GLEASON CORPORATION AND HARBIN NO. 1 TOOL
CORPORATION TO FORM JOINT VENTURE

ROCHESTER, NEW YORK, April 12, 2005 - Gleason Corporation today announced that it is in the process of forming a joint venture with Harbin No. 1 Tool Corporation to produce precision gear cutting tools. Harbin No. 1, located in Harbin, Heilongjiang Province, China, is the leading supplier of gear cutting tools for the China market. The companies expect to produce high-precision gear cutting tools and provide services to support end-user markets. The joint venture will be a Sino-foreign cooperative joint venture company and will initially focus on sales within the Chinese market. The name of the joint venture will be Gleason Yi Gong (Harbin) Cutting Tools Co., Ltd.

The relationship between Gleason and Harbin No. 1 dates back to the mid-1980s when Gleason licensed Harbin No. 1 Tool certain technologies. Gleason will now contribute and license its latest technology, including proprietary equipment and software, and provide support in the form of training and technical know-how. A letter of intent has been signed detailing the terms of the joint venture, which is expected to begin in the third quarter of this year. Gleason and Harbin No. 1 will own 70% and 30%, respectively, of the joint venture company.

John J. Perrotti, President and Chief Operating Officer for Gleason Corporation, said "China has emerged as by far the leading consumer of machine tool products, including gear-making machines and the cutting tools and services that support those machines. We are excited about bringing precision gear cutting tools to the Chinese market, and we are honored to have Harbin No. 1 as our joint venture partner."

Cui Guomin, Chairman of Harbin No. 1, stated "Harbin No.1 and Gleason will form a world class organization which will provide high quality gear tools for the Chinese market. We have known the Gleason organization for years and have great respect for their technology and people. "

Gleason Corporation is the world leader in the development, manufacture and sale of gear production machinery and related equipment. The Company’s products are used by customers in the automotive, truck, aircraft, agriculture, construction, power tool and marine industries and by a diverse set of customers serving various industrial equipment markets. The company, founded in 1865, employs approximately 2,500 people worldwide. Gleason has manufacturing operations in Rochester, New York; Rockford, Illinois; Plymouth, England; Munich and Ludwigsburg, Germany; Bangalore, India; and Biel, Switzerland, and has sales and service offices throughout North America, Europe and in the Asia-Pacific region.

More information about Gleason Corporation is available on the World Wide Web at http://www.gleason.com.

-END-

[ Back to News ] [ Back to Home ]