American Locker Group Reports Fiscal Year 2006 Results.

GRAPEVINE, Texas -- American Locker Group Incorporated (Pink Sheets: ALGI) ("American Locker" or the "Company") today reported net income for the fiscal year ended December 31, 2006 of $639,000 compared to a net loss of $8,092,000 in fiscal year 2005. Net income per share was $0.41 in 2006 compared to a net loss per share of $5.25 in 2005. Net income before taxes in 2005 was negatively impacted by one time charges of $6,155,000 for impairment related to the write-down of previously recorded goodwill, and $2,329,000 for restructuring charges.

Revenues were $25,065,000 for fiscal year ended December 31, 2006 compared to $32,304,000 in fiscal year 2005. Revenues decreased $7,239,000 or 22.4%, due to the loss of the United States Postal Service ("USPS") contracts for polycarbonate and aluminum cluster box units ("CBU") that expired May 31, 2005. This revenue was partially offset by an 8.2% increase in sales of postal lockers to the private market.

During 2006, gross margin was 34.4% up from 26.0% in 2005. In 2005, gross margin was lower due to one-time expenses of $617,000 resulting from an increase in the reserve for inventory valuation, the write-off of $615,000 of inventory related to the termination of the Company's manufacturing agreement with Signore, and expenses associated with the cancellation of the USPS polycarbonate CBU contract.

Selling, general and administrative expenses decreased by $1,204,000 to $7,285,000 in 2006 compared to $8,489,000 in 2005. The decrease of approximately 14.1% in 2006 was primarily due to a reduction in personnel-related expenses as a result of the implementation of the restructuring plan, which was partially offset by an increase of $698,000 in legal, consulting and accounting fees related to the fiscal year 2005 audit.

As of December 31, 2006, the Company had $2,508,000 of cash on hand and working capital of $7,907,000. On March 5, 2007, the Company entered into a new credit facility with The F&M Bank and Trust Company, which was used to repay the Company's existing mortgage loan. The new credit facility consists of a $2,200,000 term loan and a $750,000 revolving line of credit. The loan bears interest at prime plus 75 basis points (0.75%). The revolving line of credit matures on March 5, 2008 and the term loan matures on March 5, 2012.

About American Locker Group Incorporated

American Locker is the world's premier supplier of secure storage lockers under the American Locker Security Systems and Canadian Locker brands. American Locker's systems range from classic coin-operated lockers to computer/electronic-controlled distribution systems to employee and personal lockers. American Locker is known for its iconic orange keys and is viewed as the industry standard for secure storage. Its Security Manufacturing Corporation subsidiary is a leading provider of commercial mailboxes through a national distribution network. Security Manufacturing offers a complete line of U.S. Postal Service approved commercial mailboxes including horizontal and vertical apartment mailboxes, locking residential mailboxes, plus multi-styles for the private sectors and universities.

Further information about American Locker and its subsidiaries is available at www.americanlocker.com, www.securitymanufacturing.com and www.canadianlocker.com.

In the interests of providing Company shareholders and potential investors with information regarding the Company, including the Company's assessment of its and its subsidiaries' future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate" and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company shareholders and potential investors should carefully consider the information contained in the Company's filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.

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