---

Margate Industries Announces 5% Stock Dividend

20 September 1999

Margate Industries Announces 5% Stock Dividend

    YALE, Mich., Sept. 20 -- Margate Industries, Inc.
today announced its board of directors approved a 5% stock
dividend for shareholders of record as of October 15, 1999.  The dividend will
be issued on November 15, 1999.
    The Yale, Mich.-based foundry-service company said its first-ever stock
dividend reflects the board's belief that Margate common stock is undervalued
relative to the Company's growth prospects.
    "Margate is in prime position to take advantage of the overworked foundry
industry," said William H. Hopton, president and chief executive officer of
Margate Industries.  "The record pace in the North American auto industry and
strength in the heavy-equipment business are contributing to capacity
constraints at Midwest foundries.  Our specialized cleaning and finishing work
provides these foundries with a competitively priced outsourcing alternative
that, in turn, allows them to focus capital and human resources on higher
margin casting operations.  This emerging opportunity, as well as operating
improvements and new service offerings at our facilities, is helping Margate
increase profitability and position itself for the future."
    In the second quarter ended June 30, 1999, Margate reported net income of
$116,870, or $0.08 earnings per share, on net sales of $2.6 million, compared
with net income of $73,823, or $0.05 per share on net sales of $2.6 million in
the prior year period.  The figures represent a 58% increase in net income and
a 62% gain in earnings per share.
    Margate Industries employs approximately 200 at two wholly owned
subsidiaries, Yale Industries and Fort Atkinson Industries, which provide
cleaning, grinding, chipping, painting and finishing of iron castings used
primarily in the manufacture of automotive vehicles, heavy equipment and farm
equipment.
    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.