HARDINGE INC.

Summary of Case: A securities class action has been filed against Hardinge Inc. (Ticker: HDNG) ("Hardinge" or the "Company") on behalf of all common stock purchasers from February 22, 2007 through February 21, 2008 (Class Period) in the United States District Court for the Western District of New York.

The complaint alleges that throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning Hardinge's business, operations and prospects were materially false and misleading. Specifically, defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that Hardinge's orders and sales were slowing; (2) slowing sales were causing Hardinge's inventory of outdated machinery to grow; (3) that the Company failed to timely record an impairment in the value of its inventory; (4) as a result, the Company's financial results were materially inflated; and (5) that the Company lacked adequate internal controls.   On February 21, 2008, Hardinge shocked investors when it revealed that in the fourth quarter of the fiscal year ending December 31, 2007, Hardinge experienced a combination of prior period accounting adjustments and the negative impact of operational initiatives to reduce inventory which contributed to an unexpected loss in the fourth quarter of 2007. Hardinge's fourth quarter and full year 2007 earnings reflected a significant and unexpected reduction in the Company's gross margin as a result of: prior period accounting adjustments related to intercompany profits in inventory elimination and accounts payable which were recorded in the fourth quarter of 2007; the rebalancing of production volumes in the Company's United States and Taiwan production facilities to address current market demand for certain products and to reduce inventory; higher price discounting related to plans to reduce finished machine inventories and accelerate the phase-out of older product lines, and product and channel mix changes. Moreover, Hardinge announced plans to lower inventory by $20 million and to discount inventory of older product lines, both of which would continue to constrain the Company's margins during the 2008 fiscal year. On this news, Hardinge's shares declined $4.16 per share, or 25.43 percent, to close on February 21, 2008 at $12.20 per share, on unusually heavy trading volume.