American Locker Group Incorporated Announces First Quarter Results.

Business Editors

JAMESTOWN, N.Y.--(BUSINESS WIRE)--May 12, 2003

American Locker Group Incorporated (NASDAQ:ALGI) released unaudited results of operations for the first quarter of 2003.

In the first quarter of 2003, net income decreased 45% to $429,060 from $776,797 in the first quarter of 2002. Sales decreased 5% to $8,831,748 versus $9,254,050 in the prior year's first quarter. Earnings per diluted share decreased to $0.28 per share versus $0.37 per share in the first quarter of 2002, a decrease of 24%. First quarter 2002 results included the benefit of a one time reversal of a $319,000 pre-tax liability that existed under the Company's Supplemental Executive Retirement Plan. This reversal occurred as the result of the death during the first quarter of 2002 of the only beneficiary under the Plan. This one time reversal increased basic and diluted earnings per share by $0.09 in the first quarter of 2002. Results for the first quarter of 2003 included a pre-tax expense of $65,000 for a severance agreement with a former management employee of the Company's subsidiary, Security Manufacturing Corporation. This expense reduced basic and diluted earnings per share by $.03 in the first quarter of 2003.

                                             Mar 31, 2003 Mar 31, 2002


     Net sales                               $ 8,831,748  $ 9,254,050
     Income before income taxes                  699,326    1,273,535
     Income taxes                                270,266      496,738
     Net income                              $   429,060  $   776,797

     Net income per share of common stock --
      basic                                  $      0.28  $      0.38
     Net income per share of common stock
      --diluted                              $      0.28  $      0.37

     CONDENSED STATEMENT OF FINANCIAL CONDITION

                                             Mar 31, 2003  Dec 31,2002
     ASSETS
        Current Assets                       $13,078,975  $13,107,423
        Property, Plant, and Equipment         5,093,537    5,260,190
        Other Long Term Assets                 6,637,836    6,667,003
        Total Assets                         $24,810,348  $25,034,616


     LIABILITIES - STOCKHOLDERS' EQUITY
        Current Liabilities                  $ 4,346,143  $ 4,737,864
        Long Term Obligations                  8,100,985    8,422,043
        Stockholders' Equity                  12,363,220   11,874,709
     Total Liabilities and Stockholders'
      Equity                                 $24,810,348  $25,034,616

United States Postal Service (USPS) Contracts

Plastic Cluster Box Unit (CBU) sales to the USPS decreased 12% to $4,339,000 in the first quarter of 2003 from $5,083,000 in the same period of 2002. The decrease in CBU sales is primarily the result of decreased purchases by the USPS. In April 2003, the Company's contract for plastic CBUs was renewed for a one-year term expiring on April 14, 2004. The Company remains the sole source for plastic CBUs.

The Company's subsidiary, Security Manufacturing Corporation (SMC), provides aluminum CBUs to the USPS. The SMC contract was also renewed by the USPS in April 2003 for a one-year term expiring April 14, 2004. Sales of aluminum CBUs by SMC to the USPS and to distributors are included in the metal and electronic locker segment.

Metal and Electronic Lockers

Sales of metal, mechanical and electronic lockers, which include the Company's luggage cart business were $4,350,000 in the first quarter of 2003 versus $3,967,000 in the same period of 2002, an increase of $382,000 or 10%. SMC contributed $177,000 of this increase and the balance of the increase came from the Company's sales of vending equipment for shopping carts and airport luggage carts.

Safe Harbor Statement under the Private Securities Litigation Reform Act Of 1995

Except for historical information contained in this press release, the matters discussed herein which contain forward-looking statements, including without limitation, statements relating to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) the Company's plans, strategies, objectives, expectations, and intentions are subject to change at any time at the discretion of the Company, (ii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth and inventory, (iii) the risk that the Company's contracts with the USPS will not be renewed, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.