Thomas Equipment, Inc. and Pneutech Inc. Announce Commencement of Production in Busan, South Korea

CENTREVILLE, New Brunswick--Jan. 1, 20059, 2005--

Pneutech Inc. to become a wholly owned subsidiary of Thomas Equipment, Inc.

Thomas Equipment, Inc. ("Thomas") (OTCBB:TEQI) and Pneutech Inc. ("Pneutech") announced today the completion and opening of a new state-of-the-art 70,000 square foot manufacturing facility in Busan, South Korea. Busan, Korea is the largest port city in South Korea, with a population of over 4,000,000. Last month, Pneutech Inc. and Thomas Equipment, Inc. reached a definitive agreement with Pneutech to acquire one hundred percent of its outstanding stock in a stock for stock tax free acquisition; the transaction is expected to close within the next several weeks.

"This move positions Pneutech and Thomas as its successor to be a leader in the rapidly growing Asia market," CEO Clifford Rhee said. "Our industry leading innovation and technology will evolve with the addition of this facility. Further, the capabilities of this facility are consistent with "Thomas2", our strategic initiative to grow Thomas both organically and through synergistic acquisitions. We are poised for continued expansion through organic growth. Our mission is to make Thomas a leading international manufacturer in all its existing product lines and to create new ones for emerging product lines."

About Thomas Equipment, Inc. ("TEQI"): Thomas Equipment, Inc., www.thomasequipment.net and www.thomasloaders.com, is an innovative and technologically advanced global manufacturer of a full line of skid steer and mini skid steer loaders as well as attachments, mobile screening plants and six models of mini excavators. Thomas distributes its products through a worldwide network of distributors and wholesalers. In addition, Thomas manufactures specialty industrial and construction products and a complete line of potato harvesting and handling equipment.