January 16, 2001
Kenneth F. Kaplan
Vice President, Chief Financial Officer
608-/364-8800


Regal-Beloit Corporation
Acquires Spiral Bevel Division
of Philadelphia Gear


January 16, 2001 (Beloit, WI): James L. Packard, President, CEO, and Chairman of Regal-Beloit Corporation (AMEX: RBC) announced today the Company’s purchase of the spiral bevel gear product line of the Philadelphia Gear Company. The purchased assets included inventory and selected machinery, equipment and tooling relating to the spiral bevel gear line.

The spiral bevel gear product line, with annual sales of approximately $4 million, features full design and manufacturing capabilities for high performance Klingelnberg bevel gearing for a variety of end users in a broad array of manufacturing industries, according to Mr. Packard. The business will be moved to Regal-Beloit’s Foote-Jones/Illinois Gear division in Chicago, IL. The addition will expand Foote-Jones/Illinois Gear product offering in the open gearing market by introducing the Klingelnberg bevel line to its present line of custom gear products. This addition will also add significant capacity in the more conventional bevel gearing.

Mr. Packard also commented, "We are committed to continue our efforts to expand our business through acquisitions. This acquisition is the third acquisition since June 2000. The acquisition of Thomson Technology in June (sales $14 million) provided a strong strategic boost to our power generation business. The Leeson Electric acquisition in September (sales $175 million) provided a strong strategic addition to our motor business, and this acquisition adds significant technically advanced products to our bevel gear offerings."

Regal-Beloit Corporation is a leading manufacturer of mechanical and electrical motion control and power generation products serving markets throughout the world. Regal-Beloit is headquartered in Beloit, Wisconsin, and has manufacturing, sales, and service facilities throughout the United States, Canada, Europe, and the Far East.