Gales Industries Incorporated Announces $3.5 Million in New Orders Led by Northrop Grumman Corporation and Other Major Commercial and Military Customers.

Management Comments on Execution of Diversification Strategy

BAY SHORE, N.Y. -- Gales Industries Incorporated (OTCBB: GLDS) (the Company), a holding company established to consolidate manufacturers, engineering integrators and specialized service providers to the aerospace/defense industry, today announced that its wholly-owned operating subsidiary Air Industries Machining Corp. (AIM) has received multiple new awards led by Northrop Grumman Corporation valued in excess of $3.5 million from November 9, 2006 through January 10, 2007.

"Diversification is a strategic imperative and our recent orders reflect successful execution in this pursuit," said Gales & AIM President & CEO Peter Rettaliata. "These orders include an award from Northrop Grumman for approximately $1 million to manufacture E-2C Wing Attachment Fittings, representing a new product to be produced by Air Industries for Northrop Grumman that was won in a competitive bidding process. There is also potential for significant additional follow-on procurement orders for these fittings as the E-2 aircraft program is expected to remain active in the fleet for the next twenty years. The majority of the other recently received awards reflect follow-on business from existing customers, including Boeing Company, Goodrich Corporation, Northrop Grumman and Sikorsky Aircraft."

"We are excited that the year 2007 is beginning on such a positive note," commented Gales Industries' Executive Chairman Michael A. Gales. "Today's announcement reflects sales growth through varied end-user diversification, as well as ongoing requirements for original and replacement parts that we are uniquely positioned to provide. All of the awards and contracts represented in today's announcement are incremental to backlog metrics provided by the Company on November 8, 2006. At that time, Gales Industries' 18-month "firm backlog" was $30 million. Our "projected backlog" for the same 18-month period included both the firm backlog as well as anticipated order releases against long term agreements with the Company's prime aerospace contractors for a combined total of approximately $60 million."

In accordance with a previously announced change in methodologies intended to provide improved clarity in understanding the Company's information management approach, Gales is furnishing "firm backlog" as well as "projected backlog" figures for forward 18-month periods. The "firm backlog" includes all fully authorized orders received for products to be delivered within the forward 18-month period from the date of being announced. The "projected backlog" includes the firm backlog and forecasted demand from the Company's base of leading prime aerospace/defense contractors for product releases against existing general purchase agreements (GPA's). Although the forecasted releases against GPA's within the forward 18-month period are included in the "projected backlog", the Company may actually receive additional substantial "follow-on" awards through the balance of a GPA contract period, some of which currently extend through 2012.

ABOUT GALES INDUSTRIES INCORPORATED

Gales Industries Incorporated (OTCBB: GLDS) is a holding company established to engage in the consolidation of manufacturers, engineering integrators and related service providers to the aerospace/defense and commercial aviation industries. The Company is focused on flight safety and other critical componentry. The Company's first acquisition was of Air Industries Machining Corp., a leading aerospace/defense manufacturer and engineering integrator based in Bay Shore, Long Island, NY. Consolidation opportunities include companies operating within highly synergistic disciplines of manufacturing, technical services and strategic products distribution. The Company's strategy and attendant tactical plan is to execute its consolidation principally amongst Tier III, IV and V aerospace/defense subcontractors. Gales offers a tailored exit strategy or management continuity strategy in exchange for qualified acquisitions, and targets technically superior middle market organizations with revenues of up to $100 million annually. Information on the Company and its products may be found online at www.airindmc.com.

Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company's control. Certain of the Company's forward looking statements, with the projected backlog in particular, are formulated based on management's extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.