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The Timken Company Sees Continued Global Market Weakness

21 June 1999

The Timken Company Sees Continued Global Market Weakness; Automotive and Rail Markets Remain Strong

                           2nd Quarter and 2nd Half

    CANTON, Ohio, June 21 -- The Timken Company today
indicated it is not yet seeing the rebound it expected in worldwide markets
for highly engineered antifriction bearings and specialty alloy steels.  "The
order picture in North America for general and mobile industrial equipment,
including aerospace, has not yet recovered from the downtrend of the past
twelve months," said W. R. Timken, Jr., chairman, president and CEO.  "Oil
country and steel service center demand, for instance, is running at less than
50 percent of last year's first-half levels.  These conditions exist for both
our Bearings and Steel businesses. Continuing strength in the  automotive and
rail markets has not offset this broad-based weakness.   While Asian markets
are starting to improve, we continue to experience soft demand in Europe and
Latin America."
    Second quarter sales are expected to approximate those of the first
quarter.  Earnings are expected to be noticeably below the first quarter
level, in part due to further reduction of inventories in the current quarter
and continuing unfavorable exchange rates.  "We have achieved our highest
levels of inventory efficiency -- number of days -- while providing superior
customer service," said Mr. Timken.  "This has contributed to strong cash
generation.
    "The lower demand level has necessitated reducing manufacturing schedules
and associated decreases in staffing throughout the company.  We have lowered
employment, excluding acquisitions, by more than 800 this year following
reductions of more than 1,100 in 1998."  All areas of spending and costs
continue to be closely controlled.
    "We do not currently anticipate industrial markets improving as rapidly in
the second half as previously expected," Mr. Timken said.  "In the second half
of the year, we will continue to review short- and long-term actions needed to
adjust capacity to demand."
    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 about 21,000 people worldwide and reported
1998 sales of more than $2.6 billion.
    NOTE:  Certain statements in this news release are or could be construed
as forward-looking.  Factors that could cause actual results to differ
materially from these forward-looking statements include changes in customer
demand and market conditions.  Additional factors are described in the
company's 1998 annual report, page 17, and the 1998 10-K.  The company
undertakes no obligation to update any forward-looking statement.