ALG Aquires Rousseau Holdings, S.A.

For Immediate Release

For: Alamo Group Inc.
Contact: Robert H. George
Vice President

Financial Dynamics
Eric Boyriven/Alex Scott


SEGUIN, Texas, March 15, 2004 -- Alamo Group Inc. (NYSE:ALG) announced that effective today it has completed its previously announced acquisition of Rousseau Holding, S.A. in France, having met all closing conditions, including clearance of the transaction by French anti-trust authorities. Alamo acquired 100% of the issued and outstanding shares at a purchase price of approximately 6 million Euros (US $7 million).

Rousseau is a leading French manufacturer of right of way mowing equipment and other vegetation maintenance equipment, parts and service. The company is located near Lyon, France and employs approximately 135 in its 172,000 square foot facility. Revenue in 2003 was approximately 16 million Euros (US $19 million).

Ron Robinson, President and Chief Executive Officer of Alamo, commented, "Rousseau is an excellent fit for Alamo and will be a positive addition to our European operations."

Geoffrey Davies, Alamo Group (EUR) Managing Director, added, "The acquisition of Rousseau will strengthen Alamo Group (EUR)'s position as Europe's largest manufacturer of specialized vegetation maintenance machinery, while providing our customer base with even more choice." Mr. Davies went on to say, "Alamo plans to strengthen the company by adding additional product lines, which would be manufactured in the plant at Lyon. Further, Rousseau machinery will be introduced into a number of new markets around the world."

In an unrelated development, the Company has signed an agreement to sell its Dutch based distributor, jj Dabekausen bv, to one of the Company's English dealers. The buyer will continue to represent the Company's products as an independent distributor. The sale is anticipated to close before the end of the month and be effective as of March 1, 2004. The transaction will be treated as an asset sale and will result in an after tax loss of approximately US$ 260,000.

According to Mr. Robinson, "Dabekausen was the only Company owned distributor and did not fit operationally with the rest of Alamo Group."

Mr. Davies commented, "This distributor arrangement will benefit Alamo Group (EUR) as the new owners have successfully marketed a number of our products within the UK for many years. The new owners see this as a logical expansion of their own business, presenting them with an opportunity to market further Alamo Group (EUR) products into mainland Europe. Their initial market entry will be concentrated in the Netherlands, Germany and the Benelux countries."

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 services. The Company, founded in 1969, has over 1,700 employees and operates fourteen plants in North America and Europe as of March 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.