[Investor Contact:  781-622-1111]                                   Exhibit 99.1
[Media Contact:  781-622-1252]

         THERMO ELECTRON ANNOUNCES DETAILS OF THERMO FIBERTEK SPIN-OFF

WALTHAM, Mass., July 10, 2001 - Thermo Electron Corporation (NYSE:TMO) today
announced that its board of directors has approved the spinoff of its 91-
percent-owned Thermo Fibertek Inc. subsidiary (ASE:TFT) as a dividend to
Thermo Electron shareholders. On August 8, 2001, Thermo Electron will distribute
all of its shares of Thermo Fibertek to Thermo Electron shareholders of record
on July 30, 2001. Immediately after the planned distribution, Thermo Electron
will no longer own shares of Thermo Fibertek (to be renamed Kadant Inc.,
effective July 12, 2001).

Thermo Electron expects to distribute approximately .0611 shares of Kadant
common stock (taking into account a reverse stock split that takes effect this
Thursday, July 12, 2001) for each share of Thermo Electron common stock. The
final ratio will be based on the actual number of Thermo Electron shares
outstanding on the July 30 record date and the actual number of Kadant shares
held by Thermo Electron on the August 8 distribution date. Thermo Electron
shareholders entitled to the dividend will receive stock certificates for whole
shares of Kadant common stock and cash payments for any fractional shares.

Thermo Electron has received a ruling from the Internal Revenue Service that the
dividend of Kadant shares will qualify in large part as a tax-free distribution
for U.S. federal income tax purposes - subject to limited exceptions.
Approximately eight percent of the shares to be distributed to each Thermo
Electron shareholder will be taxable because they were purchased by Thermo
Electron during the past five years. Also, cash received in lieu of fractional
shares will be taxable.

Thermo Electron shareholders will not be required to take any action in order to
receive the Kadant common stock. Kadant stock certificates will be delivered to
the record addresses of the Thermo Electron shareholders.

Thermo Electron expects to file with the U.S. Securities and Exchange Commission
a preliminary information statement containing details of the distribution and
information about Kadant as an exhibit to a current report on Form 8-K on or
about July 12, 2001. On the distribution date, Thermo Electron will mail a
definitive information statement to Thermo Electron shareholders entitled to
receive the dividend, together with stock certificates representing the
distributed shares.

Kadant Inc. is a leading supplier of a range of products and systems for the
global papermaking and paper-recycling industries, including de-inking systems,
stock-preparation equipment, water-management systems, and papermaking
accessories. Through its majority-owned Thermo Fibergen subsidiary, the company
also develops and commercializes composite building materials produced from
natural fiber and recycled plastic.

Thermo Electron Corporation is a global leader in providing technology-based
instruments, components, and systems that offer total solutions for markets
ranging from life sciences to telecommunications to food, drug, and beverage
production. The company's powerful technologies help researchers sift through
data to make discoveries that will fight disease or prolong life. They allow
manufacturers to fabricate ever-smaller components required to increase the
speed and quality


of communications. And they automatically monitor and control online production
to ensure that critical quality standards are met safely and efficiently. Thermo
Electron, based in Waltham, Massachusetts, reported $2.3 billion in revenues in
2000 and employed approximately 13,000 people worldwide. For more information on
Thermo Electron, visit http://www.thermo.com.

The following constitutes a "Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995: This press release contains forward-looking
statements that involve a number of risks and uncertainties. Important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are set forth under the heading "Risk Factors"
in the company's Annual Report on Form 10-K for the fiscal year ended December
30, 2000.  These include risks and uncertainties relating to: integration of the
company's instrument businesses, the ability to improve internal growth,
liquidity and prospective performance of the subsidiaries to be spun off, the
company's guarantee of obligations of one of the subsidiaries to be spun off,
the effect of exchange rate fluctuations on international operations, potential
impairment of goodwill, the need to develop new products and adapt to
significant technological change, dependence on customers that operate in
cyclical industries, the effect of changes in governmental regulations, and
dependence on customers' capital spending policies and government funding
policies.