Milacron Reports 9% Sales Gain in Second Quarter Company Continues to Narrow Loss

CINCINNATI , OHIO , August 1, 2005...Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, reported a net loss in the second quarter of $3.8 million, or $0.11 per share. This reflects significant improvement over the second quarter of 2004 in which the company had a net loss of $27.8 million, or $0.60 per share, which included $14.6 million in refinancing costs and a non-cash writeoff adding $6.4 million to interest expense. The 2005 second quarter also compared favorably to the net loss of $9.1 million, or $0.22 per share, incurred in the first quarter of this year. Sales for the second quarter were $209 million, up 9% over both the year-ago quarter and the first quarter. New orders of $215 million were up 7% versus a year ago and 6% from the first quarter.

"We are maximizing our participation in the ongoing recovery of the North American market for plastics machinery by continuing to introduce new, advanced technology products and improving our customer service and support," said Ronald D. Brown, chairman, president and chief executive officer. "We also continue to aggressively expand our presence in emerging markets, such as China and India, where growth rates remain strong. These efforts have helped us increase sales and new orders despite the current weakness in Western European markets. At the same time, our recent actions to improve profitability - including selective price increases and cost-reduction measures - while successful, have not been sufficient to fully offset higher material costs and increased expenses associated with product liability insurance, pension and Sarbanes-Oxley compliance," he said.

During the second quarter Milacron continued to reduce primary working capital (see calculation table), cutting it to 24.1% of sales from 25.5% in the prior quarter. Cash at the end of the quarter was $37 million, and the company had approximately $40 million available for borrowing under its asset-based revolving credit facility, which remains essentially undrawn. Milacron has reached an agreement with its lenders amending the terms of this facility including, among other things, the relaxation of minimum levels of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the third and fourth quarters. The full text of this amendment will be filed on Form 8-K with the Securities and Exchange Commission.

Segment Results

Machinery Technologies-North America (machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America, India and China)  Ongoing strength in several markets, including packaging, building materials, medical supplies and consumer goods, more than offset order deferrals by the auto industry, as new orders in the quarter increased 16% to $101 million, up from $87 million in the second quarter of 2004.  Sales rose to $95 million, up 15% over the same period last year.  Higher sales volumes and cost reductions offset rising material and pension costs, as segment earnings improved to $4.9 million versus $3.4 million in the year-ago quarter and versus $1.9 million in the first quarter.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe)  Demand in Western Europe remained soft, as second quarter new orders in this segment declined to $43 million, from $46 million in the second quarter of 2004.  Sales of $42 million were essentially flat with the year-ago period despite favorable currency translation effects.  New orders and sales, however, both increased by about 20% over first quarter levels.  For the second quarter, this segment had an operating loss of $0.5 million, down from earnings of $1.3 million a year ago, but an improvement over a $2.2 million loss in the first quarter of 2005.

Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide)  Sales in the second quarter were $44 million, up 10% from $40 million a year ago  Segment earnings were $0.7 million compared to an operating loss of $0.1 million in the second quarter of 2004. Pricing pressures in Western European markets and increased insurance expense were the primary factors causing the drop in earnings from $2.3 million in the first quarter of 2005.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide)  Sales of $28 million were essentially flat with the second quarter a year ago but up 4% from the first quarter of 2005. Higher-than-projected material costs, along with increased insurance costs for product liability, held back earnings to $1.9 million, which declined from $3.4 million a year ago but were up from $1.4 million in the first quarter.

Outlook

"The North American recovery appears to be sustainable, and we believe there is growing pent-up demand for more productive and efficient equipment throughout the plastics processing industries," Brown said. "And while the pace of the recovery is slower than we had anticipated, we are still experiencing significant improvement Outside of North America, Western Europe remains soft, but we are very pleased with the rapid growth we are seeing in Asia.  With the exception of the continued rise in oil and material costs, most economic fundamentals are positive, and we believe that once these prices stabilize there is good potential for solid, sustained growth in virtually all of our markets," he said.

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-Q 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 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).

Note: Today, Monday, August 1, at 1 p.m. EDT, 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 913-981-4900.   A replay of the call will be made available from 4:00 p.m. this afternoon through midnight Monday, August 8, on the company's website or by phone: 719-457-0820, access code 7477391.