Stewart & Stevenson Acquires Certain Assets of Industrial Power & Service, Inc.

Establishes Longview, Texas Customer Service Center

HOUSTON, Oct. 28 -- Stewart & Stevenson Services, Inc. , announces it has purchased certain assets of Industrial Power & Service, Inc. of Longview, Texas. Stewart & Stevenson, an authorized distributor of Detroit Diesel, Allison Transmission and Deutz products, will operate its Longview location as a Customer Service Center, where the company will provide superior service for existing on- and off-highway customers.

Stewart & Stevenson's Longview facility, located at I-20 East of Loop 281, features 22 service bays and is the largest repair and service facility on I-20 between Dallas, TX and Shreveport, LA. Staffed by skilled and trained technicians, Stewart & Stevenson's Longview location has the capability to provide service for trucks, trailers, generator sets and other industrial equipment.

In addition to sales and service of Detroit Diesel engines, Allison transmissions and Deutz engines, Stewart & Stevenson's Longview location offers DDC-MTU power generators, Generac generators, and AuraGen under-the- hood portable power.

Stewart & Stevenson Services, Inc., founded in 1902, is a billion-dollar company that manufactures, distributes, and provides service for a wide range of industrial products and diesel-powered equipment to key industries worldwide, including power generation, defense, airline, marine, petroleum and transportation. For more information on Stewart & Stevenson visit www.ssss.com .

This press release contains forward-looking statements that are based on management's current expectations, estimates, and projections. These statements are not guarantees of future performance and involve a number of risks, uncertainties, and assumptions and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Many factors, including those discussed more fully elsewhere in this release and in the Company's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. Specific important factors that could cause actual results, performance, or achievements to differ materially from such forward-looking statements include risk of competition, risks relating to technology, risks of general economic conditions, risks of oil and gas industry economic conditions, risks of airline industry economic conditions, risks as to terrorist attacks on the U.S. and their impact on the U.S. economy, risks relating to personnel, risks of dependence on government and failure to obtain new government contracts, inherent risks of government contracts, risks of claims and litigation, risks of product defects, risks as to foreign sales and global trade matters, risks as to cost controls, risks as to information technology, risks as to acquisitions, risks as to currency fluctuations, risks as to environmental and safety matters, risks as to distributorships, risks as to licenses, and credit risks, all as more specifically outlined in the Company's latest annual report on Form 10-K. In addition, such forward-looking statements could be affected by general industry and market conditions and growth rates, general domestic and international conditions including interest rates, inflation and currency exchange rates and other future factors. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

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