Lufkin Industries Announces Construction of New Manufacturing Facility in Romania

LUFKIN, Texas, July 9, 2010 - Lufkin Industries, Inc. (Nasdaq: LUFK) today announced its intention to
construct a manufacturing facility near Ploiesti, Romania, just north of the
capital, Bucharest. This facility is being designed with the objective of
manufacturing products for both the Company's Oilfield and Power Transmission
Divisions with an initial focus on oilfield products.

This facility is being built on an 82 acre site with an estimated cost of
US$126 million. The facility will initially employ just over 300 employees
when completed in 2012. The Government of Romania, through the Ministry of
Public Finance, has agreed to provide Lufkin with economic development
incentives and financial assistance of 28 million Euros towards the
construction costs, or approximately 30% of the plant cost.

Jay Glick, CEO and President, stated, "The new operation in Romania is a
critical step in our strategy to expand our geographic reach to better serve
our global customers. This will enhance our competitive position in the
growing markets of the Eastern Hemisphere. Using Lufkin's proven regional
manufacturing strategy, the Romanian operation will serve as a strategic hub
to serve the European market as well as acting as the focus for exports to
Russia, Central Asia, North Africa, the Middle East and markets in East Asia.
This facility should allow us to secure new customers and take advantage of
the increasing use of artificial lift for oil and gas wells in those areas.

"Locating this operation in Romania provides us with many advantages.
Romania is becoming a regional energy hub due to the political stability
provided by EU membership and the strategic benefit of its significant
oilfield heritage, market and infrastructure. In addition, Romania provides
Lufkin access to local sources of raw material and castings, a strategic
location for favorable shipping routes and a technically-capable and
highly-educated local workforce."

In a meeting with Lufkin executives, Finance Minister Sebastian Vladescu
stated: "This is a very good development for Romania, for our economy and for
the region, because it will result in the creation of jobs, it will transfer
modern manufacturing technology to our country's oil and gas industry, it
will boost exports to Eurasia, Middle East and North Africa, and will use
Romanian natural resources to generate revenues to the state budget.

"We welcome Lufkin to Romania, and see in this decision an expression of
confidence in the economy and labor force, and Romania's tradition in the
energy sector," said Vladescu.

Founded in 1902 and based in Lufkin, Texas, Lufkin Industries, Inc. is a
vertically integrated company and is the recognized leader in artificial lift
systems for oil and gas applications and highly engineered power transmission
gear systems. Lufkin employs more than 2,800 people worldwide. The Company
sells and services oilfield pumping units, automation systems, gas and
plunger lift systems, completion products, foundry castings and power
transmission products throughout the world. In addition to its manufacturing
plants in Lufkin, Texas, the Company operates an oilfield equipment
manufacturing plant in Comodoro Rivadavia, Argentina, an automation systems
manufacturing facility in Houston, Texas, a gas and plunger lift
manufacturing facility in Houston, Texas, and a power transmission equipment
manufacturing plant in Fougerolles, France. The Company also operates in the
key oilfield and gas producing countries throughout the world with sales,
aftermarket and service locations. For additional information on Lufkin
Industries, Inc., please visit our website at www.lufkin.com.

    Contact: Christopher L. Boone
             Chief Financial Officer
             +1-936-631-2749

             DRG&E:
             Jack Lascar / +1-713-529-6600
             Anne Pearson / +1-210-408-6321

Christopher L. Boone, Chief Financial Officer of Lufkin Industries, Inc., +1-936-631-2749; or Jack Lascar, +1-713-529-6600, or Anne Pearson, +1-210-408-6321, both of DRG&E, for Lufkin Industries, Inc.