Kadant Corporate

News Release

Kadant Receives Order for Over $4 million from leading Linerboard Producer in China

January 10, 2007 at 4:05 PM EST

WESTFORD, Mass.--(BUSINESS WIRE)--Jan. 10, 2007--Kadant Inc. (NYSE:KAI) announced today that it has received an order for over $4 million from Zhejiag Ji'an Paper and Package Co. Ltd, a leading paper producer in China, for a 1,200 ton per day stock preparation system to produce linerboard from recycled corrugated containers. The equipment will be supplied by the company's Kadant Black Clawson Inc. subsidiary.

"Paper producers in China continue to add capacity to keep up with strong demand, and Kadant's technologies make us the supplier of choice for stock preparation equipment among the leading paper producers in the region. This order is the second system we have supplied for this customer in the last two years," said William A. Rainville, chairman and chief executive officer of Kadant.

Kadant Black Clawson Inc., based in Mason, Ohio, is a leading fiberline process equipment supplier that designs, manufactures, and services equipment used in paper recycling, chemical pulping, and paper machine approach-flow applications.

Kadant Inc. is a leading supplier to the global pulp and paper industry, with a range of products and services for improving efficiency and quality in pulp and paper production, including paper machine accessories, and systems for stock preparation, fluid handling, and water management. Our fluid-handling products are also used to optimize production in the steel, rubber, plastics, food, and textile industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Westford, Massachusetts, with revenues of $244 million in 2005 and approximately 2,000 employees in 16 countries worldwide. For more information, visit www.kadant.com.

The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about demand for our products, our technological advantages, and our competitive position in China. Important factors that could cause actual results to differ materially from those indicated by such statements are set forth under the heading "Risk Factors" in Kadant's quarterly report on Form 10-Q for the period ended September 30, 2006. These include risks and uncertainties relating to our dependence on the pulp and paper industry; significance of sales from China; international sales and operations; competition; our debt obligations; restrictions in our credit agreement; retention of liabilities and warranty claims associated with composite building products manufactured prior to the sale of the business; our ability to successfully integrate Kadant Jining; our acquisition strategy; our ability to realize the anticipated benefits from the restructuring of our French subsidiary; the impact of high natural gas prices on the manufacture of fiber-based products; availability of raw materials related to the manufacture of fiber-based products; protection of patents and proprietary rights; fluctuations in quarterly operating results; and anti-takeover provisions. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

CONTACT: For Kadant Inc.
Investor contact:
Thomas M. O'Brien, 978-776-2000

SOURCE: Kadant Inc.

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