Allied Devices Breaks All Prior Records for Quarterly Sales and Earnings.

Business Editors

BALDWIN, NY--(BUSINESS WIRE)--April 26, 2000

Allied Devices Corporation (NASDAQ - ALDV) announced its financial results for the second quarter of its fiscal year 2000.

Revenues for the quarter and six months YTD increased approximately 37% and 31%, respectively, from the prior year, reaching all-time record levels. Earnings more than tripled from the prior year, also to record levels. Sales were $7,734,983 and $14,428,470 for the quarter and six months ended March 31st, up from $5,630,480 and $11,000,934 for the like periods in the prior year, while earnings in the quarter and six months of fiscal 2000 were $433,143 and $688,678, or $.08 and $0.13 per share, as compared to $127,575 and $228,511, or $.03 and $.05 per share, in the like periods of fiscal 1999.

Mark Hopkinson, Chairman and CEO, remarked, "Growth of over 30% is, we believe, moving us into a lead position in our line of business; our game plan seems to be working extremely well. Vigorous activity in the semiconductor equipment sector has certainly benefited us, but we are also gaining share and visibility in other less volatile markets. The Company moves this week to newer, larger facilities to accommodate this growth, and we expect to see continuing gains in production efficiencies, manufacturing controls and gross profit from the improvements inherent in this consolidation. The pay-off seems to have started from our substantial investment in state-of-the-art manufacturing over the last 18 months. Thus we have taken the ramp-up in stride, enhancing the confidence of our customers and perpetuating our successful commitment to quality and on-time delivery. At the same time, we are moving to 4th generation e-business on our website ("www.allieddevices.com") and believe we are the only company in our business with live engineering links to our customers over the website. We project that the rest of fiscal 2000 will be just as attractive as the first half."

Allied Devices is a leading manufacturer and distributor of high precision mechanical assemblies and components used in industrial and commercial equipment. These products, manufactured to exacting tolerances, provide precision motion control in such products as semiconductor equipment, medical diagnostic and operating room equipment, robotics, aerospace controls, scientific instrumentation, and factory automation.

All statements contained herein that are not historical facts, including but not limited to statements regarding the Company's current business strategy and the Company's plans for future development and operations, are based upon current expectations. For factors which could affect the realization of those expectations, see the Company's current quarterly report on Form 10-QSB.

                                Quarter ended March 31,
                                  2000              1999
OPERATIONS DATA:
Net sales                    $ 7,734,983           $ 5,630,480
Net income                   $   433,143           $   127,575
Earnings per share           $      0.08           $      0.03
Weighted average
 number of shares
 outstanding                   5,636,681             4,961,504
BALANCE SHEET DATA:
Total assets                 $26,448,720          $ 23,175,279
Working capital             $  9,883,553         $   9,766,385
Long-term debt               $11,293,786          $ 10,943,158
Stockholders' equity         $10,170,602         $   9,334,612