Milacron’s First Quarter Results Improve Year Over Year

Sales Up 7% with Positive Operating Earnings

CINCINNATI, OHIO, May 6, 2008...Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, reported a net loss of $6.9 million, or $1.76 per diluted share, in the first quarter ended March 31. The loss included $0.6 million in restructuring charges with no tax benefit. This compared to a net loss in the first quarter of 2007 of $10.8 million, or $2.68 per share, which included $2.4 million in restructuring charges.

Boosted by operating efficiencies from restructuring and other cost-cutting measures, first quarter manufacturing margins rose to 19.0% from 18.7% a year ago. As a result, Milacron generated positive operating earnings of $1.5 million as opposed to an operating loss of $2.0 million in the first quarter of last year.

Sales in the quarter were $203 million, up from $190 million. The increase was due almost entirely to favorable currency translation effects, primarily the weakening of the dollar vis-à-vis the euro and other currencies. New orders in the quarter were also $203 million, and the backlog of $134 million remained at a healthy level.

Net cash used by operations during the quarter was $19.1 million, up from $6.7 million a year ago. The change was primarily the result of an increase in receivables due to the termination of an off-balance sheet receivable sale facility during the quarter. The company’s newly signed €27 million credit agreement with Lloyds TSB Group plc, which became fully operational in the second quarter, should reverse the majority of the effect on net cash over the course of the year.

At the end of the quarter, cash on hand was $37 million, $2 million higher than a year ago, and Milacron had approximately $50 million available for borrowing under its North American revolving credit facility, compared to $38 million last year. The increase in liquidity was, in great part, made possible by the Lloyds credit program, which allowed the company to repatriate $20 million in the quarter.

We continue to make solid progress in reducing our product costs as well as our overall cost structure,” said Ronald D. Brown, chairman, president and chief executive officer. “The results of these efforts are showing up in improved manufacturing margins and operating earnings, despite difficult market conditions, particularly in the U.S. We are also seeing the benefits of our initiatives to grow our presence in markets outside the U.S. Our sales to non-U.S. markets grew another 12% in the quarter and now account for half of our total.”

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) Continued gains in India and China offset weak demand in North America, as sales of $92 million were essentially flat with those of the same period last year. New orders fell to $94 million from $98 million a year ago, reflecting continued weakness in the automotive and construction sectors. Segment earnings increased to $2.8 million from $1.8 million, reflecting savings from restructuring measures implemented in 2007. The segment is expected to show further improvement in profitability as the year progresses.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe) Sales rose to $44 million from $34 million a year ago, with currency translation accounting for about half the gain. New orders, however, fell to $43 million from $47 million, despite comparable currency effects. Volume gains and other cost savings, including restructuring measures, helped narrow the operating loss to $0.4 million compared to $1.2 million a year ago. The segment is expected to return to profitability and post solid sales and earnings growth in the second quarter.

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 quarter were $38 million, even with those in the year-ago quarter, despite $2 million in favorable currency effects. Operating earnings improved slightly to $0.5 million from $0.3 million in 2007, as restructuring benefits and other cost reductions offset the effects of low sales volumes. Segment earnings are projected to show good year-over-year gains in the second quarter on relatively flat sales.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide) Sales of $32 million were up $2 million from the year-ago quarter due to favorable currency translation. Operating earnings were $2.9 million. This was down from $3.3 million in the year-ago period, which benefited from a favorable development in a product liability case. This segment continues to expand its presence in emerging markets and plans on posting higher sales and operating earnings in the second quarter.

Outlook

“We expect year-over-year improvement in our operating results throughout 2008 despite the ongoing weakness in our North American markets,” Brown said. “We are benefiting from the significant cost reduction initiatives we have executed, which should generate incremental savings of approximately $20 million in 2008 over 2007. We expect these savings, combined with our own price increases, to more than offset rising energy and material costs. In addition, we’ll be making increasing investments to further expand our presence in emerging markets, which should help offset the slowdown in the U.S. Thanks to the hard work of our dedicated people throughout the world, 2008 should be a better year for Milacron."

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.

Conference Call Today
Today 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 719-325-4880 or toll-free 877-591-4956. A recording of the conference call will be available starting 4:00 p.m. on May 6 through midnight May 19 on the company’s website or by phone: 719-457-0820 or toll-free 888-203-1112 and providing the access code: 4679085.

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