Abstract: In the manufacture of terminals, a stripe of precious metal is inlayed into a strip of metal from which terminals are formed. The precious metal is only required at the localities at which dimpled contact areas are to be formed. The invention provides for the removal of the inlay at spaced apart localities. A tool is moved laterally across the metal strip, the tool having one or more cutting edges. The cutting edges are inserted into the strip on one side of the stripe, traverses across, cutting the stripe, and then exits from the strip on the other side of the stripe. The tool returns to its original position.