---

Margate Expands Castings-Service Capabilities

17 May 1999

Margate Expands Castings-Service Capabilities

             Company to add powdercoating line at Michigan plant

    YALE, Mich., May 14 -- Margate Industries, Inc.
today announced it will add a powdercoating line at its Yale
Industries unit as part of the Company's plan to expand service offerings for
foundry customers.
    Margate, which operates two castings-service units, said it would offer
the powdercoating services through an alliance with Flint, Mich.-based Wesley
Industries Inc., a minority-owned automotive supplier.  Wesley, which will
provide equipment and personnel to operate the powdercoating line, will lease
space within the Yale facility.  Margate will also receive a commission on
sales.
    "The new paint line at our Yale plant reflects Margate's increased effort
to add value for our established foundry customers," Margate President William
Hopton said.  "By offering cleaning and painting services under one roof, our
foundry customers will benefit from faster turnaround and decreased shipping
costs, as well as more consistent quality."
    Hopton continued:  "We will continue to invest in our castings-service
operations through the addition of capabilities in 1999.  We believe these
investments, as well as our efforts to improve efficiency and communication,
will help enhance shareholder value in the coming year."
    Margate Industries employs approximately 200 at two wholly owned
subsidiaries, Yale Industries and Fort Atkinson Industries, which provide
cleaning, grinding, chipping and finishing of iron castings.
    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995:  The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities law.  These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially
including, but not limited to, the performance of the automotive industry,
certain customers and affiliated companies, as well as other economic,
competitive and technological factors involving the Company's operations,
markets, services, products and prices.