---

The Timken Company Delays Tube Mill Project

9 February 1999

The Timken Company Delays Tube Mill Project

                     Mill judged feasible at future date

    CANTON, Ohio, Feb. 8 -- The Timken Company today
announced postponement of a proposed new tube mill due to the status of
negotiations with key constituencies and weakened economic conditions.
    "While the project is viable, the deterioration of the seamless tubing
market increases the risk associated with such an investment," said Bill J.
Bowling, executive vice president, chief operating officer and president -
steel.  "Such a project must demonstrate a strong return in all market
conditions."
    The company has been in negotiations with several states, equipment
suppliers and union officials to determine whether to proceed with the
proposed $110 million operation.
    "Although we made progress with many of these key constituencies, the
packages on the table are not competitive enough to offset market conditions,"
said Mr. Bowling.  "With market uncertainty continuing and increasing
international competition, we are reprioritizing our growth spending to
achieve the greatest shareholder value.  We'll reopen package negotiations as
market conditions change."
    The new mill would expand steel manufacturing capabilities and increase
its tubing product line to serve new markets.  According to Karl P.
Kimmerling, group vice president -- alloy steel, the company is now focusing
on initiatives that provide greater support to existing customers.
    "We continue to institute aggressive continuous improvement initiatives at
the company's existing facilities in Ohio to further increase capacity, with
modest capital investment, to serve current customers," said Mr. Kimmerling.
"We are the world's leading producer of seamless mechanical steel tubing and
will continue to take measures to ensure our competitiveness.  These measures
combined with our recent acquisition of a British tubing manufacturer
represent our commitment to that objective."
    The Timken Company (http://www.timken.com) is a leading international
manufacturer of highly engineered bearings and alloy steels with operations in
25 countries.  The company employs 21,000 people worldwide and reported 1998
sales of more than U.S. $2.6 billion.