About the California State Teachers Retirement System: The California State Teachers’ Retirement System, with a portfolio valued at $161.5 billion as of February 28, 2013, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans, as well as disability and survivor benefits. CalSTRS serves California's 862,000 public school educators and their families from the state’s 1,600 school districts, county offices of education and community college districts.
Relational Investors LLC (“Relational”) and the California State Teachers’ Retirement System (“CalSTRS”), collectively owners of 7.28% of the shares of The Timken Company, (NYSE: TKR) (“Timken” or “the Company”), stated that shareholders can send the Timken Board a clear message to take action now to unlock shareholder value by VOTING FOR the CalSTRS proposal to separate Timken’s core Steel and Bearings businesses included in the proxy materials filed today by Timken. Relational and CalSTRS today also announced the launch of www.UnlockTimken.com. The website provides shareholders with information detailing why a separation of Timken’s businesses will unlock shareholder value by allowing the market to independently value Timken’s Bearings and Steel businesses as pure-plays in their respective industries. Relational said, “Our website provides shareholders with data and analysis that both support and demonstrate the potential for enhanced shareholder value that could be unlocked though the separate public trading of Timken’s Steel and Bearings businesses and show that Timken’s ‘conglomerate’ structure continues to cause the Company’s stock to trade at a significant discount.” Since Relational and CalSTRS first filed their Schedule 13D on November 28, 2013, advocating for the separation of Timken’s Steel and Bearings businesses, Timken’s stock price has outperformed the S&P MidCap 400 Index by 23% as of March 15, 2013. “The investment community’s reaction to the CalSTRS proposal has been positive and clear—there is a consensus among securities analysts supporting the separation of the Steel and Bearings businesses; favorable movement in the price of the stock; and growing traction for the separation among shareholders with whom Relational and CalSTRS have spoken,” Relational said. Relational and CalSTRS URGE shareholders to send a clear message to Timken’s Board to unlock shareholder value. VOTE FOR the CalSTRS shareholder proposal. 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.