Second Quarter Earnings Per Share Climb 26 Percent

BUFFALO, NEW YORK (July 21, 1999) - Gibraltar (Nasdaq: ROCK) today reported its sales and earnings for the three months ended June 30, 1999, both of which were best-ever quarterly results. The Company also said that its gross profit margin exceeded 20 percent for the first time as a publicly traded corporation.

Sales in the second quarter increased by 11 percent to $160.2 million, compared to sales of $144.9 million in the second quarter of 1998. Sales in the first six months of 1999 were $304 million, an increase of 16 percent from $261.3 million in the first half of 1998.

Net income in the second quarter increased by 27 percent to $7.3 million, or $.57 per diluted share, compared to $5.8 million, or $.45 per diluted share, in the second quarter of 1998. For the first six months of 1999, net income grew by 24 percent to $12.3 million, or $.96 per diluted share, compared to $9.9 million, or $.78 per diluted share, in the first six months of 1998.

The Company also said that it sold one of its divisions during the second quarter, which reduced earnings per diluted share by approximately $.03. That division had sales of approximately $7 million in 1998.

"This was a pivotal quarter for Gibraltar, made possible, in large part, by our many recent growth initiatives. Our four 1998 acquisitions (The Solar Group in March, Appleton Supply Company in April, United Steel Products in June, and Harbor Metal in October), the continuing increase in business from our new mill in Cleveland, and steady growth at existing operations all contributed to our excellent results," said Brian J. Lipke, Chairman and Chief Executive Officer.

"This was far and away our best-ever quarter in terms of sales, earnings, and gross profit margin. And as we move into the second half of the year, we have put ourselves in an excellent position to generate record sales and earnings in 1999, which would be our eighth straight year of sales and earnings growth," said Mr. Lipke.

"Looking ahead to the balance of the year, we see a number of drivers for continued growth. Demand trends in our major businesses, including automotive and building products, remain strong. We are taking steps to more fully capture the many synergies in our growing family of companies and to maximize asset utilization. And there are many additional opportunities to make immediately accretive acquisitions, which could further accelerate our growth," said Mr. Lipke.

Thus far in 1999, Gibraltar has made two immediately accretive acquisitions. In April, it acquired a heat-treating facility in Arden, North Carolina, which now operates as part of Carolina Commercial Heat Treating. On July 1, it acquired Weather Guard Building Products, a Denver, Colorado-based manufacturer and distributor of a full line of metal building products for industrial, commercial, and residential applications.

"During the first half of the year, we continued to focus on controlling our costs, improving our return on assets, and using our cash flow to pay down debt. In fact, we reduced our borrowings by approximately $16 million in the first six months of the year. The cash generated by our operations, together with the funds available on our credit facility, give us the capital necessary to continue growing our business through acquisitions, expansion of our existing facilities, and greenfield sites," said Mr. Lipke.

"We are well ahead of schedule to reach our goals of $1 billion in sales and $45 million in net income by 2003 or sooner. And today we have a greater range of opportunities to grow our company than at any point in our history, which puts us in an excellent position to maintain and possibly accelerate our targeted growth rates," 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; the impact of the Year 2000 issue; 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 more than 9,000 customers in a variety of industries. It has approximately 2,800 employees and operates 46 facilities in 19 states and Mexico.