ALG Acquires Henke Manufacturing

For Immediate Release

For:    Alamo Group Inc.    
Contact:Robert H. George
Vice President
830-372-9621

Financial Dynamics
Eric Boyriven/Alexandra Tramont
212-850-5600

SEGUIN, Texas, March 6, 2007 -- Alamo Group Inc. (NYSE: ALG) announced that effective today it has acquired Henke Manufacturing Corporation, a manufacturer of specialty snow removal attachments. Henke’s products are mounted on both heavy industrial equipment and medium to heavy duty trucks. The primary end users are governmental agencies, related contractors and other industrial users. Henke, which is located in Leavenworth, Kansas, had sales of over $8 million in their last fiscal year ended June 30, 2006.

The former principal owners of Henke, Todd Lawson, Matt Hood and Win Zoellner, will remain active with the company as it becomes part of Alamo Group’s North American Industrial Division.

Ron Robinson, Alamo Group’s President and CEO commented, "This acquisition further expands the range of high quality, complementary products that we can offer to our Industrial Division customers, primarily government entities and related contractors, and should further strengthen our relationship with both dealers and end users in this segment."

Matt Hood, Henke’s Vice President of Marketing said, "We are pleased to become a part of Alamo Group. Combining our unique product capabilities with the strong distribution and resources that Alamo offers should allow us to expand our market coverage more rapidly going forward."

Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Our products include tractor and truck mounted mowing and other vegetation maintenance equipment, excavators, street sweepers, vacuum trucks, snow blowers, pothole patchers, agricultural implements and related after market parts and services. The Company, founded in 1969, has over 2,215 employees and operates thirteen plants in North America, Europe and Australia as of December 31, 2006. The corporate offices of Alamo Group Inc. are located in Seguin, Texas and the headquarters for the Company’s European operations are located in Salford Priors, England.

 

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market demand, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.