SOURCE: Thomas Equipment Inc

January 26, 2006 12:41 ET

Thomas Equipment's Newly Introduced Marquee 1,500 Pound Skid Steer Machine Begins Rollout From Its Korean Manufacturing Plant

MILWAUKEE, WI -- (MARKET WIRE) -- January 26, 2006 -- Thomas Equipment Inc. ("Thomas") (OTC BB: TEQI) announced today that it has begun to produce its newly introduced, revolutionary 1,500 LB skid steer machine, Model 155, from its Korean plant to be delivered to dealers in the United States and Canada.

In November 2005 Thomas unveiled its new 1,500-pound lift capacity skid steer machine ("Model 155") at the National Construction Exhibition in Sydney, Australia where it was met with considerable interest, generating $12 million in pre-production orders. To accommodate demand, the company intends to increase its production capacity from its current January production run of 85 units to 200 units per month over the next three to four months. The new model 155 is expected to become a sales leader among Thomas' diverse product line worldwide. During 2006, Thomas plans to produce and sell 1,400 Model 155 units, which represents an increase in excess of 25 percent over the sales of its predecessor 1,500-pound skid steer (Model 153) in 2005.

Model 155 incorporates many of Thomas' advanced features in engineering and functionality, including the use of a hydraulic joy stick control, thereby dramatically easing the heavy manual and time intensive process for the operator. The new 1,500 class of skid loaders is the most powerful machine in its class yielding the greatest breakout force and travel speed. Given the Korean manufacturing cost advantage, Thomas is able improve gross margins while offering the Model 155, fully loaded at the competitive price range of 1,500 - 1,700 pound class products. With the lowest warranty returns in the market today, Thomas is the only manufacturer to offer a five-year warranty. Thomas estimates the worldwide addressable market for its Model 155 at 30,000 to 40,000 units per year.

About Thomas Equipment Inc.

Thomas Equipment Inc., www.thomas-equipment.com, www.thomasloaders.com, and its subsidiaries including Pneutech Inc., www.pneutech.ca, Rousseau Controls Inc., www.rousseaucontrols.com, Samsung Industry Co. Ltd., www.ss-ind.com, and Hydramen Fluid Power Limited, www.hydramen.com: Thomas is an innovative and technologically advanced global manufacturer of a full line of skid steer and mini skid steer loaders as well as attachments, mobile screening plants and six models of mini excavators. Thomas distributes its products through a worldwide network of distributors and wholesalers. In addition, Thomas' wholly owned subsidiaries manufacture specialty industrial and construction products, a complete line of potato harvesting and handling equipment, fluid power components, pneumatic and hydraulic systems, spiral wound metal gaskets, and packing material.

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Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TEQI could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, and such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

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