FARREL   NEWS

             FARREL CORPORATION
              25 MAIN STREET

                 FOR
             IMMEDIATE RELEASE

            ANSONIA, CT 06401

          CONTACT: PETER L. HESS
            (203) 736-5500
          TELEPHONE: (203) 736-5501





ANSONIA, Connecticut,

December 4, 1997:


Rolf K. Liebergesell, Chairman, President and Chief Executive Officer of
Farrel Corporation, today announced that Farrel has entered into a conditional
contract to acquire the Francis Shaw Rubber Machinery business located
in Manchester, England from the EIS Group plc. The purchase price and terms
were not disclosed.

Mr. Liebergesell, remarking on the transaction said "Francis Shaw produces
world-class rubber mixing and extrusion equipment, and this acquisition
represents our continuing commitment to serving fully the rubber products
industries world- wide together with our other products, Banbury( Mixers
and Twin Screw Sheeters and related equipment. Farrel now provides a full
line of alternative solutions for its customers.

"From Francis Shaw's performance and the terms of the acquisition, we expect
the acquisition to add significantly to profits for 1998. The addition of
approximately $10 million to our current backlog will improve our prospects
for 1998 as well.

"Importantly, Farrel adds engineering and technology expertise to the world's
finest polymer engineering firm.

"Ultimately, the Francis  Shaw business will be merged  into existing Farrel
facilities in Rochdale near Manchester, thus providing an opportunity 
to further improve profitability.  In due course, Farrel's worldwide
resources will assist in the marketing of these products," he said.

Francis  Shaw produces Intermix( internal mixers with intermeshing rotors,
extruders and  related equipment principally for technical rubber goods
manufacturers, while  Farrel's Banbury( internal mixers and related equipment
 are largely designed for the world's tire manufacturers.

In addition to rubber  mixers, Farrel supplies large-scale plastic
pelletizing systems to the petrochemical industry  and process equipment
to compounders of plastic materials.