Twin Disc, Inc., Announces Acquisition of Rolla SP Propellors SA

May 18, 2004 - Twin Disc, Inc. today announced the acquisition of Rolla SP Propellers SA (Rolla), located in Balerna, Switzerland, a leading international designer and manufacturer of marine propellers. With annual sales of approximately $6.0 million, the acquisition will be accretive to Twin Disc's earnings beginning in fiscal 2005. Twin Disc is paying CHF 8 million ($6.2 million) cash for Rolla.

Founded in 1963 by Philip Rolla, the Company offers customized propellers and consulting services to the high-end performance marine propulsion market. With its proprietary and profound knowledge of hydrodynamics, gained through empirical experience as well as from model basin testing at the Berlin University and IMHEF Lausanne cavitation tunnels, Rolla can computer design propellers to maximum efficiency, extreme durability and exceptional smoothness.

Rolla's technology includes: performance and power prediction of both planning and displacement craft, propeller design and manufacturing, estimation of complete hydrodynamic characteristics of the propeller geometry, and propeller cavitation characteristics through exclusive lifting surface and CFD panel method programs.

Commenting on the acquisition, Chairman and Chief Executive Officer Michael E. Batten said, "We are very excited to have Rolla and its employees become part of the global Twin Disc family. Phil and his team have worked closely with Twin Disc in the past and have been an integral part of the success of our Arneson Surface Drive product line."

Mr. Batten further added, "Rolla's unique technology-intensive approach provides value-added services and products to its customers. Its ability to apply its hydrodynamic technology to predict performance of entire propulsion systems makes Rolla an indispensable partner to boat builders who save valuable time and expense when bringing new models to market."

Twin Disc designs, manufactures and sells heavy duty off-highway power transmission equipment. Products offered include: marine transmissions and surface drives; power-shift transmissions; power take-offs and reduction gears; industrial clutches; and control systems. The Company sells its products to customers primarily in the marine, industrial equipment, government, energy and natural resources and agricultural markets.