Thomas Equipment Inc. and Hyundai Heavy Industries, Korea, Complete Strategic OEM Agreement

CENTERVILLE, New Brunswick--Feb. 7, 2005--

Thomas Equipment Inc. Completes Exclusive Global Supply Agreement with Multinational OEM

Thomas Equipment Inc. ("Thomas") (OTCBB: TEQI) today announced that it has reached an exclusive global supply agreement with Hyundai Heavy Industries - Construction Equipment Division (HHI-CE) headquartered in Ulsan, South Korea. Hyundai Heavy Industries is a multibillion dollar world leader in a number of diversified businesses including ship building, industrial plant, engineering services, and construction equipment.

The Construction Equipment Division is a market leader in manufacturing and distribution of excavators and wheeled loaders. In 2004, the division delivered over 10,000 excavator units of all sizes in China thereby maintaining its top market share position in the huge and growing Chinese construction market. In accordance with the Hyundai agreement, Thomas will be the sole and exclusive supplier of Skid Steer Loaders and other Thomas manufactured products for Hyundai Heavy Industries.

"This Agreement is a monumental moment in the history of Thomas Equipment. Working in harmony with our Korean partners, we share a mission to supply reliable and cost effective equipments solutions to various regions of the world," Clifford Rhee, Thomas President and CEO said.

"We are extremely pleased to partner with Thomas Equipment Inc. Thomas has a long history of providing efficient and reliable equipment which meets the stringent qualifications we seek of our strategic supply partners. Further, we have great confidence in the leadership of Clifford Rhee and his management team," Mr. Lee Eui-Youl, Senior Vice President and Chief of Oversea Sales of Construction Equipment Division said.

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.