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Altra Holdings, Inc. Prices $75 Million Convertible Senior Notes Offering

BRAINTREE, Mass., March 2, 2011 (GLOBE NEWSWIRE) -- Altra Holdings, Inc. (Nasdaq:AIMC) today announced the pricing of its offering of $75 million aggregate principal amount of 2.75% Convertible Senior Notes due 2031 in a private offering to qualified institutional buyers pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the "Securities Act").

The sale of the notes is expected to close on or about March 7, 2011. Altra Holdings also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $10 million aggregate principal amount of notes solely to cover overallotments, if any.

The notes will bear interest at a rate of 2.75% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing September 1, 2011. The notes will be convertible, in certain circumstances, at an initial conversion rate of 36.0985 shares per $1,000 aggregate principal amount of notes (which is equivalent to a conversion price of approximately $27.70), subject to adjustment, upon the occurrence of certain events, into either, at Altra Holdings' election, cash, shares of Altra Holdings' common stock, or a combination of cash and shares of Altra Holdings' common stock. This represents a conversion premium of approximately 35% relative to the closing price of Altra Holdings' common stock on March 1, 2011.

Altra Holdings may, at its option, redeem some or all of the notes on or after March 1, 2018 for cash. Beginning March 1, 2015 and prior to March 1, 2018, Altra Holdings may redeem some or all of the notes for cash plus a "make whole premium" payment in cash, shares of Altra Holdings' common stock or a combination of cash and shares of Altra Holdings' common stock if the last reported sale price of the common stock for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price in effect on each such trading day. Holders of the notes will have the right to require Altra Holdings to repurchase some or all of the outstanding notes, for cash, on March 1, 2018, March 1, 2021 and March 1, 2026 or upon the occurrence of certain fundamental changes. The notes are senior unsecured obligations of Altra Holdings. The notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of Altra Holdings' existing and future domestic restricted subsidiaries.

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