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           Kadant Shares Distributed in First Thermo Electron Spinoff


WALTHAM, Mass., August 8, 2001 - Kadant Inc. (ASE:KAI), formerly Thermo Fibertek
Inc., becomes Thermo Electron's first spinoff today with the distribution by
Thermo Electron of all the Kadant shares it owns as a dividend to Thermo
Electron shareholders of record on July 30, 2001. The shares were distributed
after today's market close. Thermo Electron, which previously owned
approximately 91 percent of Kadant's common stock, no longer owns any Kadant
shares.

      "We're thrilled to be on our own now as a truly independent company," said
William A. Rainville, president and chief executive officer of Kadant. "We are
ready to function as a stand-alone business. We have a winning combination of
technology, talent, and financial resources. These include substantial cash flow
from our well-established core business serving the global pulp and paper
industry, a new venture addressing multi-billion-dollar markets for fiber-based
composite building materials, and a healthy balance sheet with $167 million in
cash and investments. We are motivated by our prospects for future growth, and
confident that many of the same strategies we used to build a strong Thermo
Fibertek will help us achieve success going forward as Kadant."

      Thermo Electron distributed .0612 shares of Kadant common stock for each
share of Thermo Electron common stock. The ratio is based on the number of
Thermo Electron shares outstanding on the July 30 record date and the actual
number of Kadant shares held by Thermo Electron today, the distribution date.

      The Kadant spinoff is a final step in Thermo Electron's major
reorganization plan, begun in early 2000, that allows Thermo to focus on its
core business of instrument systems, components, and services.

      Kadant Inc. is a leading supplier of a range of products for the global
papermaking and paper-recycling industries, including de-inking systems,
stock-preparation equipment, water-management systems, and papermaking
accessories. Through its majority-owned Thermo Fibergen subsidiary, the company
also develops and commercializes composite building materials produced from
natural fiber and recycled plastic.

The following constitutes a "Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995: This press release contains forward-looking
statements that involve a number of risks and uncertainties. Important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are set forth under the heading "Risk Factors"
in Exhibit 99.1 to the company's current report on Form 8-K filed with the
Securities and Exchange Commission on August 6, 2001. These include risks and
uncertainties relating to: the company's dependence on the paper industry and
pulp and paper prices, international operations, competition, ability to enter
the composite building products market, acquisition strategy, dependence on
patents and proprietary rights, fluctuations in quarterly operating results, and
the proposed spinoff of the company.



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