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Timken to Refocus in Australia

15 September 1998

Timken to Refocus in Australia with Greater Emphasis on Sales and Marketing

                           Streamlining Operations

    CANTON, Ohio, Sept. 15 -- As part of its ongoing initiative
to increase both productivity and margins, The Timken Company
announced today that Australian Timken Proprietary Limited will focus its
resources on sales and service, and that the company's bearing manufacturing
operations in Ballarat will close.
    The Ballarat plant will cease the majority of its manufacturing operations
during the next three months.  Approximately 180 of the 230 employees at
Australian Timken will be directly affected.  The distribution warehouse in
Ballarat, remanufacturing operations and sales offices, located in five cities
around the country, will continue to operate as integral parts of the company.
    "Demand for automotive products in Australia has been declining," said
James W. Griffith, group vice president - bearings - North America automotive,
Asia Pacific and Latin America, "and customer demands in recent years have
changed substantially for key product segments.  Although we were able to slow
the rate of decline in the past by developing export markets in areas such as
Korea and Japan, future prospects and the current economic climate have
adversely and significantly affected this business.
    "While we regret having to cease manufacturing operations, we can more
efficiently supply the Australian market from our existing international
operations and achieve greater utilization of our corporate capacity worldwide
to serve expanding international tapered roller bearing markets."
    The company expects to book a $5 million to $7 million pre-tax charge in
the fourth quarter as a result of this action.  Cash savings generated are
expected to offset the cash costs over the next two years.
    "The 1990's have been a period of profitable growth and expansion for the
company," said W.R. Timken, Jr., chairman, president and chief executive
officer.  "Since 1990, Timken Company sales have increased more than 50
percent and earnings have more than tripled.  Changing conditions, however, in
the second half of 1998 are precluding our meeting internal and external
performance expectations."
    The Timken Company (http://www.timken.com) is a leading international
manufacturer of highly engineered bearings and alloy steels.  The company
employs 21,000 people worldwide and reported 1997 sales of $2.6 billion.