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Baldor Electric Company Announces Completion of Acquisition of Reliance Electric Company

January 31, 2007 – Baldor announced today that it has completed the acquisition of Reliance Electric Company, including Dodge mechanical and Reliance Electric motors, from Rockwell Automation.

Details of the acquisition will be discussed when the Company releases its fourth quarter and fiscal year 2006 financial results at 3:00 p.m. CT on Thursday, February 1, 2007.

A conference call will be held on Friday, February 2, at 10:00 a.m. CT.  You may listen to the discussion through the Company’s website at http://www.baldor.com , or call 1-800-819-9193.  A replay will be available from 1:00 p.m. CT through midnight, Friday, February 9th.  To access the replay, please call 1-888-203-1112, and use pass code 9439542.

For more information please contact:

Baldor Electric Company
Phone: 479-646-4711
Fax: 479-648-5701
PO Box 2400, Fort Smith, Arkansas 72902

John McFarland Chairman & CEO
Ron Tucker, President & CFO
Tracy Long, VP Investor Relations & Assistant Secretary

Website:http://www.baldor.com

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