SOURCE: Thomas Equipment, Inc.

December 01, 2006 16:26 ET

Thomas Equipment Asia Co. Ltd., an Operating Entity of Thomas Equipment, Inc., Obtains $1.5 Million of New Debt Financing

Thomas Equipment Asia Co. Ltd. Commences Production of Thomas Loaders in Its Busan Korea Plant

NEW YORK, NY -- (MARKET WIRE) -- December 1, 2006 -- Thomas Equipment, Inc. ("Thomas") (PINKSHEETS: THME) announced that its Thomas Equipment Asia Co. Ltd. subsidiary ("Thomas Asia") has obtained US$1.5 million of financing in secured notes. The funds were provided by Laurus Master Fund, Ltd. ("Laurus"). The financing was provided under the existing senior secured credit facility between Thomas and Laurus. Thomas is not providing Laurus with any additional equity consideration in conjunction with this transaction. Proceeds of the financing will be used to pay Thomas Asia's suppliers.

According to Mr. Lim Chul Jin, President of Thomas Asia, "With the injection of additional working capital, Thomas Asia will be fully operational and commence manufacturing immediately. Production will focus on the new 1500 lb class skid loaders with advanced features. Initially it is estimated that the Korean plant will have the capacity to produce 90 loaders per month. Subject to resource availability, the plant capacity will increase to 180 loaders per month."

Thomas Equipment, Inc. and Pneutech, Inc. continue to operate under the NOI and CCAA proceedings, respectively. Thomas anticipates developing a plan for the consideration of creditors in the fourth quarter of 2006. Thomas Asia is not a party to the CCAA proceedings or any other debtor protection laws.

About Thomas Equipment, Inc.

Thomas Equipment, Inc. 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.

Pneutech, Inc. (www.pneutech.thomas-equipment.com), established in 1973, and its subsidiaries are engaged in the fluid power industry and specialize in the design engineering, manufacture and distribution of pneumatic and hydraulic systems and components for automation and motion control applications.

Pneutech customers are primarily engaged in the pulp and paper, aluminum plant, forestry equipment, automotive, oil and gas, heavy equipment, hydraulics, injection molding and power generation industries. The division maintains eight manufacturing and distribution facilities in Canada and has more than two hundred employees in engineering, manufacturing, distribution, sales, service, finance, administration and management.

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 THM 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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