Kennametal Announces Sale of High Speed Steel Drills and Related Product Lines; Continues...

Kennametal Announces Sale of High Speed Steel Drills and Related Product
Lines; Continues Focus on Shaping Business Portfolio

LATROBE, Pa., May 19 /PRNewswire-FirstCall/ -- Kennametal Inc. (NYSE: KMT)
announced today that it has signed a definitive agreement to sell its high
speed steel drills, related product lines and assets to Top Eastern Drill Co.,
Ltd. (TDC). This sale is in alignment with Kennametal's strategy to shape its
business portfolio and rationalize its manufacturing footprint. The
transaction, which is expected to close in June 2009, remains subject to
negotiated conditions of closing.

Top-Eastern Drills is a global manufacturer of high speed steel drills and
taps. In addition to its core business, TDC owns and operates; both a
molybdenum and a tungsten mine and processing facilities, a state of the art
steel making plant, a tungsten carbide manufacturing plant, and is a
manufacturer of coating equipment for the metal industry.

Kennametal expects to receive $29 million in proceeds from the divestiture and
recognize a pre-tax loss on the sale and related pre-tax charges estimated to
amount to a total of $30 million to $33 million, the majority of which will be
recorded in the quarter ending June 30, 2009.

The transaction includes four facilities and operations specifically related
to the product lines located at Evans, Georgia; Clemson, South Carolina;
Mexico City, Mexico; and Mississauga, Ontario, Canada. Kennametal presently
has approximately 400 employees who are located at these facilities or
otherwise involved with these product lines.

The company expects to apply the proceeds from the sale to enhance liquidity
and preserve operating flexibility during the current economic downturn.

This release contains "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are statements that do not
relate strictly to historical or current facts. Forward-looking statements in
this release concern, among other things, Kennametal's anticipated date the
transaction will close, expected proceeds, estimated charges relating to the
transaction, projected tax effects of the transaction, and redeployment of
proceeds and resources, all of which are based on current expectations that
involve inherent risks and uncertainties. Among the factors that could cause
the actual results to differ materially from those indicated in the
forward-looking statements are risks and uncertainties related to: the recent
downturn in our industry; global and regional economic conditions; our foreign
operations and international markets; competition; business divestitures,
including the one described herein; and demands on management resources.
Should one or more of these risks or uncertainties materialize, or should the
assumptions underlying the forward-looking statements prove incorrect, actual
outcomes could vary materially from those indicated. These and other risks
are more fully described in Kennametal's latest annual report on Form 10-K and
its other periodic filings with the Securities and Exchange Commission. We
undertake no obligation to release publicly any revisions to forward-looking
statements as a result of further events or developments.

Kennametal Inc. (NYSE: KMT) 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. As of the prior fiscal
year end, customers bought approximately $2.7 billion annually of Kennametal
products and services -- delivered by our 14,000 talented employees in over 60
countries -- with 50 percent of these revenues coming from outside North
America. Visit us at www.kennametal.com. [KMT-G]

SOURCE Kennametal Inc.

Media Relations, Joy Chandler, +1-724-539-4618, or Investor Relations, Quynh
McGuire, +1-724-539-6559