Earnings in Year Climbed 26 Percent, Annual Sales Grew by 11 Percent; 1999 is Eighth Straight Year of Record Sales and Earnings

BUFFALO, NEW YORK (January 25, 2000) - Gibraltar (Nasdaq: ROCK) today reported record sales and earnings for the quarter and year ended December 31, 1999. The Company also said that 1999 was its eighth straight year of record sales and earnings.

In 1999, sales were $622 million, an 11 percent increase from $558 million in 1998. Sales in the fourth quarter of 1999 were $155 million, up 8 percent from $144 million in the fourth quarter of 1998.

Net income was $25 million in 1999, an increase of 26 percent from $19.8 million in 1998. Earnings per diluted share were $1.95 in 1999, compared to $1.57 in 1998. Net income in the fourth quarter of 1999 was $5.5 million, or $.43 per diluted share, compared to $4.8 million, or $.38, in the fourth quarter of 1998.

In the six years since its Initial Public Offering (1994-1999), Gibraltar has increased its sales at a compound annual growth rate of 24 percent, and its net income has advanced at a 23 percent rate. The Company 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 a year. Six years into its ten-year plan, Gibraltar is well ahead of its ambitious growth schedule, and the Company believes it can further accelerate its progress.

"This was another outstanding year for Gibraltar. We generated record sales and earnings, and we have increased our top and bottom lines for eight years in a row. We made four immediately accretive acquisitions in the last six months (nine in the last two years), and we strengthened our leadership position in each of our key business areas. We extended our geographic and customer reach, increased and stabilized our margins, and we intensified the focus in every part of our company on improving our return on investment. As a result of these initiatives, Gibraltar today is stronger than at any point in its history," said Brian J. Lipke, Chairman and Chief Executive Officer.

"The steps we took to strengthen Gibraltar in 1999 position us to move the company to an even higher level of performance. We have nearly completed an extensive strategic review of our company. We looked at every facet of our operations, and evaluated every opportunity to maximize value for our shareholders. This exhaustive process concluded that our longstanding growth strategy is sound, and that we are on the right track. As a result of this review, we have identified even more opportunities to continue the growth of our company and improve our performance, and we look forward to building on our record of achievement and success," said Mr. Lipke.

"As we look ahead to the new year, demand trends in all of our major businesses remain strong, which should contribute to our continued growth. We are aggressively looking for ways to fully capture the many synergies throughout our company. And our pipeline of potential acquisitions is full, giving us a number of strategic growth opportunities," said Mr. Lipke.

"In the coming year, our increased product and geographic diversification, our focus on higher value-added products and services, our push to increase our sale of higher-margin manufactured end products (which now account for approximately 45 percent of our total sales, compared to 14 percent in 1993), and the growth in those parts of our company that do not have a raw material cost component in their selling price (like our heat-treating, distribution, and trucking operations) will help mitigate the industry-wide trend toward higher costs in some raw material categories.

"In addition, continued top-line growth throughout our company - together with an intense company-wide focus on cost control and maximizing asset utilization - has put us in an excellent position to continue building on our record of success," said Mr. Lipke.

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.

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 9,000 customers in a variety of industries. It has approximately 3,100 employees and operates 50 facilities in 19 states and Mexico.