Milacron Q1 Sales and Segment Earnings in Line with Guidance

Positive Outlook for 2004

CINCINNATI, OHIO, April 26, 2004...Milacron Inc. (NYSE: MZ) today reported a net loss of $16.6 million, or $.49 per share, in the first quarter of 2004 on sales of $189 million. The loss included $6.4 million in refinancing costs, with no tax benefit, incurred in pursuing various alternatives to the company's March 12 refinancing of $200 million in debt and other obligations, as well as $1.1 million in restructuring costs. This compared to sales of $190 million and a net loss of $8.3 million, or $.25 per share, in the first quarter a year ago, which included $4.8 million in restructuring costs. First quarter 2004 sales were within the range of the guidance issued by Milacron in February, as were segment earnings. The company also reaffirmed its guidance and positive outlook for the rest of the year.

"Milacron made significant progress in many areas during the first quarter," said Ronald D. Brown, chairman, president and chief executive officer. "The most important for us was the infusion of $100 million of new capital, a major step toward achieving the financial flexibility we need to fully participate in the recovery in our markets and build on our platform for growth. We are in the process of transforming our capital structure with more equity and less debt. The most recent developments, which we announced in separate releases this morning, are intended to address our €115 million of bonds maturing in April 2005.

"During the first quarter we also made good progress with our restructuring initiatives in Europe and saw continued acceleration of the industrial recovery in North America and Asia. As a result, we remain positive in our outlook for 2004 and are projecting a revenue increase for the year and a return to profitability in the second half," Brown said.

First quarter 2004 new orders of $187 million were even with the year-ago quarter. Without favorable currency translation effects - primarily the result of a stronger euro and a weaker dollar - new orders in the first quarter of 2004 would have declined 5%, and sales 6%, from year-ago levels. These declines came primarily in the company's North American machinery businesses, which were negatively affected through most of the quarter by uncertainties concerning Milacron's refinancing of pending maturities.

Profitability in the quarter was held back by higher interest expense and fees associated with the company's refinancing activities as well as by increases in pension and insurance costs. Despite these negatives, manufacturing margins rose to 17.4% up from 16.7% in the first quarter a year ago, reflecting the benefits of restructuring measures taken in 2003.

Cash used by operating activities in the quarter was $42 million, of which $33 million went to pay down and terminate the company's sale-of-receivables program and about $3 million were costs incurred in pursuing alternative refinancing options. Primary working capital changes were within the February guidance, and inventory turns improved year over year throughout the company's operations, as a result of ongoing implementation of Lean manufacturing techniques.

Segment Results

Machinery Technologies-North America [machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America and India]
New orders in the first quarter were $79 million, down from $85 million in the first quarter of 2003. Sales fell to $77 million from $88 million a year ago. Uncertainties surrounding the refinancing of the company's March maturities had a negative impact on orders and shipments during the quarter. For the quarter, this segment lost $0.6 million compared to segment earnings of $2.1 million in the year-ago quarter. Profitability was hurt by lower shipping volumes as well as by higher insurance and pension expenses.

Machinery Technologies-Europe [machinery and related parts and services for injection molding and blow molding supplied from Europe]
Aided by favorable currency translation effects, first quarter new orders rose to $40 million from $33 million in the first quarter of 2003, while sales rose to $43 million from $35 million a year ago. Earnings for this segment improved to $1.1 million compared to a loss of $0.7 million a year ago, primarily as a result of ongoing cost-cutting measures.

Mold Technologies [mold bases and related parts and services, as well as maintenance, repair and operating (MRO) supplies for injection molding worldwide]
Despite favorable currency translation effects, sales in the first quarter fell to $43 million from $45 million a year ago, mostly due to declines in Europe. Segment earnings improved, however, to $1.4 million from $0.3 million in the year-ago quarter, reflecting the success of restructuring actions taken in 2003.

Industrial Fluids [water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide]
Sales of $26 million were up from $25 million in the first quarter a year ago due to favorable currency translation. Segment earnings, however, declined to $2.5 million from $3.5 million a year ago, primarily as a result of higher insurance and pension expenses.

Outlook

"Our outlook for 2004 remains positive, as the manufacturing sector of the economy - in particular, plastics processing - continues to rebound," Brown said. "U.S. plastics processors' capacity utilization reached 82% in March, the highest level since October, 2000. Sales in our non-machinery businesses - plastics supplies, mold components and services, as well as industrial fluids - are beginning to pick up in North America. On the machinery side, orders for our North American and European blow molding systems strengthened in the first few weeks of the second quarter, and we have seen significant increases in quoting activity among our customers for injection molding and extrusion equipment. And our injection molding machine business in India continues to grow at a double-digit pace.

"In the second quarter, we anticipate additional refinancing fees and higher interest expense, as we complete the transformation of our capital structure. Nonetheless, with quoting activity picking up, we also expect solid improvements in sales and segment earnings compared to the first quarter.

"Looking further ahead, growing activity and utilization rates among our customers, along with pent-up demand, are likely to spur greater demand for machinery and with that, we believe, some improvement in pricing. Therefore, we continue to project solid top-line growth for the year as a whole. This higher volume will help us realize the full benefit of our recent restructuring actions, which should lead to a significant improvement on the bottom line in the second half of the year," he concluded.

The forward-looking statements above by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results. For further information please refer to the Cautionary Statement included in the company's most recent Form 10-K on file with the Securities and Exchange Commission.

First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with about 3,500 employees and major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call the toll-free investor line: 800-909-MILA (800-909-6452).

At 11 a.m. EDT on 4/26, Milacron will hold an open investor conference call, which can be accessed live at www.milacron.com. The dial-in number for those interested in asking questions is (913) 981-4910. A replay of the call will be made available from 2 p.m. on 4/26 through midnight on 5/3 at www.milacron.com or dial-in at (719) 457-0820 or (888) 203-1112, access code: 757407.