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Margate Reports Higher Year-End Sales, Earnings

    Net earnings increased 110% in 2000; Company warns of auto-related sales
                               slowdown in 2001

    YALE, Mich., March 29 Boosted by increased productivity
and a growing customer base, Margate Industries, Inc. today
announced sharply higher earnings and increased sales for the year ended
December 31, 2000.
    The Yale, Mich.-based provider of specialty services to the foundry
industry said net income more than doubled to $695,402, or $0.40 per share, on
net sales of $10.8 million in 2000, compared with net income of $331,839, or
$0.22 per share, on net sales of $9.6 million in 1999.  Net income improved
110 percent and earnings per share grew 82 percent on a 12 percent increase in
sales over the prior year.  The Company does not report fourth-quarter results
separately from year-end figures.
    Margate attributed the earnings improvement in 2000 to higher sales and
increased efficiency at its foundry services operations, which provide
cleaning and finishing of foundry castings.  The addition of a major new
customer, Waupaca Foundry, and increased business from other midwestern
foundries resulted in higher sales levels versus the prior year.  Investments
in new equipment and technology helped the Company improve its efficiency and
quality in 2000, contributing to higher gross-margin levels compared with the
prior year.
    Gross margin improved to 16.7 percent of sales in 2000, versus 10.8
percent of sales in 1999, reflecting efficiency gains from increased use of
automated equipment as well as improved productivity on the part of Margate's
employees.  Operating income grew 216 percent versus the year-ago period,
reflecting improved gross profit levels and the Company's cost-management
efforts.
    "I am very pleased with our results for the year 2000," said William H.
Hopton, president and chief executive officer of Margate Industries.  "Our
efforts to improve service generated strong returns, which allowed us to
bolster our balance sheet and further strengthen the Company's operations.
Over the past few years, we have benefited from the trend toward increased
quality and testing requirements in the auto industry because many foundries
have chosen to outsource their finishing operations.  As the economy slows, we
are well positioned to weather the downturn that is being forecast for the
automotive and heavy-equipment markets that many of our foundry customers
supply."
    The Company said it expects sales at its foundry-services operations to be
lower in the first half of 2001, due mostly to the slowdown in the North
American automotive industry.  Margate said it expects lower service revenues
in the coming year from its largest customer, New Haven Foundry, which makes
gray iron castings primarily for DaimlerChrysler.  The Company said it has
moved aggressively to manage costs and increase sales from other customers,
but expects to post break-even performance at its services units in the first
two quarters of 2001.
    Margate also reported that it is proceeding with its previously announced
strategy to merge with c-Spectra, Inc., a New York City-based provider of
broadband wireless telecommunications and Internet access systems.  c-Spectra
is developing a technologically advanced global wireless network capable of
providing "last mile" Internet access in underdeveloped regions of the globe
where wire-based telecommunications infrastructure is lacking.  Initial
deployment of its network has begun in Buenos Aires, Argentina and, after the
merger is completed, c-Spectra plans to expand its network in major South
American and European markets.
    "The board of directors believes the proposed merger with c-Spectra
represents an excellent opportunity to enhance value for shareholders," Hopton
said.  "The transaction will allow Margate shareholders to participate in an
attractive, early-stage broadband wireless telecommunications business.  It
also enables us to diversify our operations and position the Company for
outside capital financing for growth."
    Margate Industries employs approximately 200 at two wholly owned
subsidiaries, Yale Industries and Fort Atkinson Industries, which provide
cleaning, grinding, chipping and finishing of iron castings.
    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities law.  These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially
including, but not limited to, the performance of the automotive industry,
certain customers and affiliated companies, as well as other economic,
competitive and technological factors involving the Company's operations,
markets, services, products and prices.

                        Margate Industries, Inc. and Subsidiaries
                             Consolidated Income Statements
                        Years Ended December 31, 2000, 1999, 1998

                                              2000         1999        1998
           Net Sales                      $10,757,042  $9,615,470  $9,627,510
           Cost of Sales                    8,959,043   8,568,312   8,851,386

           Gross Profit                     1,797,999   1,047,158     776,124

             Selling, General &
              Administrative Expenses       1,065,076     813,439     835,573
             Related Party Services and
              Sales Commissions                             1,966       4,323
           Operating Income                   732,923     231,753      63,681

           Dividend & Interest Income -
            Net                               156,902     103,643      87,893
           Interest Expense                    (9,467)    (31,445)    (67,896)
           Loss on abandonment of
            leasehold improvements                                   (143,214)
           Other Income (Expense)             214,728     210,588     156,800

           Earnings before Equity
            Investment & Taxes              1,095,086     514,539      30,098

           Provision for Federal Income
            Taxes                             399,684     182,700     (10,000)

           Net Earnings (Loss) before
            extraordinary item                695,402     331,839     (20,098)

           Extraordinary Item -- gain on
            sale of equity investee (net
            applicable income taxes of
            $84,000)                                                1,991,214

           Net Income                        $695,402    $331,839  $1,971,116

           Earnings per share (before
            extraordinary item)                 $0.40       $0.22      $(0.01)
           Extraordinary Item                                           $1.31
           Earnings per share                   $0.40       $0.22       $1.30