DENVER--(BUSINESS WIRE)--July 22, 2004--Allied Motion Technologies, Inc. (NASDAQ: AMOT) announced today it has signed an agreement to acquire Precision Motor Technology B.V. (Premotec) located in Dordrecht, the Netherlands. The purchase price is approximately EUR 3.75 million (U.S. $4.5 million) consisting of a combination of cash and shares of common stock of Allied Motion. Allied Motion has received a commitment from a bank in the Netherlands to provide a term loan for the acquisition plus a post closing working capital line of credit. The closing of the acquisition is subject to the registration of the Allied Motion common stock to be issued as part of the purchase price with the U.S. Securities and Exchange Commission, each party's compliance with regulatory or government approvals, and customary closing conditions. The closing is scheduled for the third quarter of 2004.

Premotec has been manufacturing small precision electric motors for more than thirty years which utilize four different motor technologies: Brushless DC, Coreless DC, Iron Core DC, and Permanent Magnet Stepper and Synchronous motors, and also offers a range of reduction gearboxes tailored to a number of these motors. The products are manufactured at Premotec's facility in the Netherlands and at a contract manufacturing facility in Eastern Europe. Premotec's products are sold to OEM customers in Europe and the United States and through distributors to smaller OEM's in almost all countries of the EEC. The products are used in a wide variety of industrial, professional and medical applications, such as fuel injection systems, bar code readers, laser scanning equipment, HVAC actuators, dialysis equipment, industrial ink jet printers, waste water treatment, cash dispensers, dosing systems for the pharmaceutical industry, textile manufacturing, document handling equipment and studio television cameras. For 2003, Premotec had revenues of approximately U.S. $10 million, and its total assets at March 31, 2004, were approximately U.S. $3.5 million. During the last half of 2003 and continuing into 2004, Premotec has experienced an increase in revenue and profits over the prior year's results.

"We are very excited about the addition of Premotec to Allied Motion," commented Richard Smith, Allied Motion's CEO. "This acquisition furthers our growth strategy by enabling us to continue to expand our product offerings, engineering capabilities and involvement with existing and new markets." Also commenting on the acquisition, Richard Warzala, President of Allied Motion, stated, "Premotec's products and business complement those of Allied Motion, and its business is very well aligned with our existing businesses. In addition to its impressive product offering, Premotec has a strong management team. The addition of Premotec will also provide new European market opportunities for Allied Motion."

Headquartered in Denver, Colorado, Allied Motion designs, manufactures and sells motion control products into applications that serve many industry sectors. 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 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 Allied Motion Technologies, Inc. and its subsidiaries (the "Company") to differ materially from the forward-looking statements. With respect to the proposed acquisition of Premotec, risks and uncertainties may include the possibility that the conditions to the closing are not met and that the closing does not occur or may take place later than planned; the proposed bank financing is not available or is unavailable on terms acceptable to the Company; the Company has difficulties retaining or servicing Premotec's customers; the increase that Premotec has experienced in its revenues and profits does not continue; and it takes the Company longer than planned to integrate Premotec's products and customers into the Company's business model. Risks and uncertainties that may be associated with the Company's general business could 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 revenue 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 and 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 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 or indication 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.

    CONTACT: Allied Motion Technologies, Inc.
             Richard Smith, 303-799-8520
             or
             Sue Chiarmonte, 303-799-8520

    SOURCE: Allied Motion Technologies, Inc.