EXHIBIT 99.1

                          THE L. S. STARRETT COMPANY
                             Athol, Massachusetts

                                                                 May 6, 2004

To the Stockholders:

Presented below are the comparative operating figures for the Company
for the periods ended in March 2004 and 2003.

Results for the third quarter below show an improved trend in both
sales and earnings that we began to see in the previous quarter.  Both our
domestic and international operations contributed to this improvement.

Compared to the third quarter of last fiscal year, sales are up
approximately 8% and we recorded a profit of $.07 per share compared to a
loss of $.19 last year.  While this is good news, and the best quarter since
June 2001, it is tempered by the fact that about one-half of the sales gain
was exchange related due to the weakening of the U.S. dollar.  Our earnings
were  helped  from LIFO inventory benefits as a result of our ability to
reduce inventories, tax benefits, and also lower costs associated with the
government investigation.

During the quarter, our domestic business bounced back modestly, and
while I remain optimistic, I am concerned that we may have  the steam taken
out of this improvement as a result of rapidly escalating steel prices due to
surcharges, and gasoline prices, which are increasing our product and
transportation costs.

The economy has taken a backseat recently to the conflict in Iraq, but
our political leadership cannot lose sight of the fact that we need to keep
the economy on a steady upward track and should be the focal point of our
Administration.  We cannot win the war on terror without a strong economy and
manufacturing base to support our efforts.


									D. A. Starrett
									President and CEO


                        SUMMARY OF CONSOLIDATED RESULTS

                                  13 Weeks Ended          39 Weeks Ended
                               03/27/04   03/29/03     03/27/04    03/29/03

Net sales                     44,945,272 41,525,189  131,039,945 131,688,288

Earnings (loss) before income
  taxes and cumulative effect
  of change in accounting        179,864 (2,255,348)  (4,878,703) (8,090,408)
Income tax benefit              (264,100)  (988,000)  (2,395,000) (3,647,000)
Earnings (loss) before
  cumulative effect of
  change in accounting           443,964 (1,267,348)  (2,483,703) (4,443,408)
Cumulative effect of change in
  accounting principle                                            (6,085,583)
Net earnings (loss)              443,964 (1,267,348)  (2,483,703)(10,528,991)




Basic and diluted earnings (loss)
  per share before cumulative
  effect of change in
  accounting principle               .07       (.19)        (.37)       (.67)
Cumulative effect of change in
  accounting principle for goodwill                                     (.93)
Basic and diluted earnings (loss)
  Per share                          .07       (.19)        (.37)      (1.60)


Dividends per share                  .10        .20          .30         .60


The above figures are in part estimates and are subject to audit and year-end
adjustments. Except for historical information contained herein, the matters
discussed may involve forward-looking statements subject to risks and
uncertainties that could cause actual results to differ materially, including
statements concerning future financial performance, economic and political
conditions, write-downs and reserves, reorganization plans, currency
fluctuations and foreign operations.