Barnes Group Second Quarter Net Income Up 26 Percent; Sales Reach Record $209 Million.

Business Editors

-- Company achieves earnings of $0.45 per diluted share.

-- Acquisitions, nitrogen gas spring and transportation products

fuel growth at Associated Spring.

-- Vendor management, warehouse consolidation benefit Barnes Distribution profitability.

-- Barnes Aerospace orders and backlog remained strong.

Barnes Group Inc. (NYSE: B) today announced financial results for the second quarter ended June 30, 2002. Net sales for the second quarter of 2002 were a record $209.4 million, up five percent from $199.5 million in the second quarter of 2001. The Company reported net income of $8.7 million, or $0.45 per diluted share, in the second quarter of 2002, compared with net income of $6.9 million, or $0.36 per diluted share, in the year-ago period.

"We were pleased with the solid results we achieved in this past quarter. We are beginning to realize the benefits of the aggressive cost reductions and growth investments we have made over the past 18 months, even though the economic recovery has not yet positively impacted all of our end markets," said Edmund M. Carpenter, Barnes Group Inc.'s President and C.E.O. "Our three recent acquisitions - Forward Industries, Seeger-Orbis, and Spectrum Plastics - are also contributing meaningfully to our top line growth," Carpenter continued.

Sales at Associated Spring were a record $88.0 million for the quarter ended June 30, 2002, up 18 percent from $74.8 million in the quarter ended June 30, 2001. Strong sales of both nitrogen gas springs and products for the transportation market, as well as approximately $12.0 million of incremental sales from recent acquisitions, contributed to the top line growth in the most recent period. These positives were somewhat offset by continued lower sales to customers in the telecommunications and electronics industries.

Associated Spring recorded an operating profit of $7.8 million for the second quarter of 2002, compared with an operating profit of $8.2 million in the second quarter of 2001. Included in the 2002 period was an expense of approximately $0.8 million related to the initial purchase price accounting adjustments related to recent acquisitions.

Carpenter commented, "Sales of our nitrogen gas products grew 27 percent year-over-year, and we are continuing to benefit from the upturn in light vehicle production. While the electronics and telecommunications markets have not yet recovered, we are somewhat encouraged by early signs of stability returning to those markets. This, combined with the aggressive cost-cutting measures Associated Spring has undertaken in the past 18 months, contributed to the good profitability we recognized this past quarter. Based on published data, we would expect sales to remain strong in both the nitrogen gas and transportation markets through at least the end of the third quarter. While a full recovery in the electronics and telecommunications markets still appears distant, sales within those sectors have increased sequentially for the last two quarters."

Sales at Barnes Aerospace were $49.4 million for the second quarter of 2002, down two percent from $50.2 million in the second quarter of 2001. Operating profit fell to $2.9 million for the quarter ended June 30, 2002 from $3.9 million in the comparable year-ago period, reflecting higher engineering costs associated with productivity, processing and quality improvements and severance expense. Barnes Aerospace recorded orders of $45 million during the second quarter of 2002; order backlog was $150 million at June 30, 2002, down less than six percent from $159 million at December 31, 2001.

"Barnes Aerospace's ability to diversify its customer base in the past two years has played a critical role in generating a significant level of new orders and sales," Carpenter stated. "The long-term prospects for our aerospace business remain quite solid. Nevertheless, Barnes Aerospace's management team has positioned the business for the current aircraft production forecast, reducing the workforce by approximately 16 percent since the beginning of the year. Management is also being quite careful in this environment by reducing capital expenditures and operating expenses," Carpenter added.

Sales at Barnes Distribution were $74.3 million for the quarter ended June 30, 2002, down four percent from $77.0 million in the quarter ended June 30, 2001. Barnes Distribution generated operating profit of $3.5 million for the second quarter of 2002, up from operating profit of $1.9 million in the second quarter of 2001. Operating profit was positively impacted by a higher gross profit margin and reduced administrative and warehouse expenses versus the year-ago period, partially offset by the sales volume decline.

"The benefits from warehouse consolidation, vendor management and other cost reduction efforts that have been underway for nearly two years at Barnes Distribution were evident in the operating profit growth this past quarter, a significant achievement given that sales were down from a year ago," Carpenter stated. "Barnes Distribution has also improved gross margin levels through substantial purchasing savings, which have in turn positively impacted the overall profitability of the business, and will going forward."

Commenting on the results, William C. Denninger, Barnes Group Inc.'s Chief Financial Officer, stated, "In addition to delivering strong year-over-year sales and earnings per share growth, we also generated nearly $18 million of free cash flow during the quarter, and over $12 million during first half of 2002." Barnes Group defines free cash flow as cash available before dividends, business acquisitions, share repurchases, and net changes in debt.

For the first six months of 2002, Barnes Group's net income was $15.4 million, up from $14.2 million for the same period a year ago. Diluted earnings per share were $0.81 for the six months ended June 30, 2002, compared with $0.75 per share in the same period of 2001. Net sales for the first six months of 2002 were $403.6 million, up one percent from net sales of $398.7 million last year.

Carpenter concluded, "Overall, the first half of the year came in above our expectations, with the second quarter stronger than the first. Over the balance of 2002, I think we'll continue to see a very strong performance from Associated Spring and continued improvement at Barnes Distribution. And, as our backlog suggests, we are confident that Barnes Aerospace will remain profitable through the current downturn in their industry cycle, with an expectation for improved top and bottom line growth in 2003."

Barnes Group will conduct a conference call with investors to discuss second quarter results on Monday, July 15, 2002 at 10:30 AM EDT. A webcast of the live call and archived replay will be available on the Barnes Group investor relations website (ir.barnesgroupinc.com).

Barnes Group Inc. (www.barnesgroupinc.com) is a diversified international manufacturer of precision metal parts and distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut, Barnes Group consists of three businesses with 2001 sales of $769 million: Associated Spring, one of the world's largest manufacturers of precision mechanical and nitrogen gas springs; Barnes Aerospace, a manufacturer and repairer of highly engineered assemblies and products for aircraft engines, airframes, and land-based industrial gas turbines; and Barnes Distribution, an international distributor of maintenance, repair and operating supplies. Nearly 5,400 dedicated employees at more than 50 locations worldwide contribute to Barnes Group Inc.'s success.

This release may contain certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the Company's periodic filings with the Securities and Exchange Commission, including the following: the ability of the Company to integrate newly acquired businesses and to realize acquisition synergies on schedule; changes in market demand for the types of products and services produced and sold by Barnes Group; the Company's success in identifying, and attracting customers in, new markets; the Company's ability to develop new and enhanced products to meet customers' needs timely; changes in economic and political conditions, worldwide and in the locations where the Company does business; interest and foreign exchange rate fluctuations; and regulatory changes.

                           BARNES GROUP INC.
                   CONSOLIDATED STATEMENTS OF INCOME
             (Dollars in thousands, except per share data)
                              (Unaudited)

                     Three months ended          Six months ended
                          June 30                    June 30
                      2002         2001          2002         2001

Net sales         $   209,385  $   199,464   $   403,621  $   398,714

Cost of sales         142,206      133,890       272,504      266,452
Selling and admin.
 expenses              53,417       52,134       105,798      105,069

                      195,623      186,024       378,302      371,521

Operating income       13,762       13,440        25,319       27,193

Other income              774        1,336         1,201        2,741
Interest expense        3,628        4,486         7,018        8,719
Other expenses             74        1,129           211        2,302

Income before
 income taxes          10,834        9,161        19,291       18,913

Income taxes            2,167        2,290         3,858        4,728

Net income        $     8,667  $     6,871   $    15,433  $    14,185

Per common share:
   Net income
   - basic        $       .46  $       .37   $       .83  $       .76
   - diluted              .45          .36           .81          .75
   Dividends              .20          .20           .40          .40

Average common
 shares
  outstanding
  - basic          18,751,084   18,508,148    18,624,929   18,564,143
  - diluted        19,290,127   18,913,360    19,158,789   18,925,590




                           BARNES GROUP INC.
                      CONSOLIDATED BALANCE SHEETS
                         (Dollars in millions)
                               Unaudited

                                                 June       June
                                                 2002       2001
Assets
Current assets
   Cash and short-term investments             $   38.0   $   35.1
   Accounts receivable                            119.9      114.8
   Inventories                                     88.4       80.0
   Deferred income taxes and prepaid expenses      30.9       20.9

      Total current assets                        277.2      250.8

Deferred income taxes                               3.6       12.2

Property, plant and equipment                     164.7      160.2

Goodwill                                          169.0      159.0

Other assets                                       74.9       56.3

                                               $  689.4   $  638.5

Liabilities and Stockholders' Equity
Current liabilities
   Notes payable                               $    - -   $    4.1
   Accounts payable                                69.7       67.0
   Accrued liabilities                             69.5       54.8
   Long-term debt - current                         8.3        - -

      Total current liabilities                   147.5      125.9

Long-term debt                                    242.0      230.0

Deferred income taxes                               7.0        6.2
Other liabilities                                  74.0       72.0

Stockholders' equity                              218.9      204.4
                                               $  689.4   $  638.5