Gabelli & Company11th Annual Aircraft Supplier

ConferenceSeptember 9, 2005

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Safe Harbor StatementThis presentation may contain certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the Company’s periodic filings with the Securities and Exchange Commission, including the following: the ability of the Company to integrate newly acquired businesses and to realize acquisition synergies on schedule; changes in market demand for the types of products and services produced and sold by the Company; the Company’s success in identifying and attracting customers in new markets; the Company’s ability to develop new and enhanced products to meet customers' needs timely; the effectiveness of the Company’s marketing and sales programs; uninsured claims; increased competitive activities that could adversely affect customer demand for the Company’s products; the availability of raw materials at prices that allow the Company to make and sell competitive products; changes in economic, political and public health conditions worldwide and in the locations where the Company does business; interest and foreign exchange rate fluctuations; regulatory changes; the possibility of declines in the stock market; risks related to consolidation occurring in the Company’s industries; risks related to dependence on government spending for defense-related products; the possibility of a downturn in the automotive industry; risks related to loss or delay in purchases by customers; risks related to pricing leverage by original equipment manufacturers; risks related to not realizing all sales expected from backlog or anticipated orders; the possibility of not recovering all up-front costs related to original equipment manufacturing programs and revenue sharing programs; risks related to cost overruns and losses on fixed-price contracts; and the possibilities of loss of key personnel, shortage of skilled employees and labor problems. The Company assumes no obligation to update any forward-looking statements contained in this presentation.

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Agenda

• Company Profile / Overview

• Business Segment Highlights

• Growth Drivers and Recent Activity

• Barnes Aerospace Overview

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A diversified international manufacturer and distributor, serving a wide range of end markets and customers

• Founded in 1857

• Public since 1946; NYSE: B

• Market cap: $825 million

• Dividends paid since 1934; yield 2.5%

• 6,000 employees at 60 locations worldwide

Company Profile

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• Balanced Business Portfolio

• Strong Cash Flow

• Manufacturer of Specialized Products and Full-Service Distributor

• Leader in Niche Markets with Broad Customer Base

• Ability to Complete and Integrate Strategic Acquisitions

• Experienced Management Team with Significant Ownership

Key Takeaways

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• In 1999, all executives became subject to stock ownership guidelines, ranging from 1x to 5x annual salary

Management and shareholder interests are closely aligned.

Shares owned by BGI officers 1999 to 2004

• Annual cash incentive targets are set through EVA-like measures, or through targets for sales growth and EPS

Management Commitment

0

100000

200000

300000

400000

500000

600000

700000

800000

1999 2000 2001 2002 2003 20040.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Shares% of Outstanding

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Barnes Aerospace – 20%

Barnes Distribution – 41%

Associated Spring – 39%

First Half 2005 SalesFirst Half 2005 Sales$554 million$554 million

First Half 2005 Operating Profit First Half 2005 Operating Profit $45 million$45 million

Associated Spring – 44%

Barnes Aerospace – 28%

Barnes Distribution – 28%

International – 29% Domestic – 71%

Three Focused Businesses

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Business Segments

Balanced and Sustainable Profitable Growth

BarnesAerospaceBarnes

Aerospace

• Highly specialized manufacturer and repairer of engineered assemblies and components

• Focus on:• Commercial aircraft engines and airframes• Military aircraft engines and airframes• Land-based industrial gas turbines

• International full-service distributor of Maintenance, Repair, and Operating supplies

• One of the largest in North America

• Provide inventory management and logistic services

• One of the world’s largest manufacturers of precision mechanical and nitrogen gas springs

• Products are highly engineered, custom solutions designed and developed from concept to manufacturing

• Global supplier of: nitrogen gas products, valve springs, metal stampings, retaining rings, reed valves, shock discs, and injection molded plastic components

AssociatedSpring

AssociatedSpring

BarnesDistribution

BarnesDistribution

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Barnes Distribution

First HalfResults

First HalfResults OutlookOutlook

• Operational execution driving increased service levels and lower distribution costs

• Sales driven by strong corporate account, Tier II, and Canadian performance

• End markets, particularly those in the strategic growth initiatives area are strengthening

• Sales and operating profits should continue to benefit from targeted customer service, strategic sales initiatives, and global sourcing capabilities

• Top 5 in C-Class Distribution in North American Market; Market leader in VMI

• VMI model provides outsourced inventory management

• Monitors inventory levels, tracks usage, replenishes stock, and provides inventory reporting with limited customer involvement

• Widely recognized brands and strong private labels

• 1,500 plus direct sales personnel provide scale

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Associated Spring• Focused on highly engineered custom products

and solutions; limited commodity-type pricing -not a traditional spring company

• Product Development Center provides joint development, rapid prototyping, extensive testing of new products and materials, and shortens lead times for customers

• Specialty operations such as Nitrogen Gas, Seeger-Orbis or retaining rings, and Precision Valve businesses are positioned for strong profitable growth

First HalfResults

First HalfResults OutlookOutlook

• Revenue growth continues – focus on specialty operations

• Productivity levels improving• Pricing program gaining traction

• Executing multi-faceted approach to enhance ongoing operations

• End markets, particularly nitrogen gas products and heavy duty truck are expected to grow

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Barnes Aerospace• Specialized manufacturer and repairer of engineered components and assemblies• Produce critical engine and airframe parts through technically advanced processes for original

equipment manufacturers (OEMs). Expertise includes:• Machining large complex parts• Special fabrication processes such as super-plastic forming• Utilizing metals such as titanium, inconel, cobalt and other ‘difficult’ alloys

• Aftermarket repair work specializes in the refurbishment and repair of jet engine components for many of the world’s largest airlines and the U.S. military

First HalfResults

First HalfResults OutlookOutlook

• Capitalizing on strong industry fundamentals• Continued growth in the aftermarket business• Manufacturing operations in Singapore

expanded• Signed a 6th aftermarket RSP agreement

• Sales are expected to remain robust on the strength of sales from the GE90-115B engine and growth in the aftermarket

• Leverage sales growth by focusing on operational efficiencies

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BGI Organic Growth Drivers• Leverage core strengths to reach growing markets

• Barnes Distribution• Corporate accounts• Tier II relationships• e-commerce

• Associated Spring • Nitrogen gas products• Reed valves and shock discs• Retaining rings

• Barnes Aerospace • Orders for GE-90-115B• Aftermarket investments

• Foreign auto makers • Racing products

• Infrastructure markets• New products, including mechanical struts

• Military programs • Industrial gas turbines

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Acquisitions

• Entered into 11 acquisitions since 1999• Across all three businesses

• Demonstrated ability to successfully integrate acquisitions• Seeking bolt-on acquisitions to complement existing

businesses with:• New technology or products• Increased market share• A broader geographic customer reach• An experienced management team

• Expect to be acquirers going forward

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• Quarterly dividend increased 10% to $0.22 per share• Successful $100 million convertible bond offering with net share

settlement feature at the end of July– The proceeds were used to repay outstanding revolver

• Toolcom Supplies Ltd. acquisition– Expands Barnes Distributions’ geographic footprint and product offering

in the United Kingdom

• Service Plus Distributors, Inc. acquisition– Product expansion for Barnes Distribution’s Raymond specialty

distributor

• Barnes Aerospace awarded Pioneer Status by the Republic of Singapore for the production of aircraft turbine engine components for OEMs and the spare parts market

Recent Company Activity

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High-Temperature AlloysPrecision MachiningAdvanced FabricationsGearsSpecial Processes

EngineeringNew Product IntroductionConcurrent DesignProcess Engineering Cost ReductionMetallurgical Center

Program Management/IntegratorSingle Point of ContactSystems, Processes, SourcingKits, Assemblies

Quality & ProcessesExtensive NADCAP/ OEM CertificationsISO 9002/AS 9000 Registered/CompliantSix-Sigma, Lean, Kaizen, CI

MRO – Turbine Engine Components

Barnes Aerospace Core Competencies

High Value Added Aerospace Supplier

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Barnes Aerospace Sales Mix

25%

75%

25%

75%

Net Sales MixFirst Half 2005 Net Sales $112 MM

7%18%

2%

55%

18%

7%18%

2%

55%

18%

Overhaul& Repair

Commercial

Military

IGT

RSPAftermarket

OEM

• Aftermarket sales have increased to 25% of total sales from 18% two years ago

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• Well positioned to serve the current and next-generation needs of all airframe and engine manufacturers -- Significant participation on Boeing 777-300ER; Growing participation on the Airbus A380

• GE90 engine - exclusive engine for Boeing 777-300ER/200LR/ 200F aircraft

• 121 777-300ER, 200LR, 200F aircraft on order through July 2005; Barnes Aerospace content is approximately $1.5 million per aircraft

CommercialCommercial

MilitaryMilitary

• Continuing to build a Source Approval Request (SAR) library to increase military OEM business

• Generated $61.6 million in military orders in 2004; a 29% increase over 2003

• First half 2005 orders up 21% over same period last year

IGTIGT

• Industrial Gas Turbine market started to rebound in 2004; part of overall market diversification

• New orders increased for the first time in three years and backlog is building

• Seek to build on early successes as an entry to production and aftermarket organizations

Barnes Aerospace - OEM

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• Maintenance Repair & Overhaul services specialize in refurbishment of jet engine components as well as repair services

• Airline traffic expansion continues, driving repair demand

• Marketing and sales efforts creating shift in customer base over last three years to repair of newer engines (GE, Rolls-Royce) and directly to the military

MROMRO

RSPRSP

• Exclusive rights to provide spare parts for a specific family of engines for the remaining life of the engine program

• Aftermarket RSP agreements will significantly increase ratio of aftermarket/OEM work within Barnes Aerospace, reducing the effect from commercial aerospace market cycles

• Total commitment for the Revenue Sharing Programs (RSPs) of $117 million

Barnes Aerospace - Aftermarket

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• Leverage Barnes’ Scale and Scope

• Positions Barnes Aerospace on both major airframe manufacturers (Boeing and Airbus)

• Deepens “Partnership” Position with Engine OEM

• Strong and immediate returns on investment compared to standard capital expenditures

• Good use of Company cash with strong risk reward ratio

Why RSP Approach?

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• Engine is backed by two of the largest most respected engine companies – actively marketed

• Engine has a global sales and service network

• Engines are tailored to specific applications

• Engine design uses a number of common parts

• Engine common architecture is attractive to customers for ease of maintenance and training

• Engine uses and promotes only genuine OEM spares

Why RSP Approach?

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• Rapid turnaround time• Complete large, complicated

repairs• Defer replacement purchases

• Concurrent design capabilities• Technical capabilities – advanced

processes and “difficult” alloys• On-site presence with major OEMs• Provide kits and assemblies

• Scale and expertise to manage through industry cycles

• Supply leading engine designs (GE 90-94B and GE 90-115B)

• Significant and increasing sales to the military

• Participation in design stage positions us as long-term supplier

• High leverage to cycle recovery• Aftermarket RSPs provide

significant long-term top and bottom line contribution

To OEM Customers To Investors

To Aftermarket Customers

Barnes Aerospace Value Proposition

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• Continued organic growth and strong operational performance in all three businesses

• First half of 2005 generated necessary momentum for successful full year

• Continue to redeploy cash in growth opportunities –aftermarket RSPs and bolt-on acquisitions

• Strategic decisions provide balanced and sustainable profitable growth

Summary

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Additional Information

Reconciliation information for net income and certain other measures that may be disclosed to relevant GAAP measures is contained in the quarterly press release tables. That information, as well as this presentation, are available via theBarnes Group Investor Relations Web site at:

http://www.barnesgroupinc.com