Snap-on Affirms Previously Stated Third-Quarter Earnings Outlook

KENOSHA, Wis., Oct 2, 2001 (BUSINESS WIRE) -- Snap-on Incorporated (NYSE: SNA) today affirmed its expectation of achieving third-quarter earnings within the previously stated range of $0.40 to $0.45 per share. Challenged by continued slow sales in the industrial sector, reflecting the further erosion of economic confidence in September, earnings likely will be at the low end of the range. This amount is before special charges related to the previously announced planned restructuring of underperforming operations.

"Economic conditions are challenging and uncertain, but the actions we are taking to control costs and profitably grow our core dealer business are on track and helping us navigate the current environment," said Dale F. Elliott, president and chief executive officer.

Third-quarter results are expected to be announced October 23, 2001. A review of those results will be discussed via Webcast at www.snapon.com at 10:00 A.M. CDT.

Snap-on Incorporated is a leading global developer, manufacturer and marketer of tool, diagnostic and equipment solutions for professional tool users. Product lines include hand and power tools, diagnostics and shop equipment, tool storage products, diagnostics software and other solutions for transportation-service, industrial, government, education and agricultural customers, and other commercial applications, including construction and electrical. Products are sold through its franchised dealer van, company direct sales and distributor channels, and the Internet. Founded in 1920, Snap-on is a $2.2 billion, S&P 500 company headquartered in Kenosha, Wisconsin, and employs approximately 14,000 people worldwide.

Statements in this news release that are not historical facts, including statements (i) that include the words "expects," "likely" or "estimates" or similar words that reference Snap-on or its management; (ii) specifically identified as forward-looking; or (iii) describing Snap-on's or management's future outlook, plans, objectives or goals, are forward-looking statements. Snap-on or its representatives may also make similar forward-looking statements from time to time orally or in writing. Snap-on cautions the reader that these statements are subject to risks, uncertainties or other factors that could cause (and in some cases have caused) actual results to differ materially from those described in any such statement. Those important factors include the timing and progress with which Snap-on can continue to achieve higher productivity and attain further cost reductions, including the acceleration of expense adjustments in response to revenue changes; Snap-on's ability to adapt to management changes as part of the management succession process, to retain and attract dealers, to integrate Bahco, and to withstand external negative factors including changes in trade, monetary and fiscal policies, laws and regulations, or other activities of governments or their agencies; and the absence of significant changes in the current competitive environment, inflation, energy supply or pricing, legal proceedings, supplier disruptions, currency fluctuations or the material worsening of economic and political situations around the world. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. Snap-on operates in a continually changing business environment and new factors emerge from time to time. Snap-on cannot predict such factors nor can it assess the impact, if any, of such factors on Snap-on's financial position or its results of operations. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release.

CONTACT:          Systems Control
                  Richard Secor (MR), 262/656-5561
                  or 
                  Bill Pfund (IR), 262/656-6488