BusINEss suMMArY ENVIRONMENTal MaTTERs The Company continues its efforts to protect the environment and comply with environmental protection laws. Additionally, it has invested  in pollution control equipment and updated plant operational practices. The Company is committed to implementing a documented  environmental management system worldwide and to becoming certified under the ISO 14001 standard where appropriate to meet or  exceed customer requirements. As of the end of 2011, 21 of the Company’s plants had obtained ISO 14001 certification. The Company believes it has established adequate reserves to cover its environmental expenses and has a well-established  environmental compliance audit program, which includes a proactive approach to bringing its domestic and international units to higher  standards of environmental performance. This program measures performance against applicable laws, as well as standards that have  been established for all units worldwide. It is difficult to assess the possible effect of compliance with future requirements that differ  from existing ones. As previously reported, the Company is unsure of the future financial impact to the Company that could result from  the United States Environmental Protection Agency’s (EPA’s) final rules to tighten the National Ambient Air Quality Standards for fine  particulate and ozone. In addition, the Company is unsure of the future financial impact to the Company that could result from U.S. EPA  instituting hourly ambient air quality standards for sulfur dioxide and nitrogen oxide. The Company is also unsure of potential future  financial impacts to the Company that could result from possible future legislation regulating emissions of greenhouse gases. The Company and certain of its U.S. subsidiaries have been designated as potentially responsible parties by the EPA for site investigation  and remediation at off-site disposal or recycling facilities under the Comprehensive Environmental Response, Compensation and  Liability Act (CERCLA), known as the Superfund, or state laws similar to CERCLA. In general, such claims for remediation have been  asserted against numerous other entities, which are believed to be financially solvent and are expected to substantially fulfill their  proportionate share of the obligation. Management believes any ultimate liability with respect to pending actions will not materially affect the Company’s operations, cash  flows or consolidated financial position. The Company is also conducting environmental investigation and/or remediation activities at a  number of current or former operating sites. Any liability with respect to such investigation and remediation activities, in the aggregate,  is not expected to be material to the operations or financial position of the Company. New laws and regulations, stricter enforcement of existing laws and regulations, the discovery of previously unknown contamination  or the imposition of new clean-up requirements may require the Company to incur costs or become the basis for new or increased  liabilities that could have a materially adverse effect on Timken’s business, financial condition or results of operations. Timken owns a number of U.S. and foreign patents, trademarks and licenses relating to certain products. While Timken regards these  as important, it does not deem its business as a whole, or any industry segment, to be materially dependent upon any one item or  group of items. At December 31, 2011, Timken had 20,954 employees. Approximately 10% of Timken’s U.S. employees are covered under collective  bargaining agreements. The Company uses its Investor Relations website, www.timken.com, as a channel for routine distribution of important information,  including news releases, analyst presentations and financial information. The Company posts filings as soon as reasonably practicable  after they are electronically filed with, or furnished to, the SEC, including its annual, quarterly and current reports on Forms 10-K, 10-Q  and 8-K; its proxy statements; and any amendments to those reports or statements. All such postings and filings are available on the  Company’s website free of charge. In addition, this website allows investors and other interested persons to sign up to automatically  receive e-mail alerts when the Company posts news releases and financial information on the Company’s website. The SEC also  maintains a website, www.sec.gov, which contains reports, proxy and information statements and other information regarding issuers  that file electronically with the SEC. The content on any website referred to in this Annual Report on Form 10-K is not incorporated by  reference into this Annual Report unless expressly noted. THE TIMKEN COMPANY 5$^{ }$ aVaIlablE INFORMaTION EMPlOyMENT PaTENTs, TRaDEMaRKs aND lIcENsEs