Allied Devices Reports 45% Growth To New Record Levels In Third Quarter.

Business Editors

HICKSVILLE, N.Y.--(BUSINESS WIRE)--July 31, 2000

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

Revenues for the quarter and nine months increased 45% and 36%, respectively, from prior year, achieving new records. Net earnings for the quarter and nine months increased by 82% and 155%, respectively, from fiscal 1999 to fiscal 2000 after absorbing the costs of plant consolidations. Sales were $8,257,086 and $22,685,556 for the quarter and nine months ended June 30th, up from $5,688,164 and $16,689,098 in prior year, while earnings in fiscal 2000 were $266,508, or $.05 per share, and $955,186, or $.18 per share, respectively, as compared to $146,353, or $.03 per share, and $374,864, or $.08 per share, in the comparable periods of fiscal 1999.

Mark Hopkinson, Chairman and CEO, remarked, "Our third quarter was one of achievement. We completed a consolidation of our four Long Island locations into one new, sleek facility, within budget and in good time. We made this major move with minimal disruption to shipments and service to our customers. We hit new records in revenues for both the quarter and nine months, indicating that our powerful growth continues unabated. Our earnings per share would have been $.03 higher, or 167% ahead of last year, had we not had the expense of the move in this quarter. Current growth is mostly the result of accelerated demand from our primary markets: semiconductor equipment, medical diagnostics, precision robotics, aerospace controls, and fluid metering and controls. Between our renewed marketing efforts, new products and market conditions, we are expecting our growth trajectory to continue through the end of this fiscal year and well on into the next. At the same time, our pursuit of strategically compatible companies has identified a number of attractive prospects, and we intend to complete at least one acquisition before the end of the calendar year."

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 factory automation, robotics, aerospace and scientific instrumentation, semiconductor equipment, and medical diagnostic and operating room equipment.

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 June 30,
                                  2000                    1999
OPERATIONS DATA:
Net sales                     $ 8,257,086             $ 5,688,164
Net income                    $   266,508             $   146,353
Earnings per share            $      0.05             $      0.03
Weighted average
 number of shares
 outstanding                    5,615,040               4,995,471
BALANCE SHEET DATA:
Total assets                  $27,218,861             $23,926,612
Working capital               $ 9,435,386             $ 9,593,760
Long-term debt                $10,869,258             $11,382,668
Stockholders' equity          $10,437,110             $ 9,375,608