Gales Industries Incorporated Announces $3.9 Million in New Orders from Several of its Major Aerospace/Defense and Commercial Customers.

Company Provides New Metrics for Improved Visibility of Increasing Backlog

BAY SHORE, N.Y. -- Gales Industries Incorporated (OTCBB: GLDS) (the Company), a leading aerospace/defense manufacturer of flight safety and other critical componentry, today announced that its wholly-owned operating subsidiary, Air Industries Machining Corp. (AIM) has received multiple new awards valued at $3.9 million since the beginning of its fiscal fourth quarter on October 1, 2006. These awards include the previously announced $1.3 million EA6B Aircraft arresting gear contract from Northrop Grumman Corporation, $717,000 in additional contracts for the F35 Joint Strike Fighter landing gear components, and $802,000 for spare parts from Rotair Industries.

"These new awards illustrate our ongoing and expanding relationships with some of the world's leading prime aerospace contractors," said Gales & AIM President & CEO Peter Rettaliata. "Our precision manufacturing and engineering capabilities are clearly of value to the largest players in our industry. All of the products purchased under these awards and various other previously received contracts give us substantial visibility, contributing toward our 18-month "firm backlog" which currently stands at $30 million. Furthermore, management's "projected backlog" for the same 18-month period includes both the firm backlog as well as anticipated order releases against long term agreements with our prime aerospace contractors for a combined amount of approximately $60 million."

Gales management had previously announced an 18-month consolidated backlog of $54 million at August 16, 2006. In accordance with a change in methodologies intended to provide improved clarity in understanding the Company's information management approach, Gales is now 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. 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.

Gales Industries' Executive Chairman Michael A. Gales added, "The pace at which the Company is receiving new contracts and awards is a clear acknowledgement of the significant role that Gales/AIM is furnishing the demanding aerospace/defense industry. From a strategic perspective, we are pleased that this business generation is emanating from both the civilian as well as defense sectors. This mix clearly suggests that we are well positioned to capitalize on the demand resurgence in both passenger and freightliner aircraft, as well as continuing activity from the defense sector. We believe that this progress eminently showcases the solid shareholder value of our Company's business fundamentals and clearly demonstrates our expanding growth potential."

ABOUT GALES INDUSTRIES INCORPORATED

Gales is a leading aerospace/defense manufacturer and engineering integrator of flight safety and mission critical components with a focus on consolidation within the disciplines of manufacturing, technical services and strategic product 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 organizations in the $15-$100 million annual revenue range. 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, and potential future results 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, and other factors, including 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.