With more than 4,000 vendors worldwide, Kennametal turns to Harbor Payments to extend its Accounts Payable Automation Internationally

Harbor Payments offers a single platform solution for paper and electronic invoicing that supports multiple languages, currencies, international banking profiles and tax structures

Atlanta, GA, July 24, 2006 – Harbor Payments, the leading provider of next-generation corporate payments management solutions, announced today it has extended its accounts payable automation initiative with Kennametal Inc. (NYSE: KMT) internationally. Kennametal, the largest metal cutting tools manufacturer in North America and second largest in the world, with $2 billion in annual revenue, receives more than 200,000 invoices per month from 4,000+ vendors worldwide. Most of these invoices are paper-based and therefore labor-intensive and costly. Kennametal, which has successfully worked with Harbor Payments domestically during the last two years to more efficiently process greater than 97 percent of its invoices electronically, has begun a rollout of the program worldwide, starting with its operations in Canada.

Through this rollout, Kennametal also can now initiate ACH payments to its Canadian suppliers in either USD or CAD via its Canadian bank, Toronto Dominion. Upon rollout completion, slated for Q1 2007, Kennametal will leverage Harbor Payments’ Invoice Harbor accounts payable automation solution to process invoices in all 25 countries in which it operates. In addition to providing support for these 25 countries, Harbor Payments’ multi-language, multi-currency solution will enable Kennametal to accept and electronically process invoices regardless of the country of origin.

“Harbor Payments works with many of the world’s largest organizations, and while the majority are U.S.-based, they are conducting business across the globe. Having already enabled companies such as Kennametal to drastically reduce the time and expense of processing invoices domestically, we are now turning our attention to help them manage their entire accounts payable processes across all borders,” explained Ashish Bahl, founder and CEO of Harbor Payments. “By the end of the year, Kennametal will be able to process invoices from Europe, South America and the Asia Pacific region, including character-based languages such as Japanese and Chinese. By the end of the first quarter, they will be able to process invoices from anywhere. The potential cost savings of an enterprise-wide AP automation solution are staggering.”

About Kennametal
Kennametal Inc. (NYSE: KMT) is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2 billion annually of Kennametal products and services-delivered by our nearly 14,000 talented employees in over 60 countries -- with almost 50 percent of these revenues coming from outside the United States.
For more information please visit www.kennametal.com

About Harbor Payments
Harbor Payments is the leading provider of corporate payments management, providing comprehensive electronic outsourced invoicing, billing and disbursement solutions for the Global 1000. The company’s products, services and insight enable organizations to manage cash flow more effectively by efficiently sending and receiving invoices, making and collecting payments, and managing all associated internal workflows. While transforming and streamlining the client organization’s operational and financial processes, Harbor Payments products and services adapt to and complement each client’s existing information systems and accounting applications. Harbor Payments solutions are marketed under the brands of Invoice Harbor, Billing Harbor and Payment Harbor.
For more information, please visit the company’s web site at www.harborpayments.com