Alamo Group Inc. to Acquire Certain Assets of Clean Earth

SEGUIN, Texas--May 12, 2006--Alamo Group Inc. announced today that it has reached an agreement in principle to acquire certain assets from Clean Earth Environmental Group, LLC and Clean Earth Kentucky, LLC, collectively referred to as Clean Earth. These assets include the Vac-All and sewer vacuum truck lines and the SHARC street sweeper line, together with related inventory and certain other assets that relate to these businesses.

Clean Earth has been operating under Chapter 11 bankruptcy protection since January 24, 2006, and the closing of the acquisition is subject to certain requirements being met pursuant to a court order, which was approved today by the U.S. Bankruptcy Court for the Eastern District of Kentucky. It is anticipated that the transaction will close within ten days.

The purchase price for the assets is $8.875 million and sales for the product lines to be acquired were approximately $15 million in 2005.

Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Our products include tractor-mounted mowing and other vegetation maintenance equipment, excavators, street sweepers, snowblowers, pothole patchers, agricultural implements and related after market parts and services. The Company, founded in 1969, has over 2,290 employees and operates fourteen plants in North America, Europe and Australia as of March 31, 2006. The corporate offices of Alamo Group Inc. are located in Seguin, Texas and the headquarters for the Company's European operations are located in Salford Priors, England.

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market demand, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.