Company Press Release

Lufkin Industries Announces Additional $2 Million to Its Stock Repurchase Program

LUFKIN, Texas, May 12 --

Lufkin Industries, Inc. (Nasdaq: LUFK) today announced that the Board of Directors has authorized the use of up to $2.0 million for the repurchase of additional shares of Lufkin's common stock. The purchases are to be made from time to time in the open market at prevailing market prices. The shares repurchased will be available for use under the Company's Stock Option Plans to minimize dilution to existing shareholders. Based on the current market price of the common stock, this will allow Lufkin to repurchase approximately 1.4% of the 6.5 million shares outstanding.

Douglas V. Smith, president and chief executive officer, said, "The Board's decision affirms Lufkin's strong financial position and our belief that repurchasing Lufkin's common stock represents an attractive use of a portion of our cash flow."

Lufkin Industries, Inc. sells and services power transmission products, oil field pumping units, foundry castings and highway trailers throughout the world. The Company has vertically integrated all vital technologies required to design, manufacture and market its products.

This release may contain certain forward-looking statements, including by way of illustration and not of limitation, statements relating to liquidity, revenues, expenses and margins. The Company strongly encourages readers to note that some or all of the assumptions, upon which such forward-looking statements are based, are beyond the Company's ability to control or estimate precisely and may in some cases be subject to rapid and material changes.

Lufkin Industries Inc., Lufkin
R.D. Leslie, 936/637-5325