "With respect to General Motors," he continued, "It is important to
understand that the terms of the contract remain intact and that the delays in
the validation process have not been the result of any problems or issues with
General Bearing or our product.  Rather, the General Motors certification
process is a time-consuming series of tests utilized to validate the
performance of our bearings.  We have been given all assurances by General
Motors that it is doing what is necessary to conclude the validation process."
    General Bearing manufactures, sources, assembles and distributes a variety
of bearing components and products.  The Company manufactures ball bearings,
tapered roller bearings, spherical roller bearings and cylindrical roller
bearings.  Under "The General" and the "Hyatt" trademarks, the Company
supplies Original Equipment Manufacturers (OEMs) in the automobile,
truck/trailer,  railcar, office equipment, machinery and appliance industries,
as well as the Industrial Aftermarket.
    "Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: This press release contains forward-looking statements that are
subject to risks and uncertainties, including, but not limited to, the impact
of competitive products, product demand and market acceptance risks, reliance
on key strategic alliances, fluctuations in operating results and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission. These risks could cause the Company's actual results for
the current FY and beyond to differ materially from those expressed in any
forward looking statements made by, or on behalf of, the company.

SOURCE  General Bearing Corporation