Allied Devices Sets New Record in First Quarter Sales.

BALDWIN, N.Y.--(BUSINESS WIRE)--Feb. 9, 1999--Allied Devices Corporation (NASDAQ:ALDV) reported an increase of 22% in revenues in its first quarter 1999 results over prior year. Earnings after tax were $100,936, or $.02 per share, on revenues of $5,370,454, as compared to first quarter 1998 after tax earnings of $258,118, or $.06 per share, on revenues of $4,382,769.

Mark Hopkinson, chairman of the board, commented, "We are moving steadily towards successful completion of our growth plan. The first quarter increase in sales year-on-year stems from the businesses acquired in fiscal 1998. All divisions have felt a slowdown during the last two quarters, prompted by the economic turmoil in Asia. While we cannot be certain that organic growth will return before the end of the fiscal year, we believe we are gaining market share during this slack period. As for our external growth plan, integration of the two acquisitions of fiscal 1998 is progressing smoothly, and the impact on our profitability should become evident as the year unfolds. In addition, we expect to complete at least one more acquisition during fiscal 1999 as we continue to play out our strategy."

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.