Company Press Release

Lufkin Industries Announces New Three-Year Contracts With Unions End Work Stoppage

LUFKIN, Texas, October 21 --

Lufkin Industries, Inc. (Nasdaq: LUFK) today announced the ratification of new three-year contracts by the three unions representing employees at the facilities in Lufkin, Texas. The work stoppage initiated October 7, 2002, has ended and all facilities have resumed full operations.

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

Contact:

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