Acquisition Diversifies Heat-Treating Capabilities, Geographic Reach, and Customer Base

BUFFALO, NEW YORK (February 13, 2001) – Gibraltar (Nasdaq: ROCK) today announced that it has acquired Pennsylvania Industrial Heat Treaters, Inc., a Saint Marys, Pennsylvania-based, privately held commercial heat-treating company that specializes in heat treating powdered metal parts. Terms of the acquisition were not disclosed.

Pennsylvania Industrial, which was formed in 1987, is one Pennsylvania’s leading commercial heat treaters, with 2000 sales of approximately $6 million. Its 50,000-square-foot facility in Saint Marys (in Northwest Pennsylvania, approximately 125-200 miles from Cleveland, Pittsburgh, and Buffalo), employs 60 people, and includes a complete metallurgical laboratory. Pennsylvania Industrial serves customers in the lawn and garden, appliance, hand tool, business machine, and automotive industries, among others.

“This immediately accretive acquisition underscores our commitment to continue moving Gibraltar into higher value-added, higher-margin businesses like commercial heat treating and building products. Pennsylvania Industrial is an excellent addition to our heat-treating business. It diversifies our capabilities, giving us expertise in the steadily growing powdered metals area that we can offer all of our customers. It extends our geographic reach, providing a foothold near many major industrial markets, and it expands and diversifies our customer base,” said Brian J. Lipke, Chairman and Chief Executive Officer.

Powdered metallurgy is a technically precise method of manufacturing very complex steel and other metal parts. In this process, metal powders are formed in a mold to complex shapes, and then sintered in a controlled atmosphere to solidify the formed part.

This is Gibraltar’s seventh acquisition in the commercial heat-treating business since February 1996. “This acquisition gives us annualized heat-treating revenue approaching $90 million, and moves us closer to our goal of annual revenue of $100 million or more from this part of our company by 2003, or sooner. While the sales volume from heat treating is comparatively small, since we do not own the material we heat treat for our customers, it is among the highest-margin areas of our business. The Pennsylvania Industrial acquisition further solidifies our position as one of the nation’s leading commercial heat treaters,” said Mr. Lipke.

“There are numerous opportunities for us to continue growing this part of our company. We will continue to expand the sales and earnings of our five heat-treating companies (which operate 15 facilities in nine states). With approximately 900 independent commercial heat-treating companies, there are many additional acquisition candidates. And since 90 percent of the $20 billion in annual heat-treating work is still done in house by major parts manufacturers, the opportunities for commercial providers like Gibraltar to capture a larger share of that business are enormous,” said Mr. Lipke.

“The management team at Pennsylvania Industrial – led by Joe Handwerger, John Handwerger, and Russ Meyer – is experienced and well-respected in the heat-treating industry. They have built a successful and growing business. We are pleased that the entire management team has agreed to stay with the company, and work with us to accelerate its growth,” said Mr. Lipke.

“This is our fifteenth acquisition in the last six years, and thirteenth in the last three years. Although acquisition opportunities in all of our major businesses are plentiful, we will continue to be very selective and only acquire those companies that meet our strict criteria, which includes having established records of profitability and growth,” said Mr. Lipke.

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 3,600 employees and operates 55 facilities in 20 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.