Company Press Release

Lufkin Directors Announce Quarterly Dividend

LUFKIN, Texas--(BUSINESS WIRE)--May 7, 1998--Lufkin Industries, Inc. (Nasdaq/NM:LUFK) today announced that the Board of Directors declared a quarterly cash dividend of $0.18 per share on its common stock. The dividend will be paid on June 10, 1998, to shareholders of record on June 1, 1998.

Lufkin Industries, Inc. sells 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.

Contact:

     Lufkin Industries Inc., Lufkin
     C. James Haley Jr., 936/637-5555