Kadant Johnson Reveals Energy Saving Opportunities with Dryer Performance Evaluations

Three Rivers, Mich., January 27, 2009 – Kadant Johnson Inc., a subsidiary of Kadant Inc. (NYSE:KAI), reported that its global dryer systems group identified energy saving opportunities in paper machine drying operations worth more than $10 million in 2008. Kadant Johnson’s dryer performance evaluations utilize process and application knowledge from machine surveys to optimize dryer section performance and identify energy saving opportunities. In addition to the energy saving benefits, the company’s dryer performance evaluations can identify opportunities for improving operating efficiency, runnability, and machine productivity. To date, more than 1,000 dryer performance evaluations have been conducted around the globe.

According to Ken Hill, president of Kadant Johnson Systems Division, “The dryer section can consume over 75% of the steam energy on a typical paper machine. It also can have a dramatic impact on the quality of the final product. Our dryer performance evaluations help to get the most from the dryer section without major expenditures or unproven solutions. We have been able to identify compelling returns on investment not only through reduced operating cost, but also by increased drying capacity and product quality.”

A typical dryer performance evaluation includes dryer section measurements, equipment sizing analysis, operational improvement and equipment upgrade recommendations, short-term and longer-term improvement project list, and an ROI analysis. Detailed recommendations are provided and prioritized based on costs and expected benefits. Solutions that can be phased-in are highlighted to get the most out of the investment as quickly as possible.

Kadant Johnson Inc., based in Three Rivers, Michigan, is a leading provider of rotary joints, precision unions, and fluid handling systems to process industries, where they optimize heat transfer in rotating cylinders and integrate fluid handling systems.

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. Our 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 Westford, Massachusetts, with revenues of $366 million in 2007 and 2,000 employees in 16 countries worldwide. For more information, visit www.kadant.com.

The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our products, technologies, and customers. Important factors that could cause actual results to differ materially from those indicated by such statements are set forth under the heading “Risk Factors” in Kadant’s quarterly report on Form 10-Q for the period ended September 27, 2008. These include risks and uncertainties relating to worldwide and local economic conditions as well as the pulp and paper industry; significance of sales and operation of manufacturing facilities in China; international sales and operations; competition; soundness of our suppliers and customers; our debt obligations; restrictions in our credit agreement; soundness of financial institutions; litigation and warranty costs related to our discontinued operation; our acquisition strategy; future restructurings; factors influencing our fiber-based products business; protection of patents and proprietary rights; fluctuations in our share price; and anti-takeover provisions. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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