The Timken Company to Explore Strategic Options for Specialty Steel Subsidiary

27 September 1999
The Timken Company to Explore Strategic Options for Specialty Steel Subsidiary
    CANTON, Ohio, Sept., 24 -- The Timken Company is
exploring strategic alternatives for its specialty steel subsidiary, Latrobe
Steel Company, including strategic alliances, acquisitions and divestiture.
The company has retained J.P. Morgan & Co. Inc. to assist in this process.
    Latrobe Steel Company, based in Latrobe, Pennsylvania, is a leading
producer and distributor of specialty steels.  It was acquired by The Timken
Company in 1975.  The combined manufacturing and distribution operations of
Latrobe Steel represent approximately 20 percent of The Timken Company's steel
business.
    "The specialty steel industry has been one of the more profitable
segments of the overall steel industry, and it is experiencing rapid global
consolidation and structural change," said Bill J. Bowling, Timken chief
operating officer and president - steel.
    "Our Latrobe subsidiary has been successfully pursuing an aggressive
growth strategy in specialty steel, and over the years, it has grown
independent from Timken's core businesses of highly engineered bearings and
alloy steel.  While Latrobe continues to be profitable, we are exploring
options that would allow it to compete more effectively with large, strong
competitors in the global specialty steels arena."
    W.R. Timken, Jr., chairman, president and chief executive officer, said:
"Companywide, we are continuing to deploy our assets in a way that will
maximize performance for shareholders and leverage the capabilities of our two
core businesses - highly engineered bearings and alloy steels.  We have
focused increasingly on achieving a return on invested capital that satisfies
shareholder expectations.  We have incorporated a profitable growth
objective, which recognizes both the importance of size in our core bearing
and alloy steel businesses as well as the shareholder benefits that growth can
create.  We are committed to seeking opportunities for growth in our Timken
bearing and alloy steel businesses.  Indeed, we fully recognize the unique
value these businesses contribute to each other and to our company's
leadership position in the industry."
    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 U.S. $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 the ability to
achieve the benefits from the company's ongoing continuous improvement and
rationalization programs, and changes in customer demand.  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.