January 2009 Dividends Declared

For Immediate Release

For: Alamo Group Inc.
Contact: Robert H. George
Vice President
830-372-9621

Financial Dynamics
Eric Boyriven/Alexandra Tramount
212-850-5600

ALAMO GROUP INC. DECLARES REGULAR QUARTERLY DIVIDEND

SEGUIN, Texas, January 5, 2009 -- Alamo Group Inc. (NYSE: ALG) announced today that its Board of Directors has declared a quarterly cash dividend of $0.06 per share, payable February 3, 2009, to shareholders of record at the close of business on January 19, 2009.

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 tractor mounted mowing and other vegetation maintenance equipment, excavators, street sweepers, vacuum trucks, snow blowers, pothole patchers, agricultural implements and related after market parts and services. The Company, founded in 1969, has over 2,475 employees and operates seventeen plants in North America, Europe and Australia as of December 31, 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.