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Baldor Electric Company Announces relocation of Linear Motor Plant to Fort Smith, Arkansas

March 23, 2005 ... Baldor Electric Company, based in Fort Smith, Arkansas, a leading North American manufacturer of industrial electric motors, drives and generators, announced today its plan to relocate its linear motor manufacturing plant currently located in Santa Clarita, California to Fort Smith, Arkansas.

The linear motor plant was acquired by Baldor in 1998. The plant currently manufactures several types of linear motors for precision applications such as pick and place machines, X-Y tables, material handling equipment and semi-conductor manufacturing equipment. Baldor linear motors provide precise accuracy, fast acceleration and repeatability. They provide unique speed and positioning performance advantages over rotary motors. Other applications include packaging equipment and medical equipment. In addition, they are found on amusement park rides, airport baggage handling equipment and biomedical inspection equipment. Baldor linear motors are used with motion control products made in our Fort Smith Drives Center and our Bristol, England manufacturing plant.

According to Ron Tucker, President and CFO, "This move will allow us the opportunity to show our customers the capabilities of linear motors and our other motion control products when visiting our facilities in Fort Smith. Moving this plant to Fort Smith will also allow us to easily expand production of these products as sales grow in the next several years."

Baldor has offered relocation to 42 employees of the linear motor plant in California. "We expect some of these employees to make the move and we are already bringing them to Fort Smith to take a look at the area. Additional employees in manufacturing and engineering will be added from the Fort Smith area," stated Roger Bullock, Vice President - Drives.

"We are pleased to bring this product line and new jobs to Fort Smith and we appreciate the assistance provided by the Arkansas Department of Economic Development and the Fort Smith Chamber of Commerce. We expect this business and the number of jobs to more than double in the next couple of years. Relocation of the plant is already underway and completion is expected by mid- July 2005. The plant will be located in the Baldor Drives facility on R.S. Boreham Jr. Street, across from Baldor’s corporate offices," according to John McFarland, Chairman and CEO.

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