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Kennametal Inc. announced today that it has entered into an agreement with Tyco International Ltd. designed to leverage Tyco's consumable tooling needs with Kennametal's global solution capabilities. As Tyco's preferred perishable tooling supplier and tooling integrator, Kennametal will be working in concert with Tyco manufacturing personnel to identify the most cost-effective tooling solutions for the myriad production applications within Tyco. The result will be increased competitive advantage for Tyco through reduction in the total cost of tooling, and manufacturing process improvement resulting in increased material removal efficiencies on the shop floor.

Under terms of the agreement, three Kennametal business units will provide Tyco with access to Kennametal's products, services, tooling expertise and manufacturing process knowledge in a coordinated global rollout of the agreement. These units are Metalworking Solutions and Services Group, Full Service Supply and Kemmer Prazision, a part of the Advanced Materials Solutions Group. In addition, J&L Industrial Supply may also participate in the relationship.

"For Tyco, our 'Engineering Your Competitive Edge' strategy means we translate manufacturing productivity into financial terms that they can see, measure, and compete with. We are organized to support our customers globally, and this was very attractive to Tyco since they are a global company. We look forward to a strong relationship as we work side-by-side with Tyco to achieve productivity gains," commented Kennametal Metalworking Solutions and Services Group President, Carlos M. Cardoso.

Kennametal is a global leader in tooling solutions. The company provides customers a broad range of technologically advanced tools, tooling systems and engineering services aimed at improving customers' manufacturing competitiveness. Kennametal's Kemmer Prazision company, which is a part of the Advanced Materials Solutions Group, manufactures and distributes high quality, technically advanced, solid carbide printed circuit board drills, routers, and end mills globally. The firm is widely recognized for application expertise, technical support, and partnering programs that help reduce total drilling costs and improve customer productivity.

Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's leading provider of both electronic security services and fire protection services; the world's leading supplier of passive electronic components; a world leader in the medical products industry; and the world's leading manufacturer of industrial valves and controls. Tyco also holds a strong leadership position in plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2003 revenues from continuing operations of approximately $37 billion.

Kennametal Inc. aspires to be the premier tooling solutions supplier in the world with operational excellence throughout the value chain and best-in- class manufacturing and technology. Kennametal strives to deliver superior shareowner value through top-tier financial performance. The company provides customers a broad range of technologically advanced tools, tooling systems and engineering services aimed at improving customers' manufacturing competitiveness. With about 13,500 employees worldwide, the company's annual sales approximate $1.9 billion, with nearly half coming from sales outside the United States. Kennametal is a five-time winner of the GM "Supplier of the Year" award and is represented in more than 60 countries. Kennametal operations in Europe are headquartered in Furth, Germany. Kennametal Asia Pacific operations are headquartered in Singapore. For more information, visit the company's web site at www.kennametal.com .

SOURCE: Kennametal Inc.

CONTACT: Investors, Beth A. Riley, +1-724-539-6141, or Media, Joy
Chandler, +1-724-539-4618, both of Kennametal Inc.

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