Relational and CalSTRS expressed their intent to continue to dialogue with shareholders and the broader investment community about the value creation potential of the separation of Timken’s steel business. Their hope is that investors communicate their views directly with the Company, prompting the Board to act now to effectuate a separation, reserving the opportunity to make a clear public statement of their support through their votes at the annual meeting on the shareholder proposal CalSTRS sponsored, with the support of Relational, as disclosed in their Schedule 13D filed November 28, 2012, as amended February 19, 2013.

Attached is the letter from Relational and CalSTRS to the Timken Board of Directors.

About Relational Investors LLC:

Relational Investors LLC, founded in 1996, is a privately held, multi-billion dollar asset management firm and registered investment adviser. Relational invests in publicly traded companies that it believes are undervalued in the marketplace. The firm seeks to engage the management, board of directors, and shareholders of its portfolio companies in a productive dialogue designed to build a consensus for positive change to improve shareholder value.

About the California State Teachers Retirement System: The California State Teachers’ Retirement System (CalSTRS) is a public pension fund established for the benefit of California’s public school teachers over 100 years ago. CalSTRS serves the investment and retirement interests of over 856,000 plan participants. As of December 31, 2012 the CalSTRS portfolio was valued at over $157 billion; approximately $76 billion of the fund’s assets are invested in the public equity markets, on both a domestic and an international basis.

***

Relational Investors LLC
         

California State Teachers’ Retirement System

12400 High Bluff Drive, Suite 600

100 Waterfront Place, MS-04

San Diego, CA 92130

West Sacramento, CA 95605-2807

 

VIA ELECTRONIC AND OVERNIGHT MAIL

February 19, 2013

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