Gradall Industries Inc. Reports Record First Quarter Sales and Earnings.

NEW PHILADELPHIA, Ohio--(BUSINESS WIRE)--April 29, 1998--Gradall Industries Inc. (NASDAQ/NMS:GRDL), a leading manufacturer of excavating and material handling construction equipment, reports record results for the first quarter of 1998.

Record first quarter 1998 net sales were $41.5 million, a 15.7 percent increase from sales of $35.9 million for the same quarter in the prior year and net income was $3.1 million, a 14.9 percent increase from net income of $2.7 million for the first quarter 1997. Basic and diluted earnings per share were 34 cents for the first quarter of 1998 vs. 30 cents for the same period in 1997.

Barry L. Phillips, president and chief executive officer of Gradall Industries, stated, "Gradall achieved record first quarter sales and earnings. It is important for the Company to start the year strong if we plan to achieve record results for the year. The first quarter performance was led by an increase in material handler net sales of 36.9 percent over the same quarter in the prior year. The increase in material handler sales was driven by strong first quarter rental utilization and larger distributor rental fleets along with a strong demand from national rental companies."

First quarter 1998 unit sales of excavators was just below first quarter 1997 sales. Wet weather conditions and delayed passage by Congress of the Federal Highway Bill were factors in the lower excavator shipments. Stronger municipal activity and industrial sales are expected to improve sales in the balance of 1998. The introduction of the excavator model XL2300, a new rough terrain wheeled unit, at the BAUMA construction equipment show in Germany was well received. Production of the model is scheduled to begin in May with shipments starting in July. A recent multi-million dollar agreement to provide excavators to Russia is expected to strengthen shipments in the fourth quarter of 1998.

Material handler shipments in the first quarter 1998 set both unit and dollar sales records. These results reflect the customer acceptance of the newly introduced "D" Series family of machines. Although competition in all areas of the country continues to keep pressure on rental rates, the demand for Gradall material handlers has increased as a result of broadening applications, good rental utilization, and strong market share. Gradall continues to increase production schedules to keep up with distributor and national rental account orders for new machines.

First quarter 1998 service parts sales were level with last year's first quarter sales. Traditionally, Gradall offers a winter parts special promotion program in January to incent dealers to stock in the winter months. This program and several other stock promotion plans helped maintain a high level of parts sales in first quarter 1998.

Gross profit as a percentage of net sales decreased to 23.0 percent for the first quarter 1998, down from 24.0 percent in the first quarter of 1997. Operating income as a percent of sales also decreased to 12.6 percent for first quarter 1998 from 13.0 percent in 1997. Phillips stated, "The gross margin decline during the first quarter was due primarily to the training costs of newly hired employees required to support the increased production schedule. We expect our labor efficiency to improve over the balance of the year. This, combined with our continued capital investment in new machinery and equipment, should improve our profit margins and further reduce product costs. Capital expenditures in the first quarter 1998 were $1.0 million."

Gradall, headquartered in New Philadelphia, is a leading manufacturer of wheeled hydraulic excavators and rough-terrain variable reach material handlers as well as related service parts. The company's products are marketed under the widely respected Gradall trade name and are distinguished by their telescopic boom technology, versatility, productivity and reliability. Gradall products serve niche markets within the construction equipment industry. Gradall excavators are typically used by general contractors and government agencies for ditching, sloping, finish grading, general maintenance and infrastructure projects. Gradall rough-terrain variable reach material handlers are typically used by residential, non-residential and institutional building contractors for lifting, transporting and placing a wide variety of materials at their point of use or storage. The company's products and service parts are sold through independent distributors and national rental companies throughout North America.

Forward looking statements regarding the company's future performance and financial results are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements due to a variety of factors including, besides those mentioned, the condition of the industry and the economy and the success of the company's strategic and operating plans. -0-

              Gradall Industries Inc. and Subsidiaries
             Condensed Consolidated Statements of Income
            (Dollars in Thousands, Except Per Share Data)

                                            Unaudited
                                   ________________________________
                                        Three Months Ended
                                   ________________________________
                                   March 31, 1998    March 31, 1997
                                   ______________    ______________
Net sales                          $   41,541        $   35,910
Cost of sales                          31,990            27,292
                                   ______________    ______________
Gross profit                            9,551             8,618

Operating expenses:
 Research, development and
  product engineering costs             1,054               895
 Selling, general and
  administrative expenses               3,263             3,049
                                   ______________    ______________
Operating income                        5,234             4,674

Interest expense                          218               239
Other, net                                  5                72
                                   ______________    ______________
Income before provision for taxes       5,011             4,363

Income tax provision                    1,957             1,706
                                   ______________    ______________
Net income                         $    3,054        $    2,657
                                   ______________    ______________
                                   ______________    ______________

Basic:
Weighted average shares outstanding 8,940,194         8,939,294

Earnings per share:                $     0.34        $     0.30

Diluted:
Weighted average shares outstanding 9,023,295         9,005,868

Earnings per share:                $     0.34        $     0.30


              Gradall Industries Inc. and Subsidiaries
               Condensed Consolidated Balance Sheets
                       (Dollars in Thousands)

                                     Unaudited          Audited
                                   ______________    ______________
                                   March 31, 1998     Dec. 31, 1997
                                   ______________    ______________
        ASSETS
        ______
Current assets:
 Cash                              $    2,104        $    1,605
 Accounts receivable - trade,
  net of allowance for doubtful
  accounts                             26,290            25,290
 Inventories                           25,834            25,564
 Prepaid expenses and deferred
  charges                                 484             1,645
 Deferred income taxes                    742               742
                                   ______________    ______________
      Total current assets             55,454            54,846

Deferred income taxes                   5,539             5,402
Property, plant and equipment, net     15,519            15,108
Other assets                            1,338             1,379
                                   ______________    ______________
      Total assets                 $   77,850        $   76,735
                                   ______________    ______________
                                   ______________    ______________

   LIABILITIES & STOCKHOLDERS' EQUITY
   __________________________________
Current liabilities:
 Current portion long-term debt    $      272        $      297
 Accounts payable - trade              13,587        $   17,113
 Accrued other expenses                10,971            10,927
                                   ______________    ______________
      Total current liabilities        24,830            28,337
                                   ______________    ______________

Long-term obligations:
 Long-term debt, net of current
  portion                              11,233            10,015
 Accrued post-retirement benefit
  cost                                 16,069            15,719
 Other long-term liabilities            1,445             1,445
                                   ______________    ______________
 Total long-term obligations           28,747            27,179
                                   ______________    ______________
      Total liabilities                53,577            55,516
                                   ______________    ______________

Stockholders' equity:
 Common shares, $.001 par value;
  18,000,000 shares authorized;
  8,940,194 and 8,939,294 issued
  and outstanding on March 31,
  1998, and March 31, 1997,
  respectively                              9                 9
 Additional paid-in capital            38,894            38,894
 Accumulated deficit                  (14,630)          (17,684)
                                   ______________    ______________
      Total stockholders' equity       24,273            21,219
                                   ______________    ______________
      Total liabilities and
       stockholders' equity        $   77,850        $   76,735
                                   ______________    ______________
                                   ______________    ______________

CONTACT: Gradall Industries Inc.

Bruce A. Jonker, 330/339-8374