Released on October 10, 2008

Lufkin Industries Inc., Lufkin, Texas, announced it has reached a new labor agreement with the three unions representing the hourly workforce at its main manufacturing facilities, including its metalcasting plant.

Lufkin owns several vertically integrated businesses devoted to the sale and service of oilfield pumping units, power transmission products and highway trailers. Its metalcasting facility in Lufkin, Texas, pours gray and ductile iron, producing up to 300 tons per day of captive and commercial castings for the heavy equipment, valve and machine tool markets.

The publicly traded company does not expect the terms of the new three-year deal, which expires in October 2011, to impact the company’s previously announced earnings per share for 2008. A press release issued by Lufkin said the two sides came to an agreement in line with its expectations.