Independent Directors Approve New Compensation for Executive Officers Elmwood Park, New Jersey, January 2, 2015 - Kreisler Manufacturing Corporation (OTC Pink: KRSL) today announced that the independent members of the Company's Board of Directors, Messrs. Joseph Daly and John Poling, unanimously approved a new compensation plan for the Company's executive officers: Edward Stern and Michael Stern, based primarily, on a compensation analysis performed by an independent compensation consultant. Both Edward and Michael Stern, who also serve as directors of the Company, did not participate in the vote on the compensation plan. The new plan includes (i) a bonus for fiscal 2014 of $79,046 and a grant of either an option to purchase 6,000 shares of common stock or the issuance of 6,000 shares of restricted stock for fiscal 2014 and (ii) a base salary for fiscal 2015 of $275,000 and additional cash and incentive equity compensation each equal to up to 45% of base salary for fiscal 2015, subject to the Board's approval and the corresponding achievement of financial goals and objectives for fiscal

2015. Independent directors also passed a resolution on executive compensation for fiscal years 2016-2019, subject to the Board's approval and the corresponding achievement of financial goals and objectives for such fiscal years. This comprehensive approach to executive compensation represents the first set of compensation changes since October
2011, when the Board of Directors increased the base salary for Edward and Michael Stern to $175,000 per year.

About Kreisler Manufacturing Corporation

Kreisler is a manufacturer of precision metal components and assemblies for use in military and commercial aircraft engines and industrial gas turbines. These products primarily include tube and manifold assemblies. The Company and its wholly-owned subsidiary, Kreisler Industrial Corporation, are located in Elmwood Park, New Jersey.

Forward-Looking Statements

This information and other statements by Kreisler Manufacturing Corporation in this press release contain "forward-looking statements". Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should," "project," and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. Kreisler is under no obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statement whether as a result of new information, future events or otherwise. If Kreisler does update any forward-looking statement, no inference should be drawn that Kreisler will make additional updates with respect to that statement or any other forward-looking statements.

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