Thomas Equipment, Inc. Announces Scheduled Completion of New Plant in Busan, South Korea; Thomas Equipment, Inc. Announces Debut of New 1500lb Class Skid Steer Loader

CENTERVILLE, New Brunswick--July 14, 2005--Thomas Equipment, Inc. ("Thomas") (OTCBB:TEQI) today announced that prior to July 31, 2005 it will complete installation of all capital equipment and commence prototype production at its new manufacturing plant in Busan, South Korea which will have a full production capacity of 300 units per month. Thomas expects to start regular production from the Busan plant in September, 2005. Initially, Thomas expects to produce 180 units per month at the Busan Plant.

In addition, Thomas announced the debut of its newest skid steer loader. The New Thomas model is a 1500 lb class skid steer loader with enhanced product features highlighted by full hydraulic joystick controls. Thomas expects to complete the necessary regulatory certifications and road tests for this New Thomas model during the month of August.

"We are pleased to complete two milestones this month in the storied history of Thomas: first, the rapid completion of our new plant in Busan, South Korea on budget; second, the introduction of our new 1500 lb class machine." said Clifford Rhee, president and CEO of Thomas. "The new model will incorporate a series of enhancements and new features to our standard machine platform without sacrificing any of the reliability or quality strengths of our machines."

"Our R&D team did a brilliant job of efficiently and quickly developing and completing the new 1500 lb class machine for the market. In the same tradition of our award-winning Model 320, we are breaking new ground and expect dealers and customers alike to embrace this new member of Thomas' family," said David Marks, chairman of Thomas. "The completion of the Busan plant will enable Thomas to better serve the growing number of our international customers."

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.