ABM Industries Incorporated Anticipates Lower First-Quarter Earnings.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 28, 2003

ABM Industries Incorporated (NYSE:ABM) today announced that it now anticipates earnings for its first quarter ended January 31, 2003 will be in the range of $0.08 to $0.09 per diluted share, compared to earnings of $0.16 per diluted share for the first quarter of the prior fiscal year. The revised outlook for the first quarter is primarily due to recent lower-than-expected results from the Northeast region of ABM Janitorial Services and from Amtech Lighting Services.

Taking into consideration anticipated first quarter results, the non-recurring nature of some of the items affecting first quarter results and the Company's recent acquisition of the commercial self-performing janitorial cleaning operations of Horizon National Commercial Services, LLC, ABM now expects that earnings for the year ending October 31, 2003 will be in the range of $0.85 to $0.95 per fully diluted share, compared to the Company's previously estimated range of $1.00 to $1.10 per fully diluted share.

The first quarter results of the Northeast region of ABM Janitorial Services, especially New York City, were impacted primarily by delays in planned terminations of unprofitable contracts, bad weather and increased costs. The Northeast region accounted for approximately two-thirds of the earnings shortfall. The Company is currently implementing management changes in this region.

Higher than anticipated labor costs were the principal influence on the first quarter results of Amtech Lighting. Amtech Lighting was responsible for approximately one-third of the earnings shortfall.

"The Company's sales increased for the quarter in line with expectations despite difficult market conditions," said Henrik Slipsager, President & Chief Executive Officer. "Other than in these two areas, the Company generally performed in line with management's expectations for the quarter."

The Company plans to announce on Tuesday morning (Pacific Standard Time), March 11, 2003, its financial performance for the Company's first fiscal quarter that ended on January 31, 2003.

The next day Wednesday, March 12, 2003, at 6:00 a.m. (Pacific Standard Time), ABM will host a live webcast of remarks by President & Chief Executive Officer Henrik C. Slipsager and Senior Vice President & Chief Financial Officer George B. Sundby, who will answer questions from a panel of several financial analysts who have been invited by the Company to join Mr. Slipsager and Mr. Sundby on a conference call. Other financial analysts interested in participating in the conference call should register with Debbie Jala at 415/733-4061 on or before Thursday, March 6, 2003.

The webcast will be accessible at www.irconnect.com/primecast/03/q1/abm_1q2003.mhtml. Listeners are requested to be online at least fifteen minutes before the webcast to register, as well as to download and install any complimentary audio software that might be required. The webcast will be archived at this URL for 90 days thereafter.

In addition to the webcast, a limited number of toll-free telephone lines will also be available for listeners who are among the first to call 877/440-9648 within fifteen minutes before the webcast. Telephonic replays will be accessible during the period from two to forty-eight hours thereafter by dialing 800/642-1687, and then entering ID # 8760469.

ABM Industries Incorporated is the largest facility services contractor listed on the New York Stock Exchange. With annualized revenues in excess of $2.1 billion and more than 62,000 employees, ABM provides janitorial, parking, engineering, security, lighting, elevator, mechanical and network services for thousands of commercial, industrial, institutional and retail facilities in hundreds of cities across North America. The ABM Family of Services includes ABM Janitorial Services, Ampco System Parking, ABM Engineering, American Commercial Security (ACSS), Amtech Lighting, Amtech Elevator, CommAir Mechanical and ABM Service Network.

Safe Harbor Statement

Cautionary Safe Harbor Disclosure for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995: Because of the factors set forth below, as well as other variables affecting the Company's operating results, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods. The statements contained herein which are not historical facts are forward-looking statements that are subject to meaningful risks and uncertainties, including but not limited to: (1) significant decreases in commercial real estate occupancy, resulting in reduced demand and prices for building maintenance and other facility services in the Company's major markets, (2) loss or bankruptcy of one or more of the Company's major customers, which could adversely affect the Company's ability to collect its accounts receivable or recover its deferred costs, (3) major collective bargaining issues that may cause loss of revenues or cost increases that non-union companies can use to their advantage in gaining market share, (4) significant shortfalls in adding additional customers in existing and new territories and markets, (5) a protracted slowdown in the Company's acquisition activities, (6) legislation or other governmental action that severely impacts one or more of the Company's lines of business, such as price controls that could restrict price increases, or the unrecovered cost of any universal employer-paid health insurance, as well as government investigations that adversely affect the Company, (7) reduction or revocation of the Company's line of credit, which would increase interest expense or the cost of capital, (8) cancellation or nonrenewal of the Company's primary insurance policies, as many customers contract out services based on the contractor's ability to provide adequate insurance coverage and limits, (9) catastrophic uninsured or underinsured claims against the Company, the inability of the Company's insurance carriers to pay otherwise insured claims, or inadequacy in the Company's reserve for self-insured claims, (10) inability to employ entry level personnel due to labor shortages, (11) resignation, termination, death or disability of one or more of the Company's key executives, which could adversely affect customer retention and day-to-day management of the Company, (12) inability to successfully integrate acquisitions into the Company, (13) inability to timely increase prices to cover all or any portion of increased costs, and (14) other material factors that are disclosed from time to time in the Company's public filings with the United States Securities and Exchange Commission, such as reports on Forms 8-K, 10-K and 10-Q.