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Baldor Announces Q4 1999 Dividend Increase and Promotions

2 November 1999

Baldor Announces 4th Quarter 1999 Dividend Increase and Management Promotions

    FORT SMITH, Ark., Nov. 1 -- Baldor Electric Company
markets, designs, and manufactures electric motors and drives and
is based in Fort Smith, Arkansas.  Baldor's Board of Directors met on Monday,
November 1, 1999.  R. S. Boreham, Jr., Chairman of the Board, announced the
following:

    CASH DIVIDEND ... The Board declared a 9% increase in the regular
quarterly dividend.  This represents the 7th increase in the last five years
and the 14th increase in the last ten years.  The cash dividend of $0.12 per
share on the Company's common stock is payable on January 4, 2000, to
shareholders of record on December 14, 1999.
    MANAGEMENT PROMOTIONS ... Three important promotions were announced by
Mr. Boreham to be effective January 1, 2000.

    John A. McFarland -- President and CEO

        John will be Baldor's 5th CEO since its founding in 1920.  He has been
    a director and President of Baldor since 1996.  He has previously held
    various executive positions within Baldor including Executive Vice
    President of Sales and Marketing, Vice President of Sales, and Vice
    President of International Sales, John has been with Baldor for nearly
    30 years.

    Lloyd G. Davis -- Executive Vice President, COO, and Secretary

        Lloyd previously held various executive positions within Baldor
    including Executive Vice President of Finance, Chief Financial Officer,
    and Treasurer.  He has been with Baldor for over 20 years.

    Ronald E. Tucker -- CFO and Treasurer

        Ron has held several important positions including Controller and
    Director of Audit Services.  He has been with Baldor for almost 15 years.

    R. S. Boreham, Jr., Chairman, stated, "We are very pleased to announce
these promotions.  They complete our Board's 3-year-old management succession
plan.  It has been, and continues to be, important for us to place the future
of the Company in capable and qualified hands.  John, Lloyd, and Ron have been
with Baldor for a combined total of over 60 years.  Their experience,
expertise, and knowledge of our business make them uniquely qualified to lead
us into the next century."