Romi Comments on Hardinge Announcement

SANTA BARBARA D'OESTE, Brazil, Feb. 8 /PRNewswire/ -- Industrias Romi S.A. (Bovespa: ROMI3) ("Romi"), a leading global manufacturer of machine tools, today commented on the Hardinge Inc. (Nasdaq: HDNG) ("Hardinge") Board of Directors' response to Romi's previously announced all-cash offer to acquire all of the outstanding shares of Hardinge for $8.00 per share.  The offer is not subject to any financing condition and will be funded entirely from Romi's internal resources.

"We are pleased that Hardinge's Board of Directors intends to evaluate our offer with the assistance of its advisors," said Livaldo Aguiar dos Santos, Chief Executive Officer of Romi.  "We believe that any objective analysis will clearly confirm that our offer is in the best interests of Hardinge's shareholders, offering them immediate liquidity at a superior value to the Company's stand-alone prospects.  We look forward to a positive response from the Hardinge Board."

Mr. dos Santos continued: "In addition to delivering a significant premium to Hardinge shareholders, Romi believes the combination is also in the best interests of Hardinge's employees, customers and partners.  The combined company will have the size and scale to invest in strategic opportunities to thrive in an increasingly challenging and competitive industry environment and to expand in emerging markets.

"It remains our strong preference to sit down with the Hardinge Board as soon as possible to reach a mutually agreeable transaction.  However, if necessary, we are prepared to take our offer directly to the Hardinge shareholders," concluded Mr. dos Santos.  

On February 4, 2010, Romi announced that it submitted an offer to Hardinge's Board of Directors to acquire all of the outstanding shares of Hardinge for $8.00 per share in cash.  Romi's all-cash offer represents a premium of 46% to Hardinge's closing share price on February 3, 2010, the last trading day prior to the public disclosure of Romi's offer.  

Advisors

HSBC Securities (USA) Inc. is acting as financial advisor and Shearman & Sterling LLP is acting as legal advisor to Romi on the proposed transaction.

About Romi

Industrias Romi S.A. (Bovespa: ROMI3), founded in 1930, is the market leader in the Brazilian machinery and equipment industry.  The company is listed in the "Novo Mercado" category, which is reserved for companies with the highest degree of corporate governance on the Bovespa.  The company manufactures machine tools, mainly lathes and machining centers, plastic injection and blow molding machines for thermoplastics and parts made of grey, nodular or vermicular cast iron, which are supplied rough or machined.  The company's products and services are sold globally and used by a variety of industries, such as the automotive, general consumer goods and industrial and agricultural machinery and equipment industries.

Important Information

This press release is neither an offer to purchase nor a solicitation of an offer to sell securities of Hardinge.  Subject to future developments, additional documents regarding a transaction with Hardinge may be filed with the Securities and Exchange Commission (the "Commission") and, if and when available, would be accessible for free at the Commission's website at http://www.sec.gov.  Investors and security holders are urged to read such disclosure documents, if and when they become available, because they will contain important information.

Romi is not currently engaged in a solicitation of proxies from the shareholders of Hardinge.  However, in connection with Romi's offer to acquire Hardinge, certain directors and officers of Romi may participate in meetings or discussions with Hardinge shareholders.  Romi does not believe that any of these persons is a "participant" in the solicitation of proxies under SEC rules.  If in the future Romi does engage in a solicitation of proxies from the shareholders of Hardinge in connection with its offer to acquire Hardinge, Romi will include the identity of people who, under SEC rules, may be considered "participants" in the solicitation of proxies from Hardinge shareholders in applicable SEC filings when they become available.

Forward-Looking Statements

Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, including the proposed acquisition of Hardinge, are forward-looking statements within the meaning of the U.S. federal securities laws and should be evaluated as such.  Forward-looking statements include statements that may relate to our plans, objectives, strategies, goals, future events, future revenues or performance, and other information that is not historical information.  These forward-looking statements may be identified by words such as "anticipate," "expect," "suggest," "plan," believe," "intend," "estimate," "target," "project," "could," "should," "may," "will," "would," "continue," "forecast," and other similar expressions.

Although we believe that these-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could cause actual results or events to differ materially from those expressed in the forward-looking statements and projections.  Factors that may materially affect such forward-looking statements include: our ability to successfully complete any proposed transaction or realize the anticipated benefits of a transaction; delays in obtaining any approvals for the transaction, or an inability to obtain them on the terms proposed or on the anticipated schedule.  Forward-looking statements, like all statements in this press release, speak only as of the date of this press release (unless another date is indicated).  Unless required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Media Contact

Joele Frank, Wilkinson Brimmer Katcher

Joele Frank / Steve Frankel / Tim Lynch: (212) 355-4449

Investor Contact

Innisfree M&A Incorporated

Alan Miller / Jennifer Shotwell / Scott Winter: (212) 750-5833

Industrias Romi S.A.

Avenida Perola Byington, 56  

13453-900 Santa Barbara d'Oeste-SP - BRASIL

Telefone: 55 (19) 3455-9000 – Fac-simile: 55 (19) 3455-2499

SOURCE Industrias Romi S.A.