SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549
                                    FORM 10-Q
                                   (Mark one)

              {X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2003

                                       OR

              { } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        Commission file number 001-11549
                                               ---------

                           BLOUNT INTERNATIONAL, INC.
    -------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Delaware                                  63-0780521
 ------------------------------               ----------------------
(State or other jurisdiction of                  (I.R.S  employer
incorporation or organization)                  Identification  No.)

  4909 SE International Way
       Portland, Oregon                             97222-4679
 ------------------------------               ----------------------
(Address of principal executive offices)            (Zip Code)

                                 (503) 653-8881
              (Registrant's telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
                                                   Name of each exchange
        Title of each class                         on which registered
    Common Stock, $.01 par value                  New York Stock Exchange
-------------------------------------            -------------------------

Securities registered pursuant to Section 12(g) of the Act:  None
                                                             ----

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

        Yes  X                                 No
           -----                                 -----

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934)

        Yes                                    No  X
           -----                                 -----


Indicate the number of shares outstanding of each of the issued classes of
common stock, as of the latest practicable date.

    Class of Common Stock         Outstanding at March 31, 2003
    ---------------------         -----------------------------
       $ .01 Par Value                    30,795,862


<PAGE>


BLOUNT INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX

                                                                 Page No.
                                                               ------------

Part I   Financial Information

   Item 1 - Financial Statements

     Unaudited Consolidated Statements of Income (Loss) -
        three months ended March 31, 2003 and 2002                   4

     Unaudited Consolidated Balance Sheets -
        March 31, 2003 and December 31, 2002                         5

     Unaudited Consolidated Statements of Cash Flows -
        three months ended March 31, 2003 and 2002                   6

     Unaudited Consolidated Statements of Changes in
        Stockholders' Deficit - three months ended
           March 31, 2003 and 2002                                   7

     Notes to Unaudited Consolidated Financial Statements            8

   Item 2 - Management's Discussion and Analysis                    21

   Item 4 - Controls and Procedures                                 26

Part II  Other Information

   Item 6 - Exhibits and Reports on Form 8-K                        26

Signature                                                           27

Certifications                                                      28



<PAGE>



ITEM 1 - FINANCIAL STATEMENTS


UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Blount International, Inc. and Subsidiaries


                                                         Three Months Ended
                                                              March 31,
(Dollar amounts in millions,                          -------------------------
except per share data)                                  2003              2002
------------------------------------------------      -------           -------

Sales                                                 $122.9            $106.6
Cost of Sales                                           80.1              69.7
------------------------------------------------      ------            ------
Gross Profit                                            42.8              36.9
Selling, general and administrative expenses            24.3              22.4
Restructuring expenses                                   0.2               5.6
------------------------------------------------      ------            ------
Income from operations                                  18.3               8.9
Interest expense                                       (17.6)            (18.2)
Interest income                                          0.3               0.3
Other income (expense)                                  (0.1)             (0.6)
------------------------------------------------      ------            ------
Income (loss) before income taxes                        0.9              (9.6)
Provision (benefit) for income taxes                     0.4              (3.1)
------------------------------------------------      ------            ------
Net income (loss)                                     $  0.5            $ (6.5)
------------------------------------------------      ======            ======
Net income (loss) per common share:
  Basic                                               $ 0.02            $(0.21)
  Diluted                                             $ 0.01            $(0.21)
------------------------------------------------      ======            ======

The accompanying notes are an integral part of these financial statements.


<PAGE>

<TABLE>

UNAUDITED CONSOLIDATED BALANCE SHEETS
Blount International, Inc. and Subsidiaries
<CAPTION>

                                                                      March 31,       December 31,
                                                                     -----------      -----------
(Dollar amounts in millions, except share and per share data)           2003             2002
<S>                                                                  <C>              <C>

--------------------------------------------------------------        --------         --------
Assets
--------------------------------------------------------------        --------         --------
Current assets:
  Cash and cash equivalents                                           $  11.9          $  26.4
  Accounts receivable, net of allowance for
    doubtful accounts of $4.3 and $4.3                                   65.5             58.5
  Inventories                                                            64.2             64.8
  Deferred income taxes                                                  30.8             30.5
  Other current assets                                                   30.4             11.0
--------------------------------------------------------------        -------          -------
    Total current assets                                                202.8            191.2
Property, plant and equipment, net of accumulated
  depreciation of $182.3 and $180.5                                      91.4             90.7
Goodwill                                                                 76.9             76.9
Other assets                                                             43.6             69.2
--------------------------------------------------------------        -------          -------
Total Assets                                                          $ 414.7          $ 428.0
--------------------------------------------------------------        =======          =======
Liabilities and Stockholders' Equity (Deficit)
--------------------------------------------------------------        -------          -------
Current liabilities:
  Notes payable and current maturities of long-term debt              $   3.5          $   3.4
  Accounts payable                                                       24.0             25.5
  Accrued expenses                                                       56.9             71.3
--------------------------------------------------------------        -------          -------
    Total current liabilities                                            84.4            100.2
Long-term debt, exclusive of current maturities                         624.2            624.1
Deferred income taxes, exclusive of current portion                       0.7
Other liabilities                                                        73.7             72.6
--------------------------------------------------------------        -------          -------
Total Liabilities                                                       783.0            796.9
--------------------------------------------------------------        -------          -------
Commitments and Contingent Liabilities
--------------------------------------------------------------        -------          -------
Stockholders' equity (deficit):
Common stock: par value $0.01 per share, 100,000,000 shares
  authorized, 30,795,882 outstanding                                      0.3              0.3
Capital in excess of par value of stock                                 424.3            424.3
Accumulated deficit                                                    (785.9)          (786.3)
Accumulated other comprehensive income                                   (7.0)            (7.2)
--------------------------------------------------------------        -------          -------
Total Stockholder's Deficit                                            (368.3)          (368.9)
--------------------------------------------------------------        -------          -------
Total Liabilities and Stockholders' Equity (Deficit)                  $ 414.7          $ 428.0
--------------------------------------------------------------        =======          =======
</TABLE>

The accompanying notes are an integral part of these financial statements.


<PAGE>

<TABLE>

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Blount International, Inc. and Subsidiaries
                                                                    Three Months Ended March 31,
                                                                    ----------------------------
(Dollar amounts in millions)                                            2003             2002
-------------------------------------------------------------------   --------         --------
<S>                                                                   <C>              <C>
Cash flows from operating activities:
         Net income (loss)                                             $   0.5          $  (6.5)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
  Penalty for early extinguishment of debt                                                  0.2
  Depreciation, amortization and other noncash charges                     5.2              5.8
  Deferred income taxes                                                   (0.2)            (7.5)
  Gain (loss) on disposals of property, plant & equipment                  0.1             (0.2)
  Changes in assets and liabilities, net of effects of businesses
   acquired and sold:
    Increase in accounts receivable                                       (7.1)            (8.1)
    (Increase) decrease in inventories                                     0.6             (3.0)
    Decrease in other assets                                               5.7              1.2
    Decrease in accounts payable                                          (1.5)            (1.2)
    Decrease in accrued expenses                                         (13.8)            (7.8)
    Increase in other liabilities                                          1.3              5.3
-------------------------------------------------------------------    -------          -------
  Net cash used in operating activities                                   (9.2)           (21.8)
-------------------------------------------------------------------    -------          -------
Cash flows from investing activities:
Proceeds from sales of property, plant & equipment                        (0.5)             0.7
Purchases of property, plant & equipment                                  (4.0)            (5.0)
Expenses from sale of discontinued operations                                              (2.5)
-------------------------------------------------------------------    -------          -------
  Net cash used in investing activities                                   (4.5)            (6.8)
-------------------------------------------------------------------    -------          -------
Cash flows from financing activities:
Reduction of long-term debt                                               (0.8)            (1.5)
Other                                                                                      (0.2)
-------------------------------------------------------------------    -------          -------
  Net cash used in financing activities                                   (0.8)            (1.7)
-------------------------------------------------------------------    -------          -------
Net decrease in cash and cash equivalents                                (14.5)           (30.3)
Cash and cash equivalents at beginning of period                          26.4             47.6
-------------------------------------------------------------------    -------          -------
Cash and cash equivalents at end of period                             $  11.9          $  17.3
-------------------------------------------------------------------    =======          =======
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>


<TABLE>
<CAPTION>


UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
Blount International, Inc. and Subsidiaries

                                                                                          Accumulated
                                                               Capital       Retained        Other
(Dollar amounts in millions,                     Common        In Excess     Earnings    Comprehensive
shares in thousands)                             Stock         of Par        (Deficit)       Income        Total
-------------------------------------------     --------      -----------   -----------  --------------  ---------
<S>                                              <C>           <C>         <C>           <C>            <C>
THREE MONTHS ENDED MARCH 31, 2003
Balance December 31, 2002                        $ 0.3         $ 424.3     $ (786.3)       $  (7.2)     $ (368.9)
Net income                                                                      0.5                          0.5
Other comprehensive income, net:
  Foreign currency translation adjustment                                                      0.1           0.1
                                                                                                        ----------
         Comprehensive income                                                                                0.1
-------------------------------------------    --------       ---------   ----------      ----------    ----------
Balance March 31, 2003                          $  0.3         $ 424.3     $ (785.9)       $  (7.0)       (368.3)
                                               ========       =========   ==========      ==========    ==========


THREE MONTHS ENDED MARCH 31, 2002:
Balance, December 31, 2001                      $  0.3         $ 424.3     $ (780.6)       $   6.1      $ (349.9)
Net loss                                                                       (6.5)                        (6.5)
Other comprehensive loss, net:
  Foreign currency translation adjustment                                                     (0.1)         (0.1)
                                                                                                        ----------
        Comprehensive loss                                                                                  (6.6)
-------------------------------------------    ---------      ---------   ----------      ----------    ----------
Balance March 31, 2002                          $  0.3         $ 424.3     $ (787.1)       $   6.0      $ (356.5)
                                               =========      =========   ==========      ==========    ==========




The accompanying notes are an integral part of these financial statements.

</TABLE>


<PAGE>



BLOUNT INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1:
BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited consolidated
financial statements of Blount International, Inc. and Subsidiaries ("the
Company") contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position at March 31, 2003
and the results of operations and cash flows for the periods ended March 31,
2003 and 2002. These financial statements should be read in conjunction with
the notes to the financial statements included in the Company's Annual Report
on Form 10-K for the year ended December 31, 2002.

Certain amounts in the prior year's financial statements have been
reclassified to conform to the current year's presentation, including the
reclassification of an extraordinary loss in accordance with the Company's
adoption of SFAS No. 145, "Rescission of FASB Statement No. 4, 44 and 64,
Amendment of FASB Statement No. 13, and Technical Corrections," and the
realignment of business segments. The reclassification of an extraordinary
expense recognized in the first quarter of 2002 for penalties on
extinguishment of debt resulted in increases in other expense of $0.3 million
and benefit for income taxes of $0.1 million. The Company has realigned its
business segments effective January 1, 2003 and now reports results in three
segments: Outdoor Products, Lawnmower, and Industrial and Power Equipment.

Effective January 1, 2003, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 143, "Accounting for Asset Retirement
Obligations." The adoption of SFAS No. 143 did not have a material impact on
the first quarter 2003 financial statements.

Effective January 1, 2003, the Company adopted SFAS No. 145, "Rescission of
FASB Statement No. 4, 44 and 64, Amendment of FASB Statement No. 13, and
Technical Corrections." This Statement addresses, among several items, the
reporting of debt extinguishments. As a result of the adoption of SFAS No.
145, the Company has reclassified prior years' extraordinary items
attributable to debt extinguishment to other income (expense) in this and all
subsequent reports.

Also effective January 1, 2003, the Company's method of accounting for initial
recognition and measurement of guarantees changed as a result of the adoption
of FASB Interpretation No. 45 ("FIN 45") "Guarantor's Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others." The interpretation expands on the accounting guidance
of FASB Statements No. 5, 57 and 107 and incorporates without change the
provisions of FASB Interpretation No. 34, which is being superseded. Under the
provisions of FIN 45, at the time a guarantee is issued, the Company will
recognize an initial liability for the fair value or market value of the
obligation it assumes. The adoption of FIN 45 did not have a material impact
on the first quarter 2003 financial statements.

The Company's internet home page is http://www.blount.com.


NOTE 2:
STOCK BASED COMPENSATION

As permitted by SFAS No. 123 "Accounting for Stock-Based Compensation," the
Company continues to apply intrinsic value accounting for its stock option
plans. Compensation cost for stock options, if any, is measured as the excess
of the quoted market price of the stock at the date of grant less the amount
an employee must pay to acquire the stock. The Company has adopted
disclosure-only provisions


<PAGE>



of SFAS No. 123 and SFAS No. 148, "Accounting for Stock-Based Compensation -
Transition and Disclosure-an Amendment of FASB Statement No. 123". If the
Company had elected to recognize compensation expense based upon the fair
value at the grant dates for awards under these plans, the Company's net
earnings (loss) and net earnings (loss) per share would have been as follows:

                                                     Three months ended March 31
                                                     ---------------------------
 (Dollars in millions, except per share amounts)         2003           2002
-----------------------------------------------         ------         ------
Net income (loss), as reported                          $ 0.5         $ (6.5)

Add: Stock-based employee compensation cost, net of
tax, included in net income (loss)                        0.0            0.0

Deduct: total stock-based employee compensation
cost, net of tax, that would have been included
in net income (loss) under fair value method              0.4            0.8
                                                        ------        -------
Proforma net income (loss)                              $ 0.1         $ (7.3)
                                                        ======        =======
Basic earnings (loss) per share
  As reported                                           $ 0.02        $(0.21)
  Pro forma                                               0.00         (0.24)
Diluted earnings (loss) per share
  As reported                                             0.01         (0.21)
  Pro forma                                               0.00         (0.24)


NOTE 3:
RESTRUCTURING EXPENSES

In the first quarter of 2002, the Company incurred a restructuring charge
related to the closure and relocation of the Company's headquarters from
Montgomery, Alabama to Portland, Oregon. An initial charge of $5.6 million was
recorded and was subsequently adjusted to reflect transition expenses and a
revision of estimates. In the fourth quarter of 2002, the Company recorded a
$1.4 million charge related to the closure of a portion of a facility and
relocation of that equipment between its plants within its Oregon Cutting
Systems Division. In the first quarter of 2003, the Company reported an
additional $0.2 million in restructuring expenses associated with the
relocation project for severance expenses affecting 19 hourly employees and 4
salaried employees. The following table outlines the classification of the
original expenses, the subsequent charge against the restructuring liability
for these restructuring actions. Previous actions represent a 2001 plant
closure, benefit modification, and reduction in headcount.



<PAGE>


<TABLE>
<CAPTION>

                                                       Restructuring Actions
                                    -----------------------------------------------------------
                                        Previous              Corporate Office      Asset
Recognition date                        Actions                  Relocation      Relocation
                                    -------------------       ----------------  ---------------
<S>                                     <C>                   <C>                <C>
Balance at January 1, 2002                $ 3.1                     $ 0.0           $ 0.0
Expense                                                               5.6
Charges against liability                   0.0
                                    -------------------       ----------------  ---------------
Balance at March 31, 2002                 $ 3.1                     $ 5.6           $ 0.0
                                    ===================       ================  ================

Balance at January 1, 2003                $ 1.1                     $ 0.4           $ 1.4
Expense                                                                               0.2
Charges against liability                   0.1                       0.1
                                    -------------------       ---------------   ----------------
Balance at March 31, 2003                 $ 1.0                     $ 0.3           $ 1.6
                                    ====================      ================  ================

</TABLE>



NOTE 4:
INVENTORIES

Inventories consist of the following (in millions):

                                                  March 31,     December 31,
                                                    2003           2002
         ---------------------------------     ------------    ------------
         Finished goods                           $ 30.5          $ 31.7
         Work in process                             9.6             9.3
         Raw materials and supplies                 24.1            23.8
         ---------------------------------        ------          ------
                                                  $ 64.2          $ 64.8
         ---------------------------------        ======          ======


NOTE 5:
SEGMENT INFORMATION

Effective January 1, 2003, the Company realigned its business segments and now
reports results in three business segments: Outdoor Products, Lawnmower, and
Industrial and Power Equipment. The Lawnmower segment consists of the
Company's Dixon subsidiary that historically was included in the Outdoor
Products segment. Inter-segment sales are now eliminated on a separate line
and historical amounts have been adjusted to reflect this change.



<PAGE>


                                               Three Months
                                              Ended March 31,
                                            -------------------
                                               2003       2002
----------------------------------          --------   --------
Sales:
   Outdoor Products                         $ 85.2     $ 73.1
   Lawnmowers                                  7.9        7.8
   Industrial and Power Equipment             29.9       26.5
   Elimination                                (0.1)      (0.8)
----------------------------------          -------    -------
                                            $122.9     $106.6
----------------------------------          =======    =======
Operating income (loss):
   Outdoor Products                         $ 21.8     $ 16.4
   Lawnmowers                                 (0.7)      (0.3)
   Industrial and Power Equipment              0.0        0.3
   Corporate office expenses                  (2.6)      (1.9)
   Restructuring expenses                     (0.2)      (5.6)
----------------------------------          -------    -------
Income from operations                        18.3        8.9
Interest expense                             (17.6)     (18.2)
Interest income                                0.3        0.3
Other income (expense), net                   (0.1)      (0.6)
----------------------------------          -------    -------
Income (loss) from continuing
  operations before income taxes            $  0.9     $ (9.6)
----------------------------------          =======    =======


NOTE 6:
COMMITMENTS AND CONTINGENT LIABILITIES

Blount was named a potentially liable person ("PLP") by the Washington State
Department of Ecology ("WDOE") in connection with the Pasco Sanitary Landfill
Site ("Site"). This site has been monitored by WDOE since 1988. From available
records, the Company believes that it sent 26 drums of chromic hydroxide
sludge in a non-toxic, trivalent state to the site. It further believes that
the site contains more than 50,000 drums in total and millions of gallons of
additional wastes, some potentially highly toxic in nature. Accordingly, based
both on volume and on nature of the waste, the Company believes that it is a
de minimis contributor.

The current on-site monitoring program is being conducted with the WDOE by,
and being funded by, certain PLPs, excluding the Company and several other
PLPs. It is estimated that this study will cost between $7 million and $10
million. Depending upon the results of this study, further studies or
remediation could be required. The Company may or may not be required to pay a
share of the current study, or to contribute costs of subsequent studies or
remediation, if any. The Company is unable to estimate such costs, or the
likelihood of being assessed any portion thereof. However, during the most
recent negotiations with those PLPs that are funding the work at the Site, the
Company's potential share ranged from approximately $20,000 to $250,000, with
estimates of approximately $90,000 being the "reasonably most probable
scenario".

The Company has accrued $75,000 at December 31, 2002 and March 31, 2003 for
the potential costs of any clean-up. The Company spent $3,000 and $5,600 in
the years ended December 31, 2001 and 2002 respectively to administer
compliance in regards to the Pasco site, for expenses that are primarily the
cost of outside counsel to provide updates on the Site status.

<PAGE>



In July 2001, the Company's former Federal Cartridge Company subsidiary
("Federal") received notice from the Region 5 Office of the United States
Environmental Protection Agency ("EPA") that it intended to file an
administrative proceeding for civil penalties in connection with alleged
violations of applicable statutes, rules, and regulations or permit conditions
at Federal's Anoka, Minnesota ammunition manufacturing plant. The alleged
violations include (i) unpermitted treatment of hazardous wastes, (ii)
improper management of hazardous wastes, (iii) permit violations, and (iv)
improper training of certain responsible personnel. Blount retained the
liability for this matter under the terms of the sale of its Sporting
Equipment Group ("SEG") segment (including Federal) to Alliant Techsystems,
Inc. ("ATK") as discussed in Note 5 of the 2002 Annual Report on Form 10-K.

To the knowledge of the Company, Federal has corrected the alleged violations.
The Company has tendered this matter for partial indemnification to a prior
owner of Federal.

In March 2002, EPA served an Administrative Complaint and Compliance Order
("Complaint") on Federal. The Complaint proposes civil penalties in the amount
of $258,593. Federal answered the Complaint, denied liability and opposed the
proposed penalties. In August 2002, Federal and the EPA filed cross motions
for Accelerated Decision on both liability and penalties issues with the
assigned Administrative Law Judge. On December 6, 2002 the Administrative Law
Judge issued an Order Granting in Part and Denying in Part EPA's Motion for
Accelerated Decision and Denying Federal's Motion for Accelerated Decision
("Order"). The Order established that Federal is liable for $6,270 in civil
penalties and stated the remaining issues of liability and proposed penalties
totaling $252,323 would be ruled on after an administrative hearing. On
January 28, 2003, EPA and Federal held an administrative hearing on both
liability and penalties issues not resolved by the Order. The Administrative
Law Judge will make a decision on liability and penalties following submission
by EPA and Federal of Findings of Fact and Conclusions of Law ("Findings").
The EPA and Federal submitted proposed findings to the administrative law
judge on May 7, 2003. It is anticipated that a ruling will be made in the near
future. Nonetheless, at the current time the Company does not believe payment
of the civil penalties sought by the EPA will have a materially adverse effect
on its consolidated financial condition or operating results.

The Company is a defendant in a number of product liability lawsuits, some of
which seek significant or unspecified damages, involving serious personal
injuries for which there are retentions or deductible amounts under the
Company's insurance policies. In addition, the Company is a party to a number
of other suits arising out of the conduct of its business. While there can be
no assurance as to their ultimate outcome, management does not believe these
lawsuits will have a material adverse effect on consolidated financial
condition or operating results.


NOTE 7:
OTHER INFORMATION

During the three months ended March 31, 2003, net tax refunds of $4.1 million
were received, while in the three months ended March 31, 2002, net tax
payments of $3.4 million were made. The Company has settled its issues with
the Internal Revenue Service through the 1997 fiscal year with no material
adverse effect. The periods from fiscal 1998 through 2002 are still open for
review. Interest paid during the three months ended March 31, 2003 and 2002
was $23.5 million and $24.3 million, respectively.

The Company's "Other Income (Expense)" includes the gains and losses on
disposed assets and realized gains and losses on securities held in two rabbi
trusts (see Note 7 of Notes to Consolidated Financial Statements included in
the Company's Annual Report on Form 10-K for the year ended December 31, 2002
for information regarding these two trusts). In the three months ended March
31, 2003 and 2002,


<PAGE>


realized losses on securities in these trusts were less than $0.1 million in
each period.

On December 7, 2001, the Company sold its Sporting Equipment Group ("SEG") to
Alliant Techsystems, Inc. ("ATK"). The sale included the establishment of
$25.0 million escrow amount as required by the Stock Purchase Agreement
between the Company and ATK to cover certain potential indemnification matters
in connection with the SEG sale. As of December 31, 2002 this amount was
included in other assets, but has been reclassified into other current assets
as of March 31, 2003 due to the anticipated return of escrow as of March 31,
2004.


NOTE 8:
EARNINGS PER SHARE DATA

For the three months ended March 31, 2003 and 2002, net income (loss) and
shares used in the earnings per share ("EPS") computations were the following
amounts:

                                                     Three Months
                                                 Ended March 31,
                                            ----------------------
                                                2003         2002
------------------------------              ----------   ----------
Net income (loss)(in millions)               $   0.5      $  (6.5)
------------------------------              ==========   ==========
Shares:
   Basic EPS - weighted average
      common shares outstanding             30,795,882   30,795,882
   Dilutive effect of stock
      Options                                1,220,232
------------------------------              ----------   ----------
   Diluted EPS                              32,016,114   30,795,882
------------------------------              ==========   ==========


NOTE 9:
CONSOLIDATING FINANCIAL INFORMATION

Blount, Inc., a wholly-owned subsidiary of the Company, has two registered
debt securities that have different guarantees: 1) 7% Senior notes due June
15, 2005, and 2) 13% Senior Subordinated notes due August 1, 2009. The 7%
Senior notes are fully and unconditionally, jointly and severally, guaranteed
by the Company. Holders have first priority interest in all the shares or
other equity interest of all domestic subsidiaries and other entities, first
priority mortgage on all principal domestic properties, and the pledge of 65%
of outstanding shares of first tier foreign subsidiaries. These interests are
held in parri passu, ratably, with the Company's secured bank lenders. The 13%
Senior Subordinated notes are unconditionally guaranteed by the Company and
all of the Company's domestic subsidiaries ("guarantor subsidiaries"). All
guarantor subsidiaries of the 13% Senior Subordinated notes are 100% owned,
directly or indirectly, by the Company. While the Company and all of the
Company's domestic subsidiaries guarantee the 13% Senior Subordinated notes,
none of Blount's existing foreign subsidiaries ("non-guarantor subsidiaries")
guarantee the 13% Senior Subordinated notes. The following consolidating
financial information sets forth condensed consolidating financial
information, statements of operation and the balance sheets and cash flows of
Blount International, Inc., Blount, Inc., the Guarantor Subsidiaries and the
Non-Guarantor Subsidiaries (in millions).



<PAGE>


BLOUNT INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

For the Three Months
Ended March 31, 2003


<TABLE>
<CAPTION>


                                                Blount                                       Non-
                                             International,    Blount,     Guarantor      Guarantor
                                                 Inc.          Inc.      Subsidiaries    Subsidiaries    Eliminations   Consolidated
                                             --------------    -------   ------------    ------------    ------------   ------------
<S>                                          <C>               <C>       <C>             <C>             <C>            <C>
STATEMENT OF OPERATIONS
-----------------------
Sales                                                          $  80.8      $  28.8        $  47.8         $ (34.5)       $ 122.9
Cost of sales                                                     56.0         22.8           35.5           (34.2)          80.1
                                                               --------     --------       --------        --------       --------
Gross profit                                                      24.8          6.0           12.3            (0.3)          42.8
Selling, general and administrative expenses                      13.9          4.5            5.9                           24.3
Restructuring expenses                                             0.2                                                        0.2
                                                   -------     --------     --------       --------        --------       --------
Income (loss) from operations                                     10.7          1.5            6.4            (0.3)          18.3
Interest expense                                   $ (5.0)       (12.5)        (0.1)                                        (17.6)
Interest income                                                    0.2                         0.1                            0.3
Other income (expense), net                                        0.1                        (0.2)                          (0.1)
                                                   -------     --------     --------       --------        --------       --------
Income (loss) from continuing operations
  before income taxes                                (5.0)        (1.5)         1.4            6.3            (0.3)           0.9
Provision (benefit) for income taxes                 (2.3)         0.2          0.6            1.9                            0.4
                                                   -------     --------     --------       --------        --------       --------
 Income (loss) before earnings (losses)
  Of affiliated companies                            (2.7)        (1.7)         0.8            4.4            (0.3)           0.5
Equity in earnings (losses) of
  affiliated companies, net                           3.2          4.9          0.2                           (8.3)
                                                   -------     --------     --------       --------        --------       --------
Net income (loss)                                  $  0.5      $   3.2      $   1.0        $   4.4         $  (8.6)       $   0.5
                                                   =======     ========     ========       ========        ========       ========



<PAGE>


For the Three Months
Ended March 31, 2002


                                                Blount                                       Non-
                                             International,    Blount,     Guarantor      Guarantor
                                                 Inc.          Inc.      Subsidiaries    Subsidiaries    Eliminations   Consolidated
                                             --------------    -------   ------------    ------------    ------------   ------------

STATEMENT OF OPERATIONS
-----------------------


Sales                                                        $  81.5      $  27.2          $  41.5         $ (43.6)       $106.6
Cost of sales                                                   60.3         20.4             32.3           (43.3)         69.7
                                                             --------     --------          -------        --------       -------
Gross profit                                                    21.2          6.8              9.2            (0.3)         36.9
Selling, general and administrative expenses       $  0.2       12.8          4.3              5.1                          22.4
Restructuring expenses                                           5.6                                                         5.6
                                                   -------   --------     --------         --------        --------       -------
Income (loss) from operations                        (0.2)       2.8          2.5              4.1            (0.3)          8.9
Interest expense                                     (5.3)     (17.3)        (0.2)            (0.1)            4.7         (18.2)
Interest income                                                  4.9                           0.1            (4.7)          0.3
Other income (expense), net                                     (0.4)                         (0.2)                         (0.6)
                                                   -------   --------     --------         --------        --------       -------
Income (loss) before continuing operations
  Before income taxes                                (5.5)     (10.0)         2.3              3.9            (0.3)         (9.6)
Provision (benefit) for income taxes                 (1.8)      (4.0)         0.9              1.8                          (3.1)
                                                   -------   --------     --------         --------        --------       -------
Income (loss) before earnings (losses)
  of affiliated companies                            (3.7)      (6.0)                          2.1            (0.3)         (6.5)

Equity in earnings (losses) of
  Affiliated companies, net                          (2.8)       3.2                                          (0.4)
                                                   -------   --------     --------         --------        --------       -------
Net income (loss)                                  $ (6.5)    $ (2.8)     $   1.4          $   2.1         $  (0.7)       $ (6.5)
                                                   =======   ========     ========         ========        ========       =======


</TABLE>






<PAGE>


March 31, 2003

<TABLE>
<CAPTION>



                                                Blount                                       Non-
                                             International,    Blount,     Guarantor      Guarantor
                                                 Inc.          Inc.      Subsidiaries    Subsidiaries    Eliminations   Consolidated
                                             --------------    -------   ------------    ------------    ------------   ------------
<S>                                          <C>               <C>       <C>             <C>             <C>            <C>
BALANCE SHEET
-------------
ASSETS
Current assets:
  Cash and cash equivalents                                    $  3.3     $  (0.3)         $  8.9                        $  11.9
  Accounts receivable, net                                       25.0        21.6            18.9                           65.5
  Intercompany receivables                                      277.7        36.0             9.6         $(323.3)
  Inventories                                                    26.1        19.7            18.4                           64.2
  Deferred income taxes                                          30.8                                                       30.8
  Other current assets                                           28.4         0.4             1.6                           30.4
                                                               -------    --------         -------        --------       --------
    Total current assets                                        391.3        77.4            57.4          (323.3)         202.8
Investments in affiliated companies           $  (22.3)         208.7                         0.2          (186.6)
Property, plant and equipment, net                               37.6        25.8            28.0                           91.4
Cost in excess of net assets of acquired
  businesses, net                                                30.3        40.1             6.5                           76.9
Other assets                                                     40.1                         3.5                           43.6
                                              ---------        -------    --------         -------        --------       --------
    Total Assets                              $  (22.3)        $708.0     $  143.3         $ 95.6         $(509.9)       $  414.7
                                              =========        =======    ========         =======        ========       ========


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
  Notes payable and current maturities
       of long-term debt                                       $  3.5                                                    $    3.5
  Accounts payable                                               13.2     $    4.6         $  6.2                            24.0
  Intercompany payables                       $  323.3                                                    $(323.3)
  Accrued expenses                                               42.5          6.7            7.7                            56.9
                                              ---------        -------    --------         -------        --------       --------
    Total current liabilities                    323.3           59.2         11.3           13.9          (323.3)           84.4
Long-term debt, exclusive of current maturities   19.6          604.6                                       624.2
Intercompany notes payable
Deferred income taxes, exclusive of
  current portion                                                (1.3)                        2.0                             0.7
Other liabilities                                  3.1           67.8          1.9            0.9                            73.7
                                              ---------        -------    --------         -------        --------       --------
    Total Liabilities                            346.0          730.3         13.2           16.8          (323.3)          783.0
                                              ---------        -------    --------         -------        --------       --------
Stockholders Equity (Deficit)                   (368.3)         (22.3)       130.1           78.8          (186.6)         (368.3)
    Total Liabilities and                     ---------        -------    --------         -------        --------       --------
      Stockholders' Equity (Deficit)           $ (22.3)        $708.0     $  143.3         $ 95.6         $(509.9)       $  414.7
                                              =========        =======    ========         =======        ========       ========


<PAGE>


DECEMBER 31, 2002

                                                Blount                                       Non-
                                             International,    Blount,     Guarantor      Guarantor
                                                 Inc.          Inc.      Subsidiaries    Subsidiaries    Eliminations   Consolidated
                                             --------------    -------   ------------    ------------    ------------   ------------

BALANCE SHEET
-------------


ASSETS
Current assets:
  Cash and cash equivalents                                    $  16.3    $   (0.1)        $ 10.2                        $   26.4
  Accounts receivable, net                                        26.2        15.1           17.2                            58.5
  Intercompany receivables                                       274.7        39.3            7.3         $(321.3)
  Inventories                                                     27.5        21.4           15.9                            64.8
  Deferred income taxes                                           30.4                        0.1                            30.5
  Other current assets                                             9.2         0.5            1.3                            11.0
                                              ---------        -------    --------         -------        --------       --------
    Total current assets                                         384.3        76.2           52.0          (321.3)          191.2
Investments in affiliated companies           $ (25.7)           201.6                        0.2          (176.1)
Property, plant and equipment, net                                35.6        26.4           28.7                            90.7
Cost in excess of net assets of acquired
  businesses, net                                                 30.2        40.2            6.5                            76.9
Other assets                                                      65.9                        3.3                            69.2
                                              ---------        -------    --------         -------        --------       --------
    Total Assets                              $ (25.7)         $ 717.6    $  142.8         $ 90.7         $(497.4)       $  428.0
                                              =========        =======    ========         =======        ========       ========


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
  Notes payable and current maturities
    of long-term debt                                          $   3.4                                                   $    3.4
payable                                                           14.0    $    5.5         $  6.0                            25.5
  Intercompany payables                       $ 321.3                                                     $(321.3)
  Accrued expenses                                                55.6         6.9            8.8                            71.3
                                              ---------        -------    --------         -------        --------       --------
    Total current liabilities                   321.3             73.0        12.4           14.8          (321.3)          100.2
Long-term debt, exclusive of current maturities  18.7            605.4                                                      624.1
Intercompany notes payable
Deferred income taxes, exclusive of
  current portion                                                 (1.9)                      1.9
Other liabilities                                 3.2             66.9         1.6           0.9                             72.6
                                              ---------        -------    --------         -------        --------       --------
    Total Liabilities                           343.2            743.4        14.0          17.6           (321.3)          796.9
                                              ---------        -------    --------         -------        --------       --------
Stockholders Equity (Deficit)                  (368.9)           (25.8)      128.8          73.1           (176.1)         (368.9)
                                              ---------        -------    --------         -------        --------       --------
    Total Liabilities and
      Stockholders' Equity (Deficit)          $ (25.7)         $ 717.6    $  142.8        $ 90.7          $(497.4)       $  428.0
                                              =========        =======    ========         =======        ========       ========


</TABLE>





<PAGE>


<TABLE>
<CAPTION>


For the Three Months
Ended March 31, 2003


                                                  Blount                                      Non-
                                              International,    Blount,     Guarantor      Guarantor
                                                   Inc.          Inc.      Subsidiaries    Subsidiaries  Eliminations  Consolidated
                                             --------------    -------    -------------    ------------  ------------  ------------
<S>                                           <C>              <C>        <C>              <C>           <C>
STATEMENT OF CASH FLOWS
-----------------------
Net cash provided by (used in) continuing
  operations                                   $  (1.9)        $ (7.0)      $  0.3         $ (0.6)                       $  (9.2)
Net cash provided by discontinued operations
                                               --------        -------      -------        -------        -------        --------
Net cash provided by (used in) operating
 Activities                                       (1.9)          (7.0)         0.3           (0.6)                          (9.2)
                                               --------        -------      -------        -------        -------        --------
Cash flows from investing activities:
Proceeds from sales of property, plant
  and equipment                                                  (0.5)                                                      (0.5)
Purchases of property, plant and equipment                       (3.1)       (0.1)           (0.8)                          (4.0)
                                               --------        -------      -------        -------        -------        --------
Net cash provided by (used in) continuing
  operations                                                     (3.6)       (0.1)           (0.8)                          (4.5)
                                               --------        -------      -------        -------        -------        --------

Net cash (used in) investing activities                          (3.6)       (0.1)           (0.8)                          (4.5)
                                               --------        -------      -------        -------        -------        --------
Cash flows from financing activities:
Reduction of long-term debt                                      (0.8)                                                      (0.8)
Advances from (to) affiliated companies            1.9           (1.5)       (0.4)
Other
                                               --------        -------      -------        -------        -------        --------
Net cash provided by (used in) financing
  activities                                       1.9           (2.3)       (0.4)            0.0                           (0.8)
                                               --------        -------      -------        -------        -------        --------
Net increase (decrease) in cash and cash
  equivalents                                                   (12.9)       (0.2)           (1.4)                          14.5
Cash and cash equivalents at beginning of period                 18.6        (0.2)            8.0                           26.4
                                               --------        -------      -------        -------        -------        --------
Cash and cash equivalents at end of period     $   0.0         $  5.7       $(0.4)         $  6.6                        $  11.9
                                               ========        =======      =======        =======        =======        ========


<PAGE>


For the Three Months
Ended March 31, 2002

                                                  Blount                                      Non-
                                              International,    Blount,     Guarantor      Guarantor
                                                   Inc.          Inc.      Subsidiaries    Subsidiaries  Eliminations  Consolidated
                                             --------------    -------    -------------    ------------  ------------  ------------

STATEMENT OF CASH FLOWS
-----------------------
Net cash provided by (used in) continuing
  operations                                   $  (2.9)        $(20.0)      $ 0.8          $  3.7         $ (3.4)        $ (21.8)
Cash flows from investing activities:
Proceeds from sales of property, plant
  and equipment                                                   0.7                                                        0.7
Purchases of property, plant and equipment                       (3.3)       (0.2)           (1.5)                          (5.0)
Proceeds (expenses) from sale of discontinued                    (2.5)                                                      (2.5)
  operations
                                               --------        -------      -------        -------        -------        --------
Net cash (used in) investing activities                          (5.1)       (0.2)           (1.5)                          (6.8)
                                               --------        -------      -------        -------        -------        --------
Cash flows from financing activities:

Reduction of long-term debt                                      (1.5)                                                      (1.5)
Dividends paid                                                                               (3.4)           3.4

Advances from (to) affiliated companies            2.9           (2.5)       (0.4)
Other                                                            (0.2)                                      (0.2)
                                               --------        -------      -------        -------        -------        --------
Net cash provided by (used in) financing
  activities                                       2.9           (4.2)       (0.4)           (3.4)           3.4            (1.7)
                                               --------        -------      -------        -------        -------        --------
Net increase (decrease) in cash and cash
  equivalents                                                   (29.3)        0.2            (1.2)                         (30.3)
Cash and cash equivalents at beginning of period                 44.0        (1.1)            4.7                           47.6
                                               --------        -------      -------        -------        -------        --------
Cash and cash equivalents at end of period     $   0.0          $14.7       $(0.9)         $  3.5         $  0.0          $ 17.3
                                               ========        =======      =======        =======        =======        =======


</TABLE>


<PAGE>


NOTE 10:
DEBT AND FINANCING AGREEMENTS

On January 31, 2001, the Company amended the terms of its credit facilities
related to $400 million in term loans. The amendment was entered into, in
part, to avoid a possible default under the covenants for the leverage and
interest coverage ratios of the credit facilities. The amendment eased the
financial covenants through March 31, 2002, increased the interest rate on
outstanding amounts under the credit facilities until more favorable financial
ratios are achieved, and required an amendment fee. The amendment also
required an infusion of $20 million in the form of equity capital or mezzanine
financing. On March 2, 2001, an affiliate of Lehman Brothers, Inc., the
Company's principal shareholder, invested $20 million in the Company in the
form of a convertible preferred equivalent security, together with warrants
for 1,000,000 shares of Blount common stock (or approximately 3% of the
outstanding shares of common stock of the Company) that are exercisable
immediately at a price of $0.01 per share. The security can be converted into
convertible preferred stock at the option of the holder as a result of the
Company's stockholders passing an amendment to the Certificate of
Incorporation authorizing the issuance of preferred stock at the Annual
Meeting of Stockholders held on April 19, 2001. The Company has recorded the
fair value of the warrants at $7 million as a credit to additional paid-in
capital and a debt discount to the $20 million security.

On December 7, 2001, the Company amended the terms of its credit agreement to
incorporate the sale of SEG to ATK. The amendment addressed, among other
things, the SEG sale, revisions to the consolidated leverage and interest
coverage ratios, a reduction in the revolving credit facility to $75.0
million, and certain prepayment and amendment fees. The agreement also cured
any event of default under the credit agreement that had been communicated to
the lenders on October 31, 2001.

During 2001, the Company would not have been in compliance with certain of its
debt covenants except for the fact that, in connection with the sale of SEG,
the Company and its lenders amended the covenants; as a result, the Company
was in compliance with all debt covenants as of and for the year ended
December 31, 2002 and the first quarter ended March 31, 2003. While there can
be no assurance, management believes the Company will comply with all debt
covenants during 2003. Should the Company not comply with the covenants during
2003, additional significant actions will be required. These actions may
include, among others, attempting to renegotiate its debt facilities, sales of
assets, additional restructurings and reductions in capital expenditures. The
covenant ratios in 2004 have not been adjusted to reflect the 2001 sale of the
Sporting Equipment Group and therefore will need to be renegotiated prior to
March 31, 2004.


NOTE 11:
GOODWILL AND OTHER INTANGIBLE ASSETS

Effective January 1, 2002, the Company adopted the provisions of SFAS No. 142,
"Goodwill and Other Intangible Assets." Under the provisions of SFAS No. 142,
amortization of goodwill and indefinite-lived intangible assets is prohibited.
Also, SFAS No. 142 established two broad categories of intangible assets:
definite-lived intangible assets which are subject to amortization and
indefinite-lived intangible assets which are not subject to amortization. For
additional information on the impact to the Company of the adoption of SFAS
No. 142, see Note 7 to the 2002 Annual Report on Form 10-K .

As of January 1, 2002 the Company's goodwill balance of $76.9 million was
comprised of $43.8 million related to the Outdoor Products segment, $28.1
million related to the Industrial and Power Equipment segment, and $5.0
million related to the Lawnmower segment. There were no adjustments to the
goodwill balance during the first quarter of 2003.

<PAGE>



NOTE 12:
NEW ACCOUNTING PRONOUNCEMENTS

In January 2003, the FASB issued Financial Accounting Standards Boards
Interpretation No. 46, "Consolidation of Variable Interest Entities." FIN 46
clarifies the application of Accounting Research Bulletin No. 51,
"Consolidated Financial Statements," to certain entities in which equity
investors do not have the characteristics of a controlling financial interest
or do not have sufficient equity at risk for the entity to finance its
activities without additional subordinated financial support from other
parties. FIN 46 applies immediately to variable interest entities
("VIEs")created after January 31, 2003, and to VIEs in which an enterprise
obtains an interest after that date. It applies in the first fiscal year or
interim period beginning after June 15, 2003, to VIEs in which an enterprise
holds a variable interest that it acquired before February 1, 2003. FIN 46
applies to public enterprises as of the beginning of the applicable interim or
annual periods. Management has evaluated the Company for possible VIEs and
believes that FIN 46 will not have a material impact on the Company's
financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities." SFAS 149 amends and clarifies
accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under SFAS
No. 133. SFAS No. 149 amends SFAS No. 133 to require contracts with comparable
characteristics be accounted for similarly. SFAS No. 149 clarifies the
circumstances a contract with an initial net investment can meet the
characteristic of a derivative and clarifies when a derivative contains a
financing component that warrants special reporting in the statement of cash
flows. This statement is effective for contracts entered into or modified
after June 30, 2003, except for hedging relationships designated after June
30, 2003, except for hedging relationships designated after June 30, 2003,
where the guidance should be applied prospectively. The Company is currently
evaluating the effect that the adoption of SFAS No. 149 will have on its
results of operations and financial condition.


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS

OPERATING RESULTS

Results for the three months ended March 31, 2003 showed improvement over the
prior year highlighted by a $16.3 million or 15% increase in sales and a $7.0
million increase in net income ($0.23 per share).

Sales for the first quarter of 2003 were $122.9 million, compared to $106.6
million for the same period last year. This increase reflected higher sales in
all segments, with the increase by segment ranging from 11% to 17%.

Income from operations for the first quarter of 2003 was $18.3 million
compared to $8.9 million for the same period last year. This increase
reflected a $5.9 million increase in gross profit, driven by higher sales
volume, a $5.4 million decrease in restructuring expense, partially offset by
higher SG&A expense. Total SG&A expense in the first quarter of 2003 of $24.3
million compared to $22.4 million reported in 2002. This increase of $1.9
million, or 8%, included $0.9 million due to currency exchange rates as the
weaker US Dollar results in higher administrative expense in foreign
locations, $0.7 million increase in pension expense, and $0.3 million increase
for insurance. Restructuring expense of $0.2 million was incurred in the first
quarter of 2003 for severance associated with the relocation of a production
process within the Oregon Cutting Systems group. Restructuring expense of $5.6


<PAGE>


million was incurred in the first quarter of 2002 related to the relocation of
corporate headquarters from Montgomery, Alabama to Portland, Oregon.

Net income for the first quarter of 2003 was $0.5 million ($0.02 per share)
compared to a net loss of $6.5 million ($0.21 per share) for the same period
in 2002. Income before tax included a decrease of $0.5 million in other
expense to $0.1 million reported in 2003 compared with $0.6 million in 2002.
The 2002 results included $0.3 million loss on the sale of assets related to
the relocation of corporate operations and $0.3 million for penalties paid on
the early extinguishment of debt. A tax provision of $0.4 million in the first
quarter of 2003 is $3.5 million higher than the $3.1 million benefit reported
in the same period last year. The higher taxes were primarily due to higher
income.


SEGMENT RESULTS

Effective January 1, 2003, the Company realigned its business segments and now
reports results in three business segments: Outdoor Products, Lawnmowers, and
Industrial and Power Equipment. The Lawnmower segment consists of the
Company's Dixon subsidiary that historically was included in the Outdoor
Products segment. Inter-segment sales are now eliminated on a separate line
and historical amounts have been adjusted to reflect this change.

Sales for the Outdoor Products segment in the first quarter of 2003 were $85.2
million compared to $73.1 million in 2002, a 16.6% increase. The increase in
sales was driven by stronger demand in all major geographical markets and in
both OEM and replacement channels, providing a recovery from last year's
performance that showed a decline compared to 2001 results. Growth in demand
was especially strong for chain saw components and concrete cutting equipment,
particularly in the European market. A weaker US Dollar contributed an
estimated $1.8 million to the increase in sales compared to the first quarter
of 2002.

Operating profit increased to $21.8 million from $16.4 million in the first
quarter of 2002 reflecting the higher sales and more profitable mix. Currency
exchange rates have generally had a positive effect on profit compared to last
year due to the general weakening of the US Dollar, particularly against
European currencies. The estimated effect on first quarter 2003 results
compared to the same period last year is $0.1 million negative impact on cost
of sales primarily due to the effect on manufacturing costs of a weakening US
Dollar against the Canadian Dollar, and $0.8 million positive effect overall
for operating profit.

Sales for the Lawnmower segment in the first quarter of 2003 were $7.9 million
compared to $7.8 million in the first quarter of 2002, providing a 1.3%
increase. The increase reflects sales of a new entry-level model introduced in
the second quarter of 2002, partially offset by a decline in other models.

The segment's operating loss in the first quarter of 2003 was $0.7 million,
compared to an operating loss of $0.3 million in the same period last year.
Lower profitability is due primarily to higher employee benefit costs and a
shift in product mix to smaller and lower margin units.

Sales of the Company's Industrial and Power Equipment segment in the first
three months of 2003 were $29.9 million compared to $26.5 million in 2002.
This 12.8% increase was driven by stronger sales of timber harvesting and
loading equipment including a new product line introduced in the second
quarter of 2002, and offset partially by lower demand of power transmission
components as construction and utility equipment markets remain weak.

The segment's operating income in the first quarter of 2003 was at a break
even level, compared to operating income of $0.3 million in the first three
months of 2002. The decrease in operating income reflects the decline in power
transmission


<PAGE>


components business and lower margins in the timber harvesting and loading
equipment business from higher discounting on product sales.

On March 11, 2003 the Company issued a press release announcing marketing and
supply agreements with Caterpiller, Inc. These agreements will expand the line
of purpose-built forestry equipment currently available to dealers and
customers of the Company's Forestry & Industrial Equipment Division ("FIED").
The long-term agreements with Caterpillar leverage both companies'
capabilities in specific areas of the forestry business and expand the
Prentice brand of track feller-bunchers and Hydro-Ax brand of wheel
feller-bunchers already distributed by Blount-FIED dealers.

The Company's total backlog increased to $61.1 million at March 31, 2003 from
$56.3 million at December 31, 2002 and from $45.4 million at March 31, 2002 as
follows (in millions):
                                                        Backlog
                                        --------------------------------------
                                          March 31,    December 31,  March 31,
                                            2003          2002         2002
------------------------------------    ------------  ------------  ----------
Outdoor Products                           $ 51.2      $ 42.9        $ 30.1
Lawnmower                                     0.5         3.1           0.2
Industrial and Power Equipment                9.4        10.3          15.1
------------------------------------       ------      ------        ------
     Total segment backlog                 $ 61.1      $ 56.3        $ 45.4
------------------------------------       ======      ======        ======

Backlog for Outdoor Products increased 70% from a year ago due to improved
customer inventory positions and current product demand. This is partially
offset by lower backlog in the Industrial and Power Equipment segment due, in
part, to continuing cautious market conditions and improvements in operations
providing quicker production throughput.


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

The Company continues to be substantially leveraged which may adversely affect
its operations. This could have important consequences for the Company,
including the following:

1. the ability to obtain additional financing for working capital, capital
expenditures or other purposes may be impaired or any such financing may not
be available on favorable terms;

2. a substantial portion of cash flows available from operations are required
to be dedicated to the payment of principal and interest expense, which will
reduce the funds that would otherwise be available for operations and future
business opportunities;

3. a substantial decrease in net income and cash flows or an increase in
expenses may make it difficult to meet debt service requirements or force the
Company to modify operations; and

4. substantial leverage may make the Company more vulnerable to economic
downturns and competitive pressure.

Total debt at March 31, 2003 was $627.7 million compared to $627.5 million at
December 31, 2002. Interest and principal payments represent significant
obligations. Interest on the certain loan and credit facilities are payable in
arrears according to varying interest periods. The Company's remaining
liquidity needs relate to working capital needs and capital expenditures.

<PAGE>



The Company intends to fund working capital, capital expenditures and debt
service requirements through cash flows generated from operations and from the
revolving credit facility. The revolving credit facility has an availability
of up to $75.0 million of which none was drawn as of March 31, 2003. Letters
of credit issued under the revolving credit facility, which reduce the amount
available under the facility, have not changed from the $11.4 million at
December 31, 2002. The revolving credit facility will mature August 19, 2004.
In addition, the return of $25.0 million in escrow associated with the sale of
the Company's "Sporting Equipment Group" in 2001 is anticipated within 12
months.

Cash balances at March 31, 2003 were $11.9 million compared to $26.4 million
at December 31, 2002. The decline in cash balance is the first quarter of 2003
is $14.5 million compared to a decline for the same period in 2002 of $30.3
million.

Cash usage for operating activities was $9.2 million in the first quarter of
2003 compared to a usage of $21.8 million for the same period in 2002. The
$12.6 million decrease in usage is primarily due to a $7.5 million reduction
in cash income taxes, the difference between a net refund received of $4.1
million in the first quarter of 2003 compared to net income taxes paid of $3.4
million for the same period last year, and an increase in pretax income of
$5.1 million, excluding the decrease in non-cash restructuring expense of $5.4
million.

Accounts receivable at March 31, 2003 and December 31, 2002 and sales by
segment for the first quarter of 2003 compared to the fourth quarter of 2002
were as follows (in millions):

                                          March 31,   December 31,  Increase
                                            2003         2002       (Decrease)
------------------------------------    ------------ ------------  ------------
Accounts Receivable:
  Outdoor Products                        $ 46.7        $ 37.9       $ 8.8
  Lawnmower                                  5.9           3.4         2.5
  Industrial and Power Equipment            12.7          16.1        (3.4)
------------------------------------      ------        ------       ------
     Total segment receivables            $ 65.3        $ 57.4       $ 7.9
------------------------------------      ======        ======       ======

                                                    Three Months Ended
                                          March 31,    December 31,  Increase
                                            2003          2002      (Decrease)
------------------------------------   -------------  ------------  ------------
Sales:
  Outdoor Products                        $ 85.2        $ 83.1        $  2.1
  Lawnmower                                  7.9           9.2          (1.3)
  Industrial and Power Equipment            29.9          35.8          (5.9)
  Elimination                               (0.1)                       (0.1)
------------------------------------      -------       ------        -------
     Total segment sales                  $122.9        $128.1        $ (5.2)
------------------------------------      =======       ======        ======

The $7.9 million increase in accounts receivable from December 31, 2002 is due
primarily to the timing of sales programs in the Outdoor Products and
Lawnmower segments in anticipation of spring retail demand.

Net cash used for investing activities for the first three months of 2003 was
$4.5 million compared to $6.8 million for the same period of 2002. Purchases
for property, plant and equipment in the first quarter of 2003 are $4.0
million compared to $5.0 million for the same period last year which was
higher due to the purchase of certain equipment from a company that was
exiting one of its businesses. Proceeds in the first quarter of 2003 from
sales of assets are ($0.5) million and are related to the 2002 sale of an
office building in Montgomery, Alabama. This is $1.2 million lower than
receipts of $0.7 million in the first



<PAGE>



quarter of 2002 which was due primarily to the sale of a storage warehouse. In
the first quarter of 2003 there were less than $0.1 million in expenses
associated with the sale of discontinued operations compared to $2.5 million in
the first quarter of 2002.

Cash used in financing activities for the first three months of 2003 was $0.8
million, due to a scheduled debt repayment, compared to $1.7 million in the
first quarter of 2002. The higher amount in 2002 was due to proceeds generated
from the sale of assets that were applied to the reduction of long term debt.

The Company expects the cash flows from operations and amounts available under
its revolving credit agreements will be sufficient to cover any additional
increases in working capital and capital expenditures.

Due to a decline in asset values of the Company's sponsored defined benefit plan
during the past two years, the Company's annual cash contributions to the
pension fund will increase in 2003 and 2004. The decline in asset value is due
to overall weakness in the stock and bond markets. The estimated amount of
incremental cash contributions over 2002 is estimated to be $3.7 million and
$8.7 million respectively for 2003 and 2004. Furthermore, the Company adjusted
its balance sheet at the end of 2002 to record a minimum pension liability in
accordance with SFAS 87 "Employers' Accounting for Pensions". The adjustment
resulted in a non-cash reduction of shareholder's equity by $14.2 million. The
company believes that cash flow from operations and amounts available under its
revolving credit agreement will be sufficient to cover the higher pension
contribution levels.


NEW ACCOUNTING PRONOUNCEMENTS

In January 2003, the FASB issued Financial Accounting Standards Boards
Interpretation No. 46, "Consolidation of Variable Interest Entities." FIN 46
clarifies the application of Accounting Research Bulletin No. 51, "Consolidated
Financial Statements," to certain entities in which equity investors do not have
the characteristics of a controlling financial interest or do not have
sufficient equity at risk for the entity to finance its activities without
additional subordinated financial support from other parties. FIN 46 applies
immediately to variable interest entities created after January 31, 2003, and to
variable interest entities (VIEs) in which an enterprise obtains an interest
after that date. It applies in the first fiscal year or interim period beginning
after June 15, 2003, to variable interest entities in which an enterprise holds
a variable interest that it acquired before February 1, 2003. FIN 46 applies to
public enterprises as of the beginning of the applicable interim or annual
periods. Management has evaluated the Company for possible VIEs and believes
that FIN 46 will not have a material impact on the Company's financial
statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities." SFAS 149 amends and clarifies
accounting for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities under SFAS No. 133. SFAS
No. 149 amends SFAS No. 133 to require contracts with comparable characteristics
be accounted for similarly. SFAS No. 149 clarifies the circumstances a contract
with an initial net investment can meet the characteristic of a derivative and
clarifies when a derivative contains a financing component that warrants special
reporting in the statement of cash flows. This statement is effective for
contracts entered into or modified after June 30, 2003, except for hedging
relationships designated after June 30, 2003, except for hedging relationships
designated after June 30, 2003, where the guidance should be applied
prospectively. The Company is currently evaluating the effect that the adoption
of SFAS No. 149 will have on its results of operations and financial condition.



<PAGE>


FORWARD LOOKING STATEMENTS

Forward-looking statements in this release, including without limitation the
Company's "expectations," "beliefs," "indications," "estimates," and their
variants, as defined by the Private Securities Litigation Reform Law of 1995,
involve certain risks and actual results subsequent to the date of this
announcement may differ materially.

ITEM 4 - CONTROLS AND PROCEDURES

We maintain a set of disclosure controls and procedures designed to ensure that
information required to be disclosed by the Company in reports that it files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in Securities and
Exchange Commission rules and forms. Within the 90-day period prior to the
filing of this report, an evaluation was carried out under the supervision and
with the participation of the Company's management, including the Chief
Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the
effectiveness of our disclosure controls and procedures. Based on that
evaluation, the CEO and CFO have concluded that the Company's disclosure
controls and procedures are effective.

Subsequent to the date of their evaluation, there were no significant changes in
the Company's internal controls or in the factors that could significantly
affect these controls.


PART II Other Information

Item 6(a) Exhibits

**99(.1)     Certification pursuant to section 906 of the Sarbanes-Oxley Act of
             2002 by James S. Osterman, Chief Executive Officer for the quarter
             ended March 31, 2003.

**99(.2)     Certification pursuant to section 906 of the Sarbanes-Oxley Act by
             Calvin E. Jenness, Chief Financial Officer for the quarter ended
             March 31, 2003.

Item 6(b)    Reports on Form 8-K

             On March 11, 2003 the Company filed a Form 8-K regarding the
             issuance of a press release announcing a marketing agreement with
             Caterpiller Inc.

             On March 19, 2003 the Company filed a Form 8-K regarding the
             availability of certain data presented by one of its executive
             officers at the Lehman Brothers 2003 High Yield Bond and Syndicated
             Loan Conference in Orlando, Florida on March 19, 2003.

             On May 13, 2003 the Company released on Form 8-K its financial
             results and public release for the first quarter 2003.

** Filed electronically herewith.

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


<PAGE>



    BLOUNT INTERNATIONAL, INC.
----------------------------------
            Registrant


Date:  May 15, 2003                         /s/ Calvin E. Jenness
                                        ---------------------------------------
                                                  Calvin E. Jenness
                                        Senior Vice President, Chief
                                        Financial Officer and Treasurer



<PAGE>


                           CERTIFICATIONS PURSUANT TO
                                 SECTION 302 OF
                         THE SARBANES-OXLEY ACT OF 2002


I, James S. Osterman, certify that:


1.   I have reviewed this quarterly report on Form 10-Q of Blount International,
     Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b.   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officer and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors:

     a.   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b.   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and



<PAGE>


6.   The registrant's other certifying officer and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



Date: May 15, 2003

/s/ James S. Osterman
------------------------------------
James S. Osterman
President and
Chief Executive Officer