Sales Increased Nine Percent to $678 Million in 2000 from $622 Million in 1999

BUFFALO, NEW YORK (January 31, 2001) – Gibraltar (Nasdaq: ROCK) today reported record sales and near-record earnings for the year ended December 31, 2000. In 2000, sales were $678 million, a nine percent increase from $622 million in 1999. In spite of the fourth quarter slowdown, this was the ninth consecutive year of record sales. Sales in the fourth quarter of 2000 were $150 million, compared to $155 million in the fourth quarter of 1999.

Net income was $24.4 million, or $1.92 per diluted share, in 2000, compared to $25 million, or $1.95 per diluted share, in 1999. Net income in the fourth quarter of 2000 was $3.2 million, or $.26 per diluted share, versus $5.5 million, or $.43 per diluted share, in the fourth quarter of 1999.

EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to a record $81.1 million, up 11 percent from $72.9 million in 1999.

“In spite of a very difficult operating environment, we generated our ninth consecutive sales record, near-record earnings, and record EBITDA in 2000. The steps we have taken to expand and diversify our customer base, shift more of our business into higher-margin activities, and focus our activities on the fastest-growing geographic and steel-consuming markets, have positioned us to deliver consistently strong results in a volatile and competitive market, and build on our record of performance and success,” said Brian J. Lipke, Chairman and Chief Executive Officer.

“As we noted earlier this month, the economic slowdown – especially in the automotive and building products areas, which are our two largest markets – lowered our sales and earnings in the fourth quarter. But because of the diligent efforts of our entire Gibraltar Team, we finished 2000 in much better shape than most of our competitors,” said Mr. Lipke.

“We have taken, and we continue to take, a number of steps to cut costs and improve our results. While we already have one of the best inventory turnovers in the industry, we have further reduced our inventories to meet our current sales needs, and we continue to focus on increasing our ROA, cutting and eliminating costs, improving our margins, and growing our EBITDA,” said Mr. Lipke.

In light of many uncertainties – the duration and extent of the economic slowdown; the number, size, and timing of interest rate cuts; and fluctuating energy costs – Gibraltar’s revenue and earnings outlook for this year is not clear enough at this time for the Company to provide specific guidance on its expected sales and earnings for 2001. The Company does expect a difficult operating environment in the first quarter of 2001 (compared to the first quarter of 2000), with conditions improving later in the year.

“We are hopeful that this year will reverse the pattern from last year, by starting slowly and then building momentum. We do see some positives on the horizon in 2001. Interest rates, which severely impacted 2000 results, are coming down, and they are expected to move even lower in the months ahead. The price of steel (which is our raw material), has also fallen, which bodes well for our business. And we continue to see many opportunities – with our existing operations and through acquisitions – to continue our strategic growth,” said Mr. Lipke.

“Gibraltar is a solid company, with a clear strategic focus, a great team of people, an excellent customer list, a strong balance sheet, and more growth opportunities today than at any point in its history. We fully expect to come through this economic slowdown faster and stronger than our competitors, and ready to build on our record of achievement and success,” said Mr. Lipke.

In the seven years since its Initial Public Offering (1994-2000), Gibraltar has increased its sales at a compound annual growth rate of 22 percent, and its net income has advanced at a 19 percent rate. Gibraltar is committed to generating annual sales of $1 billion or more, and net income of at least $45 million, by 2003 or sooner, by growing its top and bottom lines by at least 20 percent per year.

Gibraltar is a growth-oriented company, with expanding operations in the building and construction products, metal processing, and commercial heat-treating markets. The Company serves approximately 10,000 customers in a variety of industries. It has approximately 3,500 employees and operates 54 facilities in 19 states and Mexico.

Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to a number of risk factors, including: the impact of changing steel prices on the Company’s results of operations; changing demand for the Company’s products; risks associated with the integration of acquisitions; and changes in interest or tax rates.