Alpha Technologies Group Announces Rights Offering; Shareholders Will Be Entitled to Purchase One New Common Share For Every 25 Shares Held.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Oct. 11, 2000

Alpha Technologies Group Inc. (Nasdaq:ATGI) today announced that it plans to distribute to holders of record of its outstanding common stock, at no cost, subscription rights to purchase additional shares of common stock at a discount to be established by the board of directors later this month.

Subject to market conditions on the record date, which has been set as Oct. 25, 2000, Alpha currently expects that holders of its common stock will receive one basic subscription right for each 25 shares of common stock held as of the close of business on that date.

Holders of subscription rights will be entitled to purchase one share of Alpha common stock for every twenty-five (25) shares held. There currently are approximately 6.8 million Alpha common shares outstanding, and approximately 272,000 shares (4% of the outstanding shares) will be offered. The Company expects to use the proceeds, approximately $3 million, to fund a portion of the National Northeast acquisition, which was previously announced.

The rights are expected to expire on Nov. 30, 2000. Stockholders who exercise their basic subscription rights in full will also have the right to oversubscribe to purchase additional shares of the Company's common stock at the offering price on a pro rata basis, to the extent that any shares being registered for sale remain available at the expiration date.

Two of the Company's principal stockholders and directors have advised the Company that they intend to exercise their over-subscription privileges for any and all shares of common stock not purchased by other stockholders. Alpha has filed a registration statement with the Securities and Exchange Commission concerning the rights offering.

This notice shall not constitute an offer to sell, nor may it be construed as a solicitation of an offer to buy, any securities. The proposed rights offering will be made solely by means of a prospectus.

About Alpha Technologies Group

Alpha Technologies Group Inc. designs, manufactures and sells thermal management products, principally heat sinks that dissipate unwanted heat generated by electronic components; and custom-designed electronic subsystems.

In conjunction with the provisions of the "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors which could affect Alpha Technologies Group Inc. are included in the company's Form 10Q and Form 10K filed with the Securities and Exchange Commission.