Alpha Technologies Group Expects 109% Increase in Fourth Quarter Net Income From Continuing Operations to Approximately $0.33 Per Diluted Share on 41% Revenue Gain.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Nov. 28, 2000

Expects Fiscal 2000 Net Income From Continuing Operations Of

Approximately $1.07 Per Diluted Share Versus $0.37

Obtained Commitment for $50 Million Acquisition Credit Facility

Terms of 1-For-25 Rights Offering Set

Alpha Technologies Group Inc. (Nasdaq:ATGI) announced today that it expects to report that net income from continuing operations for the fourth quarter of fiscal 2000 ended Oct. 29, 2000 doubled to approximately $0.33 per diluted share (or $2,459,000 inclusive of a $530,000 provision for income taxes) on a 41% increase in revenue to approximately $18.0 million.

For the fourth quarter of fiscal 1999, net income from continuing operations was $1,172,000, or $0.16 per diluted share, on revenue of $12,777,000. The company expects to report results for the fourth quarter and fiscal 2000 on Dec. 14, 2000.

For the 12 months ended Oct. 29, 2000, Alpha expects to report net income from continuing operations of approximately $1.07 per diluted share (or $7,918,000 inclusive of a $580,000 provision for income taxes) on revenue of approximately $61.5 million. This compares to net income from continuing operations for fiscal 1999 of $2,656,000, or $0.37 per diluted share, on revenue of $48,429,000.

In July 2000, Alpha completed the sale of Uni-Star Industries Inc., its electronic connector subsidiary, to Tyco Electronics Corp., a subsidiary of Tyco International Ltd. (NYSE:TYC; LSE:TYI; BSX:TYC), for $12.3 million in cash. Earlier this month, Alpha also completed the sale of Malco Technologies Inc., its electronic systems subsidiary, for $2.2 million in cash and a note for $300,000. Both Uni-Star and Malco are reported as discontinued operations.

Fiscal 2001 Outlook

"Alpha's commitment to quality products, first-class customer service, and reliable, on-time delivery is helping us win new business and expand our share of the thermal management market," said Lawrence Butler, chairman and CEO of Alpha.

"This translated into a record performance for fiscal 2000, with higher sales and operating margins. We expect further revenue and earnings growth in fiscal 2001, reflecting anticipated internal growth and the planned acquisition of National Northeast (NNE) from Mestek Inc. (NYSE:MCC)," Butler said.

NNE Acquisition

The purchase price for 100% of NNE's stock is $49.9 million. NNE is engaged in the aluminum heat sink and extrusion business in Pelham, N.H.

"The acquisition of NNE will bring new customers and products to our business. In addition, NNE's state-of-the-art facility will significantly expand Alpha's capacity and extrusion capabilities, setting the foundation for further growth. This transaction is an important step in our plan to focus Alpha's resources exclusively on building our thermal management business," Butler said.

He said that Alpha expects to complete the NNE acquisition no later than early January 2001.

Bank Credit Facility and Rights Offering

Alpha has received a commitment to underwrite, lead and syndicate a $50,000,000 credit facility by Union Bank of California, subject to documentation. The company expects to use this credit facility to fund most of the NNE acquisition.

Also, as previously announced, Alpha plans to distribute to holders of record of its outstanding common stock, at no cost, subscription rights to purchase additional shares of common stock. Holders of Alpha common stock on the record date, Oct. 25, 2000, 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 at a price of $7.25 per share. The rights will expire on Jan. 5, 2001. The company expects to use the proceeds of the rights offering, approximately $2,000,000, to fund a portion of the NNE acquisition.

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. The rights offering is expected to close in January 2001.

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.

In conjunction with the provisions of the "Safe Harbor" section of the Private Securities Litigation Reform Act of 1995, this press 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.