KENNAMETAL INC.
                                                    Corporate Public Relations
                                                    Latrobe, PA 15650
                                                    412-539-4618

                                                    CONTACT: Charles T. Glazer

FOR IMMEDIATE RELEASE


                              KENNAMETAL DECLARES
                              QUARTERLY DIVIDEND

      Board Also Approves Capital Investments in China and Pennsylvania


Latrobe, Pa. -- January 29, 1996 -- The Board of Directors of Kennametal Inc. 
(NYSE: KMT) today declared a quarterly cash dividend of 15 cents per share 
payable February 23, 1996 to shareholders of record as of February 9, 1996.  
This action continues the dividend at the rate paid in the preceding five 
quarters.

      The Board also approved a plan to build a manufacturing facility in 
Shanghai, China at a cost of approximately $20 million.  Kennametal will own 
100 percent of the plant, which will manufacture tools made of cemented 
carbides and other hard materials for metalcutting applications.

      "There are tremendous growth opportunities for Kennametal in China and 
throughout the Asia/Pacific region," said Robert L. McGeehan, president and 
chief executive officer. "Although we already have several sales offices in 
China and two successful joint ventures in mining tools, by building this 
plant in Shanghai, we will increase our presence significantly in one of the 
world's fastest-growing markets."

      Kennametal is in negotiations with building contractors and will begin 
construction of the facility in the spring.  The project will proceed in three 
phases, with the first phase being a 40,000 square-foot facility to house 
manufacturing, sales, engineering, administration, training and warehousing.  
Phase One is scheduled to be completed and manufacturing is scheduled to begin 
by January 1998.

      "Our market research strongly supports this move," said H. Patrick 
Mahanes, vice president and chief operating officer.  "The opportunities for 
making and selling our products in China should contribute long term to our 
sustained, worldwide growth."

      Mahanes added that talks have gone well with Chinese authorities and 
that Kennametal's plans have been well received in Shanghai.

      Kennametal's Board also approved a capital expenditure to begin a pilot 
project at its Chestnut Ridge plant, located just outside Latrobe, 
Pennsylvania.  This project to manufacture solid carbide drills will utilize 
Kennametal technology combined with technology it gained in its acquisition of 
Hertel, a former competitor headquartered in Fuerth, Germany.

      "This is another example of the strength of our acquisition of Hertel," 
said McGeehan.  "This project unites two great, leading-edge technologies."

      Mahanes added, "This investment will allow us to participate in the 
growing carbide drill market worldwide.  Because this is a pilot project, we 
cannot discuss at this time what the impact will be on our production numbers 
or if any new jobs will result.  We will announce further plans in the future 
after we evaluate the project's start-up."

      The Chestnut Ridge project is scheduled to begin immediately.

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