SOURCE: Thomas Equipment, Inc.

December 14, 2006 18:36 ET

Thomas Equipment Launches Its New 1,500 LB Class Skid-Steer Machine With Hewlett Equipment (Aust) Pty Ltd., Exclusive Distributor in Australia

NEW YORK, NY -- (MARKET WIRE) -- December 14, 2006 -- Thomas Equipment, Inc. ("Thomas") (PINKSHEETS: THME) announced the introduction of its new 1,500 LB Class Skid-Steer Machine in Australia. Carrying the model name "155," the machine is being produced at the Company's state-of-the-art assembly plant in Busan, Korea.

Hewlett Equipment (Aust) Pty Ltd. is the exclusive Australian importer and distributor of Thomas earthmoving products consisting of Mini Loaders, Skid-Steer Loaders and Mini Excavators. Hewlett Equipment (Aust) Pty Ltd. has been associated with Thomas Equipment since 1992. The Company has been successful in the machinery business since 1980. Hewlett Equipment (Aust) Pty Ltd. is managed and owned by Mr. John Hewlett, a widely experienced and respected figure in the machinery industry. Hewlett Equipment (Aust) Pty Ltd. has a dedicated staff that can boast over 25 years experience in upholding the Hewlett Equipment name.

According to Mr. Hewlett, "We have evaluated the new Thomas Equipment 155 machine. The Thomas Equipment 155 model will outperform its competitors in the industry, including Caterpillar, Bobcat, Case and others. It will attain a market leadership position in Australia. Our initial order is likely to be sold out rapidly. The 155 model builds upon the outstanding performance and durability long associated with the Thomas Equipment name. It also incorporates new advanced features in engineering and functionality."

Mr. Lim Chul Jin, President of Thomas Asia, said, "Production in our Busan facility is fully up to speed. We are operating at our capacity to meet the backlog of orders. Our engineering and manufacturing personnel spent a full year perfecting the machine. During this period, we worked closely with the Hewlett organization. They provided us with excellent feedback about important features and functionality needed to best serve the marketplace."

According to Mike Luther, the Chairman and CRO/CEO of Thomas Equipment, Inc., "Distributors and dealers are the backbone of the Thomas Equipment business. We are proud to be associated with the Hewlett organization. The Busan Korea plant provides a strong product addition to the Company. Our Busan Korea facility also provides important access for parts, technical support and service in the Pan Asian region. We expect big things out of the Hewlett organization."

Concurrent with the new 155 model, Hewlett Equipment ordered a substantial quantity of Thomas Equipment's existing product line including the 85, 153, 205 and 255. These machines are being produced in Thomas Equipment's New Brunswick, Canada facility.

According to Chuck Matteson, President of Thomas Equipment 2004, Inc., "Led by Brian Barton, V.P. Operations, the New Brunswick plant is back on line. For the past few weeks, we have purchased production parts and materials and added personnel. There are more people to hire. Importantly, vendor relations are being re-established. In any case, Thomas Equipment staff is working diligently to meet the substantial loader backlog."

Previously, Thomas Equipment, Inc. announced that its Thomas Equipment Asia Co. Ltd. subsidiary ("Thomas Asia") had 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 Equipment 2004, 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.

Contact Information