American Locker Group Incorporated Releases Audited Results of Operations for the Year Ending December 31, 2003.

Business Editors

JAMESTOWN, N.Y.--(BUSINESS WIRE)--March 25, 2004

In 2003, net income decreased 29% to $2,147,132 from $3,022,828 in 2002. Sales decreased 3% to $39,256,438 versus $40,670,721 in the prior year. Earnings per diluted share decreased to $1.38 per share versus $1.54 per share in 2002, a decrease of 10%.

                                                    December 31,
                                                  2003        2002
                                             -----------------------
Net sales                                    $39,256,438 $40,670,721
Income before income taxes                     3,545,379   4,972,307
Income taxes                                   1,398,247   1,949,479
Net income                                   $ 2,147,132 $ 3,022,828

Net income per share of common stock -- basic     $ 1.41      $ 1.57
Net income per share of common stock --
 diluted                                          $ 1.38      $ 1.54


CONDENSED STATEMENT OF FINANCIAL CONDITION

                                                    December 31,
                                                  2003        2002
                                             -----------------------
ASSETS
 Current Assets                              $14,588,166 $13,107,423
 Property, Plant, and Equipment                5,002,080   5,260,190
 Other Long Term Assets                        6,283,234   6,667,003
 Total Assets                                $25,873,480 $25,034,616

LIABILITIES - STOCKHOLDERS' EQUITY
 Current Liabilities                          $4,734,711  $4,737,864
 Long Term Obligations                         6,976,629   8,422,043
 Stockholders' Equity                         14,162,140  11,874,709
 Total Liabilities and Stockholders' Equity  $25,873,480 $25,034,616

United States Postal Service (USPS) Contracts

Plastic locker sales to the USPS totaled $21,967,000 in 2003 compared to $23,580,000 in 2002. Plastic Cluster Box Unit (CBU) sales to the USPS decreased 6% to $21,223,000 in 2003 from $22,649,000 in 2002. The decrease in CBU sales was the result primarily of overall declines in volume purchased by the USPS. Price reductions that became effective in April 2003 resulted in reduction of revenue of approximately $90,000 in 2003 versus 2002. The current contract was extended in April 2003 for a term of one year. The Company's subsidiary, Security Manufacturing Corporation (SMC), also was awarded a two year contract for aluminum CBUs by the USPS in April 2001 that was extended through April 2004. SMC shipments of CBUs to the USPS and to distributors and resellers were a significant portion of SMC's total sales in 2003 and are included in the Company's metal and electronic locker revenues. The Company has been advised by the USPS that these contracts will likely be extended on a short term basis and that the USPS will, as in past years, seek bids with respect to these contracts later this year.

Metal and Electronic Lockers

Sales of metal, coin and key-only and electronically controlled lockers were $17,135,000 in 2003 versus $16,512,000 in 2002, an increase of $623,000 or 4%. This increase consisted of an increase of $1,140,000 in SMC's sales, offset by a decrease of $517,000 relating to other locker products.

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, and (iii) the risk that the Company's contracts with the United States Postal Service will not be renewed or that orders placed by the United States Postal Service under contracts will be substantially reduced, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.