4 1 shaioform.txt U.S SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Company Act of 1940 [_] Check Box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instructions 1(b). ----------------------------------------------------------------- 1. Name and Address of Reporting Person* (If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v)) Shaio Alberto ----------------------------------------------------------------- (Last) (First) (Middle) c/o Farrel Corporation, 25 Main Street ----------------------------------------------------------------- (Street) Ansonia CT 06401 ----------------------------------------------------------------- (City) (State) (Zip) ----------------------------------------------------------------- 2. Issuer Name and Ticker or Trading Symbol Farrel Corporation (FARL.OB) ----------------------------------------------------------------- 3. IRS Identification Number of Reporting Pesron, if an Entity (Voluntary) ----------------------------------------------------------------- 4. Statement for Month/Day/Year 01/02/03 ----------------------------------------------------------------- 5. If Amendment, Date of Original (Month/Day/Year) ----------------------------------------------------------------- 6. Relationship of Reporting Person to Issuer (Check all applicable) [X] Director [_] 10% Owner [X] Officer (give title below) [_] Other (specify below) Senior Vice President of Sales and Marketing ----------------------------------------------------------- 7. Individual or Joint/Group Filing (Check applicable line) [X] Form filed by one Reporting Person [_] From Filed by more than one Reporting Person ----------------------------------------------------------- =========================================================== Table I-- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned ===========================================================

FORM 4 (continued) ============================================================================= Table II -- DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF OR BENEFICIALLY OWNED (e.g., puts, calls, warrants, options, convertible securities) =============================================================================

Explanation of Responses: /s/ Alberto Shaio 01/02/03 --------------------------------- ------------------ **Signature of Reporting Person Date (by James L. Burns per Power of Attorney) * Attached is Exhibit B, the duly authorized Power of Attorney of the Reporting Person. ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C 1001 and 15 U.S.C 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for proceedure.

FARREL CORP 4