Thomas Equipment Releases Update on Restructuring Plan

June 20, 2006 — Thomas Equipment, Milwaukee, previously reported that the company will undergo a major restructuring, designed to provide it with appropriate management and financial resources to address short-term needs and successfully execute on longer-term strategic opportunities. On May 15th, 2006, Laurus Master Fund, Ltd. ("Laurus") closed on a $15 million financing transaction. Of this amount, $8.5 million was released to the company upon closing, with the remaining $6.5 million to be released upon milestones to be mutually agreed upon between Thomas Equipment and Laurus.

"Thomas is current in its payment obligations to Laurus, our senior lender,” said David Marks, chairman of the board. “We have been in contact with our senior lender Laurus in respect to our previously announced operating and management changes. We believe that Laurus is looking forward to working with our new management team in order to help the company accomplish its goals successfully. We expect to define the milestones for release of the remaining $6.5 million in the near future so that we can access those funds as needed."