Hardinge, a global provider of advanced metal-cutting solutions, has entered into a new financing arrangement with Manufacturers and Traders Trust Company ("M&T").

Under the new agreement M&T provided the Company a $10 million term loan which is secured by substantially all of the Company's U. S. assets, as well as two thirds of the Company's investment in its foreign subsidiaries. The loan agreement contains no financial covenants.

Proceeds from the term loan were used to repay approximately $8 million of Company indebtedness under a secured credit facility entered into in June 2008. As announced in the Company's year-end earnings release, the Company had violated the fixed charge covenant under that agreement. The June 2008 credit facility has been paid in full and the Company has taken a non-cash charge of approximately $1 million related to deferred financing costs in connection with its termination.

Contemporaneous with the execution of the new term loan with M&T, the Company entered into a commitment letter with M&T for a three- year $25 million revolving credit facility ("Credit Facility"), which when consummated will replace the $10 million term loan with M&T Bank, discussed above. The Company expects to close on the Credit Facility on or before April 30, 2009.