Schmitt Announces Joint Development and Distribution Agreement.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--July 26, 2002

Schmitt Industries, Inc. (Nasdaq:SMIT) is pleased to announce that it has signed a Joint Development and Distribution Agreement with Baladyne Corporation and its parent, Lord Corporation, to collaboratively integrate,

Lord Corporation, a privately held company employing 2200 people, designs, manufactures, and markets chemicals, mechanical components, and electromechanical systems, that serve multiple industrial and military customers around the globe.

Lord and Baladyne own certain patents and proven technology for active electromagnetic ring balancers that have been designed and successfully applied to rotating equipment in numerous markets by Baladyne over the last seven years.

Schmitt Industries, Inc. owns certain patents and proven technology on SB-4500 electronic controllers and Acoustical Emissions Monitoring Systems that have proven to be the electronic interface requested by customers in the marketplace.

Schmitt and Baladyne have successfully completed design and testing of a jointly developed product. This new product offers the end customers of both companies a combination of the best technologies of both Schmitt and Baladyne into one balancing product. First shipments of the new product will commence in August and the new system will be showcased at the International Manufacturing Technology Show (IMTS) in September.

Wayne A. Case, President and CEO of Schmitt said, "We are excited about the combination of our existing technologies with the Baladyne electromagnetic ring balancer technologies. This allows the customer to handle any type of balancer, i.e.: Ring Balancer, External Balancer, Internal Balancer, Hydo Balancer and/or Acoustic Emission Monitoring from the same Schmitt controller. The jointly developed product between Schmitt and Baladyne will fulfill customer requirements in grinding and other high speed machine tool applications. These combination products will greatly enhance our total market potentials. Schmitt plans on an aggressive marketing program to introduce this new combination technology to the marketplace."

The information contained in this release contains certain forward-looking statements that anticipate future trends or events. These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks including but not limited to the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry and other factors detailed in the Company's SEC filings. Accordingly, actual results may differ, possibly materially, from the predictions contained herein.