ALG Acquires Spearhead Machinery Limited

For Immediate Release

Alamo Group Inc.

Robert H. George
Vice President

Financial Dynamics
Eric Boyriven/Alexandra Tramont


SEGUIN, Texas, February 14, 2005 -- Alamo Group Inc. (NYSE: ALG) announced that effective today its wholly owned European subsidiary, Alamo Group (EUR) Limited completed the previously-announced acquisition of 100% of the issued and outstanding shares of Spearhead Machinery Limited ("Spearhead"), at an approximate purchase price of £3.25 million (US$6.0 million).

Spearhead designs, manufactures and sells a range of tractor-mounted vegetation maintenance equipment, including reach mowers, flail mowers, rotary cutters and rotary swipes. The Company's annual sales are approximately US$10 million and it is located in Pershore, Worcestershire, England.

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, backhoes and related after market parts and service. The Company, founded in 1969, has over 1,900 employees and operates fourteen plants in North America and Europe. 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.