DENVER, COLORADO -- Allied Motion Technologies, Inc. (NASDAQ: AMOT) today announced a net profit from continuing operations for the quarter ended December 31, 2002 of $97,000 or $.02 per diluted share compared to a profit of $132,000 or $.03 per fully diluted share for the same period last year. Revenues from continuing operations for the quarter ended December 31, 2002 were $9,171,000 compared to $4,222,000 last year. Revenues for the quarter ended December 31, 2002 include revenues from Motor Products, which was acquired in July 2002. Backlog at the quarter ended December 31, 2002 was $13,663,000.

For the six month fiscal period ended December 31, 2002, the Company reported net income from continuing operations of $45,000 or $.01 per fully diluted share compared to a profit of $60,000 or $.01 per fully diluted share for the same period last year. Revenues from continuing operations for the six months were $17,191,000 compared to $7,868,000 last year. Revenues for the six month fiscal period ended December 31, 2002 include revenues from Motor Products, which was acquired in July 2002.

During the six months ended December 31, 2002, the Company sold substantially all of its Power and Process segment and committed to a plan to dispose of the remaining calibrator business historically included in this segment. As a result, this segments' operating results are reflected as discontinued operations. The six month results include an after-tax net gain on the sale of the Power and Systems business of $1,019,000 and an after-tax net loss from the discontinued operations, including a write-down of the net assets of the calibrator business held for sale, of $736,000. The net gain on the sale of Power and Systems is subject to adjustment during future periods based on the finalization of various expenses of the sale.

Net income, including the gain on the sale and loss from discontinued operations was $137,000 or $.03 per diluted share for the quarter ended December 31, 2002 compared to net income of $75,000 or $.02 per diluted share for the quarter ended December 31, 2001. For the six months ended December 31, 2002, net income, including the gain on the sale and loss from discontinued operations was $328,000 or $.07 per diluted share compared to a net loss of $163,000 or $0.04 per diluted share for the same six months last year.

Dick Smith, Chief Executive Officer commented, “Due to the change of our fiscal year end from June 30 to December 31, our six month results reflects the finalization of the reporting for our short fiscal year. During the six month period, we made considerable progress in transforming the Company into a pure-play motion company with the successful completion of both the acquisition of Motor Products and the sale of a significant portion of our Power and Process segment. We also completed a significant restructuring of Motor Products during this period by consolidating its Ohio manufacturing facility into its Michigan plant. We are excited to focus our future efforts on continuing to expand the Company's motion control business,” continued Mr. Smith, “and are encouraged to report that business levels appear to have stabilized and we expect to see modest top line growth this coming year while at the same time we continue to pursue cost reductions.”

Dick Warzala, President of Allied Motion, states, “We are pleased with the progress made during the six month fiscal period toward the building of a significant platform within the motion control marketplace. Backlog at December 31, 2002 is up over 16% from the quarter ended September 30, 2002. We are optimistic that the continued implementation of our lean manufacturing and off-shore purchasing initiatives as well as facility reductions will substantially improve the performance within all of our existing operations. Additionally, we continue to actively pursue new acquisition opportunities to further our expansion in the motion industry.”

Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. With subsidiaries in the United States and United Kingdom, Allied Motion is a leading supplier of precision and specialty motion control components and systems to a broad spectrum of customers throughout the world.

The statements in this press release and in the Company's February 14, 2003 conference call that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements that may predict, forecast, indicate, or imply future results, performance, or achievements. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results of the Company to differ materially from the forward-looking statements. The risks and uncertainties include international, national and local general business and economic conditions in the Company's markets, introduction of new technologies, products and competitors, success in making acquisitions of motion control businesses, the ability to protect the Company's intellectual property, the ability of the Company to sustain, manage or forecast its growth and product acceptance, the continued success of the Company's customers to allow the Company to realize revenues from its order backlog and to support the Company's expected delivery schedules, the continued viability of the Company's customers and their ability to adapt to changing technology and product demand, the ability of the Company to meet the technical specifications of its customers, the continued availability of parts and components, increased competition and changes in competitor responses to the Company's products and services, changes in government regulations, availability of financing, the ability of the Company's lenders and financial institutions to provide additional funds if needed for operations or for making future acquisitions and the ability to attract and retain qualified personnel who can design new applications and products for the motion control industry. The Company's ability to compete in this market depends upon its capacity to anticipate the need for new products, and to continue to design and market those products to meet customers' needs in a competitive world. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements as a prediction of actual results. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.