Espey Mfg. & Electronics Corp. Reports Second Quarter Results; Net Income Increases


SARATOGA SPRINGS, NY--(Marketwire - February 10, 2010) - Espey Mfg. & Electronics Corp. (NYSE Amex: ESP) reports results for the second quarter and the first six months of fiscal year 2010, ended December 31, 2009.

Net sales for the second quarter of fiscal 2010, October 1 to December 31, 2009, decreased by 5.3% to $5.9 million as compared with last year's second quarter net sales of $6.2 million. The net income for the period was $514,171, $.24 per diluted share, as compared with a net loss of $42,412, $.02 per diluted share for the corresponding period the last fiscal year.

For the first six months of fiscal 2010, July 1 to December 31, 2009, net sales increased by $.5 million to $12.7 million, as compared with $12.2 million for the first six months of fiscal 2009. Net income for the six months increased to $1,506,934, $.71 per diluted share, as compared with net income of $355,884, $.17 per diluted share, for the corresponding period the last fiscal year.

The sales order backlog for the Company was $33.9 million at December 31, 2009, compared with last year's sales backlog of $44.0 million at December 31, 2008. New sales orders in the first half of fiscal 2010 were approximately $7.6 million, compared with $11.5 million in the first half of fiscal 2009.

Mr. Howard Pinsley, CEO and Chairman of the Board, commented, "Based upon recent discussions and negotiations with customers, we are optimistic that the company will receive new orders in the near future that will enable us to continue our profitability."

Espey's primary business is the development, design, and production of specialized military and industrial power supplies/electronic equipment. The Company's web site can be found on the Internet at www.espey.com.

This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

Espey Mfg. & Electronics Corp. comparative unaudited three-month and
six-month figures for the periods ended December 31, 2009 and 2008.

                             Three Months              Six Months
                           2009        2008         2009         2008

Sales:                  $5,866,331  $6,194,177  $12,741,271  $12,247,696
Net (Loss) Income:         514,171     (42,412)   1,506,934      355,884
Income per share:
  Basic                        .24        (.02)         .71          .17
  Diluted                      .24        (.02)         .71          .17

Weighted average number of
Shares outstanding:
  Basic                  2,138,416   2,107,257    2,127,700    2,104,782
  Diluted                2,149,831   2,114,363    2,134,339    2,115,201

Contact Information: For further information, contact: Mr. David O'Neil or Mr. Howard Pinsley (518) 245-4400