WHAT’S INSIDE…

GBC Expanded & Upgraded . . . . . 2

Global Sales Capability . . . . . . . . . 3

Global Distribution . . . . . . . . . . . . . 3

Romax Modeling Technology . . . 4

GBC Receives Supplier Partnership Excellence Award . . 5

Noteworthy . . . . . . . . . . . . . . . . . . . 6

continued on pg.5

SKF Group To Acquire GenerAl BeArinG corporATion —neWS releASe—

WEST NYACK, NY — March 2012

— General Bearing Corporation

announced the signing of an agree-

ment whereby SKF, a Swedish

company, will acquire GBC and its

subsidiaries, including the interests in

its four manufacturing sites in China.

The transaction is subject to relevant

regulatory and shareholder approvals.

The purchase price of approxi-

mately $28 per share, all cash, repre-

sents an aggregate enterprise value

of $125,000,000, net of contractual

adjustments and the satisfaction of

certain obligations and liabilities of

the company, and is subject to adjust-

ments that could arise from escrow

arrangements related to both working

capital and indemnifications.

“This transaction will deliver signifi-

cant value to our shareholders,” said

David Gussack, Chairman and CEO of

General Bearing Corporation. “We are

pleased to become part

of the SKF Group.”

“I am delighted with

the acquisition of GBC,

which goes to market

using the ‘General’

and ‘Hyatt’ brands.

Under David Gussack’s

leadership, GBC has very successfully

developed their business serving the

automotive and heavy duty markets

in the USA. Strategic utilization of

their factories in China has been a key

1

gBc new York headquarters

GENERAL BEARING IS THE LEADER IN THE LOW-COST, HIGH QUALITY SUPPLY OF PRECISION BEARING PRODUCTS.

BY PROVIDING THIS VALUE, WE HELP OUR CUSTOMERS REMAIN COMPETITIVE IN THE GLOBAL MARKETPLACE.

Newsletter ofGeneral Bearing CorporationAn ISO/TS 16949 Certified CompanyVol . 16, No . 1 Spring 2012

In 2012 General Bearing Corporation

(GBC) will continue its expansion

of production capacity to meet

ever increasing customer demand.

Throughout the process, GBC will

make continuing improvements in

our manufacturing equipment and

processes to meet the industry need

for enhanced bearing performance.

At Shanghai General Bearing

Company in Shanghai and Ningbo,

eight new production lines for tapered

roller bearing cups, and eight new

lines for tapered roller bearing cone

assemblies will enter service in 2012

to meet the growing demand in the

U.S., South America, China, and

Europe for wheel end, transmission,

differential, and transfer case

applications. These lines feature CNC

dressing of grinding wheels for precise

control of sophisticated logarithmic

raceway profiles, high speed spindles

for improved surface finish, and fully

automated assembly. Heat treatment

capability has been upgraded with

two new furnaces providing improved

efficiency, higher capacity, and tighter

dimensional control.

At Ningbo Hyatt Roller Company

(NHRC), increased GBC and bearing

industry requirements for tapered

rollers has necessitated a major

expansion of production facilities.

In early 2012, a new 4500 square

meter production

facility, adjacent to

our current facility,

was completed. The

facility is equipped with

high speed, American

made, cold heading

equipment to ensure

strict dimensional

control of roller blanks.

High speed grinding

equipment ensures

superior surface finish,

and automated surface

defect detection

ensures quality.

At Ningbo General

Bearing Company

(NGBC), ball bearing

capacity has recently

been increased

with two new fully

automated production

lines to meet growing

demand in the

automotive accessory

pulley market. An

additional new line is

being installed to meet

demand for transmission bearings in

North America and Europe.

GBC’s 2012 capacity expansion

is a tangible demonstration of our

continuing commitment to provide

superior customer service.

expAnded And upGrAded producTion cApABiliTieS To MeeT cuSToMer requireMenTS

2

SGBC-Manufacturing Expansion

New RGW-300 heat treatment line to replace two old lines: Higher fuel efficiency, higher productivity, less product distortion

NHRC Manufacturing Expansion

New 4,500 square meter production building

Layout improvement

New stock area next to heat-treatment and grinding area new stock area next to heat treated and grinding area

201 line at ngBc plant

sgBc plant – new rgw-300 heat treatment line to replace two old lines

new 4,500 square meter production Building at nhrc plant

NGBC Manufacturing Expansion

201 line

NGBC Manufacturing Expansion

201 line

The past few years have provided

challenges for manufacturers on

many fronts. Not only has the market

been unpredictable, but the focus

of our customers has changed dra-

matically. The downturn of 2008/2009

forced companies to reevaluate how

they do business and how can they

remove cost from their operations.

Globalization of manufacturing has

been occurring for a number of years,

but has accelerated during the past

few years. Companies are looking at

their marketplace and evaluating how

they can best serve those markets with

the most cost effective model. As a

result, many companies are choosing

continued on pg.6

GloBAl SAleS cApABiliTy

GloBAl diSTriBuTion

The 2011 Global Sales & Engineering meeting was recently held at General

Bearing Corporation’s corporate head-quarters in West Nyack, NY. The Gener-al Bearing team has grown significantly to support our customer’s growing re-quirements. The North American team was joined by Sales and Engineering personnel from Europe, South America and Asia.

The main objective of the meeting was to discuss our strategic plans for meeting our customers’ global require-

ments. General Bearing Corporation’s mission of being a leader in provid-ing the best value supply of precision bearing products to help our custom-ers remain competitive in a global marketplace has been well received by new and existing customers. Our cus-tomers are being challenged to meet new passenger vehicle CAFE (Corpo-rate Average Fuel Economy) and com-mercial truck fuel economy standards without increasing their overall costs. General Bearing is helping them meet

this challenge.The General Bearing Sales & Engi-

neering team has been very busy work-ing with our customers throughout the world to coordinate purchasing, engi-neering and logistical issues to supply a cost effective solution to the manufac-turing plant regardless of the plant loca-tion. In addition to understanding our customers’ current requirements, the 2011 Global meeting provided an oppor-tunity to develop our Technology Road Map to meet future requirements.

general Bearing

corporation

sales and

engineering team

to standardize their product for all of

the markets they serve. While the ap-

pearance may differ slightly, a single

design is often used to save design

and manufacturing cost. For example,

Ford Motor Company has 10 different

3

Many of our OEM customers have

experienced a significant reduction in

engineering design and testing resources

over the last few years. OEM’s are not

only looking for suppliers that offer the

lowest price and great quality, but also

that have the capability to do a thorough

design analysis of the application prior

to the start of bench or vehicle testing.

Furthermore, with intense worldwide

competition, OEM’s must bring new

products to the market faster and with

higher reliability confidence levels.

Romax Computer

Aided Engineering

(CAE) software is

utilized by General

Bearing Corporation

(GBC) as the primary

means for advanced

bearing analysis. This

proven tool, along with

GBC bench fatigue

testing, increases

reliability confidence

levels enabling a shorter

implementation timeline

for new and existing

bearing applications.

Evan Nixon is a Senior

Engineer Specialist

located in Detroit and

the lead Romax engineer

within GBC Engineering.

Additional engineers in

West Nyack and Ningbo

have also received

Romax training.

The Romax program

model uses inputs from

the customer’s Statement of Requirements

for the application including duty cycle,

bearing fits, preload or end play, mounting

stiffness, lubrication type, and reliability

target. The Romax analytical model

calculates L10 life, misalignment, and

contact stress for a given bearing size,

roller or ball complement, raceway profile

and lubrication condition. The Romax

results are presented to the customer with

specific comments and recommendations

based on GBC standard bearing design,

materials, manufacturing processes and

application knowledge.

GBC will continue to use Romax as a

competitive advantage when presenting

its design and development capabilities

to new and existing customers. It will

also be used along with another modeling

program “COBRA”, to present expected

improvements of future GBC premium

bearing technologies once prototypes are

analyzed.

GBc uSe oF roMAx ModelinG TechnoloGy

evan nixon,

senior engineering

specialist

Examples of Romax modeling outputs

4

automotive 4wd transfer caseautomotive dual-clutch transmission

automotive rear axle differential tapered roller Bearing cone racewaY contact stress

SKF Group To Acquire GBc continued from pg.1

component of that success,” said Tom

Johnstone, SKF President and CEO.

Under the terms of the agreement,

the transaction is structured as a

merger which required approval of

a majority of General Bearing Cor-

poration’s shareholders at a special

meeting. Such approval was obtained

at the shareholder meeting on March

19, 2012 in West Nyack, NY. General

Bearing Corporation will continue to

operate as an independent subsidiary

within the SKF Group, continuing to

provide customers with products un-

der the existing “General” and “Hyatt”

brands.

General Bearing manufactures

ball bearings, tapered roller bearings,

spherical roller bearings, and cylindri-

cal roller bearings, and bearing com-

ponents. Under “The General” and

the “Hyatt” trademarks, the Company

supplies original equipment manufac-

turers in the automobile, truck/trailer,

railcar, office equipment, machinery

and appliance industries, as well as

the industrial aftermarket.

Motion Industries, Inc., a lead-

ing distributor of industrial

maintenance, repair, and opera-

tion (MRO) replacement parts,

recently recognized 62 of its key

suppliers as participants in its

Operational Excellence Supplier

Partnership program at their

North American 2011 Meeting in

Atlanta, Georgia.

Suppliers were recognized for

making significant contributions

in the area of supply chain inte-

gration and process improvement.

This program has spanned seven

years and has resulted in over

1000 individual implementations

to improve supply chain efficiency.

This year marks the third event to

recognize contributions at three

levels of participation: Partnership,

Achievement and Excellence.

General Bearing Corporation was

one of four manufacturers to receive

the Excellence Award for the highest

level of improvement in 2011. Gen-

eral Bearing Corporation has partici-

pated in the Operational Excellence

Supplier Partnership Program since

September, 2005 and previously re-

ceived the Leadership Award in 2008.

General Bearing attendees Jeff

Williams (Vice President, Sales &

Marketing) and Regional Managers,

Myron Bond and Jeff Jones accepted

the award presented by Bill Stevens,

Chief Executive Officer, Wayne Law,

Executive Vice President and COO/

U.S., Ellen Holladay, Senior Vice

President & CIO and Operational

Excellence Officer; and Jim

Williams, Vice President – Corporate

Purchasing.

MoTion induSTrieS recoGnizeS GenerAl BeArinG corporATion WiTh Supplier pArTnerShip excellence AWArd

motion industries operational excellence 2011 supplier partnership awards, atlanta, georgia

5

GENERAL BEARING CORPORATION44 High Street, West Nyack, New York 10994 Tel: 845-358-6000 Fax: 845-358-6277 www.generalbearing.com

automobiles globally that use the same

frame and driveline design. This obvi-

ously creates a huge economy of scale

savings for them as they are able to

reuse the design for each marketplace

they move into.

Another concern of going global is

the cost associated with operating in

a specific country or region. Concerns

such as exchange rates, import

duties, and logistics come into play

when evaluating total manufacturing

cost. While it may be cheaper to

manufacture all of your products in

one plant globally, the cost of sending

that product around the world may

quickly erode that savings. Rising

fuel costs and exchange rates have

forced many companies to abandon

their previous logistics models for

distributing their products globally.

It has become much more common

for a company to locally manufacture

their products in a specific country

or region. By doing this, a company

can greatly reduce the risk associated

with unforeseen economic condition

changes. Costs associated with

currency exchange or import duties

can be eliminated by manufacturing

their product locally. As our customers

continue to request new ways to

support their logistical needs, GBC

will continue to evolve warehousing

options to meet these needs.

During the past two years, GBC has

established four new warehouses to

GloBAl diSTriBuTioncontinued from pg.3

Marinela Nicolescu, Senior Project

Engineer, was recently awarded

Employee of the Quarter. She is

respected for her outstanding ability to

understand our customers’ requirements

and provide them with exceptional

support. She develops highly engineered

bearing solutions and manages projects

for our major Automotive customers.

Her product knowledge includes ball

and tapered roller bearings used in

transmissions, gear boxes and drivelines.

Marinela joined General Bearing

Corporation in August of 2000. She is a key

contributor in developing accounts, handling projects from the design and

validation phases through to production. Her work with Litens Automotive

provided them low cost, high quality bearings for several of their OEM

accessory drive belt applications.

Prior to joining GBC, Marinela held positions in Product and Design

Engineering, where she designed mechanical parts for rotary engines and

configurations for packaging machines. Marinela holds an MS in Mechanical

Engineering, Bucharest Technical University. Marinela lives in Ramsey, NJ

with her husband Victor and son Cezar.

marinela nicolescu

senior project engineer

6

support our customer’s globalization.

As of August 2011, GBC now has

warehouses directly servicing

customer requirements in Laredo

Texas (Mexico), Bremen Germany

(Europe), Toronto (Canada), and

Ningbo (China/Asia). These are in

addition to our primary warehouse in

West Nyack NY. Due to the logistics

costs associated with the each

marketplace (North America, South

America, Europe, and Asia), GBC has

expanded its operational footprint to

better serve our customers’ needs.

GBC will continue to pursue new

and innovative logistical options for

our customer’s needs. The global mar-

ketplace is ever changing, so we need

to be open minded when it comes to

supply chain management.