Kennametal Acquires Purity Metal Holdinds and International Specialty Alloys

March 28, 2007—Kennametal Inc. signed a definitive agreement to acquire Purity Metal Holdings, Inc. and its wholly-owned subsidiary, International Specialty Alloys, Inc. (ISA).

Closing is planned for April 2007 and remains subject to customary regulatory approvals and negotiated conditions of closing. ISA will become a part of Kennametal’s Advanced Materials Solutions Group (AMSG. According to Kennametal’s press release, the acquisition is expected to be accretive to earnings within the twelve months following closing.

ISA manufactures high-purity specialty metal products for the aerospace, defense and super alloy industries, as well as a number of other industries that use advanced metal coatings.

This acquisition further supports Kennametal’s growth and investment strategies, which include expanding AMSG to eventually represent 50 percent of its business. ISA specializes in chromium refining and in producing titanium master alloys and specialty metals.

"ISA will add its own state-of-the-art, proprietary manufacturing equipment, processes, technologies and skills to Kennametal, enabling us to offer added value to our customers," says Jim McRickard, vice president and general manager of Kennametal’s engineered products group.

Kennametal Inc.