K-Tron Completes Acquisition of Chinese Business Forming Wholly Foreign-Owned Enterprise in the People's Republic of China

Pitman, New Jersey – March 27, 2007 – K-Tron International, Inc. (NASDAQ-GM: KTII) today reported that is has closed its previously announced agreement to acquire certain assets of Wuxi Chenghao Machinery Co., Ltd. (“Wuxi Chenghao”), a privately-owned company in the People’s Republic of China (the “PRC”).  The purchased assets were transferred from the seller to a newly-created Wholly Foreign-Owned Enterprise (“WFOE”) established by K-Tron which will conduct business under the name Wuxi K-Tron Colormax Machinery Co., Ltd. (“Wuxi K-Tron Colormax”). The total cost of the transaction over a five-year period, including the purchase price and payments under related employment and other arrangements with Wuxi Chenghao’s owner, could be as much as approximately $3.5 million.

Wuxi K-Tron Colormax will be located in Luoshe Key Open Industrial Park, Wuxi City, in the Huishan district of Jiangsu province, approximately 60 miles west of Shanghai.  The company will initially employ approximately 65 people and will design, manufacture, market and service volumetric and gravimetric single and twin screw feeders and controls, vibratory trays, pelletizers and pneumatic screen changers for use in plastics compounding and injection molding processes. 

Wuxi K-Tron Colormax will become the newest member of K-Tron’s Process Group, a leading global supplier of feeding and pneumatic conveying equipment to companies in the process industries. Sales and operations of the WFOE will be the responsibility of Mr. Wang Hongliang, the seller’s owner.  Accounting, financial reporting and tax matters will be handled by Ms. Sun Ping, an English-speaking degreed accountant with several years of experience working for a foreign-owned company in the PRC, whom we hired in March 2007.  Wuxi Chenghao’s top management and most of its employees have also joined the WFOE.  Kevin Bowen, Senior Vice President of K-Tron responsible for its process equipment business line, will serve as Chairman of the Board of the WFOE and have overall responsibility for its business.

Commenting on the acquisition, K-Tron Chairman and Chief Executive Officer Edward B. Cloues, II said, “The domestic Chinese feeder market represents a significant growth area for our Process Group.  K-Tron has served the upper-tier PRC market for many years by selling its feeding equipment primarily to multinational end users through resellers, such as engineering firms, in Europe and the United States, through independent sales representatives in the PRC and by providing support through a Representative Office in Shanghai which we opened in 1996.  Our new WFOE, Wuxi K-Tron Colormax, provides us with the opportunity to sell Chinese designed and manufactured feeders and related equipment to Chinese customers in local currency.  The establishment of Wuxi K-Tron Colormax is a major step forward in K-Tron’s strategic plan to expand our global leadership position in feeding and pneumatic conveying equipment for difficult to handle materials.” Mr. Bowen added, “The acquisition of Wuxi Chenghao and the formation of the WFOE was a time-consuming and complicated project, but the expected benefits to the K-Tron Process Group should be substantial. 

The PRC has developed into a leading area for base resin manufacturing and plastics compounding, which are core markets for our feeding and pneumatic conveying equipment.  Wuxi K-Tron Colormax will significantly increase our presence in the PRC and allow us to take advantage of domestic manufacturing and labor efficiencies.  And with Mr. Wang and the management team from Wuxi Chenghao having joined us, we will be able to utilize their existing customer relationships and supply chain processes.  We currently have managers from our U.S. and Swiss Process Group facilities working with Wuxi Chenghao’s management on site to assure a smooth transition, and experienced K-Tron managers will remain involved with Wuxi K-Tron Colormax for the foreseeable future.” K-Tron International, Inc. and its subsidiaries design, produce, market and service material handling equipment and systems for a wide variety of industrial markets.  The Company has manufacturing facilities in the United States, Switzerland, the United Kingdom and the People’s Republic of China, and its equipment is sold throughout the world.

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This news release contains statements that are or may be deemed forward-looking relating to the acquisition of certain assets of Wuxi Chenghao and the related formation of a WFOE, including the WFOE’s future plans, prospects and opportunities, the management team, growth of base resin manufacturing and plastics compounding in the PRC, the expected benefits of the transaction to the K-Tron Process Group and related matters, which statements involve a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from those indicated or suggested by such forward-looking statements include the possibility of reduced demand for the WFOE’s equipment, the failure of bookings to be received as currently anticipated, the failure of the management team to perform as expected and the possibility that future economic, business or political conditions in the PRC will be less favorable than the Company currently expects, either generally or in the markets served by the WFOE.  Recipients of this news release are cautioned to consider these risks and uncertainties and to not place undue reliance on the forward-looking statements contained herein.  Except as required by applicable securities laws, the Company does not intend to update its forward-looking statements.