Milacron's Q4 Earnings Release and Conference Call Set for February 11

Results Expected to be in Line with Previous Guidance

CINCINNATI, OHIO, February 11, 2004...Milacron Inc. (NYSE: MZ) today reported fourth quarter 2003 sales of $198 million, $28 million higher than sales in the third quarter and about $5 million above the range of its guidance issued in October. Excluding the effect of a goodwill impairment charge, fourth quarter earnings from continuing operations were consistent with the guidance. Cash flow was strong in the quarter due to improved earnings and working capital reductions, leading to an ending cash balance of $93 million, up $30 million from the beginning of the quarter.

"We ended 2003 on a positive note thanks, in large part, to the continued hard work of our employees," said Ronald D. Brown, chairman, president and chief executive officer. "During the quarter, we continued our efforts to maximize efficiency throughout our operations worldwide. At the same time, our customers in the plastics processing industries began to show signs of increased activity. Milacron is positioned to benefit from a sustained economic recovery, which should eventually lead to significant increases in capital spending.

"Our top priority now is to put in place an appropriate capital structure providing Milacron with the financial flexibility to participate in and benefit from this long-awaited industrial recovery," Brown said. "To that end, we continue to have discussions with both current and prospective lenders and investors with respect to our short- and long-term financing options. While each of these options is likely to result in significant dilution to the current holders of the company's equity, we are absolutely committed to seeking a solution that is in the best interest of all of our stakeholders."

Fourth Quarter 2003
Fourth quarter sales from continuing operations - plastics technologies and industrial fluids - were $198 million, up 16% from $170 million in the third quarter, while new orders of $194 million were up 10% from $176 million in the prior quarter. Compared to the fourth quarter a year ago, sales and new orders in the most recent quarter were up 4%, with currency translation effects - primarily the stronger euro and the weaker dollar - accounting for the gains.

In the fourth quarter of 2003 Milacron's net loss was $24.4 million, or $.72 per share, which included a non-cash goodwill impairment charge of $13.3 million with no tax benefit and pre-tax restructuring charges of $8.4 million. The $24.4 million loss in the most recent quarter compared to a net loss in the third quarter of $67.7 million, or $2.01 per share, which included a $52.3 million goodwill impairment charge, and $6.4 million in pre-tax restructuring costs. In the fourth quarter of 2002, the company reported a net loss of $5.5 million, or $.17 per share, which included $6.5 million in after-tax losses from discontinued operations, $4.1 million in pre-tax restructuring charges and a $6.6 million tax benefit. Milacron's earnings from continuing operations before interest, taxes, restructuring and goodwill impairment charges were $6.3 million in the fourth quarter of 2003 compared to $0.7 million in the third quarter of 2003 and $3.6 million in the fourth quarter of 2002.

Manufacturing margins were 20.2% in the fourth quarter of 2003, up from 18.4% in the third quarter and 16.4% a year ago. This improvement was a direct result of the company's cost-cutting initiatives of the past several quarters.

With improved earnings and significant reductions in receivables and inventory, due in large part to continuous implementation of "Lean" manufacturing process improvements, net cash provided by operations in the quarter was $31 million. This compared to $2 million in the third quarter and $14 million in the fourth quarter of 2002. As a result, Milacron ended the fourth quarter of 2003 with $93 million in cash, up from $63 million at the beginning of the quarter.

Year 2003
For the full year 2003, sales increased 7% to $740 million from $693 million in 2002, while new orders rose 6% to $747 million compared to $703 million in the prior year, with currency translation accounting for most of the increases.

The company's net loss for the year was $191.7 million or $5.70 per share, which included a $70.8 million deferred tax valuation adjustment and a goodwill impairment charge of $65.6 million with no tax benefit - both non-cash items. Other 2003 charges included $27.1 million in pre-tax restructuring costs and $7.2 million in after-tax losses from discontinued operations. This compared to a net loss in 2002 of $222.9 million, or $6.67 per share, which included on an after-tax basis: a goodwill writedown of $187.7 million, after-tax losses from discontinued operations of $16.8 million, pre-tax restructuring charges of $13.9 million, and a tax benefit of $18.2 million. Earnings from continuing operations before interest, taxes, restructuring and goodwill impairment charges were $3.9 million in 2003, up from $0.6 million in 2002.

"We made significant progress in 2003 on an operating basis thanks in great measure to our cost-cutting initiatives that generated $22 million in incremental cost savings during the year," Brown said. "However, much of our improved profitability was offset by severe pricing pressure, decreased pension income, losses from discontinued operations, and higher tax expense. As we continue to reduce costs and improve efficiency, Milacron will be better positioned to take advantage of stronger levels of business expected in 2004."

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 fourth quarter were $82 million, up from $74 million in the third quarter but down from $88 million in the fourth quarter of 2002. Sales increased to $87 million from $72 million in the prior quarter but declined from $97 million a year ago. The sales and order declines from a year ago were the result of two very large multiple-machine orders received in the fourth quarter of 2002. Helped by restructuring and other cost-cutting measures, segment operating earnings (earnings before interest, taxes and restructuring charges) in the most recent quarter were $5.3 million, or 6% of sales, compared to $0.9 million, or 1% of sales, in the third quarter and $5.8 million, or 6% of sales, in the year-ago quarter.

For the year 2003, new orders in this segment were $325 million, up from $321 million in 2002, and sales rose to $321 million, from $314 million in the prior year. Operating earnings in 2003 were $6.7 million versus $8.0 million in 2002, which included $3.5 million more in royalty income than in 2003.

Machinery Technologies-Europe [machinery and related parts and services for injection molding and blow molding supplied from Europe]
Fourth quarter new orders were $45 million, up 22% from $37 million in the third quarter and up 32% from $34 million in the fourth quarter of 2002. Sales rose to $44 million, up 33% from $33 million in the third quarter and up 42% from $31 million in the year-ago quarter. While roughly half of the gains in new orders and sales came from favorable currency translation effects, the other half was the result of stronger demand for our injection molding machines produced in Germany. Helped by restructuring measures implemented in our blow molding machinery operation in Italy, this segment had operating earnings of $1.5 million in the fourth quarter of 2003, a good turnaround from its operating losses of $0.4 million in the third quarter and $1.5 million in the fourth quarter of 2002.

For the year 2003, new orders in this segment climbed 26% to $154 million, from $122 million in 2002. Sales were $151 million, 29% higher than $117 million in 2002. Favorable currency translation accounted for about two-thirds of the increases. As a result of successful restructuring of our blow molding machine operations, the segment reduced its operating loss to $1.4 million in 2003, from an $8.1 million operating loss in the prior year.

Mold Technologies [mold bases and related parts and services, as well as maintenance, repair and operating ( MRO) supplies for injection molding worldwide]
Sales in the fourth quarter were $42 million, up 8% from $39 million in the third quarter but down 2% from $43 million a year ago, as a pickup in demand in North America was offset by declines in Europe. Thanks to cost savings from our recent plant consolidations in the U.S. and Europe, operating earnings improved to $1.3 million, or 3% of sales, versus $0.1 million in both the third quarter and the year-ago quarter.

Sales in this segment for the year were $169 million, down from $175 million in 2002. Operating earnings in 2003 fell to $1.8 million from $5.3 million due to operating losses in Europe and reduced profits in North America.

Industrial Fluids [water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide]
Extended shutdowns in North American auto plants and a weak European economy held back both sales and operating earnings in the quarter. Aided by currency translation effects, fourth quarter sales of $26 million were even with those of the third quarter and up 4% from $25 million in the fourth quarter a year ago. Operating earnings were $3.7 million, or 14% of sales, compared to $4.8 million, or 18% of sales, in the third quarter and $3.9 million, or 16% of sales, in the fourth quarter 2002.

Industrial fluid sales for the year 2003 were $104 million, up from $96 million in 2002, as favorable currency translation accounted for virtually all of the increase. The segment's operating earnings held steady at $15.7 million, or 15% of sales, versus $14.4 million, also 15% of sales, in 2002.

Charge for Goodwill Impairment
Upon completion of a recent asset appraisal, Milacron took a fourth-quarter goodwill impairment charge of $13.3 million with no tax benefit. This was in addition to a preliminary goodwill impairment charge of $52.3 million taken in the third quarter. The charges had no effect on cash flow.

Outlook
"We believe the manufacturing sector of the economy has finally started to turn around," Brown said. "The pickup became noticeable in September and has continued to gather strength through January. In the last four months of 2003, U.S. industrial production showed positive year-over-year growth, and total U.S. manufacturing orders returned to levels last seen in 2000.  And in January, the Institute for Supply Management's manufacturing index, historically a very reliable leading indicator, rose to its highest level in twenty years.

"In December, U.S. plastics processors' capacity utilization reached 81%, the highest level since late 2000, and we are now beginning to see increased production rates and quoting activity among our customers. Assuming the overall industrial recovery continues, we anticipate that our non-machinery businesses - plastics supplies, mold components and services, as well as industrial fluids - will be the first to benefit, with increases in our machinery businesses following one or two quarters later, when utilization rates approach 85%. Under this scenario, we would expect to see a substantial improvement in our business results in the second half of 2004," Brown concluded.

First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with 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. EST on 2/11, Milacron will hold an open investor conference call, including a slide presentation, via a live webcast at www.milacron.com. The dial-in number for those interested in asking questions is (719) 457-2727. A replay of the call will be made available from 2 p.m. on 2/11 through midnight on 2/18 at www.milacron.com or dial-in for audio only at (719) 457-0820 or (888) 203-1112, passcode: #623637.