Company Press Release

Lufkin Industries Establishes Earnings Guidance for the Fourth Quarter And Full-Year 2002

LUFKIN, Texas, October 29  --

Lufkin Industries, Inc. (Nasdaq: LUFK) today announced its guidance for earnings per diluted share of $0.10 to $0.23 for 2002's fourth quarter and $1.21 to $1.33 for full-year 2002. Lufkin had suspended its earlier guidance for full-year 2002 of $1.05 to $1.65 per diluted share pending the resolution of a previously announced work stoppage at its facilities in Lufkin, Texas.

Douglas V. Smith, president and chief executive officer of Lufkin, remarked, "While our new estimates remain well within the range of our original expectations for 2002, the loss of two weeks of shipments from our Lufkin, Texas, facilities due to the work stoppage has affected our financial results. In addition, the continuing fragile economic recovery and difficult global oil markets have tempered our expectations for the fourth quarter. Lufkin has continued to strengthen its financial position throughout 2002, however, supporting its ability to respond to strategic opportunities. We also remain committed to strengthening our competitive market position through ongoing improvements in the quality of our products and services."

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.

This release contains forward-looking statements and information that are based on management's beliefs as well as assumptions made by and information currently available to management. When used in this release, the words "anticipate," "believe," "estimate," "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to certain events and are subject to certain assumptions, risks and uncertainties, many of which are outside the control of the Company. These risks and uncertainties include, but are not limited to, (i) oil prices, (ii) capital spending levels of oil producers, (iii) availability and prices for raw materials and (iv) general industry and economic conditions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company does not intend to update these forward-looking statements and information.

Contact:

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