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Collins Industries Posts Record First Quarter 2006 Results

HUTCHINSON, Kan., Feb. 22, 2006 -- Collins Industries, Inc. today reported results for its First Quarter of 2006. Sales for the quarter ended January 31, 2006 increased 25% to a record first quarter $64.4 million compared to $51.5 million for the same period last year.

The Company's net income increased to a record first quarter $1.60 million ($0.25 per share - diluted) for the quarter ended January 31, 2006 compared to a net loss of $0.70 million ($0.12 per share - diluted) for the same period last year. This income improvement was principally led by increased revenues and gross profits.

Donald Lynn Collins, President and CEO, said, "Our investment in mechanization combined with product redesign have helped us reach record results for the Company in the first quarter." He stated further, "We continue in a strong trend for truck products with improvement in municipal purchases for ambulances. School bus products are beginning fleet replacement, however, our improvements are substantial from product redesign in fiscal 2005."

The Company posted a 55% increase in its sales backlog at January 31, 2006 to $109.8 million compared to $70.9 million at January 31, 2005. The increased backlog at January 31, 2006 resulted from increased orders primarily in the Terminal Truck/Road Construction and Bus segments, including a previously reported $28 million order for terminal trucks from the United States Postal Service, which will be primarily produced and delivered during the remainder of fiscal 2006.

On January 23, 2006, the Company announced that it had declared its thirty seventh consecutive regular quarterly cash dividend and increased the dividend by 25% or $0.01 per share from $0.04 to $0.05. The dividend will be $0.05 per share, paid to shareholders of record as of March 1, 2006 and will be payable on March 15, 2006. The ex-dividend date is February 27, 2006.

The Company will release the 1st Quarter 2006 financial statements and footnotes to its Company website ( http://www.collinsindustries.com/ ) and to the Pink Sheets website ( http://www.pinksheets.com/ ).

Collins Industries, Inc. is a leading manufacturer of ambulances (including medical attack vehicles, rescue vehicles and fire emergency vehicles), North America's largest producer of Type "A" small school buses, the nation's second largest manufacturer of terminal trucks and a leader in the road construction and industrial sweeper markets. Since 1971, the Company has grown to approximately 1000 employees in six plants comprising over one million combined square feet of manufacturing space. The Company sells its products throughout the United States and abroad.

  Financial Summary

  (In thousands of dollars, except per share amounts)

  (Unaudited)

                                                      Three Months Ended
                                                         January 31,
                                                     2006           2005

  Sales                                            $64,407        $51,548

  Income (loss) before income taxes                  2,582         (1,153)

  Income tax expense (benefit)                         980           (450)

  Net income (loss)                                 $1,602          $(703)

  Earnings (loss) per share:
  Basic                                              $0.26         $(0.12)

  Diluted                                            $0.25         $(0.12)