ALG to Acquire Rousseau Holdings, S.A.

For Immediate Release

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

Financial Dynamics
Eric Boyriven/Alex Scott
212-850-5600

ALAMO GROUP INC. SIGNS AGREEMENT TO ACQUIRE ROUSSEAU HOLDINGS, S.A.

SEGUIN, Texas, February 6, 2004 — Alamo Group Inc. (NYSE:ALG) announced today that its wholly owned European subsidiary, Alamo Group (EUR) Limited, has entered into an agreement to acquire Rousseau Holding, S.A., a leading French manufacturer of right of way mowing and other vegetation maintenance equipment, parts and service. The Company anticipates that the transaction will close in March, subject to customary closing conditions and review by French anti-trust authorities.

Rousseau is located near Lyon, France and was founded in 1962. They have annual revenue of approximately €16 million (approx. $19 million) with 135 employees. Historically the majority of their sales have been in France.

Ron Robinson, President and Chief Executive Officer, commented, "The acquisition of Rousseau is one we have been interested in for many years. They are an excellent fit with our existing range of mowers and should provide both manufacturing and marketing synergies for the Alamo Group in Europe."

Geoffrey Davies, Alamo Group (EUR) Managing Director, commented, "Rousseau machines have an established reputation for excellence and this is a significant and logical acquisition for Alamo Group Europe. By further expanding our market presence in France this acquisition positions us well for future growth."

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, street sweepers, agricultural implements front-end loaders, backhoe and related after market parts and services. The Company, founded in 1969, has over 1,600 employees and operates thirteen plants in North America and Europe as of January 2004. 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.