Barnes Group Inc. Positions for Challenging 2009 and Longer Term Opportunities.

BRISTOL, Conn. -- Barnes Group Inc. (NYSE: B), a leading international aerospace and industrial components manufacturer and logistical services company, today reported several 2008 actions it has taken to improve the performance of the Company's global business segments. These actions have impacted our worldwide businesses and address deteriorating economic conditions, severe declines in the transportation end-market, and the effects of the Boeing strike.

"During the fourth quarter of 2008 our entire organization continued to proactively anticipate and adapt to the unprecedented changes affecting all of our businesses as a result of the tumultuous economy," said Gregory F. Milzcik, President and Chief Executive Officer, Barnes Group Inc. "Given the deceleration in global demand for our products and services we took numerous actions to improve our overall cost structure, enhance our manufacturing footprint, and strengthen our global operations. We believe our actions, in addition to our strong balance sheet and end-market diversification strategies position the company to weather the anticipated difficult year ahead," continued Milzcik.

As we previously announced in October 2008, the Company realigned its three-group reporting structure into two global business segments (Precision Components, and Logistics and Manufacturing Services) by aligning its strategic business units with a focus on core functional and delivery capabilities. Aligning the segments for growth and efficiency reduces administrative costs and strengthens our focus on the needs of customers which will help the Company achieve its long-term goals of consistent and sustainable profitable growth.

Precision Components

Precision Components implemented discrete actions to improve the overall profitability of its operations in response to the current market challenges. The aggregate pre-tax charge for the actions within Precision Components is approximately $8.0 million. This charge will be recorded in the fourth quarter of 2008. Actions comprise workforce reductions and product rationalization activities throughout the business and include vacating the Central Lake, Michigan facility when its lease expires in September of 2009 and idling the Monterrey, Mexico facility, both of which primarily support the transportation industry. The work from these facilities is being transferred to other locations that perform similar operations.

Cost reduction efforts were also implemented within Precision Components' aerospace Original Equipment Manufacturing (OEM) business. The business disruption related to the strike at the Boeing Company totaled approximately $25.0 million in revenue lost during the quarter. Prudent workforce reductions and cost containment actions were taken to position the aerospace OEM business to emerge a stronger, leaner and more efficient producer of complex components and assemblies.

These actions and other workforce and cost reduction activities are expected to result in an estimated 2009 savings of approximately $25.0 million for the full year. The benefits from these actions are expected to have a greater impact in the second half of the year.

Logistics and Manufacturing Services

The Logistics and Manufacturing Services segment in North America and Europe has also implemented several discrete actions to enhance its global competitiveness. The aggregate pre-tax charge, approximately $8.0 million, will be recorded in the fourth quarter of 2008 with a portion of the charge classified as discontinued operations. Actions include the previously announced exiting of certain non-core activities within United Kingdom (U.K.) operations, closure of the Atlanta distribution center by the end of the first quarter of 2009, and other cost reduction activities.

These actions and workforce reductions are expected to result in 2009 savings of approximately $15.0 million for the full year. The benefits from these actions are expected to have a greater impact in the second half of the year.

In another action, the North American Integrated Supply activity within Logistics and Manufacturing Services has been sold. Terms of the transaction were not disclosed.

The Company will also take a tax charge of approximately $7.0 million against certain deferred tax assets in the European operations in the Logistics and Manufacturing Services business segment. This charge is a result of actions taken to exit certain businesses in the U.K. as well as the results of assessing the recoverability of certain tax loss carry forwards in France based on the lower than expected performance of operations in 2009 due to the challenging economic conditions.

In addition, as the Company prepares for the difficult year ahead a freeze on all salary levels for all salaried employees has been implemented. Barnes Group's financial position continues to remain strong; however, proactive steps to minimize the impact of the recession on financial results remains the prudent course of action given the high degree of uncertainty in the economic outlook for 2009.

These actions combined with workforce reductions taken throughout the year continue to reduce Barnes Group's total workforce. As of December 31, 2008 the total number of employees at Barnes Group was approximately 5,700, a decline of approximately 800 employees from year-end 2007. The aggregate effect of these discrete actions in 2008 is an estimated pre-tax savings of approximately $40.0 million.

"Barnes Group's proactive response to declining demand and the Company's solid financial base positions the organization to continue to execute well in a challenging environment and capitalize on opportunities to expand market presence," Milzcik said.

Barnes Group Inc. (NYSE:B) is a diversified global manufacturer and logistical services company focused on providing precision component manufacturing and operating service support. Founded in 1857, the 5,700 dedicated employees at more than 60 locations worldwide are committed to achieving consistent and sustainable profitable growth. For more information, visit www.BGInc.com. Barnes Group, the Critical Components People.

This release may contain certain forward-looking statements as defined in the Private Securities Litigation and Reform Act of 1995. Forward-looking statements are made based upon management's good faith expectations and beliefs concerning future developments and their potential effect upon the Company and can be identified by the use of words such as "anticipated," "believe," "expect," "plans," "strategy," "estimate," "project," and other words of similar meaning in connection with a discussion of future operating or financial performance. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. The risks and uncertainties, which are described in our periodic filings with the Securities and Exchange Commission, include, among others, uncertainties arising from the behavior of financial markets; future financial performance of the industries or customers that we serve; changes in market demand for our products and services; integration of acquired businesses; changes in raw material prices and availability; our dependence upon revenues and earnings from a small number of significant customers; uninsured claims; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, regulatory and public health nature. The Company assumes no obligation to update our forward-looking statements.