THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Regal-Beloit Corporation (RBC)

3/24/2006 Proxy Information

As required by SEC rules, this Section provides information about certain relationships and related transactions involving the Company and any Director or Officer. In 2005, Director G. Frederick Kasten, Jr. was the Chairman and a Director of Robert W. Baird & Co., Inc. (“Baird”). Baird provided financial advice to the Company in the August 30, 2004 acquisition of the Commercial AC Motors business from General Electric, and financial advice and a fairness opinion in the Company’s December 31, 2004 acquisition of the HVAC Motors and Capacitors businesses from General Electric, for which Baird received fee payments from the Company in 2005. Baird was also lead underwriter in the Company’s follow-on stock offering and was paid a fee by the Company in 2005. Compensation received by Baird did not exceed five percent (5%) of Baird’s or the Company’s consolidated gross revenues during the last fiscal year. The Board determined that Mr. Kasten is independent in accordance with the NYSE independence standards.

In connection with Mr. Gliebe’s move from Fort Wayne, IN to the Company’s corporate headquarters in Beloit, Wisconsin, the Company purchased Mr. Gliebe’s home in Indiana at fair market value in August 2005. The purchase price of $475,000 was based on two independent appraisals. The method of determining the purchase price to be paid by the Company was established by Henry W. Knueppel, Chief Executive Officer.

3/24/2005 Proxy Information

Director G. Frederick Kasten, Jr. is the Chair and a director of Robert W. Baird & Co., Inc. (“Baird”). Baird was part of an underwriting syndicate in the Company’s convertible senior subordinated debt offering in April 2004. Baird provided financial advice to the Company in the August 30, 2004 acquisition of the Commercial AC Motors business from General Electric, and financial advice and a fairness opinion in the Company’s December 31, 2004 acquisition of the HVAC Motors and Capacitors businesses from General Electric. Compensation received by Baird did not exceed five percent (5%) of Baird’s consolidated gross revenues during the last fiscal year. In 2005 the Company expects that Baird will be the lead manager of a proposed underwriting syndicate in a public offering of Company stock.

3/12/2004 Proxy Information

Director G. Frederick Kasten, Jr. is the Chair and a Director of Robert W. Baird & Co., Inc. (“Baird”). During the past fiscal year, the Company had business transactions with Baird. All transactions were in the ordinary course of business. It is anticipated that like transactions will continue.

3/11/2003 Proxy Information

Mr. G. Frederick Kasten is the Chairman of Robert W. Baird & Co., Inc. (Baird). In March 2002, upon completion of Regal-Beloit's approximate 4 million share public stock offering, Regal paid Robert W. Baird & Co., as lead manager of the stock offering, a fee which did not exceed 5% of the 2002 gross income of Robert W. Baird & Co.