Kadant Receives Order for Approximately $10 Million from Leading Paper Producer in China

Acton, Massachusetts, USA, 25 May 2006 -- (BUSINESS WIRE)--Kadant Inc. (NYSE:KAI) has received an order from leading linerboard producer Lee & Man Paper Industries Co., Ltd. for an advanced stock-preparation system valued at approximately USD 10 million. The equipment, which will process recycled corrugated containers for the production of linerboard and other packaging materials, will be supplied by the company's Kadant Black Clawson Inc. subsidiary.

"We're pleased that Lee & Man, a long-time customer of ours, continues to rely on Kadant to supply the latest technologies for its capacity expansion projects," said William A. Rainville, chairman and chief executive officer of Kadant. "This major order follows on the heels of record bookings of USD 29 million in stock-prep systems from China during the first quarter. We are working to further strengthen our position as a leading supplier to China's growing paper industry by implementing a strategy for increasing sales in all our product lines... This would afford Kadant significant opportunities for growth, not only in China, but in developing markets throughout Asia."

Kadant Black Clawson Inc., based in Mason, Ohio, is a leading fiberline process equipment supplier that designs, manufactures, and services equipment used in paper recycling, chemical pulping, and paper machine approach-flow applications.

Kadant Inc. is a leading supplier to the global pulp and paper industry, with a range of products and services for improving efficiency and quality in pulp and paper production, including paper machine accessories, and systems for stock preparation, fluid handling, and water management. The company's fluid-handling products are also used to optimize production in the steel, rubber, plastics, food, and textile industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Acton, Massachusetts, with revenues of USD 244 million in 2005 and approximately 1400 employees in 16 countries worldwide.

An archive of Kadant's 2006 annual shareholders' meeting will be available on the Kadant Web site until 23 June 2006. For more information, visit www.kadant.com.