Thomas Equipment Inc. Unit Enters Into C$15.75M Term and Working Capital Commitment with Royal Bank of Canada

CENTERVILLE, New Brunswick--June 16, 2005--

Pneutech Inc. and its subsidiaries will use the proceeds to pay off their existing senior debt to HSBC and Laurus Master Fund, Ltd.

Thomas Equipment Inc. ("Thomas") (OTCBB:TEQI) today reported Pneutech Inc., ("Pneutech") its wholly owned subsidiary, entered into a financing commitment ("Credit Agreement") with the Royal Bank of Canada ("RBC") in the amount of C$15.75M. Pneutech's subsidiaries, Rousseau Controls, Inc. and Hydramen Fluid Power Limited are parties to the Credit Agreement. Under the terms of the Credit Agreement, Pneutech will obtain a conventional CD$15,000,000 revolving credit facility; Pneutech and its subsidiaries will obtain an additional conventional CD$750,000 revolving lease line of credit. The effectiveness of the Credit Agreement with RBC is dependent upon satisfactory completion of a security agreement and other documents ancillary to the Credit Agreement. The proceeds of the loan will be used to repay Pneutech's obligations to HSBC Bank Canada, funds advanced by Laurus Master Fund, Ltd. for the purchase of Pneutech by Thomas in the amount of US$1.9M, obligations of the subsidiaries and for additional working capital. It is expected this financing will close within the next two weeks.

"We were pleased to enter into this financing commitment with the Royal Bank of Canada, a respected international banking institution. Further, the terms of this financing are more favorable to our Pneutech units than their existing financing with HSBC. Finally, we will repay Laurus for the funds it advanced to Thomas when it acquired Pneutech Inc and its subsidiaries," said Clifford Rhee, President and CEO of Thomas. "After this closing, Thomas will have working capital and term loans with Laurus with an approximate balance of $22.5M."

About Thomas Equipment Inc. ("TEQI"): Thomas Equipment Inc., www.thomas-equipment.com, www.thomasloaders.com, and its subsidiaries including Pneutech Inc., www.pneutech.ca, Rousseau Controls Inc., www.rousseaucontrols.com, Samsung Industry Co. Ltd., www.ss-ind.com, and Hydramen Fluid Power Limited, www.hydramen.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' wholly owned subsidiaries manufacture specialty industrial and construction products, a complete line of potato harvesting and handling equipment, fluid power components, pneumatic and hydraulic systems, spiral wound metal gaskets, and packing material.

Safe Harbor Statement Under the Private Securities Litigation Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TEQI could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.