Contact: Barbara B. Lucas
                                                Senior Vice President
                                                Public Affairs
                                                410-716-2980

                                                Mark M. Rothleitner
                                                Vice President
                                                Investor Relations and Treasurer
                                                410-716-3979


FOR IMMEDIATE RELEASE:  Thursday, October 21, 2004

Subject: Court Rules in Black & Decker's Favor in Tax Case

Towson, MD - The Black & Decker Corporation (NYSE: BDK) today announced that the
United States  District Court of Maryland has granted the  Corporation's  motion
for summary judgment on its complaint against the United States Internal Revenue
Service and the related IRS counterclaim.

     The  Corporation  had filed a complaint  against the IRS seeking refunds of
approximately  $57 million,  plus  interest,  and the IRS  subsequently  filed a
counterclaim relating to the disallowance of certain capital loss deductions. As
previously  disclosed  in the  Corporation's  filings  with the  Securities  and
Exchange Commission, should the IRS prevail in its disallowance of these capital
loss  deductions and imposition of related  interest,  it would result in a cash
outflow by the Corporation of approximately $140 million.

     In its opinion, the Court ruled in the Corporation's favor that the capital
losses  cannot be disallowed  by the IRS. The IRS can appeal this  decision,  in
which event a final resolution of the case may not occur until 2005 or later.

                                     (more)



Page Two

     This  release  includes  forward-looking  statements  within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934. By their nature,  all  forward-looking  statements involve
risks  and  uncertainties.  For a more  detailed  discussion  of the  risks  and
uncertainties  that may affect Black & Decker's  operating and financial results
and its  ability to achieve the  financial  objectives  discussed  in this press
release,  interested  parties  should  review the  "Forward-Looking  Statements"
sections in Black & Decker's  reports  filed with the  Securities  and  Exchange
Commission,  including  the Annual Report on Form 10-K for the fiscal year ended
December 31, 2003.

     Black & Decker is a leading global manufacturer and marketer of power tools
and accessories,  hardware and home improvement  products,  and technology-based
fastening systems.
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