ALPHA TECHNOLOGIES GROUP, INC. REPORTS FISCAL 1996 THIRD QUARTER AND NINE MONTHS FINANCIAL RESULTS.

NEW YORK--(BUSINESS WIRE)--August 15, 1996--SIGNS DEFINITIVE AGREEMENT TO ACQUIRE LOCKHART INDUSTRIES, INC. AND PURCHASES REMAINING MINORITY INTEREST OF UNI-STAR INDUSTRIES, INC.

Alpha Technologies Group, Inc. (Nasdaq:ATGI) today reported results for third quarter and nine months ended July 28, 1996. The Company also announced that it has signed a definitive agreement to acquire Lockhart industries, Inc. and has purchased the remaining 20% minority interest of Uni-Star Industries, Inc., an 80%-owned subsidiary of the Company. Terms of the transaction were not disclosed.

Revenues for the third quarter were $16.8 million, a decrease from the $17.4 million reported in the same period last year. Net loss for the quarter was $740,000, or $0.12 per share, which included $625,000 in non-recurring charges. These charges included a purchase commitment that is in dispute, a write-down of inventory, costs related to the termination of an acquisition effort and severance payments. Without the charges, the Company's net loss would have been $0.02 per share. For the comparable 1995 quarter, the Company reported net income of $1.6 million, or $0.24 per share, inclusive of a benefit for income taxes of $0.07 per share.

Revenues for the nine months increased 15.7% to $51.6 million, versus $44.6 million reported in the first nine months of fiscal 1995. Net loss for the nine months was $459,000, or $0.07 per share, which included the previously mentioned $625,000 charges, versus net income of $2.5 million, or $0.38 per share, for the same period last year.

Thermal management revenues in the 1996 third quarter and nine months were $11.7 million and $36.2 million, compared to $11.3 million and $29.4 million reported in the prior year's comparable periods. The increases in the fiscal 1996 periods were primarily attributable to the inclusion of sales by Specialty Extrusion Corp., acquired in June 1995, and higher sales of Penguin Cooler heat sinks, which serve the microprocessor and personal computer markets.

Connector revenues for the 1996 third quarter and nine months were $5.1 million and $15.5 million, versus $6.1 million and $15.2 million in the third quarter and nine months of fiscal 1995. The decrease in connector revenues in the fiscal 1996 third quarter as compared to the prior year's figure were attributable to the inclusion in 1995 of a large contract that was completed in the fourth quarter of 1995 and the exclusion in 1996 of a highly profitable product line that reached its end-of-life.

Net income as a percent of total revenue was adversely affected by the aforementioned charges and by a decrease in gross profits resulting from the inclusion of Specialty's sales that have lower margins than the Company's other products, higher manufacturing costs reflecting overhead added in anticipation of a substantial increase in demand for Penguin Cooler heat sinks which has yet to materialize, certain manufacturing inefficiencies, and a change in the mix of products sold.

Alpha has also announced it has signed a definitive agreement to acquire Lockhart industries, Inc. ("Lockhart"). This transaction is scheduled to close later this month. Lockhart, located in Paramount, California, is a designer and manufacturer of sophisticated thermal management products. Lockhart's products are used to cool and protect computer, radar and laser systems for the aerospace, military and commercial markets. In addition, Lockhart manufacturers high performance oil coolers used in automobiles, trucks and motorcycles.

Lawrence Butler, President and Chief Executive Officer of Alpha commented, "Our overall results for the last nine months and this quarter have been disappointing. Both Wakefield's and Uni-Star's performances were adversely impacted by a slow down in the electronics markets they serve. At Wakefield in particular, we anticipated a very strong sales year and created an overhead structure in line with our forecasts. While we anticipate an increase in demand, particularly in our Penguin Cooler line of heat sinks, to materialize during the remainder of calender 1996, we have taken steps to reduce our costs to more closely track our current performance, and have implemented programs to improve manufacturing inefficiencies. We expect to return Alpha to profitability in the fourth quarter."

Mr. Butler concluded, "The acquisition of Lockhart, a leading thermal management company, is indicative of our acquisition strategy to expand our thermal management business for Wakefield Engineering by providing access to new markets like the aerospace and defense electronic industries, as well as expanding Wakefield's technological leadership as Lockhart is a successful vacuum brazing company. Wakefield currently markets a thermal management product used to cool notebook and laptop computers which require vacuum brazing as part of its manufacturing process. Additionally, the employees of Lockhart are a dedicated team and were crucial to our decision to purchase the company. We look forward to having them join Alpha."

Alpha designs, manufactures and sells thermal management products and connectors. Thermal management products, principally heat sinks, are sold by Wakefield Engineering, Inc., a wholly-owned subsidiary of the Company. Heat sinks remove excess heat generated by electronic components. The thermal management products serve the microprocessor, computer, consumer electronics, transportation and power supply industries. Alpha's connector products, which are sold through its wholly-owned subsidiary, Uni-Star Industries, Inc., include miniature, micro-miniature and nano-miniature connectors designed and manufactured by the Company to meet rigid industrial and military specifications. The connector products serve the aerospace, telecommunications, medical electronics, automotive and defense industries.

EDITOR'S NOTE:

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the telecommunications regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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                          ALPHA TECHNOLOGIES
                       GROUP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENT OF OPERATIONS
                (In thousands except per share data)

                            Quarter Ended          Nine Months Ended
                           July 28,  July 30,    July 28,     July 30,
                            1996      1995        1996          1995

                              (Unaudited)       (Unaudited)    (Audited)
Revenues:
    Thermal management   $11,681,000 $11,305,000 $36,150,000  $29,353,000
    Connectors             5,130,000   6,124,000  15,450,000   15,237,000
    Total                 16,811,000  17,429,000  51,600,000   44,590,000
Gross profit               3,547,000   4,808,000  11,293,000   12,035,000
Operating expenses         4,087,000   3,587,000  11,087,000    9,496,000
Interest, Investment and
    other income (expense),
    net                    (211,000)     103,000   (583,000)       11,000
(Provision) benefit for income taxes-
    continuing
    operations (1)           67,000      453,000    (61,000)      175,000
Minority interest in consolidated
    subsidiary              (56,000)    (168,000)   (21,000)     (264,000)
Net income (loss)           (740,000)  1,609,000   (459,000)    2,461,000

Net income (loss) per share
    Continuing operations
     before                   ($0.08)      $0.19      $0.03        $0.39
     taxes and minority interest
  Investment, interest
   and other income
   (expense) net               (0.04)       0.01      (0.09)         ---
    (Provision) benefit for
    income taxes (1)            0.01        0.07      (0.01)        0.03
    Minority interest          (0.01)      (0.03)      ---         (0.04)
    Net income (loss)          (0.12)       0.24     (0.07)         0.38

Shares used in computing
 net income (loss)
 per share                  6,200,000   6,591,000  6,156,000    6,533,000

(1) Federal income statutory
     rate                     (34.0%)      34.0%     (34.0%)      34.0%
    State income taxes, net of federal
      income tax benefit       (3.6%)       7.3%       ---         8.1%
    Foreign income taxes        0.5%        ---       16.2%        ---
    Benefit of net operating loss
      carry forwards           28.2%      (75.5%)     34.0%     (49.0%)
    Income before minority
     interest                  (8.9%)     (34.2%)     16.2%      (6.9%)

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SELECTED BALANCE SHEET DATA

                                        July 28, 1996   October 29, 1995
                                          (Unaudited)       (Audited)

Cash                                     $ 4,219,000       $ 6,058,000
Working capital                           15,483,000        15,696,000
Long-Term debt (including current
    maturities)                           11,939,000         9,943,000
Total assets                              43,337,000        42,256,000
Stockholders' equity                      18,638,000        18,763,000

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CONTACT: Company Contact:

Johnny J. Blanchard

Chief Financial Officer

Alpha Technologies Group, Inc.

[phone]

OR

Investor Contact:

Donna Stein, Dan Durkin

Morgen-Walke Associates, Inc.

[phone]

OR

Press Contact:

Lee Foley

Morgen-Walke Associates, Inc.

[phone]