Actuant Lowers 2nd Quarter Sales Guidance.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Feb. 22, 2001

Actuant Corporation (NYSE:ATU) announced that its sales in the quarter ended February 28, 2001 will be lower than the sales range it previously endorsed. Continued weakness in the North American recreational vehicle market, as well as an overall slowing in the United States economy since mid-December are the primary causes for the sales shortfall.

Commenting on the second quarter sales, Robert Arzbaecher, President and Chief Executive Officer commented, "Second quarter sales will be short of the expectations we had entering the quarter. The majority of the shortfall is taking place in the RV market, where our sales are running 50% below last year's record pace. We had expected the year-on-year RV comparison to be negative for the quarter, but the dramatic slowdown in the new recreational vehicle build schedules at our customers is more severe than we had anticipated. Beyond the RV market, we are experiencing weakening demand in the European truck and overall U.S. markets, and a slight loss due to the recent fire in our Holland plant."

Mr. Arzbaecher continued, "While the short-term economic environment remains difficult, Actuant's focus remains unchanged:

-- Debt reduction, excluding the effect of acquisitions and dispositions, of
$35 million in fiscal 2001.

-- Grow and expand our leading positions in our core markets of branded tools
and position/ motion control systems.

-- Use our internal World Class Performance program to create improved returns
on invested capital."

The Company expects net sales for second quarter ended February 28, 2001 to be in the range of $107 to $110 million. This compares to previous sales guidance of approximately $120 million and prior year sales of $133 million, excluding non-continuing businesses. RV sales will approximate $8.5 million, a 50% decline from the record $17.3 million for the second quarter last year. Actuant will report fiscal second quarter results and a revised forecast for the remainder of fiscal 2001 on March 21, 2001.

Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with sales approximating $500 million and operations in 19 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools. Products are offered under such established brand names as Enerpac, Gardner Bender, Mox-Med, Milwaukee Cylinder, Nielsen Sessions, Power-Packer, and Power Gear.

For further information on Actuant and its business units, visit the Company's website at www.actuant.com.