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Kennametal Inc. announced today that it has signed a product supply agreement with Kyocera Corporation, based in Kyoto, Japan. The agreement includes various initiatives such as private labeling, cross-licensing and sales and marketing.

The agreement is global in scope and is designed to complement the existing product lines of each company. Both Kennametal and Kyocera plan to grow sales of each others' product lines worldwide. Additionally, each company will continue to sell its own products through its established channels.

"This agreement will enable each company to leverage the strength of the other in different geographical regions", commented Yukihiro Takarabe, Kyocera Corporation Executive Officer and General Manager of the Corporate Cutting Tool Group. "As Kyocera strives to expand its global footprint, adding complementary advanced cutting tools from Kennametal, such as solid endmills, holemaking tools and milling products, will strengthen our product lines and establish Kyocera as a global player," he concluded.

Kennametal Vice President and President of Metalworking Solutions and Services Group Ron Keating said, "This agreement supports our growth strategies very well. Today's announcement presents both companies with the opportunity to offer more products, reduce costs and increase each other's production capacity utilization. Our ability to mutually complement and enhance product lines in key regions will, most importantly, enable us to offer the best possible service to our customers."

The companies will provide details of the products and services to be offered at the 2007 EMO, (Exposition Mondiale de la Machine Outil), show beginning September 17, in Hanover, Germany.

Kyocera Corporation , the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of telecommunications equipment, semiconductor packages, electronic components, laser printers, copiers, solar energy systems and industrial ceramics. Kyocera began its cutting tool business in 1973 by applying the superior characteristics of fine ceramics, such as heat and wear resistance. The firm offers inserts, which are one of its main products, under the "CERATIP" brand. During the year ended March 31, 2007, Kyocera Corporation's consolidated net sales totaled approximately US$10.8 billion (1,283,897 million yen) with net income of approximately US$895 million (106,504 million yen). For more information, please visit http://global.kyocera.com/

Kennametal Inc. is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2.3 billion annually of Kennametal products and services - delivered by our approximately 13,500 talented employees in over 60 countries - with almost 50 percent of these revenues coming from outside the United States. Visit us at www.kennametal.com. [KMT-G]

FCMN Contact: Christina.reitano@kennametal.com

SOURCE: Kennametal Inc.

CONTACT: Investors, Quynh McGuire, +1-724-539-6559, or Media, Joy
Chandler, +1-724-539-4618, both of Kennametal Inc.

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