Kennametal Completes Sale of High Speed Steel Assets and Makes Progress with Sale of Precision Electronics Business

Kennametal Inc. announced today that it has completed the sale of its UK-based Presto brand high speed steel assets and is making progress on the divestiture of its Kemmer Praezision Electronics business. Both dispositions are in line with Kennametal's strategy to focus on its core technology business, with an emphasis on advanced materials and engineered components.

Kennametal's UK-based Presto high speed steel assets were sold to Suncraft International Corp. for $1.5 million. Suncraft will continue to be an important supplier to Kennametal for various components and products.

The divestiture of the assets and operations of the company's Kemmer Praezision Electronics business, which manufactures and markets premium quality tungsten carbide consumable tools for the printed circuit board market, has been completed in Europe and the United States and is in progress in Asia Pacific. KPAC LLC, a private investment company, is expected to close on the remaining Asia Pacific portion of this business in the first half of fiscal 2007.

"These transactions are in line with our strategy to concentrate on our core technology business," commented President and CEO Carlos Cardoso. "These dispositions will enable us to redeploy our resources and focus on growing the advanced materials and engineered components portions of our business."

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