Alpha Technologies Group Signs Amended Credit Agreement.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--March 20, 2002

Alpha Technologies Group, Inc. (NASDAQ:ATGI) announced today that it had concluded an amendment and restructuring of its loan agreement with its bank group. Under the amendment, the financial covenants have been reset to levels that the Company believes it can meet. In addition, quarterly principal payments under the Term Loan have been substantially reduced for calendar 2002 and 2003. The Company is also required to make a $5,000,000 principal payment by June 28, 2002. The bank group has agreed to release its lien on the Company's Pelham, New Hampshire facility in connection with such principal payment, and the Company anticipates that it will refinance such property to make the $5 million payment.

The banks also waived the Company's non-compliance of certain loan covenants for the quarter ended January 27, 2002. The Company is now in full compliance with the covenants contained in the loan documents and its debt has been reclassified into current and long-term portions as of the end of the first fiscal quarter of 2002. As a result, the Company's working capital as of the end of the first quarter was $4,952,000.

Lawrence Butler, Chairman and Chief Executive Officer of the Company, said, "Now that we have successfully restructured our loan, we can concentrate our efforts on growing our business. The bank loan restructuring was a time consuming task and we are glad to have it behind us."

About Alpha Technologies Group

Alpha Technologies Group, Inc. is engaged in the manufacture, fabrication and sale of thermal management products and aluminum extrusions. The Company is one of the leading manufacturers of thermal management products in the United States. Thermal management products, principally heat sinks, dissipate unwanted heat generated by electronic components. The Company's thermal management products serve the automotive, telecommunication, industrial controls, transportation, power supply, factory automation, consumer electronics, aerospace, defense, microprocessor, and computer industries. The Company also sells aluminum extrusions to various industries including the construction, sporting goods and other leisure activity markets.

Forward-Looking Statements 

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.