Brown & Sharpe Announces First Quarter 2000 Earnings.

Business/Technology Editors

NORTH KINGSTOWN, R.I.--(BUSINESS WIRE)--April 25, 2000

Brown & Sharpe Manufacturing Company (NYSE:BNS) today announced a net loss for the quarter ended March 31, 2000 of $72 thousand ($.01 per share) on sales of $72.5 million compared to a net loss, including a restructuring charge of $15.7 million, of $15.0 million ($1.12 per share) on sales of $82.4 million for the same period in 1999. The 2000 net loss included a $.5 million credit relating to restructuring charges taken in 1999.

Operating margins in the Company's core business units improved from 9.0% of sales in 1999 to 10.7% in the current quarter, reflecting the benefits of the restructuring efforts implemented in 1999.

Frank T. Curtin, Chairman, President, and Chief Executive Officer, said, "We are encouraged by the upturn in the commodity MS machine business and in PMI's results. Furthermore, the restructuring cost benefits seen in the first quarter will continue throughout 2000."

The Company has not yet completed the refinancing of its senior debt and continues not to be in compliance with certain loan covenants, including a requirement to complete the refinancing of the senior debt by January 31, 2000. Management and a Special Committee appointed by the Board of Directors has received and evaluated several proposals from providers of permanent capital, and the Company is now in the due diligence process.

This report contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risks, and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which are in some cases beyond the control of the Company and may cause the actual results, performance, or achievements of the Company to differ materially from anticipated future results, performance, or achievements expressed or implied by such forward-looking statements. Additional information regarding this risk factor and uncertainties is detailed from time to time in the Company's SEC filings.

                 BROWN & SHARPE MANUFACTURING COMPANY
                      STATEMENT OF INCOME (LOSS)
             (Dollars in Thousands Except per Share Data)

                                              For the Quarter Ended
                                                     March 31,
                                               2000             1999

Net sales                                   $  72,473       $  82,414
Cost of sales                                  49,321          61,243
Research and
      development                               2,844           2,762
Selling, general and
      administrative expense                   19,109          21,550
Restructuring (benefit) charges                  (472)         10,762

Operating profit (loss)                         1,671         (13,903)
Interest expense                                2,151           1,411
Other income, net                                 369             350
Loss before
      income taxes                               (111)        (14,964)
Income tax (benefit) provision                    (39)             83

Net loss                                   ($      72)     ($  15,047)

Net loss
      per common share:

      Basic                                ($    0.01)     ($    1.12)

      Diluted                              ($    0.01)     ($    1.12)

                      CONSOLIDATED BALANCE SHEET
                 MARCH 31, 2000 AND DECEMBER 31, 1999
                        (DOLLARS IN THOUSANDS)

ASSETS                                         2000             1999

Cash and cash equivalents                   $  36,685       $  36,643
Accounts receivable net                        81,583          88,300
Inventories                                    62,623          68,310
Other assets                                    6,425           5,553
  Total current assets                        187,316         198,806

Property, plant, and equipment net             46,026          47,319
Other Assets                                   58,846          56,052

                                            $ 292,188       $ 302,177

LIABILITIES AND SHAREOWNERS' EQUITY

Accounts payable and accrued expenses       $  90,697       $  94,420
Current portion of short and long-term debt    93,623          98,965

  Total current liabilities                   184,320         193,385

Long-term debt                                 14,842          11,175
Other long-term liabilities                    26,062          26,083

Shareowners' equity                            66,964          71,534

                                            $ 292,188       $ 302,177