THE TIMKEN COMPANY 15$^{ }$ BusINEss suMMArY Assumes $100 invested on January 1, 2007, in Timken Common Stock, the S&P 500 Index, the S&P 400 Industrials and the Bearing/ Steel Peer Group Indices. 2007  2008  2009  2010  2011  Timken $ 114.97  $ 70.80  $ 87.88  $ 179.70  $ 148.32  s&P 500 105.49  66.46  84.05  96.71  98.76  s&P 400 Industrials 119.62  75.91  99.92  130.90  129.38  80% bearing / 20% steel 99.24  47.09  76.55  92.86  70.80 **Effective with fiscal year 2011, the custom bearing/steel peer group index has been replaced with the S&P 400 Industrials index  because the Company believes it more accurately reflects a peer benchmark for the Company’s portfolio of businesses given  Timken’s strategic initiatives to diversify beyond its heritage bearing and steel product offerings. For comparability, both peer indices  have been shown. The line graph compares the cumulative total shareholder returns over five years for The Timken Company, the S&P 500 Stock Index,  the S&P 400 Industrials Index and a custom peer group index that proportionally reflects Timken’s bearing and steel businesses. The  S&P Steel Index comprises the steel portion of the peer group index. This index is comprised of AK Steel, Allegheny Technologies, Cliffs  Natural Resources, Nucor and US Steel. The remaining portion of the peer group index is a self constructed bearing index that consists  of five companies. These five companies are Kaydon, JTEKT, NSK, NTN and SKF Group. The last four are non-US bearing companies  that are based in Japan (JTEKT, NSK, NTN), and Sweden (SKF Group). Timken  S&P 500  S&P 400  80% Bearings / 20% Steel 2007 2008 2009 2010 2006 2011 $200 $150 $100 $50 Among The Timken Company, the S&P 500, the S&P 400 Industrials and the Bearing/Steel Peer Group Indices** COMPArIsON OF FIvE-YEAr CuMulATIvETOTAl rETurN* * Total return assumes reinvestment of dividends.  ** Fiscal years ending December 31.