Thomas Equipment Inc. Certified by General Dynamics as Supplier; Thomas Equipment Inc. Awarded Order to Provide Parts for the Stryker Vehicle Program for the U.S. Army.

MILWAUKEE--Jan. 2, 20058, 2005--Thomas Equipment, Inc., ("Thomas") (OTCBB: TEQI) announced today that it has received notification from GENERAL DYNAMICS LAND SYSTEMS, ("GD Land Systems") a subsidiary of General Dynamics Corporation , of its certification as a supplier. The certification will allow Thomas to sell its machinery and equipment to GD Land Systems. Initially, Thomas will deliver parts for the Stryker Vehicle Program. GD Land Systems manufactures the vehicles for the US Army.

"The certification by GD Land Systems and its order is consistent with "Thomas2", our strategic initiative to grow Thomas both organically and through synergistic acquisitions. GD Land Systems is a high quality customer. We are exploring other ways to supply GD Land Systems and other defense contractors with technically sophisticated products." said Clifford Rhee, Thomas' President and CEO. "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 General Dynamics Land Systems: General Dynamics Land Systems, www.gdls.com, is a subsidiary of General Dynamics Corporation. It is headquartered in Sterling Heights, Michigan. Land Systems designs, manufactures and supports land and amphibious combat systems for the U.S. Army, the U.S. Marine Corps, and allied nations. Behind Land Systems' 55 year defense heritage is a commitment to provide high quality, technically superior, high value products and services to every customer. Land Systems has the leadership, financial resources, technology and strength of more than 7,400 employees who are dedicated to making the company the world's preferred supplier of a full spectrum of land and amphibious weapons systems.

About Thomas Equipment Inc. ("TEQI"): Thomas Equipment Inc., www.thomasequipment.net and www.thomasloaders.com, Thomas 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.

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