Code of Ethics for Certain Executives

BALDOR ELECTRIC COMPANY
and Affiliates

Code of Ethics for Certain Executives

Adopted by Baldor’s Board of Directors on February 9, 2004
and including any amendments through April 26, 2008.

Baldor Electric Company (the “Company”) believes it is of critical importance that the filings with the Securities and Exchange Commission be accurate and timely. From time to time employees of the Company may be called upon to provide information to assure that the Company’s public reports are complete, fair, and understandable. The Company expects all of its personnel to take this responsibility seriously, to provide prompt and accurate answers to the Company’s requests related to the Company’s public disclosure requirements, and to abide by the Company’s Code of Ethics and Business Conduct. Enforcement of and interpretations under this Code of Ethics for Certain Executives (the “Code of Ethics”) shall ultimately be the responsibility of the Company’s Corporate Governance Committee.

This Code of Ethics is established pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, which requires that the Company establish a code of ethics that apply to the Company’s principal executive officer (the “CEO”) and certain of the Company’s senior financial officers, including the Company’s Chief Financial Officer, Treasurer, principal accounting officer, and any officer of the Company serving in a finance, accounting, treasury, tax, or investor relations role (the “Financial Officers”). The Financial Officers should note that simply complying with the law or following widespread business practices may not be enough to comply with the requirements under Section 406 of the Sarbanes-Oxley Act of 2002 or the Company’s Policy for Disclosure Controls and Procedures. It is therefore critical that the Financial Officers understand their obligations and responsibilities under the Policy for Disclosure Controls and Procedures and this Code of Ethics.

The purpose of this Code of Ethics is to deter wrongdoing and to promote:

• Honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest in personal and professional relationships;
• Full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits to, government agencies and in other public communications;
• Compliance with rules and regulations of federal, state, and local governments, and other appropriate private and public regulatory agencies;
• Prompt internal reporting of possible violations of this Code of Ethics with the appropriate persons within the Company; and
• Accountability for adherence to this Code of Ethics.

Accordingly, the CEO and each of the Financial Officers are required to:

• Engage in and promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest in personal and professional relationships;
• Avoid conflicts of interest and disclose to the Compliance Officer any material transaction or relationship that reasonably could be expected to give rise to such a conflict;
• Produce full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company or its subsidiaries files with, or submits to, the Securities and Exchange Commission and other regulators and in other public communications made by the Company or its subsidiaries;
• Comply with applicable governmental laws, rules and regulations, as well as the rules and regulations of self-regulatory organizations with which the Company, its subsidiaries or its securities are associated;
• Take all reasonable measures to protect the confidentiality of non-public information about the Company or its subsidiaries and their customers or suppliers obtained or created in connection with their activities and to prevent the unauthorized use or disclosure of such information unless required by applicable law or regulation, or legal or regulatory process; and
• Promptly report any possible violation of this Code of Ethics to the Company’s Secretary or other appropriate executive officer.

The CEO and Financial Officers are prohibited from directly or indirectly taking any action to fraudulently influence, coerce, manipulate, or mislead the Company’s or its subsidiaries’ independent public accountants for the purpose of rendering the financial statements of the Company or its subsidiaries misleading.

Failure to observe the terms of this Code of Ethics may result in disciplinary action, which may include termination of employment. Violations of this Code of Ethics may also constitute violations of law and may result in civil and criminal penalties for the violator, his or her supervisor(s), and/or the Company.

If you have questions regarding the best course of action in a particular situation, you should promptly contact the Company’s Secretary or other appropriate executive officer of the Company.

If you see or suspect a violation of Baldor's Code of Ethics for Certain Executives, please report it to one of the following people. Any report of an ethics violation will be kept strictly confidential.

John McFarland – Chairman & CEO
Ron Tucker – President & COO
Jason Green - Vice President, Human Resources
Larry Johnston – Vice President, Audit Services

Alternatively, concerns can be reported anonymously to Audit Services by:

1. Calling Baldor’s Ethics hotline toll-free at 1-866-563-4001
2. Emailing the Company at baldor-ethics@baldor.com