Press Release

LATROBE, Pa., Sept. 21 /PRNewswire/ -- As previously announced, Kennametal Inc. (NYSE: KMT) adopted SFAS No. 142 "Goodwill and Other Intangible Assets" effective July 1, 2001, and accordingly will no longer amortize goodwill to earnings.

To facilitate comparisons, the following charts restate selected fiscal 2001 financial results to exclude goodwill amortization (in thousands, except per share amounts).

     Selected Pro Forma Fiscal Year 2001 Restatement
     Excluding Special Charges

                  1st Qtr      2nd Qtr      3rd Qtr      4th Qtr        2001
                 ________     ________     ________     ________    ________

    Amortization of
     intangibles     $923         $770         $703         $716      $3,112

    Provision for
     income taxes   9,366        9,751       14,760       12,501      46,378

    Minority
     interest       1,111          967          800          862       3,740

    Net income    $15,907      $19,290      $27,980      $23,514     $86,691
                  =======      =======      =======      =======     =======

    Pro forma
     Diluted EPS    $0.52        $0.63        $0.91        $0.76       $2.82
                  =======      =======      =======      =======     =======


     Fiscal Year 2001 Goodwill Expense Summary - By Segment

                  1st Qtr      2nd Qtr      3rd Qtr      4th Qtr        2001
                 ________     ________     ________     ________    ________

    MSSG           $2,350       $2,339       $2,349       $2,344      $9,382
    AMSG            2,232        2,229        2,230        1,897       8,588
    J&L               687          717          766          629       2,799
    FSS                15           15           15           15          60
    Corporate         116           77            -            -         193
                 ________     ________     ________     ________    ________

    Total          $5,400       $5,377       $5,360       $4,885     $21,022
                  =======      =======      =======      =======     =======

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 13,000 employees worldwide, the company's annual sales are approximately $1.8 billion, with a third 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.

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SOURCE Kennametal Inc.
Web site: http: //www.kennametal.com
CONTACT: Investor Relations, Beth A. Riley of Kennametal, +1-724-539-3470