SEGUIN, Texas, March 4, 2008 -- Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2007.

Net sales in the fourth quarter were a record $126.3 million, an increase of 13% from the $111.9 million for the same period of 2006.  The increase in sales reflected growth in all segments of the Company's business and was further aided by the acquisition of Henke, which occurred on March 6, 2007.  Without Henke, sales growth was 11%.

Net income was also a record for a fourth quarter at $3.3 million, or $0.33 per diluted share, nearly triple the fourth quarter of 2006 results which was $1.1 million, or $0.12 per diluted share.  The increase was the result of both higher sales and better margins compared to the previous year as we started realizing the benefits from our improvement initiatives.  Excluding the Henke acquisition, net income would have been $3.1 million, or $0.31 per diluted share.

For the full year net sales grew 10% from $456.5 million in 2006 to a record $504.4 million in 2007.  Excluding the acquisition of Henke in March 2007 and adjusting for the effect of the acquisitions in 2006 of Gradall in February, VacAll in May and Nite-Hawk in July, net sales for the year would have been $485.8 million, an increase of 6%.  Net income for the year was $12.4 million or $1.24 per diluted share, an increase of 8% compared to the previous year of $11.5 million or $1.16 per diluted share.  Excluding the effect of the acquisitions, 2007 net income would have been $16.1 million, or $1.62 per diluted share, an increase of 40%.  The majority of this difference was related to issues associated with VacAll, which was acquired out of bankruptcy and subsequently relocated to the Company's Gradall facility in Ohio.   The Company began to see improvements in this unit during the second half of 2007, and expects this trend to continue in 2008.

The Company's North American Industrial Division recorded sales of $66.7 million in the fourth quarter of 2007, an increase of 11% compared to $60.2 million in the fourth quarter of 2006.  For the full year, sales in the Division were $253.2 million, compared to $232.5 million in 2006, a gain of 9%.  Without the effect of the acquisitions, sales for the quarter and year were up 7% and 1%, respectively, compared to 2006.

North American Agricultural Division sales were $27.1 million in the fourth quarter of 2007, an increase of 16% compared to $23.4 million in the comparable period of 2006.  This increase reflects growth in the U.S. agricultural market and improved operational performance at the Company's Gibson City, Illinois plant, which has been negatively affected by consolidation efforts undertaken in 2006.  For the full year, Division sales were $117.7 million compared to $106.1 million in 2006, an increase of 11%.

Alamo's European Division sales in the fourth quarter of 2007 were $32.5 million, a 15% increase compared to sales of $28.3 million in the same period of 2006.  Sales for the year were $133.5 million, an increase of 13% compared to 2006 sales of $118.0 million.  While these results were aided by exchange rates, sales in local currency were up 8% for the quarter and 4% for the full year.

Ron Robinson, Alamo Group's President and CEO commented on the results as follows: "We said 2007 was going to be a year of improvement for Alamo Group, and with sales up 10% and earnings growth of 8% it was.  The year started off slower than we anticipated as we continued to cope with issues related to some of our recent acquisitions and plant consolidations undertaken in 2006.  However, for the second half of the year our earnings were up over 78% compared to the second half of 2006, which indicates we have definitely turned a corner with our operational improvements.  We feel these operational improvements will continue to benefit us throughout 2008 and we expect further efficiencies to result from the initiatives already in progress."

"We also believe we will benefit from relatively good market conditions for our products in 2008 despite weaknesses in the overall U.S. economy.  The North American agricultural market continues to improve as farm incomes are up, helped by improved prices for agricultural commodities.  The Company's North American industrial market, which is made up primarily of sales to government entities and related contractors for right-of-way and infrastructure maintenance, is holding steady and should continue to do so unless the softness in the economy starts to impact the budgets of the state, county and local agencies to which we sell.  Finally, we expect the European markets for our products will remain steady as well, as they are a mix of the agricultural and industrial markets similar to those we serve in North America."

"We remain optimistic about the outlook for Alamo Group in 2008 and feel growth in earnings should outpace sales growth as we continue to focus on internal improvements."

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 truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snowblowers, pothole patchers, excavators, vacuum trucks, agricultural implements and related after market parts and services.  The Company, founded in 1969, has over 2,340 employees and operates sixteen plants in North America and Europe as of February 2008.  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.